As part of efforts to bolster India’s retirement ecosystem, the government has plans to further improve the National Pension System (NPS).
The Pension Fund Regulatory and Development Authority (PFRDA), on the occasion of NPS Diwas on October 1, released a 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 on NPS proposals
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)
The 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.
‘Inclusive Pensions, Innovative Solutions: Strengthening Retirement Security in India”
The PFRDA celebrated NPS Diwas 2025 at New Delhi on 1st October 2025, under the theme “Inclusive Pensions, Innovative Solutions: Strengthening Retirement Security in India.”
The flagship event, observed annually on October 1, convened senior policymakers, regulators, industry leaders, and stakeholders to deliberate on strategies for expanding pension coverage and strengthening India’s retirement ecosystem.
Delivering the keynote address on the occasion, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman said, “As India marches towards the vision of Viksit Bharat 2047, financial independence and dignity must remain at the core of our growth story. Pension planning is not a choice, but a necessity for every citizen to secure their old age.”