The Pension Fund Regulatory and Development Authority (PFRDA) has issued comprehensive directives requiring immediate action from pension funds regarding Multiple Scheme Framework (MSF) schemes under the National Pension System (NPS). According to the latest circular Circular No. PFRDA/2026/48/REG-PF/11 dated August 28, 2026, pension funds must modify, restructure or reclassify existing MSF schemes to bring them in line with the standardised classification framework prescribed by the Authority. The circular mandates that existing MSF schemes having an equity allocation mandate spanning more than one MSF category shall be modified, restructured or reclassified so as to conform to a single prescribed MSF Category. Modified details must be submitted to the Authority within 30 days from the date of issue of the circular, while existing MSF schemes will also have to be renamed in accordance with the prescribed naming convention within 30 days. The circular provides that a Pension Fund can offer up to two schemes under each category under each Tier, with if more than two schemes exist within the same category, the Pension Fund shall merge/subsume/suitably restructure such schemes within 45 days from the date of issue of this circular. The process must be carried out after informing subscribers and following the prescribed process for winding up a scheme.
The Pension Fund Regulatory and Development Authority (PFRDA) has implemented comprehensive charge revisions for the National Pension System (NPS) effective October 1, 2026. According to the latest circular, subscribers registering for NPS through a Point of Presence (PoP) will be charged a one-time onboarding fee of ₹200 for each Permanent Retirement Account Number (PRAN). However, the entire ₹200 will not be collected at once - the charge will be collected at ₹50 per quarter by cancelling units through Central Recordkeeping Agencies (CRAs). The amount will be remitted to the PoP in the month following the quarter in which the subscriber completes the onboarding process. For digitally registered subscribers who complete their registration entirely through a digital, non-face-to-face process, a one-time charge of ₹100 may be levied. PoPs will receive an annual charge equivalent to 0.20% of the assets under management (AUM) for all schemes, except dormant accounts, with the charge adjusted through net asset value (NAV) and paid quarterly to the PoP. Subscribers who opened their NPS accounts through e-NPS and subsequently make contributions through e-NPS or D-Remit will not have to pay PoP charges, though those who initially onboarded through a PoP continue to be liable for these charges even if later contributions are made through e-NPS or D-Remit.
Under the new framework, all schemes under NPS will be classified into five distinct categories with new equity allocation ranges that make risk levels more transparent for subscribers. The categories are: Category A: 80-100% equity - aggressive growth, very high risk, Category B: 60-80% equity - high growth, high risk, Category C: 35-60% equity - balanced growth, medium risk, Category D: 10-35% equity - conservative, and Category E: 0-10% equity - debt-oriented. As reported by PFRDA, Lifecycle-based Schemes comprise the existing Life Cycle Aggressive, Life Cycle 75 – High, Life Cycle 50 – Moderate and Life Cycle 25 – Low variants. Under Active Choice, the subscriber shall have the flexibility to determine the allocation of contributions among the available asset classes, subject to the limits specified by the Authority. A scheme cannot have an equity mandate covering multiple categories - for example, a scheme cannot have an equity range that moves between Category B and Category C. It must fit within one prescribed category only. The circular abolishes the difference between MSF schemes and common schemes, stating "With effect from the date of this circular, the distinction between common schemes and Multiple Scheme Framework (MSF) Schemes shall stand discontinued."
The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a comprehensive standardised framework for classification and presentation of investment schemes under the National Pension System (NPS). According to reports from PFRDA, the framework has been prescribed through Circular No. PFRDA/2026/47/REG-PF/10 dated August 28, 2026. The circular establishes five distinct categories with fixed naming conventions: Lifecycle schemes (Aggressive, 75 High, 50 Moderate, 25 Low), Active Choice, NPS Sanchay, MSF schemes, and 4A schemes. The naming format requires pension fund abbreviation, then "NPS", then the category letter, then the scheme name, with "Tier 2" appended where applicable. For example, "XYZ NPS A Retirement Scheme" indicates a very-high-risk equity scheme from XYZ, while "XYZ NPS E Retirement Scheme Tier 2" represents a debt scheme in a Tier II account. Every scheme must display risk-o-meters as per the PFRDA-specified format to improve transparency. The revised charges will supersede the PFRDA circular issued on March 10, 2026, with effect from October 1, 2026. The revised charge structure will be implemented by the Central Recordkeeping Agencies for deduction of charges starting from Q3 of FY 2026-27 onwards.
The circular establishes comprehensive subscriber protection measures during scheme transitions and wind-ups. In case of winding up of an MSF scheme, subscribers will be given a choice to opt for another scheme. As reported by PFRDA, those subscribers who do not exercise their choice would be migrated to the Life Cycle 50 – Moderate (10E/55Y) Scheme of the same Pension Fund under Tier I. The circular mandates that every scheme must display risk-o-meters as per the PFRDA-specified format to improve transparency. PFRDA has also directed every Pension Fund to prepare and maintain an "NPS Scheme Essentials" document for every MSF scheme, including the scheme name, fund manager details, objective of the scheme, target segment, asset allocation pattern, risk level, benchmark, vesting period, charges and fees, risk management, taxation, winding-up provisions, subscriber communication and other information. Each scheme will also have to be benchmarked against relevant market indices for transparent performance disclosure. The circular also allows pension funds to offer optional value-added services, including income pay-out solutions, annuity-related services, succession planning and other retirement planning solutions, subject to the extant regulatory framework, with such services cannot change the investment objective or risk profile of the underlying scheme.
The circular mandates uniform subscriber-facing interfaces, including CRA platforms and other onboarding channels, to follow a uniform sequence for presentation and selection of investment schemes. According to PFRDA, the sequence will be the type of scheme, category of the MSF scheme/lifecycle funds or asset allocation in case of Active Choice, and selection of the Pension Fund. Before selection of a Pension Fund, schemes offered by various Pension Funds under the selected category will be displayed with comprehensive information including scheme name, Pension Fund name, date of launch, historical returns, benchmark and comparative benchmark returns, applicable charges, Riskometer and assets under management. The circular mandates that every scheme must display risk-o-meters as per the PFRDA-specified format to improve transparency. Annual charges outside the 4A set run 0.24 to 0.32 per cent of AUM for point-of-presence subscribers and 0.04 to 0.12 per cent for direct ones, plus CRA charges of ₹100 to ₹500 and a trust fee of 0.003 per cent. All subscriber-facing interfaces, including CRA platforms and other onboarding channels shall uniformly adopt the following sequence for presentation and selection of investment schemes - Type of Scheme (MSF/Lifecycle based/ Active choice/ NPS Sanchay/ 4A) - Category of the MSF Scheme/Lifecycle funds/ Asset allocation in case of Active choice - Selection of the Pension Fund. The circular will supersede Circular No. PFRDA/2026/16/REG-POP/01 dated March 10, 2026, with effect from October 1, 2026. The revised charge structure will be implemented by the Central Recordkeeping Agencies for deduction of charges starting from Q3 of FY 2026-27 onwards.
