State Government has already adopted the new choices of the Pension Fund Managers (PFMs) as introduced by PFRDA, vide letter No. 2/32/2012 1Pension (FD) dated 17/21.02.2022. Now, after due consideration, State Government has also decided to adopt the choices of Investment Pattern as introduced by PFRDA, as per decail below, in the Tier-1 of the NPS for the employees of the State Government. The following options for investment choices shall be offered to Government subscribers:
- Default Scheme: The existing scheme in which funds are allocated among three Public Sector Undertaking Fund Managers shall continue as default scheme for both existing and new subscribers.
- Scheme G- Employees who prefer returns with comparatively less amount of risk shall be given an option to invest 100% of the funds in Government Securities. (I) Asset Class G: 100% of contribution will be invested in Government Bonds and related investments. ii) In the case of Government employees / subscribers the active choice of Asset Allocation is restricted to Asset Class ‘G’ only.
- Auto Choice: The employee preferring better returns both comparatively higher risk shall be given the option of the following Life Cycle (LC) based scheme: (a) LC 50% It is Life Cycle Fund where the Cap to Equity investment is 50% of total asset. (b) LC 25% It is Life Cycle Fund where the Cap to Equity investment is 25% of total asset.
Exercise of Option:
Government subscribers may exercise one of the above choices of Investment Pattern twice (2) in a financial year.