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Minimum Assured Return Scheme (MARS)
Why is it in the news ?
- Pension fund regulator PFRDA is working on a minimum assured return scheme (MARS) for subscribers of the flagship social security programme National Pension System(NPS).
More in the news
- NPS is a contributory retirement savings scheme and seeks to inculcate the habit of saving for old age among the citizens.
- NPS, a government-sponsored pension scheme, was launched in January 2004 for government employees.
- It was opened to all sections in 2009.
- A subscriber can contribute regularly in a pension account during her working life, withdraw a part of the corpus in a lumpsum and use the remaining corpus to buy an annuity to secure a regular income after retirement.
- NPS, having an asset under management (AUM) of Rs 2.91 lakh crore, had subscriber base of 1.21 at the end of January 2019.
- The regulator is in the process of designing and developing MARS, according to a document of the Pension Fund Regulatory and Development Authority (PFRDA).
Source
The Hindu.