PFRDA Introduces Retirement Income Scheme for NPS Subscribers

The Pension Fund Regulatory and Development Authority (PFRDA) introduced the Retirement Income Scheme (RIS) on May 15, 2026, allowing National Pension System (NPS) subscribers to withdraw regular payouts from their corpus. This scheme provides an alternative to lump-sum withdrawals for the portion of the corpus not designated for mandatory annuity purchase.

Under the RIS, subscribers can choose monthly, quarterly, or annual payouts until age 85. The scheme does not replace the mandatory annuity, which requires 20% or 40% of the corpus to be invested in pension products. Instead, the RIS applies to the remaining designated portion, creating a dual income stream for retirees.

The RIS Steady variant uses a life-cycle investment approach, starting with 35% equity allocation at age 60 and reducing it to 10% from age 75 onwards, while increasing debt exposure. This strategy aims to manage risk as subscribers age, ensuring the corpus remains invested during the payout period. Availability is open to both government and non-government NPS subscribers.

What to watch: Specific payout amounts, which depend on corpus value and chosen frequency, rather than a fixed pension figure.

Editor's note: The article effectively synthesizes the PFRDA scheme details, including the specific asset allocation of the RIS Steady variant and the operational mechanics.