Summary: PFRDA, through Circular No. PFRDA/2026/39/SUP-CGSG/01 dated 09.07.2026, has expanded the investment choice options under the National Pension System (NPS) for subscribers of Central Autonomous Bodies (CABs), pursuant to Office Memorandum F.No. 1(3)/EV/2020 dated 01.07.2026 issued by the Department of Expenditure, Ministry of Finance. The circular introduces two additional Auto Choice investment options—Auto Choice – Life Cycle 75 – High (15E/55Y), providing 75% equity exposure until age 35 and tapering to 15% by age 55, and Auto Choice – Life Cycle – Aggressive (35E/55Y), providing 50% equity exposure until age 45 and tapering to 35% by age 55. With these additions, CAB subscribers now have six investment choices, including the Default Scheme, Active Choice (100% G-Sec), and four Auto Choice life cycle options. Subscribers opting for any non-default investment choice must select one of the five alternative options and choose a Pension Fund registered with PFRDA. The circular also advises subscribers to review scheme and Pension Fund performance available on the NPS Trust website before exercising their investment choice. The circular is issued 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.
Pension Fund Regulatory and Development Authority
Circular No.: PFRDA/2026/39/SUP-CGSG/01 | Dated: 09.07.2026
To:
All NPS Stakeholders
Subject: Enhancement of Investment Choice Options under NPS for subscribers of Central Autonomous Bodies (CABs)
1. Pursuant to the Gazette Notification No. FX-4/2/2025-PR dated 13.11.2025 issued by the Department of Financial Services, Ministry of Finance, PFRDA through Circular No. PFRDA/2025/21/Reg-PF/03 dated 01.12.2025 had notified the expansion of the investment choice options for Central Government (CG) subscribers.
2. Similarly, in furtherance to Office Memorandum F.No. 1(3)/EV/2020 dated 01.07.2026 issued by the Department of Expenditure, Ministry of Finance, PFRDA hereby notifies the expansion of the existing investment choice options under the NPS for subscribers of CABs. Two additional Auto Investment Choice options have been introduced, thereby increasing the total number of available choices for subscribers of CABs to six.
The following investment choices are currently available to CAB subscribers:
| Existing Investment Choice under NPS |
Description |
| Default Scheme |
Contributions are invested as per a predefined asset allocation pattern managed by three Pension Funds. |
| Active Choice (100% G-Sec) |
Investment solely in Government Securities. |
| Auto Choice – Life Cycle 25 – Low (5E/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. |
4. In accordance with the Office Memorandum F.No. 1(3)/EV/2020 dt 1 July 2026 issued by the Department of Expenditure, the following two additional Auto Choice options are introduced:
| Additional Investment Choice Options under NPS |
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 choice other than the Default Scheme shall be required to:
(a) exercise one of the five non-default investment options as mentioned above, and
(b) select one Pension Fund from the 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. 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 sincerely
(Vikas Kumar Singh)
Chief General Manager
