Draft pension reforms aim to build investor confidence, PFRDA seeks input

PFRDA seeks public feedback on draft pension reforms, aiming for clearer wealth tracking and stable long-term returns under NPS and APY

The Pension Fund Regulatory and Development Authority (PFRDA) has released a draft consultation paper outlining key reforms aimed at improving transparency and long-term stability in India’s pension system. The regulator has sought stakeholder feedback on the proposals by November 30, 2025, PTI reported.

 

Focus on clarity and long-term stability

 

According to PFRDA, the proposed framework is designed to make pension wealth accumulation more transparent for subscribers while maintaining financial stability across schemes such as the National Pension System (NPS) and Atal Pension Yojana (APY).

 

The draft, titled ‘Alignment of Valuation Guidelines with the Core Objectives of Long-only Funds when Investing in Government Securities and Calculation of Net Asset Value (NAV)’, aims to modernise the way pension fund investments are valued and reported.

 

 

Dual valuation method proposed

 

One of the key proposals is the introduction of a dual valuation approach, combining accrual-based and fair market-based valuation for long-term government securities held under pension schemes.

 

This move seeks to:

 

Reflect a stable picture of pension wealth during the accumulation phase.

 

Reduce short-term volatility in the Net Asset Value (NAV) caused by temporary interest rate movements.

 

Ensure that pension fund valuations better mirror the long-term investment goals of the NPS and APY.

 

By aligning the valuation of assets with the long-term nature of pension investments, PFRDA aims to strengthen investor confidence and channel pension savings towards infrastructure and capital formation projects, the PTI report said.

 

Stakeholders’ role in shaping reforms

 

The regulator has invited comments and suggestions from a wide range of stakeholders -- including NPS subscribers, pension fund managers, policy experts, academics, and the general public.

 

Feedback can be submitted to PFRDA by November 30, after which the inputs will be reviewed to finalise the framework.

 

The proposed reforms reflect PFRDA’s ongoing efforts to enhance governance, protect subscriber interests, and ensure that India’s pension ecosystem remains robust and future-ready, PTI added.