Max Life Pension Fund withdraws licence: What happens to its NPS customers

Existing NPS accounts moved to UTI Pension Fund; subscribers can switch managers online

Max Life Pension Fund Management has surrendered its licence and its customers have been shifted to other funds, the regulator for the pension sector has said.

 

The Pension Fund Regulatory and Development Authority (PFRDA) cancelled Max Life Pension’s registration after the company on December 31 sought voluntary withdrawal from managing assets under the National Pension System (NPS). In a notice on its website, PFRDA said NPS subscribers of Max Life Pension have been transferred to other pension funds according to regulatory guidelines. Investors also may choose another pension fund manager (PFM) if they wish.

Why the registration was cancelled

Max Life Pension Fund, a subsidiary of Max Life Insurance, decided to cease operations as both a PFM and a point of presence (P-o-P) under NPS as part of an internal restructuring and rebranding exercise.

 

The company has also initiated steps for voluntary liquidation, according to a statement posted on its website.

 

What happens to company’s NPS investors?

According to the transition plan approved by PFRDA:

 

From April 19, 2025, all pension assets previously managed by Max Life PFM have been transferred to UTI Pension Fund.

 

From June 21, 2025, all subscribers registered through Max Life as a P-o-P have been moved to Axis Bank.

 

This ensures there is no disruption in account access or fund management for NPS investors. The corpus accumulated by subscribers continues to earn returns under the new fund manager without affecting their NPS Tier I or Tier II accounts.

 

Can subscribers switch their fund manager?

Yes. Under PFRDA rules, NPS subscribers can change their PFM once in a financial year for Tier-I accounts, and multiple times for Tier-II accounts.

 

You can switch your fund manager online through the Central Recordkeeping Agency (CRA) portal by following these steps:

 

1. Log in to your NPS account.

 

2. Go to ‘Make Transaction’ then ‘Change PFM’.

 

3. Select your ‘Tier Type’ and ‘Scheme Preference,’ and submit the request using OTP verification.