Introduction of choice of Pension Funds and Investment Pattern in Tier-| of NPS for Central Government subscribers
CIRCULAR
PFRDA/2019/12/REG-PF/1 Date: 8" May, 2019
SUBJECT: Introduction of choice of Pension Funds and Investment Pattern in Tier-| of NPS for Central Government subscribers —reg.
Reference is invited to the Gazette Notification F.No.1/3/2016-PR dated 31% January, 2019 issued by Ministry of Finance, Department of Financial Services, modifying Ministry of Finance's Notification No. 5/7/2003-ECB dated 22 December, 2003, based on the Government's decision on the recommendations of a Committee set up to suggest measures for streamlining the implementation of National Pension System (NPS).
a; Accordingly, it has been decided to introduce the following options for Central Government subscribers:
(i) Choice of Pension Fund: As in the case of subscribers in the private sector, the Government subscribers shall also be allowed to choose any one of the pension funds including Private sector pension funds. They could change their option once in a year. However, the current provision of combination of the Public-Sector Pension Funds will be available as the default option for both existing as well as new Government subscribers.
(ii) Choice of Investment pattern: The following options for investment choices shall be offered to Government employees:
(a) The existing scheme in which funds are allocated by the PFRDA among the three Public Sector Undertaking fund managers based on their past performance in accordance with the guidelines of PFRDA for Government employees shall continue as default scheme for both existing and new subscribers.
(b) Government employees who prefer a fixed return with minimum amount of risk shall be given an option to invest 100% of the funds in Government securities (Scheme G).
(c) Government employees who prefer higher returns shall be given the options of the following two Life Cycle based schemes:
(A) Conservative Life Cycle Fund with maximum exposure to equity capped at 25% - LC-
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