Overview

• From October 1, pension fund managers can offer NPS schemes with up to 100% equity exposure under a new Multiple Scheme Framework, and subscribers can hold more than one scheme per tier under a single PRAN, including across CRAs.
• The framework lowers the early-exit vesting period to 15 years for non-government subscribers, with exits allowing a 60% lump sum and 40% annuity versus higher annuity requirements in existing common schemes.
• A PFRDA discussion paper proposes additional changes still under consultation, including 80% lump sum at normal exit, higher small‑corpus and premature withdrawal limits, more partial withdrawals, extended entry age to 70 with continuation to 85, and a possible loan facility.
• Central government employees have until September 30 to choose the Unified Pension Scheme instead of NPS, with a government‑provided one‑time option to switch back to NPS later, and roughly 23 lakh workers are eligible to move.
• Tax treatment for UPS was aligned with NPS in August, and authorities have allowed physical form submissions in cases of technical issues, including for personnel posted overseas.