NPS guaranteed return product to have floating rates, reset every year

Guarantee benchmarked to the rate of return on ten-year government security

A minimum assured return scheme (MARS) in the new pension system (NPS) would have a floating rate which would reset every year under the proposed new product to be launched by the pension regulator early next financial year.

There would be a lock-in period of ten years for the product and the guarantee would be benchmarked to the rate of return on ten-year government security, Supratim Bandyopadhyay, chairman of the pension fund regulatory and development authority (PFRDA), told 'Business Standard'.

"The guarantee is not a fixed guarantee, it is a floating one every year," he said.

Suppose the guarantee is