NPS schemes re-classified into five types: MSF schemes get A-to-E equity categories and uniform names, pension funds limited to two schemes per category per tier
PFRDA has set a standardised framework for classifying and presenting NPS schemes and told pension funds how to implement it. Schemes fall into five types; MSF schemes are slotted into categories A to E by equity exposure and renamed on a fixed pattern. Pension funds had 30 days from 28 August 2026 to re-classify and rename, and have 45 days to merge down to two schemes per category per tier.
Key facts
- In force
- From 28 August 2026; re-classification and renaming within 30 days, mergers within 45 days
- Who it affects
- Non-Government NPS subscribers, including those with corporate employers, pension funds, Central Recordkeeping Agencies, NPS Trust, Points of Presence
- Source
- PFRDA Circulars PFRDA/2026/48/REG-PF/11 and PFRDA/2026/47/REG-PF/10, both dated 28 August 2026 ↗
- What it is
- Rule change
- Section
- SEBI
- Published
- 28 August 2026
In 30 seconds
- Two circulars dated 28 August 2026: PFRDA/2026/47/REG-PF/10 (the framework) and PFRDA/2026/48/REG-PF/11 (operationalising it).
- Five scheme types: Lifecycle-based, Active Choice, NPS Sanchay, MSF, and 4A Schemes (such as NPS Vatsalya, NPS Swasthya, NPS MSME).
- MSF categories by equity exposure: A 80%–100%, B 60%–80%, C 35%–60%, D 10%–35%, E 0–10%.
- A pension fund can offer up to two schemes under each category under each tier; excess schemes to be merged or restructured within 45 days of the circular.
- The distinction between Common Schemes and MSF Schemes is discontinued.
- A subscriber can make at most two requests per account in a financial year to change pension fund, scheme or both.
हिंदी में सार
PFRDA ने 28 अगस्त 2026 के दो परिपत्रों से NPS योजनाओं का मानकीकृत वर्गीकरण लागू किया है। योजनाएँ अब पाँच प्रकार की हैं — Lifecycle, Active Choice, NPS Sanchay, MSF और 4A योजनाएँ; MSF योजनाओं को इक्विटी हिस्से के आधार पर A से E श्रेणी और तय पैटर्न का नाम मिलेगा। पेंशन फंड हर श्रेणी और हर टियर में अधिकतम दो योजनाएँ रख सकते हैं; अतिरिक्त योजनाओं का विलय 45 दिन में करना है। अभिदाता एक वित्त वर्ष में प्रति खाता दो बार ही फंड या योजना बदलने का अनुरोध कर सकता है।
Before and now
Schemes were split into “Common Schemes” and “Multiple Scheme Framework (MSF) Schemes”, under the MSF circular of 16 September 2025.
The distinction is discontinued; every scheme is classified under the framework of Circular PFRDA/2026/47/REG-PF/10. The 2025 MSF circular is superseded.
Two circulars, one framework
On 28 August 2026 the Pension Fund Regulatory and Development Authority issued Circular PFRDA/2026/47/REG-PF/10, a “Standardised framework for classification and presentation of Schemes under the NPS”, addressed to all NPS stakeholders, and Circular PFRDA/2026/48/REG-PF/11 telling pension funds, the CRAs and NPS Trust how to put it into operation. The aim is to let subscribers compare schemes across pension funds. The framework does not apply to accounts tagged to the Government sector.
