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  5. National Pension System: PFRDA proposes 3 new NPS schemes for assured retirement income. Details here

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National Pension System: PFRDA proposes 3 new NPS schemes for assured retirement income. Details here

Upstox
By Upstox News Desk

2 min read | Updated on October 01, 2025, 15:00 IST

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SUMMARY

The consultation paper is available on PFRDA website under the tab research and publication. PFRDA is seeking feedback from all stakeholders, including NPS participants, prospective subscribers, pension funds, industry experts, academia and the general public.

3 new NPS schemes

PFRDA is seeking feedback from all stakeholders, including NPS participants, prospective subscribers, pension funds, industry experts, academia and the general public. | Image: Shutterstock

The Pension Fund Regulatory and Development Authority (PFRDA) has released a Consultation Paper titled "Enhancing the National Pension System: Proposals for Flexible, Assured and Predictable Pension Schemes" on September 30, 2025. The aim is to improve the post-retirement income security of NPS subscribers by offering new and improved pension payout options.

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The paper proposes three distinct schemes under the NPS framework:

Pension Scheme-1 (Non-Assured, Flexible Decumulation) offers flexibility with a step-up systematic withdrawal plan (SWP) and annuity, focusing on maximizing pension wealth.

Pension Scheme-2 (Assured Benefit) provides a guaranteed pension amount, adjusted periodically for inflation based on CPI-IW.

Pension Scheme-3 (Assured through Pension Credits) introduces “Pension Credits”, where each credit ensures a fixed monthly payout, making the system more predictable and goal-oriented.

The consultation paper is available on PFRDA website under the tab research and publication.

(Link: https://pfrda.org.in/en/web/pfrda/w/consultation-paper)
PFRDA is seeking feedback from all stakeholders, including NPS participants, prospective subscribers, pension funds, industry experts, academia and the general public. The Authority encourages thorough review and constructive inputs on the proposals to ensure the successful development and implementation of these schemes.

Stakeholders are requested to submit their comments, inputs and feedback using the Feedback Template provided within the consultation paper by 31st October 2025.

Meanwhile, the government has granted a two-month extension for eligible Central Government employees and past retirees to transition from the National Pension System (NPS) to the Unified Pension Scheme (UPS). The final deadline to make this choice is now November 30, 2025.
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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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