Revised Charge Structure for PoPs Handling NPS Common Schemes for Legal Entities (Other than Government)

The Pension Fund Regulatory and Development Authority has overhauled the fee framework applicable to Points of Presence (PoPs) that service Common Schemes under the National Pension System (NPS) for non‑government legal entities. This change is brought in through Circular No. PFRDA/2026/17/REG-POP/02 dated 10 March 2026, and is effective from 1 January 2026.

The revised regime is grounded in Regulation 16 of the Pension Fund Regulatory and Development Authority (Point of Presence) Regulations, 2018, which empowers the Authority to specify the ceiling, method and procedure for PoP charges collected from subscribers.

This article explains the new classification of corporates, the fresh annual charge structure, its applicability, and the compliance steps that PoPs and covered entities should immediately consider.

Power of PFRDA Under PoP Regulations

Regulation 16 of the Pension Fund Regulatory and Development Authority (Point of Presence) Regulations, 2018 (referred to as “POP Regulations”) clearly stipulates that PoPs can levy charges on subscribers only within the limit and format sanctioned by the Authority.

Under this enabling provision, PFRDA has now modified the fee regime for PoPs when they handle Common Schemes under NPS for a specific class of participating organisations – described as “Legal Entities (other than Government)”.

Relevant PFRDA Circular

The current modification is contained in:

  • Circular No. PFRDA/2026/17/REG-POP/02
  • Date of issue: 10 March 2026
  • Issued to:
    • All Points of Presence (PoPs)
    • Central Record Keeping Agencies (CRA/s)
    • Legal Entities (other than Government) participating in NPS
    • Other stakeholders under NPS

The circular is issued under the authority of Section 14(1) read with Section 14(2)(e) of the Pension Fund Regulatory and Development Authority Act, 2013.

Reclassification of Existing “Corporates” Under NPS

Earlier Position

Earlier, PFRDA broadly used the term “Corporates” for entities participating in NPS that were not treated as standard Government subscribers. This undifferentiated group is now being formally split to allow a more nuanced regulatory and fee treatment.

New Two‑Tier Category Structure

With immediate effect, the existing category “Corporates” under NPS is reorganized into the following two distinct classes:

  1. Government Entities
  2. Legal Entities (other than Government)

This reclassification is critical because the revised PoP charge structure addressed in the circular applies only to “Legal Entities (other than Government)” for their Common Schemes under NPS.

Who Is a “Government Entity”?

For the purpose of this circular, the term “Government Entities” retains a broad and inclusive meaning. It covers:

  • Any statutory body created under a specific statute
  • Any Government Company
  • Any body corporate or other entity that is under the ownership and control of:
    • the Central Government, or
    • any State Government

This category includes:

  • Central Public Sector Enterprises (CPSEs)
  • State Public Sector Enterprises (SPSEs)

In essence, if the entity is owned or controlled by the Central or a State Government and falls within the above broad parameters, it will be regarded as a “Government Entity”.

The category “Legal Entities (other than Government)” is meant to capture all participating organisations which are not under the administrative control of either the Central Government or any State Government.

This class includes, among others: