The pension regulator is taking a fresh look at how retirement money is invested in India.
To make the National Pension System (NPS) stronger and more future-ready, the Pension Fund Regulatory and Development Authority (PFRDA) has set up a high-level expert committee.
The goal is simple: help subscribers build better long-term retirement wealth while managing risks more effectively.
Contents
New Expert Panel to Review NPS Investments
The committee is called the Strategic Asset Allocation and Risk Governance (SAARG).
It will review the current investment rules under NPS and suggest changes in line with global best practices and India’s evolving financial markets.
The panel will be chaired by Narayan Ramachandran, former CEO of Morgan Stanley India and current Chairman of TeamLease Services.
It includes well-known names from capital markets, mutual funds, regulation, and securities law.
Some key members are Ananth Narayan, Devina Mehra, Kalpen Parekh, Prashant Jain, Rajeev Thakkar, Raamdeo Agrawal, Sankaran Naren, Sumit Agrawal, and PFRDA Executive Director Ashok Kumar Soni.
What the Committee Will Focus On
The SAARG will review investment norms for both government and private sector NPS subscribers.
It will compare India’s system with leading pension models across the world.
Its main focus areas include improving diversification, strengthening risk management, and ensuring better long-term pension outcomes.
The panel will study how NPS money is currently allocated across equity, debt, money market instruments, and alternative assets, and suggest improvements where needed.
New Asset Classes and Better Risk Control
One key task is to explore the introduction of new asset classes to protect retirement savings from economic shocks and global risks.
The committee will also look at how pension funds are measured and held accountable for performance.
Asset–liability management, which ensures investments match long-term pension needs, will be another major area of review.
Liquidity and stability measures—such as holding government securities to maturity, securities lending, and repo arrangements—will also be examined.
Governance, Sustainability, and Subscriber Choice
Beyond investments, the panel will review governance structures, including the role of custodians and other NPS intermediaries.
It will also assess how sustainability factors, like climate risks and net-zero transition goals, can be built into NPS investment decisions.
Improving subscriber choice is another priority.
This includes better lifecycle funds, target-date strategies, and a balanced mix of active and passive investment options.
What This Means for NPS Subscribers
The committee has nine months to complete its review and submit recommendations to PFRDA.
According to the regulator, setting up SAARG shows its commitment to keeping the NPS resilient, forward-looking, and aligned with long-term wealth creation goals.
If implemented well, these reforms could make NPS a more flexible, robust, and rewarding retirement option for millions of Indians.