The five types of scheme
| Type | What it is |
|---|---|
| Lifecycle-based Schemes | Life Cycle Aggressive, Life Cycle 75 – High, Life Cycle 50 – Moderate and Life Cycle 25 – Low; allocation auto-adjusts with age |
| Active Choice | Subscriber-directed allocation: equity up to 75% (100% under Tier II), corporate bonds and government securities up to 100% each |
| NPS Sanchay | Scheme for the informal sector with a pre-defined pattern aligned with the Government sector pattern |
| MSF | Schemes launched by pension funds with the Authority’s approval, sorted into standard categories by equity mandate |
| 4A Schemes | Schemes under Regulation 4A of the Exit Regulations, such as NPS Vatsalya, NPS Swasthya and NPS MSME, governed by their own guidelines |
MSF categories and names
| Category | Equity exposure | Code |
|---|---|---|
| Aggressive Growth – Very High Risk | 80%–100% | A |
| High Growth – High Risk | 60%–80% | B |
| Balanced Growth – Medium Risk | 35%–60% | C |
| Conservative | 10%–35% | D |
| Debt (Govt./Corporate Bonds) | 0–10% | E |
Every MSF scheme name must follow: abbreviation of the pension fund + “NPS” + category code + scheme name, with “Tier 2” at the end for Tier II schemes — for example, “XYZ NPS A Retirement Scheme”.
What pension funds have to do, and by when
| Task | Time from 28 August 2026 |
|---|---|
| Modify or re-classify MSF schemes whose equity mandate spans more than one category, and submit details to the Authority | 30 days |
| Rename existing MSF schemes on the new convention | 30 days |
| Where more than two schemes exist in one category, merge, subsume or restructure them after informing subscribers | 45 days |
The 30-day period has run out as on 4 October 2026. Every MSF scheme needs the Authority’s prior approval, must display a Risk-o-meter, be benchmarked against relevant market indices and have an “NPS Scheme Essentials” document.
What changes for subscribers
- Platforms must present choices in a fixed order — type of scheme, then category, then pension fund — with returns, benchmark, charges, Risk-o-meter and AUM shown for comparison.
- A subscriber can hold only one of a Lifecycle-based scheme or Active Choice under the same PRAN, but can hold more than one MSF scheme.
- At most two requests per account in a financial year for change of pension fund, scheme or both. A change does not reset the vesting period.
- Merging one scheme into another brings the merged money under the target scheme’s rules on vesting, charges and partial withdrawals.
- If an MSF scheme is wound up, subscribers get a choice of another scheme; those who do not choose are moved to Life Cycle 50 – Moderate (10E/55Y) of the same pension fund under Tier I.
Charges shown in the framework
Annexure A lists, for all types except 4A Schemes: PoP plus investment management fee of 0.24% to 0.32% a year of AUM for PoP subscribers and 0.04% to 0.12% for direct subscribers; CRA charges of ₹100 to ₹500; NPS Trust fee of 0.003% a year; plus custodian charges and taxes.
What subscribers should do
Expect your MSF scheme to carry a new name with a category letter. If your pension fund informs you of a merger or winding up, exercise your choice — otherwise the default scheme applies.
Questions and answers
What are the five types of NPS schemes under the new framework?
Lifecycle-based Schemes, Active Choice, NPS Sanchay, MSF schemes, and 4A Schemes (curated or thematic schemes under Regulation 4A of the Exit Regulations, such as NPS Vatsalya, NPS Swasthya and NPS MSME).
What do the letters A to E in an MSF scheme name mean?
They are category codes based on the equity allocation mandate: A is 80%–100% equity, B 60%–80%, C 35%–60%, D 10%–35% and E 0–10%. Category A represents the highest and Category E the lowest equity exposure.
How many schemes can a pension fund offer in one category?
Up to two schemes under each category under each tier. Where more than two existed on 28 August 2026, the pension fund has to merge, subsume or restructure them within 45 days of the circular, after informing subscribers.
How often can a subscriber change the scheme or pension fund?
A subscriber can submit a maximum of two requests per account in a financial year for change of pension fund, investment scheme or a combination of the two; a request involving any of these at one time counts as one request.
Does the framework apply to Government employees’ NPS accounts?
No. Circular PFRDA/2026/47/REG-PF/10 states that its provisions are not applicable to accounts tagged to the Government sector.
Published 28 August 2026. Updated 6 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.