PFRDA Seeks Feedback on New Pension Schemes with Assured and Flexible Options
SDG 1: No Poverty | SDG 8: Decent Work & Economic Growth
Institutions: Ministry of Finance
The PFRDA (Pension Fund Regulatory and Development Authority) has released a Consultation Paper titled “Enhancing the National Pension System: Proposals for Flexible, Assured and Predictable Pension Schemes” (dated September 30, 2025). It proposes three new schemes under the National Pension System (NPS) framework to offer retirees greater certainty, flexibility and predictability in post-retirement income.
Pension Scheme–1 (Non-Assured, Flexible Decumulation): Combines a Step-up Systematic Withdrawal Plan (SWP) with an annuity, designed to maximise pension wealth while keeping flexibility.
Pension Scheme–2 (Assured Benefit): Offers a target pension with inflation adjustment, linked to the CPI-IW index, ensuring purchasing power over time.
Pension Scheme–3 (Assured through Pension Credits): Introduces “Pension Credits”, where each credit guarantees a fixed monthly payout, enabling a goal-based and predictable retirement plan.
The consultation paper invites comments from NPS subscribers, prospective participants, pension funds, academia, and the general public until 31 October 2025, using the feedback template on the PFRDA website.
The proposals aim to strengthen India’s pension architecture by giving subscribers a choice between flexibility and assurance, a critical step in addressing longevity risk and ensuring income security under the National Pension System.
What is NPS? → The National Pension System, introduced in 2004, is a voluntary, defined-contribution retirement savings scheme regulated by PFRDA, open to all citizens, designed to provide financial security after retirement.
Follow the full release here: PIB Press Release PRID 2173502 | PFRDA Consultation Paper