NPS Rules: If you invest in the National Pension System (NPS) or are considering opening an account for retirement, this information is important for you. The Pension Fund Regulatory and Development Authority (PFRDA) has changed the names of NPS schemes and the way they are displayed online. These new rules will come into effect on December 1, 2026. This is intended to make it easier for investors to understand and compare different pension fund schemes.
Under the new rules, pension funds will no longer include category codes like A, B, C, D, and E in their scheme names. However, information about the type of investment the scheme is intended for and its risk exposure will need to be provided separately along with the name.
What changes will occur in the names of NPS schemes?
According to the new PFRDA regulations, pension funds will no longer need to include category codes such as A, B, C, D, and E in the names of Multiple Scheme Framework (MSF) schemes. Scheme names will now comprise the pension fund’s short name, NPS, and a distinct scheme name. The regulator has instructed that the names should be straightforward and easy to recall.
For instance, a scheme could be titled “XYZ NPS Retirement Scheme.” If a single fund offers multiple schemes within a category, each must have a unique name. Tier-I schemes will not require any special suffixes, whereas Tier-II schemes must end with “Tier II.”
Will investors lose access to risk information?
The removal of category codes from scheme names does not imply that investors will be deprived of risk information. The Pension Fund Regulatory and Development Authority (PFRDA) has stipulated that pension funds must also disclose the scheme’s growth category and risk level in advertisements, websites, brochures, and other public communications alongside the scheme’s name. Consequently, investors will still be able to ascertain the risk level of a scheme simply by reviewing its name.