PFRDA Forms ASCEND Committee to Attract Global Pension Capital into India Through NPS Partnerships

The Pension Fund Regulatory and Development Authority (PFRDA) has constituted an expert committee named ASCEND (Accelerated Scaling of Global Capital Ecosystem and NPS Development) to prepare a roadmap for attracting long-term global pension capital into India through partnerships with pension funds operating under the National Pension System (NPS). 

The initiative aims to strengthen India's pension ecosystem while supporting long-term financing for infrastructure and other development projects. 

What is the ASCEND Committee? 

The newly formed ASCEND committee has been tasked with exploring ways to enable Indian pension funds to collaborate with leading global pension funds through: 

According to PFRDA, these collaborations could help channel stable, long-term capital into infrastructure and other nation-building assets while supporting the continued development of India's capital markets. 

What Will the Committee Recommend? 

The committee will prepare recommendations on a policy, regulatory, and governance framework to facilitate participation by global pension investors while safeguarding the interests of NPS subscribers and maintaining financial stability. 

PFRDA stated that enhanced collaboration with global pension funds could also provide opportunities for portfolio diversification and improve long-term risk-adjusted returns for NPS subscribers. 

Members of the ASCEND Committee 

The six-member committee will be chaired by Dinesh Khara, Chairman of NPS Trust. Other members include: 

NPS Assets Under Management 

According to PFRDA, pension funds under the National Pension System currently manage assets worth around US$185 billion, equivalent to approximately ₹17.5 lakh crore. This represents nearly 5% of India's GDP and covers the retirement savings of more than 100 million NPS subscribers. 

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Why the Initiative Matters 

PFRDA said the ASCEND committee's recommendations are expected to help build a more globally integrated pension ecosystem. By facilitating partnerships with international pension funds, the regulator aims to attract long-term capital into infrastructure and other strategic sectors while supporting the continued expansion of the National Pension System. 

Conclusion 

PFRDA's formation of the ASCEND committee marks a step towards expanding global participation in India's pension ecosystem. The committee will develop a roadmap for attracting long-term global pension capital through NPS partnerships and recommend the policy and regulatory framework required to facilitate such collaborations while protecting subscriber interests. 

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