Odisha expands NPS options, offers 100% pension fund investment in government securities

In a fresh move aimed at enhancing financial security, the Odisha government has approved a policy that allows employees from state-run PSUs and autonomous institutions to allocate their entire pension contribution in government bonds.

According to the notification issued by the State Finance Department, the decision applies to the Tier-I account of the National Pension System (NPS) and provides a safer investment route for workers who prefer low-risk, stable returns over volatile equity-based growth.

New Investment Flexibility Based on Risk Appetite

Employees now have the choice to opt for a fully government-backed investment, ensuring long-term security of retirement savings. This low-risk option is designed for those seeking guaranteed capital preservation.
Meanwhile, those with moderate risk tolerance can explore two structured portfolio paths based on age and investment preference.

One plan allows up to 25% investment in equities, suitable for cautious savers. The second increases equity exposure to 50%, making it ideal for individuals aiming for higher growth and who can handle some degree of market fluctuation.

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Life Cycle-Based Alternatives for Higher Returns

For employees willing to take moderate investment risks, two life cycle-based fund options have also been made available:

LC-25 (Conservative Life Cycle Fund): Allows a maximum 25% equity exposure, balancing growth with security.

LC-50 (Moderate Life Cycle Fund): Offers up to 50% equity exposure, aimed at younger investors or those with a higher risk threshold.

Alongside flexible investment options, the government has also given subscribers the freedom to choose their pension fund manager, including from private sector firms.