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PFRDA Rolls Out New NPS Framework With 100% Equity Option, Opens Consultation on Assured Pensions

The move prioritizes simpler, safer investing via single-account access, capped costs, uniform disclosures.

Overview

  • Effective October 1, the Multiple Scheme Framework lets non-government subscribers hold persona-targeted NPS schemes under one PRAN instead of a single choice per tier.
  • Pension funds may offer up to 100% equity exposure in new schemes, with switching between such schemes restricted until a 15-year vesting period or exit, though moves to common schemes are permitted.
  • Charges are capped at 0.30% of assets annually, with a conditional 0.10% incentive for funds meeting new-subscriber targets, alongside mandatory approvals, Risk-o-meters, market benchmarks and an 'NPS Scheme Essentials' disclosure.
  • PFRDA issued a consultation proposing three options for more predictable retirement income—flexible SWP-plus-annuity, a target pension with CPI-IW adjustments and assured payouts via pension credits—with feedback due by October 31.
  • Finance Minister Nirmala Sitharaman urged wider coverage for gig workers and women, including exploring 'Pension Sakhis', while pension funds welcomed the reforms and prepared 100% equity offerings.