National Pension System: PFRDA extends deadline for feedback on consultation paper on enhancing NPS

The Pension Fund Regulatory and Development Authority (PFRDA) has extended the deadline for public feedback on its consultation paper titled “Enhancing the National Pension System: Proposals for Flexible, Assured and Predictable Pension Schemes.”

New last date for submissions: November 30, 2025

Pension Scheme–1: Non-Assured, Flexible Decumulation

This option focuses on maximising pension wealth through a combination of a Step-up Systematic Withdrawal Plan (SWP) and an Annuity. It allows subscribers to decide how and when they wish to withdraw their accumulated corpus, offering flexibility in managing retirement income.

Pension Scheme–2: Assured Benefit Scheme

Designed to provide a Target Pension with periodic inflation adjustments linked to the Consumer Price Index for Industrial Workers (CPI-IW), this scheme aims to deliver a more stable and predictable pension payout.

Pension Scheme–3: Assured through Pension Credits

This innovative model introduces the concept of “Pension Credits.” Each credit guarantees a fixed monthly pension payout, helping subscribers plan their retirement goals more effectively. The approach also enhances transparency and engagement by linking contributions to clear, goal-based pension outcomes.

National Pension Scheme (NPS)

NPS is a market-linked defined contribution scheme that helps you save for your retirement. The scheme is simple, voluntary, portable and flexible. It is one of the most efficient ways of boosting your retirement income and saving tax. It allows you to plan for a financially secure retirement with systematic savings in a planned way.

NPS is available to all the citizens of India and offers different models depending on the following user segments:

All central government employees joining on or after January 1, 2004, are covered under the [NPS scheme](UPS-NPS switch November 30 deadline: 96% of central govt staff continue under National Pension System), except for those in the armed forces and is also extended to the employees of Central Autonomous Bodies from the said date.

It is also available to all state government employees/employees of State Autonomous Bodies, if the respective State/UT opted for it.

NPS can be voluntarily adopted by the corporates for their employees, and contributions are made to the NPS account as per the terms of employment.

The NPS voluntary model is available to all the citizens of India, including those residing abroad, between the ages of 18 and 70 years.