PFRDA given Investment Choices Under NPS and UPS for Central Government Employees

PFRDA given Investment Choices Under NPS and UPS for Central Government Employees

The Pension Fund Regulatory and Development Authority (PFRDA) has expanded investment options for Central Government employees enrolled under the National Pension System (NPS) and Unified Pension Scheme (UPS).

A circular issued on December 1, 2025, confirms that two new Auto Choice options have been introduced, taking the total number of available investment choices to six.

This decision follows a Gazette Notification by the Ministry of Finance dated November 13, 2025. Until now, most Central Government subscribers have been invested through the Default Scheme, with only around 4% choosing alternative investment options.

The newly added options are designed to offer more flexibility, especially for individuals seeking higher equity exposure at a younger age.

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Under the existing structure, subscribers can choose between the Default Scheme, a 100% Government Securities investment, and two Auto Choice Life Cycle models with low or moderate equity exposure.

The latest update introduces an Auto Choice – Life Cycle 75 option, which allows 75% allocation to equity up to the age of 35, tapering to 15% by age 55. Another newly added model focuses on an aggressive structure, maintaining up to 50% equity exposure until age 45 and 35% until age 55.

Subscribers opting for any non-default investment pattern must additionally select one of the ten PFRDA-registered Pension Funds to manage their contributions.

PFRDA has advised employees to make informed choices after reviewing performance details available on the NPS Trust website.

With these changes, the Authority has also rationalized the naming conventions of Life Cycle funds to ensure consistency and clarity for subscribers. The revised investment choices are already operational and accessible through Central Recordkeeping Agencies.