PFRDA Launches New NPS Multiple Scheme: 7 Key Points You Should Know

Last Updated:September 18, 2025, 06:30 IST

PFRDA to launch Multiple Scheme Framework for NPS non-govt sector from Oct 1, 2025, offering diverse schemes and capped charges for subscribers.

PFRDA introduces MSF under NPS.

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 will be effective from October 1, 2025, which coincides with ‘NPS Diwas’, and applies to non-government sector subscribers (corporate employees, professionals, self-employed and gig/platform workers).

Top 7 Features Of MSF Under NPS:

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

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

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

5. 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 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. 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