The National Pension System (NPS), one of India’s largest retirement savings schemes, is set to become more flexible and beneficial for subscribers. The Pension Fund Regulatory and Development Authority (PFRDA) is introducing a Multiple Scheme Framework (MSF) starting 1 october 2025, bringing significant relief to pensioners. Here’s what you need to know:

1. What is the Multiple Scheme Framework (MSF)?

· MSF allows NPS subscribers to choose multiple pension fund schemes simultaneously instead of sticking to just one.

· Subscribers can diversify their investments across different fund managers and schemes.

· This change aims to maximize returns and reduce risk by spreading investments.

2. Benefits to Pensioners

· Higher Returns Potential: By diversifying across funds, subscribers can take advantage of better-performing schemes.

· Flexibility: Pensioners now have more control over their retirement savings, adjusting allocations based on market conditions.

· Reduced Dependence on a Single Fund: In case one fund underperforms, others may balance the portfolio, ensuring more stable returns.

3. Who Can Avail the Benefits?

· Both existing NPS subscribers and new entrants can opt for MSF.

· Applicable to all categories of NPS accounts, including Tier-I (mandatory retirement savings) and Tier-II (voluntary savings).

4. How to Switch or Opt for MSF

· Log in to the NPS subscriber portal or use the NPS mobile app.

· Navigate to fund allocation or scheme selection.

· Select multiple schemes or pension fund managers as per preference.

· Confirm the changes and review your portfolio regularly to optimize returns.

5. Other Key Features of the New Rules

· Simplified process: No need for separate applications for different schemes.

· Transparency: Regular updates and performance reports from each fund manager.

· Pension Planning: Helps subscribers plan for a more secure retirement with better risk management.

Key Takeaways:

· Effective Date: 1 october 2025

· Flexibility: Choose multiple funds and pension schemes simultaneously

· Target Audience: All NPS subscribers, both existing and new

· Objective: Maximize returns, reduce risk, and give subscribers more control

The introduction of the Multiple Scheme Framework (MSF) is a major step in making NPS more flexible, transparent, and beneficial for pensioners. Subscribers can now customize their retirement portfolio, potentially increasing returns while minimizing risks.


Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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Balasahana Suresh

19/09/2025 07:05 PM