Overview

• Effective October 1, 2025, pension fund managers can offer NPS schemes with up to 100% equity exposure for non-government subscribers.
• A new Multiple Scheme Framework will let subscribers hold more than one scheme per tier under a single PRAN, expanding investment flexibility.
• Draft changes under consideration would permit exit after 15 years and make early exits more favorable by allowing 60% as lump sum and 40% into annuity.
• Proposals include flipping normal-exit payouts toward a larger lump sum, raising small-corpus and premature-withdrawal limits, allowing more pre-retirement withdrawals, enabling loans against NPS, and extending the joining age.
• If the 80% lump-sum normal exit is adopted, only 60% would remain tax-free and 20% would be taxed at slab rates, underscoring tax and market-risk trade-offs for investors.