NPS subscribers will soon be able to change asset allocation 4 times a year


As an NPS subscriber, you may soon be allowed to change the asset allocation of your National Pension System (NPS) funds up to four times a year. This flies in the face of the current standard of no more than two changes allowed per year, PFRDA chairman Supratim Bandyopadhyay said on Tuesday.

There have been a lot of requests from NPS subscribers to increase the frequency of the switches and so this is being considered, Bandyopadhyay said while answering a question during a webinar hosted by Assocham on the “National Retirement System for Business” .

Additional switches

So that would mean that by looking at market trends, the next time Nifty50 announces a sudden 10% drop and NPS subscribers want to increase their allocation to stocks, they could go ahead and take advantage of the higher cap of switches. Similarity, if interest rates in the economy were to rise, then NPS subscribers can make a change to increase their debt allocation, the PFRDA chairman explained. He also said the two additional switches would also be free for NPS subscribers.

India’s pension assets under management exceeded 6.8 lakh crore, growing at a compound annual growth rate of around 30%.

At the same time, Bandyopadhyay warned NPS subscribers not to treat NPS like a mutual fund and advised them to “use switches wisely.” “People confuse it with mutual funds. You should treat it as an ongoing retirement corpus for retirement purposes. You will have to give a little time and use it wisely. But we will increase it (switches) to 4 times, ”he added.

In discussion with IRDAI

Meanwhile, Bandyopadhyay also said the PFRDA was in talks with insurance regulator IRDAI to allow annuity service providers to introduce “variable annuity” products – to cushion rising inflation – on the market. market at the earliest.

“We are making a lot of changes. We learn from situations. Even recently looking at the increase in Indian longevity, we had raised the maximum age of entry for NPS to 70 from 65 and allowed NPS subscribers to continue with NPS until age 75 ” .

In the four months after the easing of the entry age standard, up to 1,200 people between the ages of 66 and 70 have opted for the NPS, he added.

Bandyopadhyay pointed out that the NPS is not only a retirement solution, but during the accumulation phase it also offers a competitive return. He noted that equity funds have given a compound return of 12.8 percent since 2009, while the debt category has returned 9.86 percent and G-sec has returned 9.4. percent.

Business start-up

Bandyopadhyay urged companies to “hold hands” with their employees by subscribing to the NPS.

“Businesses have an important and important role to play. A word from the employer will go a long way in building employee membership in the NPS. We have the breadth but not the depth (in the corporate NPS), ”he said.

So far 9,600 companies have registered with NPS and 13 lakh employees have opted for NPS through this route. In total, there are 4.8 million clients (mostly government and public sector employees) of the NPS and other plans in the country.


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