Sivasubramanian Ramann, Chairperson at the Pension Fund Regulatory and Development Authority. Photo: Special Arrangement.
“Our job as a regulator is to make sure that pension funds come out with different products that suit different pockets and age groups as per their individual needs,” Chairperson at the Pension Fund Regulatory and Development Authority (PFRDA), Sivasubramanian Ramann stated in response to a query from The Hindu about the rationale for seeking tax neutrality across all pension payout plans of the National Pension Schemes.
For context, in the run-up to the budget, the pensions’ regulator has urged the government to accord a tax-neutral status to the newer products as well, such as those with systematic withdrawal plans, beyond those with traditional annuities.
Speaking at the launch of PB Fintech’s latest initiative, Pensionbazaar, Mr. Ramann stated, “Our job as a regulator is to make sure that pension funds come out with different products that suit different pockets and age groups to the extent that there is a tax advantage or treatment for annuity,” adding, “We have requested that same treatment be given for that additional 20% or 40% which somebody may want to use for other pension payout products. The reason it is tax neutral as far as the budget is concerned.”
Separately, responding to another query about traditional annuities becoming unpopular, the PFRDA Chairperson said the regulator has received “a lot of feedback” about annuities not being very popular. “However, I personally believe annuities are very important, they run with you for life and therefore, are a very important pension payout product but there is a mix and match, and thus, we are focussing on bringing additional pension payout products which will be used by customers as per their need.”
About the launch, Yashish Dahiya, Chairman and Group CEO at PB Fintech, held that the intent for the launch of Pensionbazaar is to ensure “middle class has these products [insurance and pension], and becomes aware of these products”. Specifically, on Pensionbazaar, “It would not just be the pension product, we will also try to bring healthcare and insurance along to create a holistic solution for pensions.”
On being asked if they would bundle health insurance and NPS, Mr. Dahiya said, “We will do whatever the regulatory regime permits.”
Published – January 14, 2026 11:16 am IST
