Pension Fund Regulatory and Development Authority (PFRDA) has issued a consultation paper titled “Enhancing the National Pension System: Proposals for Flexible, Assured and Predictable Pension Schemes” on 30 September 2025, seeking public feedback to strengthen the National Pension System (NPS). The initiative aims to make post-retirement income more predictable and adaptable for subscribers through three new scheme options.
Pension Scheme-1 (Non-Assured, Flexible Decumulation) offers flexibility by combining a step-up Systematic Withdrawal Plan (SWP) with annuity options to help maximize pension wealth. Pension Scheme-2 (Assured Benefit) introduces a target pension with inflation-linked adjustments based on the Consumer Price Index for Industrial Workers (CPI-IW), ensuring a stable income stream. Pension Scheme-3 (Assured through Pension Credits) presents a new concept where subscribers accumulate “Pension Credits,” each representing a fixed monthly payout, thereby enhancing certainty and aligning savings with defined retirement goals.
The consultation paper is available on the PFRDA website under the “Research and Publication” section. PFRDA has invited comments from a wide range of stakeholders, including existing and potential NPS subscribers, pension funds, policymakers, academia, and industry experts. Feedback can be submitted using the designated template provided in the document until 31 October 2025.
This consultation marks an important step toward refining the NPS framework to balance flexibility with assured returns and to meet the evolving retirement needs of India’s workforce. By incorporating stakeholder input, PFRDA aims to develop a more inclusive and reliable pension architecture that enhances long-term financial security for subscribers.
Ministry of Finance
PFRDA Releases Consultation Paper on ‘Enhancing the National Pension System’ for Public Feedback
Posted On: 01 OCT 2025 1:23PM by PIB Delhi
The Pension Fund Regulatory and Development Authority (PFRDA) has released a comprehensive Consultation Paper titled “Enhancing the National Pension System: Proposals for Flexible, Assured and Predictable Pension Schemes.” It serves as a key initiative to advance the National Pension System (NPS) by introducing enhanced options designed to provide greater certainty and predictability in post-retirement income for subscribers.
The Consultation Paper, dated September 30, 2025, proposes three distinct schemes under the NPS framework, each catering to different subscriber needs for assured and flexible pension payouts:
- Pension Scheme-1 (Non-Assured, Flexible Decumulation): This scheme focuses on maximizing pension wealth through a mix of a Step-up Systematic Withdrawal Plan (SWP) and an Annuity.
- Pension Scheme-2 (Assured Benefit): An assured benefit scheme designed to provide a Target Pension with periodic inflation adjustments based on the Consumer Price Index for Industrial Workers (CPI-IW).
- Pension Scheme-3 (Assured through Pension Credits): Introduces the innovative concept of “Pension Credits,” where each credit assures a fixed monthly pension payout, enhancing predictability and subscriber engagement through a goal-based framework.
Invitation for Stakeholder Comments
The consultation paper is available on PFRDA website under the tab Research and Publication.
(Link: https://pfrda.org.in/en/web/pfrda/w/consultation-paper)
PFRDA is seeking feedback from all stakeholders, including NPS participants, prospective subscribers, pension funds, industry experts, academia and the general public. The Authority encourages thorough review and constructive inputs on the proposals to ensure the successful development and implementation of these schemes.
Stakeholders are requested to submit their comments, inputs and feedback using the Feedback Template provided within the consultation paper by 31st October 2025.
