𝗣𝗙𝗥𝗗𝗔 𝗵𝗮𝘀 𝗲𝘅𝗽𝗮𝗻𝗱𝗲𝗱 𝘁𝗵𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗰𝗵𝗼𝗶𝗰𝗲 𝗼𝗽𝘁𝗶𝗼𝗻𝘀 𝘂𝗻𝗱𝗲𝗿 𝘁𝗵𝗲 𝗡𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗣𝗲𝗻𝘀𝗶𝗼𝗻 𝗦𝘆𝘀𝘁𝗲𝗺 (𝗡𝗣𝗦) 𝗳𝗼𝗿 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲𝗿𝘀 𝗼𝗳 𝗖𝗲𝗻𝘁𝗿𝗮𝗹 𝗔𝘂𝘁𝗼𝗻𝗼𝗺𝗼𝘂𝘀 𝗕𝗼𝗱𝗶𝗲𝘀 (𝗖𝗔𝗕𝘀).
PFRDA- Pension Fund Regulatory and Development Authority (PFRDA), through its Circular dated July 9, 2026 has broadened the investment framework applicable to Central Autonomous Body (CAB) subscribers by introducing two additional Auto Choice options under the National Pension System (NPS). The move aligns the investment choices available to CAB subscribers with those already available to Central Government subscribers.
Prior to this circular, CAB subscribers could choose between the Default Scheme, Active Choice (100% Government Securities), Auto Choice – Life Cycle 25 – Low (5E/55Y) and Auto Choice – Life Cycle 50 – Moderate (10E/55Y) options. The circular now increases the total number of investment choices from four to six by introducing:
(a) 𝐀𝐮𝐭𝐨 𝐂𝐡𝐨𝐢𝐜𝐞 – 𝐋𝐢𝐟𝐞 𝐂𝐲𝐜𝐥𝐞 𝟕𝟓 – High (15E/55Y): Equity exposure of 75% until the subscriber attains 35 years of age, gradually reducing to 15% by the age of 55.
(b) 𝐀𝐮𝐭𝐨 𝐜𝐡𝐨𝐢𝐜𝐞 – 𝐋𝐢𝐟𝐞 𝐂𝐲𝐜𝐥𝐞 – Aggressive (35E/55Y): Equity exposure of 50% until the subscriber attains 45 years of age, tapering thereafter to 35% by the age of 55.
Subscribers opting for any investment choice other than the Default Scheme must also select a Pension Fund from among the Pension Funds registered with PFRDA.
The circular encourages subscribers to make informed investment decisions after reviewing the performance of Pension Funds and schemes available on the NPS Trust website, reflecting PFRDA’s continued emphasis on investor choice and transparency.
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