On 01 OCT 2025, the Pension Fund Regulatory and Development Authority (PFRDA) released a Consultation Paper titled "Enhancing the National Pension System: Proposals for Flexible, Assured and Predictable Pension Schemes" to advance the National Pension System (NPS). The consultation paper, dated September 30, 2025, proposes three distinct schemes under the NPS:
* Pension Scheme-1 (Non-Assured, Flexible Decumulation): focuses on maximizing pension wealth through a mix of a Step-up Systematic Withdrawal Plan (SWP) and an Annuity.
* Pension Scheme-2 (Assured Benefit): provides 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 "Pension Credits," where each credit assures a fixed monthly pension payout.
The consultation paper is available on the PFRDA website under the tab Research and Publication (https://pfrda.org.in/en/web/pfrda/w/consultation-paper). PFRDA seeks feedback from stakeholders, including NPS participants, subscribers, pension funds, industry experts, academia, and the general public. Stakeholders are requested to submit their comments, inputs and feedback using the Feedback Template provided within the consultation paper by 31st October 2025. (Release ID: 2173502)
Key Entities Referenced
Pension Fund Regulatory and Development Authority (PFRDA): The regulatory body that released the consultation paper.
Enhancing the National Pension System: Proposals for Flexible, Assured and Predictable Pension Schemes: The title of the consultation paper, which is a key initiative to advance the National Pension System (NPS).
National Pension System (NPS): The pension system that the consultation paper aims to enhance.
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
(cid:109)
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
(cid:109)
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
(cid:109)
"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.
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(Release ID: 2173502)