PFRDA Introduces Multi-Scheme Framework: Non-Government NPS Subscribers Can Invest 100 Per Cent In Equity

The Pension Fund Regulatory and Development Authority (PFRDA) announced a significant update for the National Pension System (NPS) subscribers, offering them more diversification and the choice to have equity exposure up to 100 per cent. These developments will be effective from October 1, 2025. Per the PFRDA’s circular dated September 16, 2025, pension fund managers will be allowed to offer multiple schemes, more customised ones for investors, by providing 100 per cent exposure to equity.

“Recognizing the need to strengthen India’s pension landscape and to bring within its ambit a wider spectrum of contributors, the PFRDA is pleased to introduce the Multiple Scheme Framework (MSF). This framework has been developed under the enabling provisions of Section 20(2) of the PFRDA Act, 2013, which permits subscribers to access multiple schemes under the NPS. The reform is a significant step forward in expanding the outreach of NPS in the NGS, allowing greater flexibility, more personalized retirement solutions, and alignment with global best practices in pension system design”, reads the circular.

How Will MSF Framework Work?

The MSF framework will allow subscribers to hold multiple schemes across different Central Recordkeeping Agencies (CRAs) under one permanent retirement account number (PRAN). It would enhance investment diversification. The framework allows NPS pension fund managers (PFMs) to design customised schemes for non-government subscribers, such as self-employed individuals, gig workers, and corporate employees.

PFMs are allowed to include moderate and high-risk variants where equity allocations can go up to 100 per cent in high-risk options.

Subscribers would be able to access their accounts through the Account Aggregator System.

How Will It Benefit The Subscribers?

The key benefit for the subscribers is the enhanced choice of investment, personalisation, and a low-cost and transparent retirement product. The new framework and features will be effective from October 1, 2025. The framework ensures that all the new schemes must be compliant with the investment norms and disclosures. They will require prior approval from PFRDA before implementation. Notably, the existing schemes will be known as Common Schemes.