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Irda scraps 4.5% assured return on pension plans

The Insurance Regulatory and Development Authority (Irda) has decided to do away with the 4.5 per cent guaranteed annual return clause from pension products. In a draft exposure on the pension plans, the insurance regulator, while allowing more flexibility to insurers, said these products should carry an “assured benefit” disclosed at the time of issuance. “The Irda had earlier required all pension products to ensure an accumulation at a rate of 4.5 per cent which was also indexed to the reverse repo rate of the Reserve bank of India (RBI). Because of the uncertainty in ...