FM proposes 'Pension Sakhis' to drive NPS growth, launches new scheme

FM Nirmala Sitharaman proposed training women as Pension Sakhis to boost NPS enrolments and launched the Multiple Scheme Framework giving subscribers greater flexibility

Union Finance Minister Nirmala Sitharaman on Wednesday said the Department of Financial Services (DFS) and the Pension Fund Regulatory and Development Authority (PFRDA) can explore possibilities of training women as “Pension Sakhis” to increase enrolments in the National Pension System (NPS).

 

“Can we train women as ‘Pension Sakhis’ and incentivise them for sustained increase in enrolment, much like ‘Bima Sakhis’ of LIC,” Sitharaman said at the NPS Diwas Conference on Inclusive Pensions, Innovative Solutions: Strengthening Retirement Security in India organised by PFRDA in New Delhi.

 

The event was attended by DFS Secretary M Nagaraju, Chief Economic Adviser V Anantha Nageswaran and PFRDA Chairperson Sivasubramanian Ramann along with other senior officials.

 

 

The Finance Minister stressed that coordination across India’s larger pension landscape is equally important. “In the Budget 2025-26, it was announced that a forum for regulatory coordination and development of pension products will be set up,” she said.

 

Accordingly, in August, the government set up the Forum for Regulatory Coordination and Development of Pension Products. The forum brings together PFRDA, Employees Provident Fund Organisation, Insurance Regulatory and Development Authority of India, Securities and Exchange Board of India, and relevant ministries.

 

“The main aim of the forum is to develop a common regulatory and supervisory framework, investment standards across pension products, strengthen consumer protection and grievance redressal, and ensure robust systemic risk management of assets under management,” she added.

 

Highlighting the performance of the National Pension System (NPS), Sitharaman said schemes have generated attractive returns. “The average annual returns since inception of the equity scheme of NPS have been over 13 per cent. Around 9 per cent for both corporate debt scheme and government securities scheme,” she noted.

 

She further underlined that NPS has transformed retirement planning in India. Initially available only to government employees in 2004, it has progressively been extended to the private sector and all citizens.

 

“NPS is one of the lowest-cost pension fund management schemes in the world. Lower costs mean more money stays invested and grows,” she said.

 

The FM further pointed out that effective October 1, 2025, the multiple scheme framework (MSF) is on. Non-government NPS subscribers will be able to allocate up to 100 per cent of their funds in equities. 

"Each scheme will have moderate and high-risk variants, with equity exposure permitted up to 100 per cent compared to the current 75 per cent in high risk options," she said.

 

She further noted that an investor would be able to choose the new schemes under MSF without needing to invest in the “common schemes”, the old schemes of various pension funds.

 

“Non-government subscribers can also opt for multiple schemes across different CRAs (central recordkeeping agencies) under a single Permanent Retirement Account Number (PRAN). This will cater to different investor preferences, giving them greater flexibility,” she added.

 

“Furthermore, the cost structure remains low, capped at 0.30 per cent of assets under management (AUM) annually, with an additional 0.10 per cent incentive for PFs that bring in new subscribers. For subscribers, the MSF represents a major expansion of choice and personalisation,” she explained.