- This supersedes the March 2025 circular, creating a unified framework for transparency and compliance.
- Government securities capped at 65%, ensuring safety of retirement funds.
- Equity exposure widened to NIFTY 250 stocks, with 90% in top 200 for stability.
- New options include gold & silver ETFs (~1% each), AAA-rated municipal bonds, and government debt ETFs.
- Alternatives (REITs/InvITs/AIFs) allowed up to 5%, subject to strong credit ratings.
- Aim: diversification, inflation hedging, and better long-term returns while keeping risk low for government employees.
Question:
Q1. On 10 December 2025, PFRDA issued a Master Circular revising investment rules for government-sector pension schemes. What is the maximum allowed allocation to government securities under the new framework?a) 50%
b) 65%
c) 75%
d) 80%
Answer: b) The circular caps government securities at 65% to ensure the safety of retirement funds while allowing diversification into equities and other instruments.
