Investment options for central government employees have been expanded, with the PFRDA allowing two new auto-choice options.

The Pension Fund Regulatory and Development Authority (PFRDA) has expanded the investment options for central government employees under the National Pension System (NPS) and Unified Pension System (UPS). PFRDA has allowed two new auto choice options, taking the number of investment options to six. According to a PFRDA circular issued on December 1, the two new auto choice investment options have been added: Auto Choice Life Cycle 75- High (15E/55Y) and Auto Choice-Life Cycle-Aggressive (35E/55Y).

Under Auto Choice Life Cycle 75 High (15E/55Y), 75% of the subscriber's contribution will be invested in equities until they reach the age of 35, and then gradually reduced to 15% upon reaching the age of 55. This limit will remain in place until they exit the scheme.

How will the investment be made?
Under Auto Choice Life Cycle - Aggressive (35E/55Y), 50% of the subscriber's contribution will be invested in equities until they reach the age of 45, and then gradually reduced to 35% upon reaching the age of 55. This limit will remain in place until they exit. Currently, there are three Auto Choice options in addition to the default scheme. These include Active Choice, Auto Choice-Life Cycle 25-Low (5E/55Y) and Auto Choice Life Cycle 50-Moderate (10E/55Y).

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