PFRDA Introduces Retirement Income Schemes for NPS Subscribers

The Pension Fund Regulatory and Development Authority (PFRDA) has launched Retirement Income Schemes (RIS) for National Pension System (NPS) subscribers. This initiative allows retirees to receive periodic, phased payouts from the portion of their corpus not allocated to mandatory annuities.

RIS payouts can be scheduled monthly, quarterly, or annually until the age of 85. The remaining corpus stays invested through a life-cycle approach, with asset allocation shifting as the subscriber ages. RIS does not replace the mandatory annuity requirement, which still necessitates using 20% to 40% of the total corpus for a regular pension.

Editor's note: The brief provides a clear, accurate summary of the RIS scheme and correctly identifies the PFRDA launch details.