NPS gets a makeover: Multiple schemes, 100% equity option now live from October 1

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October 1 isn’t just another day on the calendar—it’s being celebrated as NPS Diwas, and this year, it comes with a big bang for India’s retirement savers. The Pension Fund Regulatory and Development Authority (PFRDA) has rolled out a major revamp of the National Pension System (NPS) through the Multiple Scheme Framework (MSF), effective today. These reforms are designed to make retirement planning more flexible, more personalised, and in many cases, more rewarding.

For the first time, non-government sector subscribers—covering corporate employees, professionals, self-employed individuals, and even gig workers—will be able to diversify by holding more than one NPS scheme under a single PAN. Earlier, subscribers were restricted to just one scheme per tier.

The most striking update is the 100% equity option. Under the high-risk variant, pension funds can now allocate the full investment amount to equities for subscribers with a long-term horizon and higher risk appetite. It’s a bold move that brings NPS closer to global retirement systems, allowing aggressive investors to aim for higher returns, while still retaining the option to spread their money across multiple schemes.

Here’s what else changes from today:

• Wider access through multiple schemes under one account.
• Persona-focused schemes designed for corporate staff, entrepreneurs, professionals and gig workers.
• Flexible risk variants: moderate and high-risk (with up to 100% equity); low-risk may also be introduced.
• Transparent charges: capped at 0.30% of AUM annually, with extra incentives for funds attracting new investors.
• Switching rules: allowed to move into common schemes, but switching between MSF schemes is restricted until 15 years or retirement/exit.
• Mandatory disclosure norms: every scheme must carry a Risk-o-meter and a standard document explaining its essentials.

Government sector NPS and UPS: PRAN opening cost Rs18 (e-PRAN) and Rs40 (physical PRAN), annual maintenance Rs100 per account, no fees for zero-balance accounts, no transaction charges.

Atal Pension Yojana and NPS-Lite: PRAN opening Rs15, annual maintenance Rs15, no transaction fees.

Private sector NPS and NPS Vatsalya: PRAN opening Rs18 (e-PRAN) and Rs40 (physical PRAN), no transaction fees. Annual maintenance depends on Tier I corpus:

Zero balance: nil
Up to Rs2 lakh: Rs100
Rs2.1 lakh to Rs10 lakh: Rs150
Rs10.1 lakh to Rs25 lakh: Rs300
Rs25.1 lakh to Rs50 lakh: Rs400
Above Rs50 lakh: Rs500

By widening access and opening the door to full-equity investments, the NPS has taken a decisive step towards global best practices. For India’s savers, the message is clear: retirement planning just became more flexible—and potentially more rewarding.