PFRDA to introduce multiple scheme framework for NPS from October 1

In September 2025, the Pension Fund Regulatory and Development Authority (PFRDA) announced the introduction of a Multiple Scheme Framework (MSF) for non-government sector subscribers under the National Pension System (NPS).

• This major change is effective from October 1,2025.

Key Features:

MSF: Under this framework, the NPS subscribers not employed with the government will be able to hold multiple schemes under a single PRAN (Permanent Retirement Account Number) across various CRAs (Central Record Keeping Agencies)

• In the earlier structure, a subscriber could operate only a single investment choice per tier and also be associated with one CRA only.

Design: Under MSF, the Pension Funds (PFs) are permitted to design schemes tailored to specific subscriber groups, such as digital economy workers, self-employed professionals, and corporate employees with employer co-contributions.

Variants: Each scheme may have at least two variants, one moderate and one high-risk, with equity allocation allowed up to 100% (up from current 75%) in the high-risk category.

• PFs may also, at their discretion, introduce low-risk variants.

Switching Schemes: If a subscriber is not satisfied with their current Scheme’s performance under MSF, he can switch to common scheme (old schemes of PFs) and not to any other scheme under MSF if the vesting period (holding period) of 15 years is not completed.

• However, once the 15 years vesting period is completed, they can freely move across various schemes without any restriction.
• For a tier-1 account, a vesting period is compulsory, whereas for tier-2 it is optional.

Inclusion: This framework will be available to all new and existing NPS subscribers through both a Tier I account, which is retirement-focused and a Tier-2 account, which is voluntary.

Scheme winds up: In case a scheme is closing down, non-government NPS subscribers will have the choice to migrate to any common scheme or a scheme as defined by Section 20(2) of the PFRDA Act.

• In case the subscriber fails to notify their choice, they will automatically be migrated to a Tier 1 auto choice LC (Life Cycle) 50 scheme, which is managed by the same pension fund.

Ministry of Finance sets 30th September as deadline for switching to UPS

In September 2025, the MoF, Government of India (GoI) announced 30th September as the last day to switch to the Unified Pension Scheme (UPS) from the National Pension System (NPS) for eligible Central Government (CG) employees and past retirees.

• The GoI has announced that individuals who do not exercise the option to switch within the stipulated time will, by default, continue under UPS.

Note: The UPS is a pension scheme introduced by the GoI, effective 1st April 2025, as an option under the NPS for CG employees.

• It is designed to provide assured, inflation-indexed, and adequate retirement benefits, addressing concerns of longevity protection and pension predictability.

About Pension Fund Regulatory and Development Authority (PFRDA)

It was initially established as a regulatory body to promote, develop and regulate the pension sector in India. Later, it was granted a statutory body status through PFRDA Act, 2013 passed in September 2013 and the same was officially notified on February 1, 2014.

• It comes under the jurisdiction of Department of Financial Services (DFS), Ministry of Finance (MoF).
• PFRDA approved CRA’s are Computer Age Management Services Ltd (CAMS), KFin Technologies Limited and Protean eGov Technologies Limited

Chairman: Sivasubramanian Ramann
Headquarters – New Delhi, Delhi