PFRDA Issues Uniform Framework for NPS Scheme Classification, Naming and Subscriber Selection — Circular No. PFRDA/2026/47/REG-PF/10

The Pension Fund Regulatory and Development Authority (PFRDA) has released a comprehensive circular dated 28 August 2026, bearing reference Circular No. PFRDA/2026/47/REG-PF/10, laying down a standardised architecture for the classification, presentation, naming, and operational governance of investment schemes under the National Pension System (NPS). Issued in exercise of powers vested under Section 14 of the PFRDA Act, 2013, this circular consolidates and supersedes three earlier regulatory instruments and creates a cohesive, subscriber-friendly framework applicable across all non-government NPS accounts.

Background and Regulatory Objective

The NPS ecosystem has evolved significantly over the years, with multiple scheme types, lifecycle variants, and the recently introduced Multiple Scheme Framework (MSF) all operating simultaneously. The absence of a unified classification and presentation standard led to inconsistencies in how schemes were displayed across CRA platforms, PoP-operated interfaces, and onboarding channels.

Through this circular, PFRDA seeks to:

  • Establish a uniform classification of all NPS investment schemes
  • Promote comparability among schemes offered by different Pension Funds
  • Enable informed investment decisions by subscribers through standardised disclosures
  • Introduce consistent naming conventions for MSF schemes
  • Prescribe a structured subscriber journey for scheme selection across all platforms

Important: The provisions of this circular do not apply to accounts tagged to the Government sector. All references to "Scheme" in this circular are intended to facilitate subscriber comprehension and encompass the various investment options available under NPS, including Lifecycle variants where applicable. Pension Funds are required to continue maintaining scheme accounts and declaring NAVs for the underlying schemes in accordance with the existing regulatory and operational framework.

Classification of NPS Investment Schemes

1. The Master Classification Framework

Under this circular, all NPS investment schemes are organised into five broad types. This classification is mandatory and must be adopted uniformly across all subscriber-facing interfaces:

No. Type of Scheme Description
1 Lifecycle-based Schemes Comprises existing lifecycle variants — Life Cycle Aggressive, Life Cycle 75 – High, Life Cycle 50 – Moderate and Life Cycle 25 – Low. Asset allocation among E, C and G Schemes auto-adjusts based on subscriber age, per the age-asset allocation matrix approved by PFRDA.
2 Active Choice Subscriber-directed allocation across asset classes E, C and G
3 NPS Sanchay A composite scheme for the informal sector, aligned with investment guidelines applicable to the Government sector
4 MSF (Multiple Scheme Framework) Schemes launched by Pension Funds with PFRDA approval, categorised by equity exposure mandate. Annual charges range from 0.24% to 0.32% of AUM.
5 4A Schemes Schemes introduced under Regulation 4A of the Exit Regulations, such as NPS Vatsalya, NPS Swasthya and NPS MSME. Asset allocation, charges and terms are governed by their respective guidelines and circulars.

2. Detailed Scheme Type Specifications

2.1 Lifecycle-Based Schemes

These schemes operate on a pre-determined age-linked glide path, where equity exposure reduces progressively as the subscriber ages. The prescribed structure is as follows:

Lifecycle Category Maximum Equity Exposure Equity Allocation over Age
Life Cycle – Aggressive (35E/55Y) 50% 50% till 45 years → 35% by 55 years
Life Cycle 75 – High (15E/55Y) 75% 75% till 35 years → 15% by 55 years
Life Cycle 50 – Moderate (10E/55Y) 50% 50% till 35 years → 10% by 55 years
Life Cycle 25 – Low (5E/55Y) 25% 25% till 35 years → 5% by 55 years