NPS pension fund schemes get categories A to E, uniform names and a side-by-side comparison screen
PFRDA circulars dated 28 August 2026 put every NPS Multiple Scheme Framework (MSF) scheme into one of five equity-exposure categories, A to E, with one naming format and a fixed order for choosing schemes on NPS platforms.
The Pension Fund Regulatory and Development Authority (PFRDA) set one classification, one naming format and one selection order for the investment schemes offered under the National Pension System (NPS) in two circulars dated 28 August 2026, which took effect on their issue date. Under them, the Multiple Scheme Framework (MSF) schemes run by different pension funds are sorted into categories A to E by how much of the money may go into equity, and are to be shown side by side before a pension fund is chosen. The 30-day and 45-day windows for pension funds to comply ran out on 27 September and 12 October 2026. The rules do not apply to accounts tagged to the Government sector.
The MSF is the set of NPS schemes that pension funds launch with PFRDA’s approval, in addition to the standard lifecycle and active-choice options. The circulars end the earlier split between “Common Schemes” and MSF schemes from 28 August 2026.
The five MSF categories
Every MSF scheme must fall into one category, based on the equity (shares and related instruments) exposure it is allowed to have. Category A has the highest equity exposure and E the lowest.
| Category code | Label in the circular | Equity exposure |
|---|---|---|
| A | Aggressive Growth, Very High Risk | 80% to 100% |
| B | High Growth, High Risk | 60% to 80% |
| C | Balanced Growth, Medium Risk | 35% to 60% |
| D | Conservative | 10% to 35% |
| E | Debt (government and corporate bonds) | 0 to 10% |
A pension fund may offer up to 2 schemes in each category under each tier (Tier I or Tier II).
Naming format
Each MSF scheme name must follow this order: abbreviation of the pension fund’s name, then “NPS”, then the category code, then the scheme name. Tier II schemes carry “Tier 2” at the end. The circular’s own example is “XYZ NPS A Retirement Scheme”. The category code must be clear in the name, and pension funds must show the equity-exposure order, with A the highest and E the lowest.
How platforms must show schemes
All subscriber-facing screens, including those of the central recordkeeping agencies (CRAs) and other onboarding channels, must follow one sequence:
- Type of scheme (MSF, lifecycle, active choice, NPS Sanchay or 4A schemes).
- Category of the MSF or lifecycle scheme, or the asset allocation for active choice.
- The pension fund.
Before the pension fund is chosen, all schemes in the selected category from the various pension funds must be shown so they can be compared. The minimum details are scheme name, pension fund name, launch date, historical returns, benchmark and comparative benchmark returns, applicable charges, riskometer, and assets under management (AUM) on the last day of the previous month. Platforms run by a point of presence (PoP) may show only the schemes of the pension funds linked to that PoP.
Deadlines for pension funds
The second circular, 48/REG-PF/11, gave pension funds these windows, counted from its issue date of 28 August 2026 (so ending 27 September and 12 October 2026):
- 30 days to rename existing MSF schemes to the new format.
- 30 days to modify, restructure or reclassify any scheme whose equity range spans more than one category, so it fits a single category, and to send the details to PFRDA.
- 45 days to merge or restructure schemes where a fund has more than two in the same category, after informing subscribers.
If an MSF scheme is wound up, subscribers must be given a choice of another scheme. Those who do not choose are moved to the Life Cycle 50 (Moderate) scheme of the same pension fund under Tier I.
Other points in the circulars
- A subscriber may hold more than one MSF scheme at the same time, but only one of lifecycle or active choice under the same PRAN (Permanent Retirement Account Number).
- A subscriber can make at most two requests per account in a financial year to change pension fund, scheme or both.
- Changing scheme does not change the vesting period of the account, which is counted from the original account opening date. If one scheme is merged into another, the merged amount follows the rules of the target scheme.
- Annexure A of circular 47 lists annual charges for non-4A schemes: PoP plus investment management fee of 0.24% to 0.32% of AUM for PoP subscribers and 0.04% to 0.12% for direct subscribers; CRA charges of Rs 100 to Rs 500; NPS Trust fee of 0.003% a year of AUM; GST extra.
- Every MSF scheme must show a riskometer and have an “NPS Scheme Essentials” document covering items such as objective, asset allocation, benchmark, vesting period, charges and winding-up terms.
Basis of these figures
All figures, categories, deadlines and display requirements are from the full text of PFRDA circular PFRDA/2026/47/REG-PF/10 and circular PFRDA/2026/48/REG-PF/11, both dated 28 August 2026, read from copies hosted on StaffNews. Outlook Money was used for cross-checking. This article reports the rules and does not say which scheme, category or pension fund suits any subscriber.