Govt employees to enjoy greater say in how their NPS corpus is invested

Younger employees should raise their allocation to equities in this very long-term investment instrument

The Pension Fund Regulatory and Development Authority (PFRDA) recently issued a notification that enhances the choices that central government employees can make in their investments in National Pension System (NPS). While earlier their pension money was invested according to a government-mandated pattern, now the employees will have greater say in how and where their money should be invested.

The first change is that they will have more pension fund managers (PFMs) to choose from. Earlier, central government employees’ money was divided among the three public-sector PFMs: LIC, SBI and UTI. Now, they will also be able to invest their money