PFRDA to introduce multiple scheme framework for NPS from October 1

From October 2025, NPS subscribers in the non-government sector can hold multiple schemes under one PRAN, with equity options up to 100 per cent and PAN-based consolidated reporting

The Pension Fund Regulatory and Development Authority (PFRDA) on Tuesday announced the introduction of a Multiple Scheme Framework (MSF) for non-government sector subscribers under the National Pension System (NPS), effective from October 1, 2025.

 

According to the official PFRDA notification, the new system marks a significant departure from the existing structure where subscribers were restricted to a single investment choice per tier and linked to one Central Recordkeeping Agency (CRA). Under the MSF, subscribers across the non-government segment, including corporate employees, professionals, self-employed individuals, and platform-based digital economy workers, will be able to hold and manage multiple schemes within the NPS through their Permanent Account Number (PAN). The consolidated reporting system will allow subscribers to monitor their holdings at both scheme and aggregate levels, with account aggregation enabled across CRAs through PAN.

 

The notification added that PFRDA has allowed Pension Funds (PFs) to design schemes tailored to specific subscriber groups, such as digital economy workers, self-employed professionals, and corporate employees with employer co-contributions.

 

Each scheme must offer at least two variants — moderate and high risk — with equity allocation permitted up to 100 per cent in the high-risk category. Pension Funds may also introduce low-risk options at their discretion. Exit provisions, including annuitisation requirements, will continue to be governed by the PFRDA (Exits and Withdrawals under the NPS) Regulations. Switching from schemes launched under MSF to common schemes will be permitted during the vesting period. Switching between Section 20(2) schemes will be allowed only after a minimum vesting period of fifteen years or at the time of normal exit.

 

The regulator said that the cost structure of the MSF has been designed to remain low in line with NPS principles, with total charges capped at 0.30 per cent of Assets Under Management annually. An additional incentive of 0.10 per cent will be available to Pension Funds that attract more than 80 per cent new subscribers to a scheme, applicable for three years from launch or until the scheme reaches 50 lakh subscribers, whichever is earlier.

 

All new schemes will require prior approval of PFRDA, must adhere to prescribed investment norms, and will be benchmarked against relevant market indices. Pension Funds will also be mandated to publish a standardised “NPS Scheme Essentials” document covering details such as scheme objectives, asset allocation, risks, vesting provisions, switching and exit rules, fee structure, and fund manager details.

 

According to the regulator, the introduction of MSF is expected to significantly expand choice and personalisation for subscribers by enabling them to balance conservative and aggressive strategies within a single PRAN and align their investments with different life stages. For Pension Funds, the framework opens up opportunities for innovation and market expansion, while for the NPS ecosystem as a whole, it strengthens inclusivity, deepens outreach, and enhances its credibility as a globally benchmarked pension system.