Safe-landing hypothesis needed in annuity schemes, says Irda...

There is a compelling need to introduce safe-landing provision in the annuity instrument (retirement-income insurance) of defined contribution of pension insurance schemes----as pensioners having their funds heavily loaded on equity side is likely to lose their investment in the event of a market crash during retirement, said R Kannan, member, Insurance Regulatory Development Authority (Irda) at the seminar of repositioning insurance industry in the emerging environment. Under the safe-landing provisions, claim contribution amount could be dislodged from equity to debt apparently to fixed interest money market so as a pensioner would receive a stable yield during post-retirement phase, he said. ...

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