PFRDA Releases Draft Framework on Pension Wealth Accumulations

The Pension Fund Regulatory and Development Authority (PFRDA) has released a comprehensive consultation paper which aims to present pension wealth accumulations more clearly to subscribers while ensuring long-term financial stability and economic relevance.

The consultation paper is 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)'.

The framework proposed is part of PFRDA’s ongoing commitment towards improving governance, protecting subscriber interests and contributing for India’s broader financial and infrastructural growth, PFRDA said in a statement on Tuesday.

The Consultation Paper, dated October 17, 2025, proposes adoption of dual valuation framework (‘accrual’ and ‘fair market’) for long dated Government Securities held in NPS/APY to achieve alignment of Align pension fund investments with long-term capital formation, boosting stakeholder confidence by funding productive, long-gestation infrastructure assets, it said.

It proposes to depict stable and simplified pension wealth accumulation to subscribers during the accumulation phase and reduce the impact of short-term interest rate volatility on scheme NAV, since such fluctuations do not materially affect subscribers during the accumulation phase, it said.

PFRDA is seeking feedback on the proposal from all stakeholders, including NPS participants, prospective subscribers, pension funds, industry experts, academia and the general public, it said.

Stakeholders are requested to submit their comments, inputs and feedback on the consultation paper by November 30, 2025, it said.