Why in the News?
The Pension Fund Regulatory and Development Authority has constituted a Committee of Investment Experts for Strategic Asset Allocation and Risk Governance (SAARG) to review and modernise the National Pension System investment framework.
What is SAARG?
- A high level expert committee constituted by PFRDA
- Mandate: Review, recommend and strengthen the investment architecture of NPS
- Objective: Support long term retirement wealth creation, diversification, risk management and subscriber choice
- Tenure: The Committee to submit its report within 9 months to PFRDA
Core Objectives of SAARG
- Strengthen NPS investment framework in line with
- Global pension best practices
- Indian investment ecosystem
- Improve Portfolio diversification, Risk governance, Liquidity management and Subscriber outcomes
Significance
- Enhances resilience and credibility of NPS
- Aligns pension investments with
- Long term demographic needs
- Global best practices
- Supports retirement security for a growing subscriber base
Prelims Pointers
- SAARG is an expert committee, not a statutory body
- NPS is regulated by PFRDA, not RBI or SEBI
- Focus on strategic asset allocation and risk governance
- Sustainability and climate risk integration included in pension investments
| [2017] Who among the following can join the National Pension System (NPS)?
(a) Resident Indian citizens only (b) Persons of age from 21 to 55 only (c) All State Government employees joining the services after the date of notification by the respective State Governments (d) All Central Governments Employees including those of Armed Forces joining the services on or after 1st April, 2004 |
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