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PFRDA Plans UPI Pension Accounts, Guaranteed Returns and Health Cover
PFRDA wants more informal workers to save money for retirement.
It is planning a system where workers already listed on e-Shram can open pension accounts using their phones.
They may be able to add money through UPI without visiting an office.
The service could use several Indian languages.
PFRDA is also designing a pension plan with guaranteed returns for private-sector workers.
The exact rules for that plan have not been announced.
Another planned product, called NPS Swasthya, would let people save for retirement while receiving help with some medical costs.
Its proposed rules include a minimum starting contribution of Rs.
25,000 and special withdrawal options for medical treatment.
PFRDA is developing a mobile-based system for e-Shram-registered informal workers to open pension accounts remotely.
The proposed system would allow workers to contribute through UPI and may be available in multiple Indian languages.
PFRDA is also working on a guaranteed-return pension product for private-sector subscribers, but key terms remain undecided.
NPS Swasthya is expected to launch soon, combining retirement savings with access to funds for medical expenses.
The proposed NPS Swasthya scheme would require a minimum initial contribution of Rs. 25,000 and may permit full corpus withdrawal for certain medical needs.
- Who
- The Pension Fund Regulatory and Development Authority, led by chairperson Sivasubramanian Ramann, is developing the initiatives for informal and private-sector workers.
- What
- PFRDA is planning UPI-enabled pension accounts, a guaranteed-return pension product, and the NPS Swasthya pension scheme.
- Where
- The account-opening service would operate through India’s e-Shram portal and mobile phones; NPS Swasthya would be offered through pension funds and related administrators.
- When
- The UPI system and guaranteed-return product are under development; final NPS Swasthya regulations are expected in the coming days, with a launch likely afterward.
- Why
- The initiatives aim to expand pension access, simplify enrollment, provide greater return certainty, and support medical expenses.
Key facts
- Target users
- Informal workers registered in the e-Shram database, along with private-sector subscribers.
- Enrollment method
- Eligible informal workers could open pension accounts through a few mobile-phone steps.
- Contribution method
- UPI would be used to make contributions to the proposed accounts.
- Language access
- The service is expected to be available in multiple Indian languages.
- Guaranteed-return plan
- PFRDA is developing a guaranteed-return pension product for private-sector subscribers.
- NPS Swasthya minimum contribution
- The proposed minimum initial contribution is Rs. 25,000.
- Medical withdrawal
- For certain inpatient expenses exceeding the eligible partial-withdrawal limit, subscribers may be able to exit early and withdraw 100% of their corpus as a lump sum.
Quotes
Sivasubramanian Ramann
Chairperson of the Pension Fund Regulatory and Development Authority
“We are, therefore, looking at how people, who are already registered on the database, can be enabled to open pension accounts through a simple, few-click process on their mobile phones. Once the account is opened, they can use UPI to make contributions to it”
financialexpress.com
“We have to work on a guaranteed-return scheme because there is a mandate under our Act”
financialexpress.com
Sources
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