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Thursday, May 31, 2018

Amendment to Investment Guidelines for NPS Schemes – PFRDA Circular

Amendment to Investment Guidelines for NPS Schemes {Other than Govt. Sector (CG & SG), Corporate CG, NPSLite and APY}

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan
Qutab Institutional Area,
Katwaria Sarai,New Delhi – 110 016.
Ph:011-26517501,26517503,26133730
Fax:011-26517507
Website:www.pfrda.org.in
CIRCULAR
PFRDA/2018/03/PF/03
Date: 22nd May, 2018
SUBJECT: Amendment to Investment Guidelines for NPS Schemes {Other than Govt. Sector (CG & SG), Corporate CG, NPS Lite and APY} —reg.
1. In partial modification of Circular No.PFRDA/2017/18/PF/2 dated 04.05.2017 pertaining to investment guidelines issued by the Authority for NPS Schemes {Other than Govt. Sector (CG & SG), Corporate CG, NPS Lite and APY}, it has been decided to amend Clause 10 of the said Circular as under:
“10. In the interest of subscribers in the non-government sector, the Central Recordkeeping Agency(s) (CRAs) would monitor ‘the ceiling of exposure in Asset Class E (Equity) upto 75%, C (Corporate Debt) upto 100%, G (Government Securities) upto 100% and Asset Class A (for Tier I only) upto 5% respectively’, to ensure that such limits are adhered to.”
2. The cap on equity investment has been increased to maximum limit of 75% from current permissible limit of 50% in active choice for private sector subscribers under NPS, with tapering off of the equity allocation after attaining the age of 50 years by subscriber. Thus allocation in the Active Choice has been revised as under:
Age ( years) Cap on E Cap on C Cap on G Cap on A
Upto 50 75% 100% 100% 5%
51 72.5% 100% 100% 5%
52 70% 100% 100% 5%
53 67.5% 100% 100% 5%
54 65% 100% 100% 5%
55 62.5 100% 100% 5%
56 60 100% 100% 5%
57 57.5 100% 100% 5%
58 55 100% 100% 5%
59 52.5 100% 100% 5%
60 and above 50 100% 100% 5%
3. In case the investment by the subscriber in equity exceeds the cap in particular age bucket due to tapering of the caps, the excess portion shall be moved to G-Sec by default. However, the subscriber would continue to have the choice to re-allocate the non-equity portion between asset classes C, G & A unlike under the auto choice where tapered off portion moves in a pre-fixed percentage of C & G. The subscriber will also continue to enjoy the choice of allocation between E, C, 0 and A subject to limits as given above.

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