Punjab Govt Allows NPS Employees to Choose New Pension Fund & Investment Options; Two New Auto Choice Funds Introduced
Chandigarh, February 10, 2026: ( Jobsoftoday)
In a significant move aimed at enhancing investment flexibility for government employees, the Government of Punjab, Department of Finance (Finance Pension Policy and Coordination Branch) has issued fresh instructions allowing employees covered under the National Pension System (NPS) to exercise expanded choices in pension fund and investment options.
The notification, issued under memo number FD-FPPCONPS/4/2025-2FPPC dated 10.02.2026, applies to employees of the State Government as well as State Autonomous Bodies (SAB) covered under NPS.
Background of the Decision
The Finance Department referred to earlier state instructions dated 23.01.2025 and 09.06.2025 regarding pension fund and investment pattern choices. The latest development follows the Ministry of Finance (Department of Financial Services), Government of India Gazette Notification No. FX-4/2/2025-PR dated 13.11.2025, which introduced enhanced investment choice options under NPS and Unified Pension Scheme (UPS) for Central Government subscribers.
Punjab has now adopted similar provisions for its employees, aligning the state pension framework with the latest Central Government reforms.
Two New Auto Choice Life Cycle Funds Introduced
Aggressive Life Cycle Fund (LC-75)
• Maximum equity exposure capped at 75 percent.
• Designed for subscribers seeking higher returns through greater equity allocation.
• Suitable for younger employees willing to take higher investment risks for long-term growth.
Balanced Life Cycle Fund (BLC)
• Maximum equity exposure capped at 50 percent.
• Equity component tapering begins from the age of 45 years.
• Suitable for moderate-risk investors who prefer balanced and stable growth.
Applicability
The Punjab Government has decided to implement these additional Auto Choice options for:
• AIS Officers serving under the Government of Punjab.
• State Government employees covered under NPS.
• Employees of State Autonomous Bodies (SAB).
The implementation will follow the same terms and conditions as contained in the earlier notification dated 09.06.2025.
Online Option Facility for Subscribers
Subscribers can exercise their choice of the two additional Auto Choice options online using their login credentials. The request initiated online by the subscriber can be self-authorized, and authorization from the Nodal Office is not required in the CRA system.
This simplified digital process provides employees with direct control over their pension investment strategy.
Immediate Effect
The instructions have come into force with immediate effect, as stated in the official communication issued by the Finance Department.
What This Means for Punjab Employees
The decision is expected to:
• Increase flexibility in pension fund management.
• Allow higher equity participation for aggressive investors.
• Provide better long-term wealth accumulation opportunities.
• Align Punjab’s NPS framework with Central Government reforms.
• Empower employees with greater autonomy over retirement planning.
With these changes, Punjab Government employees covered under NPS now have more structured and diversified investment options to strengthen their retirement corpus.
