NPS MSF Becomes Effective From Today: 100% Equity Option, Transparent Charges Among 7 Key Changes

Last Updated:October 01, 2025, 06:30 IST

PFRDA launches Multiple Scheme Framework for NPS on October 1, 2025, allowing non-government sector subscribers wider access, flexible risk options, and more.

NPS MSF becomes effective from today, October 01.

NPS Overhaul From October 01: In a major overhaul to the National Pension Scheme (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) has introduced the Multiple Scheme Framework (MSF) for non-government sector (NGS) subscribers. It becomes effective from today, October 1, 2025, which coincides with ‘NPS Diwas’, and applies to non-government sector subscribers (corporate employees, professionals, self-employed and gig/platform workers).

1. Wider Access Through Multiple Schemes

The reform, introduced under Section 20(2) of the PFRDA Act, 2013, will allow subscribers such as corporate employees, professionals, self-employed individuals, and gig economy workers to access and manage multiple schemes under a single Permanent Account Number (PAN). Earlier, subscribers could operate only one investment choice per tier.

Earlier, they had the option to choose one investment per tier, which now leads to greater diversification and personalization.

2. Persona-Targeted Investment Options

MSF allows persona-targeted schemes possible for gig workers, professionals, entrepreneurs and corporate employees.

3. Flexible Risk Variants

Risk variants: They can select moderate and high (Up to 100% equity in high-risk). PFs may also introduce low-risk.

4. Standardized Naming Convention

There is a provision of standardized naming convention. Thus, it must include NPS + objective.

5. Transparent and Capped Charges

Charges are now capped at 0.30 per cent of AUM annually with extra 0.10 per cent incentive to PFs if 80 per cent of subscribers are new (Valid for 3 years or till 50 lakh enrollments).

6. Exit and Switching Rules

Exit provisions remain under existing PFRDA regulations. Moreover, switching is allowed from new MSF schemes to common schemes, but not between new schemes until 15 years vesting (or retirement/exit).

7. Strict Approval and Disclosure Norms

PFs need PFRDA approval for new schemes, along with the mandatory Risk-o-meter for each scheme. Performance of these schemes will be benchmarked against market indices. Standard document “NPS Scheme Essentials” to disclose details (objective, risks, charges, benchmarks, etc.).

For the NPS ecosystem, the MSF is expected to expand outreach and inclusivity, strengthen trust, and align India’s pension architecture with global best practices.

Varun Yadav

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More