The Pension Fund Regulatory and Development Authority (PFRDA) has released a draft proposal introducing a dual valuation framework for government securities held under the National Pension System (NPS) and Atal Pension Yojana (APY).

Here’s what the draft rules mean for subscribers and pensioners.

What are the draft rules?

Currently, all government securities in NPS/APY are valued daily using the mark-to-market method. This means the Net Asset Value (NAV) of your pension account reflects daily market prices, making your pension wealth appear volatile even though contributions are meant for the long term.

PFRDA’s draft proposes a dual approach:

Accrual/HTM (hold-to-maturity) valuation:

Interest earned on securities is recognised daily, and premiums or discounts are amortized over tim

See Full Page