The Pension Fund Regulatory and Development Authority (PFRDA) has introduced changes to its existing guidelines for naming and displaying schemes under the National Pension System (NPS). The latest amendment, issued on November 3, focuses on the Multiple Scheme Framework (MSF) and how pension fund schemes are presented on Point of Presence (PoP) platforms.
Under the revised rules, pension funds will follow a simplified naming format for their MSF schemes. The regulator has also clarified how different pension funds’ schemes must be displayed when subscribers use PoP platforms to select their investments.
Both the original guidelines and the latest amendments will become effective from December 1. Here are the major changes NPS subscribers and pension funds should know.
PFRDA Changes the Naming Format for NPS MSF Schemes
Under its circular dated August 28, PFRDA had prescribed a naming structure that included the pension fund’s abbreviation, the NPS identifier, the MSF category code and the scheme name.
The earlier format was:
Pension Fund Abbreviation + NPS + MSF Category Code + Scheme Name
The category codes ranged from A to E, with Category A representing the highest equity exposure and Category E indicating the lowest.
However, the November 3 amendment removes the category code from the official scheme name. Pension funds will now follow this simplified structure:
Pension Fund Abbreviation + NPS + Unique Scheme Name
According to the revised guidelines, every scheme must have a simple, distinctive and easily recognisable name selected by the respective pension fund.
For Tier II schemes, the words ‘Tier II’ must be added at the end of the scheme name. Tier I will remain the default option, so mentioning it separately in the name is not necessary.
For example:
| Scheme Type | Illustrative Name |
|---|---|
| Tier I | XYZ NPS Name of the Scheme |
| Tier II | XYZ NPS Name of the Scheme Tier II |
| Different scheme in the same category | XYZ NPS Name of Scheme (Different from the First Name) |
PFRDA has also clarified that when a pension fund offers multiple schemes under the same category, each scheme must have a separate and identifiable name.
MSF Category and Risk Information Will Still Be Displayed
Although the revised guidelines remove category codes from scheme names, subscribers will continue to receive information about the category and risk level of each investment option.
PFRDA has directed pension funds to display the applicable scheme category or growth category alongside or below the unique scheme name in public-facing advertisements, promotional materials and other communication.
The category information must also be clearly mentioned in the NPS Scheme Essentials Document and the relevant scheme brochure.
This means subscribers will still be able to understand the category and associated investment exposure before selecting an NPS scheme, even though the category code will no longer appear in its official name.
New Rules for Displaying NPS Schemes on PoP Platforms
Another important change introduced through the November 3 circular concerns the presentation of pension fund schemes on PoP platforms.
Under the earlier guidelines issued on August 28, platforms operated by PoPs could display schemes offered by pension funds associated with them during the subscriber onboarding process.
The revised provision now requires other PoPs operating their own platforms to display schemes from all pension funds within the category selected by the subscriber.
However, a PoP is allowed to place a particular pension fund’s schemes at the top of the display or pre-select a specific scheme. This flexibility is permitted only if schemes offered by all pension funds within the selected category remain available for subscribers to view.
There is a specific exception for pension funds that also hold a PoP licence. If subscribers directly visit such a pension fund’s website or application and complete the onboarding process through its own platform, the pension fund can display only its own schemes.
What Changes Apply to NPS Central, CRA and Star NPS Platforms?
PFRDA has also provided additional clarity regarding the standardised navigation process on NPS Central and Central Recordkeeping Agency (CRA) platforms.
These platforms, including interim redirection journeys, must display schemes from all pension funds falling under the category selected by the subscriber.
The Star NPS platform, which is used by pension funds, can also display their respective schemes to the Pension Agents appointed by them.
The regulator has further specified that subscriber-facing platforms must first ask users to select their preferred scheme type, investment category or risk appetite, wherever applicable. Only after capturing this preference should the platform display the corresponding schemes.
If the selected category is already clearly visible on the scheme selection screen, repeating the category information separately in the scheme name will not be necessary.
The revised framework aims to bring greater consistency to NPS scheme names and provide subscribers with a more standardised experience when comparing and selecting pension fund options.
Disclaimer: This article is intended for general informational purposes and is based on the PFRDA circular dated November 3. Rules and regulatory provisions may be subject to further changes. Readers should refer to the official PFRDA website and relevant notifications for the latest and complete information before making any NPS-related decisions.