PFRDA Introduces Multiple Scheme Framework (MSF) for Non-Government NPS Subscribers
SDG 8: Decent Work & Economic Growth | SDG 10: Reduced Inequalities
Institution: Ministry of Finance
On 16 September 2025, Pension Fund Regulatory & Development Authority (PFRDA) issued Circular No. PFRDA/2025/09/REG-PF/01 introducing the Multiple Scheme Framework (MSF) for non-government sector subscribers under NPS as per Section 20(2) of the PFRDA Act, 2013. Subscribers will now be able to select from multiple investment schemes, each with different risk-return profiles. The circular includes guidelines for scheme offerings by Pension Fund Managers (PFMs), rules for switching, and requirements for transparent disclosures.
What is MSF & Why It Matters:
The Multiple Scheme Framework allows pension subscribers more control over how their retirement savings are invested - by choosing among schemes with different risk exposures rather than being limited to a default option. This flexibility helps individuals tailor their investment to risk tolerance and retirement goals, potentially improving long-term returns.
The MSF is a significant reform for the NPS architecture. It enhances subscriber choice, could boost performance competition among PFMs, and may improve subscriber satisfaction and participation. For private sector workers or self-employed individuals, MSF makes NPS more attractive. Policymakers should focus on ensuring scheme disclosures are clear and switching costs are low, to avoid new complexities disadvantaging less informed subscribers.
Relevant Question for Policy Stakeholders:
How will PFRDA, PFMs, and service intermediaries ensure that non-government NPS subscribers are able to make informed decisions among scheme options, and that switching between schemes is seamless and cost-efficient?
Follow the full update here:
https://www.pfrda.org.in/documents/33652/154008/Circular+on+Introduction+of+MSF+for+Non+govt+Sector+subscribers+under+NPS.pdf