NPS Change from Oct 1: Non-Govt Employees Can Go Full Equity

Starting October 1, 2025, non-government National Pension System (NPS) subscribers can use the new Multiple Scheme Framework. This allows holding multiple schemes, including a high-risk option with 100% investment in equities, under a single account.

From October 1, 2025, National Pension System (NPS) subscribers in the non-government sector will enjoy a significant new benefit: the ability to invest 100% of their funds in equities under a single scheme. Previously, NPS allowed only one scheme per subscriber under a single Central Recordkeeping Agency (CRA) such as CAMS, Protean, or KFintech.

Multiple Scheme Framework Introduced

With the introduction of the Multiple Scheme Framework (MSF) rule, subscribers can now hold multiple schemes under a single PRAN number. Pension Funds (PFs) are permitted to create individual schemes catering to different types of subscribers, including digital workers, self-employed individuals, and corporate employees. Each scheme will feature at least two categories: moderate risk and high risk. The high-risk option allows for 100% equity investment, while a low-risk category can also be offered if needed.

The Pension Fund Regulatory and Development Authority (PFRDA) has clarified that exit regulations and annuity rules will remain unchanged. Switching from an MSF scheme to a general scheme is allowed, but transfers between schemes under Section 20(2) are only possible after the 15-year vesting period or at the time of normal exit.

Flexibility Across Multiple CRAs

Subscribers can now hold schemes across multiple CRAs using the same PAN number. This new flexibility enables investors to balance safe, low-risk options with high-impact equity investments, all within a single account.

Benefits for Young and Risk-Averse Investors

These reforms are particularly useful for long-term pension planning. Young investors seeking higher equity exposure can take advantage of high-risk schemes, while employees who prefer safer investments can stick to moderate or low-risk options. With everything consolidated on a single platform, subscribers can now tailor their pension portfolios to meet individual financial goals.