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Informist, Tuesday, Sept. 16, 2025

NEW DELHI – The Pension sector regulator has introduced the Multiple Scheme Framework to allow non-government sector subscribers to access multiple schemes under the National Pension System. The framework will enable the private sector subscribers to balance conservative and aggressive strategies to plan for different life stages with tailored pension schemes, Pension Fund Regulatory and Development Authority said in a circular on Tuesday. The framework has been developed under the enabling provisions of Section 20(2) of the PFRDA Act, 2013. The scheme will come into effect from Oct. 1.

Through Multiple Scheme Framework, pension funds will be able to offer multiple choices, transparency, and efficiency to the private sector subscribers. The pension funds will be permitted to design schemes that are tailored to specific subscriber. "By bringing this framework into operation, the Authority is ensuring that innovation in pension design is balanced by strong safeguards for subscribers," the regulator said.

The framework will allow subscribers to be identified uniquely through a Permanent Account Number across across Central Recordkeeping Agencies and will be able to hold and manage multiple schemes within the NPS. Currently, a subscriber can operate only a single investment choice associated with one Central Recordkeeping Agencies. "The framework removes constraints on diversification and provides subscribers with greater scope for aligning their investments with their evolving retirement and wealth building goals," the circular said.

The pension funds will be able to design pension scheme with at least two variants, one moderate and one high-risk, with equity allocation allowed up to 100% in the high-risk category. They may also introduce low-risk variants.

The regulator said the cost structure will remain low. "The total charges are capped at 0.30% of assets under management annually, with an additional incentive of 0.10% allowed for pension funds that attract more than 80% new subscribers to a scheme. "This incentive is available for three years from the launch of a scheme or until it reaches 5 million subscribers, whichever is earlier," the circular said.  End

Reported by Sagar Sen

Edited by Vandana Hingorani

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