NEW DELHI: The Pension Fund Regulatory and Development Authority (PFRDA) is working on a new minimum assured returns scheme, chairman Deepak Mohanty said on Wednesday.
“That is very much in the works. There, we have to balance the risk and return. If it’s fixed assured return, you will have to bring in guarantee. So, it has a cost. . . we have to manage the risk because the pension funds providing the guarantee would have to provide more capital. We also have to see that the returns look attractive,” Mohanty said.
Mohanty, who took over as the PFRDA chairman earlier this year, did not provide a timeline by which the scheme would be rolled out.
“That is very much in the works. There, we have to balance the risk and return. If it’s fixed assured return, you will have to bring in guarantee. So, it has a cost. . . we have to manage the risk because the pension funds providing the guarantee would have to provide more capital. We also have to see that the returns look attractive,” Mohanty said.
Mohanty, who took over as the PFRDA chairman earlier this year, did not provide a timeline by which the scheme would be rolled out.