The Pension Fund Regulatory and Development Authority (PFRDA) has set up a high-level expert committee to review how money under the National Pension System (NPS) is invested.
The goal is clear: help subscribers build stronger retirement savings, manage risks better, and offer more investment choices.
Why PFRDA Has Formed This Committee
The new panel is called the Strategic Asset Allocation and Risk Governance (SAARG) committee.
Its main task is to study the current NPS investment rules and suggest changes that match global pension best practices and India’s evolving financial markets.
PFRDA wants to ensure that NPS investments remain safe, flexible, and capable of delivering long-term returns, especially as market risks and economic conditions continue to change.
Who Is Leading the SAARG Committee?
The committee will be chaired by Narayan Ramachandran, former CEO of Morgan Stanley India and current Chairman of TeamLease Services.
It includes some of the most respected names in India’s financial world, such as:
Former SEBI member Ananth Narayan
Fund managers Prashant Jain, Rajeev Thakkar, and Sankaran Naren
Market veterans Raamdeo Agrawal, Devina Mehra, and Kalpen Parekh
Legal and regulatory experts, along with senior PFRDA officials
This mix ensures both market experience and regulatory oversight.
What Exactly Will the Committee Review?
The SAARG committee will examine NPS investment norms for both government and private sector subscribers.
It will compare them with leading pension systems worldwide and suggest reforms to modernise the framework.
Key focus areas include:
Better asset allocation across equity, debt, money markets, and alternative investments
Introducing new asset classes to reduce economic and geopolitical risks
Stronger risk management and performance benchmarks for pension funds
Aligning investments with long-term pension liabilities
New Ideas on Sustainability and Subscriber Choice
The committee will also look at how climate risks, sustainability goals, and net-zero pathways can be factored into NPS investments.
For subscribers, this could mean:
Improved lifecycle and target-date funds
A better balance between active and passive investment strategies
More flexibility and transparency in how pension money is managed
What Happens Next?
The committee has been given nine months to complete its review and submit recommendations to PFRDA.
According to the regulator, forming SAARG shows its commitment to keeping NPS future-ready, resilient to risks, and focused on long-term wealth creation for millions of subscribers across India.
