PFRDA approves up to 75% equity allocation for Central Govt NPS and UPS subscribers. Details here

With the introduction of two new auto-investment options, the total number of investment choices for CG subscribers has increased from 4 to 6. The aim is to give government employees greater flexibility in tailoring their retirement savings to their risk preferences.

Existing options expanded

Until now, CG subscribers could choose from the default scheme, an active choice permitting 100% investment in government securities, or two graded Auto Choice Life Cycle options—Life Cycle 25 (Low) and Life Cycle 50 (Moderate).

According to PFRDA, only about 4% of Central Government subscribers have opted for alternatives to the Default Scheme.

Two new auto choice options introduced

The new investment choices offer higher equity exposure for subscribers seeking potentially greater long-term returns:

• Auto Choice – Life Cycle 75 (High): Features 75% equity exposure until age 35, gradually tapering to 15% by age 55.

• Auto Choice – Life Cycle – Aggressive: Provides 50% equity exposure until age 45, tapering to 35% by age 55.

Both options continue their respective equity allocations until the subscriber exits the system.

Requirements for selecting alternative schemes

Subscribers who opt out of the Default Scheme must now select one of the five non-default investment options and choose one Pension Fund from among the ten currently registered with PFRDA.

The Authority has urged subscribers to review the performance of schemes and Pension Funds before making a decision. Performance data is available on the NPS Trust website.

PFRDA also confirmed that it has completed a review of the naming conventions for Auto Choice / Life Cycle funds to ensure greater clarity and consistency. A previous circular on the rationalisation, issued on October 17, 2025, has been attached for reference.

Changes already implemented

Central Recordkeeping Agencies (CRAs) have already rolled out the expanded investment options for all eligible Central Government subscribers.

Annexure I to the circular details the Default Scheme’s asset allocation framework, which permits investments of up to 65% in government securities, up to 45% in debt instruments, up to 25% in equities (effective April 1, 2025), up to 10% in money market instruments, and up to 5% in alternative assets.