New Delhi: Regulator PFRDA will appoint an actuary to figure out the extra funding required for providing the guaranteed amount under Atal Pension Yojana.
APY guarantees pension of up to Rs 5,000 per month to its subscribers, depending upon the contribution committed.
PFRDA invites Expression of Interest (EOI) from reputed actuary/actuarial firm for valuation to estimate the likely shortfall or otherwise on account of the minimum guaranteed pension and suitable provisioning for gap funding under Atal Pension Yojana(APY), Finance Ministry said in a release.
The firm should have carried out the actuarial valuation of at least 10 funds in the preceding 5 financial years, and at least 2 of the funds should have had the minimum size of Rs 5,000 crore, it said.
APY was launched in May 2015, open for subscribers in the age group from 18-40 years.
The scheme specifically targets the under-privileged sections of society in the unorganised sector.
As on date, 1.08 crore subscribers have been registered under APY and more than Rs 4,500 crore collected from the subscribers.
The actuary will be required to establish the present financial status and likely future financial development of the social security scheme and provide an estimate to the government regarding the likely shortfall.
Besides, the actuarial will also be needed to study the pension liability and feasibility for increase of pension slab of minimum guaranteed pension amount to Rs 6000, Rs 7,500 and Rs 10,000 and increase of entry age from 40 years to 55 years. Currently, it is between Rs 1,000 and Rs 5,000 a month.
Among others, it will also be needed to study the liability on the government with regard to payouts, monitor the progress of the scheme, track the actuarial valuations and liabilities as well as to know the fund position with with relation to fixed pension liability.
