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PFRDA Draft on Dual Valuation of Pension Wealth

23 October 20251 min read
BANKING & FINANCEPFRDA Draft onDual Valuation ofPension Wealth23 October 2025safalsetu.com

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.

Test yourself

1. What valuation approach did PFRDA's consultation paper propose for long-term government securities?

It proposes combining accrual-based and fair market-based valuation.

2. PFRDA gained statutory authority in which year through the PFRDA Act?

It was established in 2003 and became statutory in 2013.

3. Which schemes are regulated by PFRDA according to the notes?

PFRDA regulates the National Pension System and Atal Pension Yojana.