The Pension Fund Regulatory and Development Authority (PFRDA) has announced changes to the naming and online presentation of National Pension System (NPS) schemes. The revised rules will take effect on December 1, 2026, with the aim of making pension fund options easier for investors to understand and compare.
Under the updated guidelines, pension funds will no longer have to use category codes such as A, B, C, D and E in the names of their schemes. However, details about each scheme’s investment category and associated risk level must continue to be disclosed separately.
How Will NPS Scheme Names Change?
According to the new PFRDA guidelines, schemes offered under the Multiple Scheme Framework (MSF) will no longer need category codes in their names.
Going forward, a scheme’s name will include the pension fund’s abbreviated name, the term NPS and a distinct scheme title. PFRDA has directed pension funds to choose names that are simple, clear and easy for investors to remember.
For example, a pension fund could name one of its offerings the “XYZ NPS Retirement Scheme.” If a fund launches multiple schemes within the same category, each scheme must have a different name to avoid confusion.
The naming requirements will also differ by account type. Tier-I schemes will not need an additional suffix, while Tier-II scheme names must include the words “Tier II” at the end.
Will Investors Still Be Able to Check Scheme Risk Levels?
Removing category codes from NPS scheme names does not mean that information about investment risks will disappear.
PFRDA has made it mandatory for pension funds to clearly disclose each scheme’s growth category and risk level along with its name. This information must be available through advertisements, official websites, brochures and other public communication materials.
As a result, investors will continue to have access to important details about a scheme’s investment category and risk exposure, even though the existing A, B, C, D and E codes will no longer form part of scheme names.
When Will the New NPS Naming Rules Apply?
The revised naming and disclosure requirements will come into force on December 1, 2026. The changes are designed to create a more straightforward naming system while ensuring that investors can still identify the investment category and risk associated with different NPS schemes.
Disclaimer: This article is intended for general informational purposes only. Investors should review the official PFRDA guidelines and relevant scheme documents before making any investment decisions.