Overview:
With a view to strengthen India’s pension landscape and to broaden the spectrum of subscribers, PFRDA vide Circular No. PFRDA/2025/09/REG-PF/01 dated September 16, 2025, introduced the Multiple Scheme Framework (MSF) for Non-Government Sector subscribers under the National Pension System (NPS), with effect from October 01, 2025.
The introduction of MSF aims to establish a pension system that provides wider choices, transparency and efficiency, and ensures that advancements in pension design are supported by robust safeguards to protect subscriber interests.
Key Features of the Framework:
- The MSF allows a subscriber, identified by their PAN, to hold and manage multiple NPS schemes via a single PRAN at each CRA. Previously, subscribers could choose only one investment per tier and be associated with a single CRA. This new structure enhances diversification and provides greater flexibility to align investments with retirement and wealth goals.
- Under MSF, PFs can offer schemes tailored to specific subscriber groups—such as self-employed professionals, digital economy workers, or corporate employees with employer co-contributions. Each scheme must have at least moderate and high-risk variants, with up to 100% equity in the high-risk option. Low-risk variants may also be offered at the PF’s discretion.
- The framework introduces a consolidated CRA reporting system, allowing subscribers to track holdings by scheme or in total via PRAN. Accounts across multiple CRAs can be accessed through the Account Aggregator System using PAN or via the annual CRA statement.
- The cost structure aligns with NPS principles, keeping total charges capped at 0.30% of AUM per year, with an extra 0.10% incentive for PFs that attract over 80% new subscribers to a scheme. This incentive is available for three years from the launch of a scheme or until it reaches fifty lakh subscribers, whichever is earlier.
Benefits to Stakeholders:
To Subscribers:
- Greater choice and personalization
- Ability to balance conservative and aggressive strategies within the same PRAN
- Tailored schemes for different life stages
- Access to transparent, low-cost retirement savings products
To Pension Funds:
For PFs, the framework enables product innovation, market expansion, and competition on performance and service.
For the NPS ecosystem, the framework improves outreach, inclusivity, and credibility as a globally benchmarked pension system.
More details are available at Multiple Scheme Framework