PFRDA Permits PoPs To Engage ‘Other Persons’ As Pension Agents: What It Means

The Pension Fund Regulatory and Development Authority (PFRDA) has expanded the National Pension System (NPS) distribution system by allowing points of presence (PoPs) to appoint pension agents. In the circular dated July 30, 2026, the regulator permitted PoPs to appoint “other persons” for the distribution of pension schemes. Per the circular, “In exercise of the powers conferred under Regulation 45 read with Regulation 2(1)(j)(iv) and Schedule IV of the PFRDA (Point of Presence) Regulations, 2018, the Authority hereby permits the following additional categories of entities to function as Pension Agents for distribution of pension schemes regulated under the PFRDA Act, 2013.”

Who Are ‘Other Persons’ To Serve As Pension Agents?

Per the circular, these other persons include Cluster-Based Business Organisations (CBBOs) and Co-operative Societies.

Cluster-Based Business Organisations (CBBOs)

Now, PoPs can empanel CBBOs, which are empanelled or engaged by the government (central government ministries or departments and state governments) and other agencies, including National Agricultural Cooperative Marketing Federation of India (NAFED), National Cooperative Development Corporation (NCDC), National Bank for Agriculture and Rural Development (NABARD), Small Farmers' Agri-Business Consortium (SFAC) and so on.

PoPs can now engage them for promoting the pension scheme among farmers and handholding the Farmer-Producer Organisations (FPOs). Farmer Producer Organisations (FPOs) are entities formed by farmers to collectively handle their agricultural production, its processing, marketing, and other services. This pooling of resources increases small and marginal farmers' bargaining power and also improves their chances of accessing better technology, enhanced credit, and other such benefits.

Co-Operative Societies

PoPs can now take the services of co-operative societies, co-operative unions, or cooperative federations to distribute PFRDA-regulated pension schemes. PoPs can engage them as authorised pension agents. However, only those co-operative societies that are registered with the central or state registrar under the Multi-State Co-operative Societies Act, 2002 or the Central or State Co-operative Societies Act are eligible for it.

Further, the circular explicitly mentions that PoPs will exercise due diligence while appointing a co-operative society. “PoP shall undertake enhanced due diligence, including assessment of the profitability of the concerned Co-operative Society, Co-operative Union or Co-operative Federation, prior to its engagement as a Pension Agent,” it reads.

With the expanded distribution system, the regulator is set to enhance the reach of regulated pension schemes among potential beneficiaries.