Proposed minimum assured-return scheme may fetch 2-7% rate of return

Committee set up by pension regulator to consider suggestions made by consultant for scheme

A consultant has advised the pension regulator to offer a rate of return in the range of two to seven per cent for a proposed minimum guaranteed return scheme planned for launch later this year.

The scheme’s rates of return will depend on the kind of products offered, government sources told 'Business Standard'. E&Y Actuarial Services LLP, the consultant to the Pension Fund Regulatory and Development Authority (PFRDA), gave a few scenarios to the regulator on the minimum-assured return scheme.

The scenarios include whether there is single premium or regular premium, whether there is fixed guarantee or variable guarantee, whether