PFRDA to 'discuss' plan to raise equity exposure in NPS to 75%

The Pension Fund Regulatory and Development Authority (PFRDA) on Friday said it will discuss with the Centre a proposal to raise equity exposure in NPS to up to 75 per cent for the willing government employees, as is the case with the private sector employees. 

The equity exposure for the NPS subscribers from other than the government sector was increased to 75 per cent three years ago. 

The investment option for government employees was eased after a lot of discussions in 2019 and became effective from April 2019, PFRDA Chairman Supratim Bandyopadhyay said at a webinar organised by Centre for Policy Research. 

"Currently, they have a maximum equity exposure of 50 per cent but that too 50 per cent we call auto kind of investment. So this auto choice is nothing but it follows a lifecycle fund pattern where up to the age of 35, it will be 50 per cent in equity and balance will be going into bonds and government securities. It follows the same dictum that as the age goes up, your ability to take risk goes down," he said.