NPS New Rule: From next month, October 1, 2025, non-government sector NPS subscribers will get a major facility. Now they will be able to invest 100% of their funds in equity (shares) in any one NPS scheme.
This change has been made under the recently introduced Multiple Scheme Framework (MSF). Under this, those who are not in government jobs will now be able to hold multiple schemes in different CRAs (Central Recordkeeping Agencies like CAMS, Protean and KFintech) through their Permanent Retirement Account Number (PRAN). It should be noted that till now this facility was limited. That is, only one scheme was allowed per tier, per CRA.
What is notification
The notification also stated that the Pension Fund Regulatory and Development Authority (PFRDA) has permitted pension funds (PFs) to introduce tailored schemes for different subscriber groups, including digital economy workers, self-employed professionals, and corporate employees (where the employer also contributes). Each scheme must have at least two variants: 1. Moderate Risk and 2. High Risk (allowing up to 100% equity investment). Pension funds may also offer low-risk options if they so desire.
Exit and Withdrawal Rules-
Exit conditions and annuitization will remain applicable as before under PFRDA regulations.
Switching rules-
Switching from a scheme launched under the MSF to a common scheme will be permitted during the vesting period. However, switching between Section 20(2) schemes will only be possible after the completion of a vesting period of at least 15 years, or at the time of normal exit.
Know what will change from October 1?
1. Multiple Scheme Facility – Multiple schemes can be maintained and managed under a single PAN at different Central Record Keeping Agencies (CRAs). Previously, only one scheme was allowed per tier.
2. Customized options – Pension funds will now be able to launch new schemes for different groups—such as corporate employees, gig workers, or self-employed professionals. Each scheme will have at least two variants—moderate and high risk. High-risk schemes will be allowed to invest up to 100% in equities.
3. Greater diversification – Investors will now be able to balance conservative and aggressive strategies within a single account, allowing them to better align savings with different life goals.
