UPSC Prelims Practice Questions — PFRDA constitutes Committee for Strategic Asset Allocation and Risk Governance (SAARG)
Q1. PFRDA's Committee for Strategic Asset Allocation and Risk Governance (SAARG) has been given a fixed period, and only that period, within which it must examine the issues and submit its report to PFRDA. What is this period?
- A. 3 months
- B. 6 months
- C. 9 months
- D. 12 months
Q2. With reference to the terms of reference of the SAARG committee constituted by PFRDA, consider the following areas:
1. Reviewing and recommending strategic asset allocation frameworks for the NPS
2. Examining Asset-Liability Management (ALM) practices
3. Fixing the minimum monthly contribution payable by NPS subscribers
4. Integrating sustainability (ESG) considerations into pension investment practices
Which of the above is/are correctly identified as being within the committee's mandate?
- Reviewing and recommending strategic asset allocation frameworks for the NPS
- Examining Asset-Liability Management (ALM) practices
- Fixing the minimum monthly contribution payable by NPS subscribers
- Integrating sustainability (ESG) considerations into pension investment practices
- A. 1 and 2 only
- B. 1, 2 and 4
- C. 2, 3 and 4
- D. 1 and 3 only
Q3. In which year did PFRDA constitute the SAARG committee to undertake a comprehensive review of the NPS investment framework?
- A. 2023
- B. 2024
- C. 2025
- D. 2026
Q4. Who has been appointed as the Chairperson of PFRDA's Committee for Strategic Asset Allocation and Risk Governance (SAARG)?
- A. Narayan Ramachandran
- B. M. S. Sahoo
- C. Ananth Narayan
- D. Deepak Mohanty
Q5. With reference to the statutory framework of PFRDA, consider the following statements:
1. Unlike a body created merely by an executive resolution, PFRDA is a statutory authority established under an Act of Parliament.
2. The National Pension System is regulated by PFRDA, and pension funds must manage the corpus as per PFRDA's investment guidelines.
3. PFRDA's mandate is confined to regulating pension funds and does not, in any manner, extend to protecting the interests of subscribers.
Which of the statements given above is/are correct?
- Unlike a body created merely by an executive resolution, PFRDA is a statutory authority established under an Act of Parliament.
- The National Pension System is regulated by PFRDA, and pension funds must manage the corpus as per PFRDA's investment guidelines.
- PFRDA's mandate is confined to regulating pension funds and does not, in any manner, extend to protecting the interests of subscribers.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q6. PFRDA functions under the administrative control of which of the following?
- A. Department of Economic Affairs, Ministry of Finance
- B. Department of Financial Services, Ministry of Finance
- C. Ministry of Corporate Affairs
- D. Ministry of Labour and Employment
Q7. Under the NPS, the permissible asset classes and the investment caps applicable to subscribers are prescribed through investment guidelines issued by which of the following?
- A. Securities and Exchange Board of India (SEBI)
- B. Reserve Bank of India (RBI)
- C. Pension Fund Regulatory and Development Authority (PFRDA)
- D. Insurance Regulatory and Development Authority of India (IRDAI)
Q8. Under the 'Active Choice' of the NPS, a subscriber can distribute contributions across exactly how many distinct asset classes?
- A. Two
- B. Three
- C. Four
- D. Five
Q9. PFRDA's consultation paper (dated 30 September 2025) on enhancing the NPS — which underpins the Expert Committee on assured payouts — proposes how many distinct pension schemes?
- A. Two
- B. Three
- C. Four
- D. Five