NPS subscribers in Central Autonomous Bodies get two new investment options under PFRDA framework

The move follows an Office Memorandum issued by the Department of Expenditure, Ministry of Finance, on July 1, 2026. With the addition of the two new options, CAB subscribers can now choose from six investment options under the NPS.

• Auto Choice – Life Cycle 75 (High): Invests up to 75% of the corpus in equities until the subscriber turns 35. The equity allocation is then gradually reduced, reaching 15% by the age of 55.
• Auto Choice – Life Cycle Aggressive: Maintains a 50% equity allocation until the subscriber reaches 45 years of age, after which it gradually declines to 35% by the age of 55.

Before this change, CAB subscribers had access to four investment options: the Default Scheme, Active Choice (100% Government Securities), Auto Choice – Life Cycle 25 (Low), and Auto Choice – Life Cycle 50 (Moderate).

Subscribers opting for any investment option other than the Default Scheme will also have to select one of the pension funds registered with PFRDA.

"Subscribers are advised to exercise their investment choice judiciously, based on a review of the performance of schemes and Pension Funds. Updated scheme-wise and Pension Fund-wise performance information is available on the NPS Trust website, and subscribers are encouraged to make informed decisions," the regulator said.

The regulator said the expansion is intended to provide CAB subscribers with greater flexibility in aligning their pension investments with their risk appetite and long-term retirement goals.