Enhancement of Investment Choice Options under NPS & UPS for Central Government Subscribers: PFRDA Circular dated 01.12.2025
PFRDA
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
CIRCULAR
Circular No.: PFRDA/2025/21/Reg-PF/03
01st December 2025
To:
All NPS Stakeholders
Subject: Enhancement of Investment Choice Options under NPS & UPS for Central Government Subscribers
1. Pursuant to the Gazette Notification No. FX-4/2/2025-PR dated 13.11.2025 issued by the Ministry of Finance, Department of Financial Services, PFRDA hereby notifies the expansion of the existing Investment Choice Options under the NPS and UPS for Central Government (CG) employees. Two additional Auto Investment Choice options have been introduced, thereby increasing the total number of available choices to six.
2. The following investment choices are currently available to CG subscribers:
| Existing Investment Choice under NPS and UPS | Description |
| Default Scheme | Contributions are invested as per the predefined asset allocation pattern managed by three Pension Funds. The asset allocation pattern under Default Scheme is attached at Annexure I for ready reference. |
| Active Choice (100% G- Sec) | Investment solely in Government Securities. |
| Auto Choice – Life Cycle 25 – Low (SE/55Y) | The Subscriber’s contribution is invested with the equity exposure of 25% until they reach 35 years and the equity allocation tapers subsequently till it reaches 5% at the age of 55 years which continues till exit |
| Auto Choice – Life Cycle 50- Moderate (10E/55Y) | The Subscriber’s contribution is invested with the equity exposure of 50% until they reach 35 years and the equity allocation tapers subsequently till it reaches 10% at the age of 55 years which continues till exit |
3. At present, approximately 4% of CG subscribers have opted for an investment choice other than the Default Scheme.
4. In accordance with the above gazette notification, the following two additional Auto Choice options are introduced:
| Additional Investment Choice Options under NPS and UPS |
Description |
| Auto Choice – Life Cycle 75 – High (15E/55Y) | The Subscriber’s contribution is invested with the equity exposure of 75% until they reach 35 years and the equity allocation tapers subsequently till it reaches 15% at the age of 55 years which continues till exit |
| Auto choice – Life Cycle – Aggressive (35E/55Y) | The Subscriber’s contribution is invested with the equity exposure of 50% until they reach 45 years and the equity allocation tapers subsequently till it reaches 35% at the age of 55 years which continues till exit. |
5. Subscribers opting for any alternative investment choices other than the Default Scheme shall be required to:
-
- Exercise one of the five non-default investment options as mentioned above, and
- Select one Pension Fund from among the ten Pension Funds currently registered with PFRDA.
6. 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 PF-wise performance information is available on the NPS Trust website (www.npstrust.org.in), and subscribers are encouraged to make informed decisions.
7. PFRDA has undertaken a comprehensive review of the existing nomenclature of Auto Choice / Life Cycle (LC) Funds to ensure consistency with asset allocation patterns and age-based tapering structures. The circular issued on “Rationalization of Nomenclature of Auto Choice / Life Cycle Funds under the NPS” dated 17th October 2025 vide reference PFRDA/2025/16/Reg-PF/02 post such comprehensive review is attached at Annexure II for ready reference.
8. The enhanced investment choice options are already made available to CG subscribers by the Central Record keeping Agencies (CRAs).
9. This circular is issued in exercise of the powers conferred upon the Authority under Section 14(2)(b) read with Section 23 of the PFRDA Act, 2013, and Regulation 14(1) of the PFRDA (Pension Fund) Regulations, 2015.
Yours faithfully,
Chief General Manager
Encl.: A/a
Annexure I
Asset Allocation under Default Scheme
| Category | Investment Pattern | NPS / UPS Schemes |
| I | Government Securities and Related Investments | Up to 65% |
| II | Debt Instruments and Related Investments | Up to 45% |
| III | Equities and Related Investments (From 1st April 2025 limit increase to 25%) | Up to 25% |
| IV | Short Term Debt Instruments (Money Market) | Up to 10% |
| V | Asset Backed, Trust Structured and Misc. Investments – Asset class A | Up to 5% |
|
Total |
150% |
COMMENTS