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Government Clears Expansion of Pension Investment Options for Central Employees
Pension: The government has approved the expansion of two investment options, Life Cycle and Balanced Life Cycle, for central government employees under the National Pension System (NPS) and the Unified Pension Scheme (UPS). The Finance Ministry announced this on Friday. Let's learn more about this.
Under the National Pension System (NPS) and the Unified Pension Scheme (UPS), the government has approved the expansion of two investment options, Life Cycle and Balanced Life Cycle, for central government employees. The Finance Ministry announced this on Friday. This decision follows persistent demands from central government employees for a wide range of investment options similar to those available to non-government contributors.
The Finance Ministry stated that these options have been designed to enhance flexibility in retirement planning and allow employees to manage their retirement funds according to personal preferences.
Under the NPS and UPS, central government employees can now choose from a variety of investment options. Under the default option, a "default pattern" of investment is established as defined by the Pension Fund Regulatory and Development Authority (PFRDA) from time to time. The second option is Scheme G, in which 100% investment will be made in government securities for low-risk, assured returns.
