PFRDA Constitutes SAARG Committee to Review and Modernise NPS Investment Framework

2 min read Updated on 25 Jan 2026, 10:00 PM

Reviewed by

Ashish TScanX News Team

Overview

PFRDA has constituted the Strategic Asset Allocation and Risk Governance (SAARG) committee to modernise the NPS investment framework. Chaired by Narayan Ramachandran and comprising nine industry experts, the committee will review strategic asset allocation, expand asset classes, enhance risk management, and improve subscriber investment choices. The panel has nine months to submit recommendations aimed at strengthening long-term retirement wealth creation and improving diversification for NPS subscribers.

*this image is generated using AI for illustrative purposes only.

The Pension Fund Regulatory and Development Authority (PFRDA) has constituted a high-level Strategic Asset Allocation and Risk Governance (SAARG) committee to undertake a comprehensive review and modernisation of the National Pension System (NPS) investment framework. This initiative reflects PFRDA's commitment to enhancing the investment structure to better serve long-term retirement planning needs of subscribers.

Committee Objectives and Scope

The SAARG committee has been established with the primary objective of strengthening the NPS investment structure to support long-term retirement wealth creation. The committee's mandate includes improving diversification, enhancing risk management practices, and offering expanded choices to subscribers. PFRDA has indicated that the review will benchmark NPS investment practices against leading global pension systems and align them with India's evolving investment ecosystem.

Key Review Areas

The committee will examine multiple critical aspects of the current NPS investment framework:

Focus Area	Details
Strategic Asset Allocation	Review of existing models and frameworks
Asset Classes	Examination and possible expansion of investment options
Performance Systems	Measurement and accountability mechanisms
ALM Practices	Asset-Liability Management optimization
Risk Management	Market, credit, and liquidity risk assessment
Alternative Investments	Valuation standards and integration
Portfolio Management	Stability and liquidity optimization
Governance Structure	Intermediary architecture review
Sustainability Integration	Climate-related risks and ESG factors

Leadership and Expert Panel

The SAARG committee will be chaired by Narayan Ramachandran, former Country Head and CEO of Morgan Stanley India. The panel comprises distinguished experts from various sectors including capital markets, asset management, regulatory bodies, and securities law:

Member	Designation/Organization
Ananth Narayan	Former Whole Time Member, SEBI
Devina Mehra	Founder and CMD, First Global
Kalpen Parekh	MD and CEO, DSP Mutual Fund
Prashant Jain	CIO, 3P Investment Managers
Rajeev Thakkar	CIO, PPFAS Asset Management
Raamdeo Agrawal	Co-founder, Motilal Oswal
Sankaran Naren	CIO, ICICI Prudential AMC
Sumit Agrawal	Founder, Regstreet Law Advisors
Ashok Kumar Soni	Executive Director, PFRDA

Subscriber-Centric Improvements

The committee will specifically focus on enhancing subscriber investment choices, including a thorough review of lifecycle and target-date funds. The panel will assess the optimal balance between active and passive investment strategies to improve outcomes for NPS subscribers. This subscriber-centric approach aims to provide more tailored investment options that align with different risk profiles and retirement goals.

Timeline and Expected Outcomes

The SAARG committee has been allocated nine months to complete its comprehensive review and submit recommendations to PFRDA. This timeline allows for thorough analysis of existing frameworks while ensuring timely implementation of necessary reforms. The committee's recommendations are expected to make the NPS investment framework more resilient, diversified, and better aligned with subscribers' long-term retirement planning needs.

PFRDA Establishes Committee to Develop Assured Payout Framework for National Pension System

1 min read Updated on 13 Jan 2026, 04:49 PM

Reviewed by

Suketu GScanX News Team

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Overview

PFRDA has established a committee to formulate guidelines and regulations for assured payouts under the National Pension System. This regulatory initiative aims to introduce guaranteed return mechanisms within the NPS framework, potentially addressing subscriber concerns about retirement income certainty. The committee will develop comprehensive regulations governing the implementation and operation of assured payout options, marking a significant development in India's pension sector.

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The Pension Fund Regulatory and Development Authority (PFRDA) has taken a significant regulatory step by establishing a specialized committee to develop a comprehensive framework for assured payouts under the National Pension System (NPS). This initiative marks an important development in India's pension sector, as it addresses the growing demand for guaranteed retirement income options.

Committee Formation and Mandate

The newly constituted committee has been specifically tasked with formulating detailed guidelines and regulations that will enable assured payout mechanisms within the existing NPS structure. This regulatory framework aims to provide subscribers with guaranteed return options, complementing the current market-linked investment approach.

Significance for NPS Subscribers

The development of assured payout regulations represents a potential paradigm shift for the National Pension System. Currently, NPS operates primarily on market-linked returns, where pension corpus and subsequent payouts depend on investment performance. The introduction of assured payout options could provide subscribers with greater certainty regarding their retirement income planning.

Regulatory Framework Development

The committee's primary responsibility involves creating comprehensive regulations that will govern the implementation and operation of assured payout mechanisms. This includes establishing operational guidelines, risk management protocols, and compliance requirements that pension fund managers and other stakeholders must adhere to when offering guaranteed payout products.

Impact on Pension Sector

This regulatory initiative by PFRDA demonstrates the authority's commitment to enhancing the attractiveness and reliability of the National Pension System. By introducing assured payout options, the regulator aims to address subscriber concerns about retirement income predictability while maintaining the system's overall integrity and sustainability.