PFRDA Clarifies Pension Agents' Incentive Structure Under NPS Sanchay: Can The Scheme Narrow Pension Gap

The Pension Fund Regulatory and Development Authority (PFRDA) has issued clarification regarding the engagement of pension agents under its 2018 Regulations, to make the recently launched NPS Sanchay scheme available in the remote parts of the country. The regulator,  in its latest circular, defines the framework for engaging pension agents through the points of presence (PoPs) to ensure NPS’s deeper reach in the informal economy.

The pension agents’ primary responsibility is to act as facilitators for the onboarding and enrollment of new subscribers into the NPS system. Besides this, they will also be tasked with spreading awareness about retirement planning, helping potential subscribers navigate different schemes, and assisting them in documentation.

These agents will work at the grassroots level and will be positioned to target under-penetrated segments, such as gig workers or self-employed individuals, who are not yet included under the formal social security net.  

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The grassroots agents who are authorised to operate through PoPs are eligible to become pension agents. They include CSC village level entrepreneurs (CSC-VLEs), business correspondents (BCs) / pension sakhis, and primary agricultural credit societies (PACS), in addition to the farmer producer organisations (FPOs).

They will be incentivised for onboarding new subscribers under NPS Sanchay and getting an annual contribution from them as prescribed by PFRDA. As per the PFRDA circular dated May 12, 2026, “It has now been decided to extend the incentive framework of Rs 100 per subscriber to PoPs for enrollments under the newly launched NPS Sanchay.”

Notably, these incentives will be over and above the existing onboarding charges applicable to PoPs under NPS Sanchay.

Bridging The Pension Gap Through Simplicity

PFRDA has recently launched the NPS Sanchay, a variant of the existing NPS schemes. This latest addition to the NPS schemes’ kitty is focused on including small savers in the unorganised sector.

Sumit Shukla, MD and CEO, Axis Pension Fund, believes this new variant is essential for financial inclusion. He says, “India’s pension gap is less about products and more about gaps in awareness, access, and participation. While retirement planning has improved in urban India, a large section of the workforce, especially in the informal economy, self-employed, and gig segments, remains outside formal pension systems. In this context, NPS Sanchay is a meaningful step as it simplifies retirement investing for a wider audience.”

With different schemes, investment options, choice of pension fund managers, choice to determine asset allocation, etc., the NPS system might feel complex to many potential subscribers.

“Decision paralysis is a key barrier in long-term investing, with many investors unsure about asset allocation and risk. A guided, simplified framework can therefore significantly improve participation,” says Shukla.

Shift From Structured Retirement To Guided Retirement

Shukla emphasises that the shift towards guided retirement is no longer optional. As the traditional model of family-supported retirement gradually fades, the need for guided investment solutions becomes more critical.

He clarifies that NPS Sanchay is not a separate structure but a simplified variant within the broader operational backbone of NPS, including onboarding, account portability, servicing, and regulatory supervision. However, at the same time, it is aimed at reducing the burden of active decision-making for the subscriber.

As of the financial year 2026, the NPS All Citizen Model has 2.15 crore subscribers with nearly Rs 16 lakh crore in assets under management (AUM).

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