Minimum assured returns can make defined contribution pension schemes more popular
There has been some media discussion on India’s pension markets. Deepak Mohanty, the newly appointed chairperson of the Pension Funds Regulatory and Development Authority (PFRDA) has mentioned at multiple occasions that the regulator will roll out a minimum assured return scheme (MARS) in the near future. Section 20 of the PFRDA Act (2013) lays out the legal framework for developing a National Pension System. Within Section 20, the Act says “the subscriber, seeking minimum assured returns, shall have an option to invest his funds in such schemes providing minimum assured returns as may be notified by the Authority”. Therefore, the PFRDA Act specifies that the PFRDA should develop a minimum assured return scheme for the subscribers.