Regulator PFRDA today said it has asked Pension Advisory Committee (PAC) to study the current norm mandating NPS subscribers to buy an annuity with 40 per cent of their accumulated corpus.
"There is an internal discussion on current norm of mandatory annuity of 40 per cent to make it more flexible. We had referred it to PAC for their view. It is currently in a very fluid state," Pension Fund Regulatory and Development Authority (PFRDA) CGM A G Das said on the sidelines of a session with Calcutta Chamber of Commerce here.
As National Pension System (NPS) has failed to attract private subscribers in a big way, PFRDA is trying to make the product more attractive.
The norm will allow flexibility to a subscriber to invest and draw money depending upon his actual needs and market conditions.
PFRDA has also created a separate asset class under which private sector NPS subscribers can invest up to 5 per cent in Alternative Investment Funds (AIFs) and Real Estate Investment Trusts (REITs).
Das said PFRDA has also introduced two new Life Cycle Funds -- Aggressive Life Cycle Fund and Conservative Life Cycle Fund for private sector subscribers to provide a pre-programmed diversification of assets in various asset classes as per the age and risk profile of the subscriber.
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