PFRDA Backs Pensionbazaar Launch, Seeks Tax Neutrality For Pension Payouts Ahead Of Budget

India’s pension regulator Pension Fund Regulatory and Development Authority (PFRDA) and insurance marketplace PB Fintech have signalled a coordinated push to expand pension coverage beyond government employees, with regulatory flexibility, digital distribution and tax reforms emerging as key focus areas.

Speaking to NDTV Profit alongside PB Fintech CEO Yashish Dahiya at the launch of Pensionbazaar.com, Sivasubramanian Ramann, Chairperson, PFRDA, said the regulator has consciously shifted focus to the non-government segment over the past few months.

Ramann said PFRDA has introduced flexibility in pension regulations to make products more attractive and adaptable, while emphasising the importance of a "phygital" distribution model to deepen penetration. "A fully pensioned society is not possible without strong private-sector participation," he said, adding that platforms like PB Fintech are critical to scaling adoption.

The PFRDA Chairman also revealed that the regulator has sent pre-Budget recommendations to the finance ministry, seeking tax-neutral treatment for annuities, at par with other pension payout products. "Uniform tax treatment is essential to encourage long-term retirement planning," Ramann said, flagging this as a key ask ahead of the Union Budget.

PB Fintech CEO Yashish Dahiya said the launch of Pensionbazaar was prompted by PFRDA’s push and aligns with the company’s long-term vision.

"You can’t become a developed nation without a pensioned population. Pension is one of the biggest unmet needs in India," he said. Dahiya noted that pension is among the four core financial products PB Fintech is deeply invested in, adding that its strength in health insurance will support cross-selling and trust-building in retirement products. He also highlighted the low cost of pension products as a structural tailwind.

On the GST changes impacting insurance, Dahiya said Policybazaar remains focused on reducing customer pain at the claims stage. He said strong disclosure practices and claim settlement performance have allowed the platform and its partners to smoothly pass on GST-related benefits to consumers, without any material financial impact on the company.