PFRDA Draft on Dual Valuation of Pension Wealth
Why in the news
PFRDA released a consultation paper rethinking how pension fund holdings are valued and disclosed, for better transparency and long-term stability.
Key facts
- Proposal: a dual valuation approach for long-term Government Securities held by pension funds.
- Method: accrual-based plus fair market-based valuation.
Purpose
- Stronger governance and transparency; lower NAV volatility to protect subscribers.
- A steadier, simpler picture of pension wealth during the contribution phase.
- Less impact from short-term interest rate swings.
- Alignment with nation-building investments such as infrastructure.
About PFRDA
- Set up in 2003; statutory since 2013 under the PFRDA Act, 2013.
- Regulates the National Pension System and Atal Pension Yojana.
- Headquarters: New Delhi.
Exam angle
- Regulator: PFRDA; key term: dual valuation.