The multiple scheme framework for the NPS will be implemented from October 1, 2025. This rule applies to non-government sector subscribers, allowing them to invest in multiple schemes using the same PAN. Pension funds will also be able to launch new schemes for different categories of subscribers, such as corporate employees and gig workers.
Multiple Scheme Framework: The Pension Fund Regulatory and Development Authority (PFRDA) is set to implement major reforms in the National Pension System (NPS) from October 1, 2025. This reform, called the Multiple Scheme Framework, will apply to non-government sector subscribers. The objective is to provide investors with more options, flexibility, and personalized retirement solutions. Investors will be able to allocate their savings across different schemes and tailor their investment strategy based on their risk tolerance and financial goals.
What will change from October 1?
Investors will now be able to hold and manage multiple schemes under the same PAN number through different Registered Pension Administrators (RPAs). Previously, only one scheme was allowed per tier. This reform will give investors greater control and more choices. Pension funds will now be able to offer schemes tailored to different groups, such as corporate employees, gig workers, and self-employed individuals. These schemes will have at least two variants: a moderate-risk and a high-risk option. The high-risk scheme will allow up to 100% investment in equities.
Investing with diversification
Investors will now be able to adopt both conservative and aggressive investment strategies within the same account. This will allow them to manage their savings according to different life goals. Subscribers will receive scheme-wise and overall account statements through their Permanent Retirement Account Number (PRAN). This will enhance transparency and ease of tracking their investments.
Low-cost structure
Under the new framework, the annual fee will be capped at 0.30%. Additionally, pension funds that attract more new investors will receive an incentive of 0.10%. Withdrawal rules will remain unchanged. Purchasing an annuity for lifetime income at retirement will continue to be mandatory. The existing NPS schemes will now be called “common schemes.” Switching between the new schemes will only be possible after a 15-year vesting period or upon normal withdrawal.
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