PFRDA Dual Valuation Proposal for NPS and APY Portfolios
Why in the news
PFRDA’s discussion paper suggests two valuation methods for pension holdings.
Key facts
- Covers NPS and Atal Pension Yojana.
- Accrual basis: value follows interest earned over time, giving stability.
- Mark-to-market: value follows current prices, giving realism.
Objectives
- Show subscribers their wealth growth transparently.
- Support stability and the true purpose of pension money.
- Fund productive infrastructure with long gestation.
Significance
- Blending the two methods balances prudence with economic realism.
Exam angle
- Regulator: PFRDA.