Understanding the National Pension System's New Multiple Scheme Framework

Introduction to the Multiple Scheme Framework

The Multiple Scheme Framework (MSF) of the National Pension System (NPS) marks a significant evolution in retirement investment options, emphasizing choice for subscribers. Recent reports indicate that within just four months of its launch, the MSF has achieved an impressive ₹145 crore in assets under management (AUM), reflecting strong initial engagement.

What is the Multiple Scheme Framework?

The MSF enhances the NPS by allowing pension funds to introduce various theme-based and strategy-focused investment options. Essentially, it provides subscribers with more avenues to tailor their NPS investments according to their risk tolerance, life stages, and long-term objectives, all while remaining within the NPS framework.

Key features include:

● It operates within the existing NPS structure and is regulated accordingly.

● Pension funds can create multiple distinct schemes rather than being limited to a standardized selection.

● The framework prioritizes subscriber choice as a fundamental aspect.

Milestone Achievement in AUM

As of February 1, 2026, the MSF has reportedly reached ₹145 crore in AUM, following its launch on October 1, 2025. Additionally, over 150,000 NPS accounts have been established under this new framework during this initial phase.

● Launch date: October 1, 2025 (operational from the third week of October 2025)

● AUM snapshot date: February 1, 2026

● Account growth: More than 150,000 accounts under MSF

Purpose Behind the Introduction of MSF

The Pension Fund Regulatory and Development Authority (PFRDA) aims to broaden retirement investment choices through the MSF, leveraging the expertise of pension funds to create more customized solutions. This is crucial as retirement planning is not a one-size-fits-all scenario; different age groups have varying investment needs.

Reasons why MSF is considered a significant advancement include:

● It fosters innovative scheme designs within the NPS.

● It better aligns with diverse risk appetites and investment goals.

● It represents a shift towards a more choice-oriented pension landscape.

Changes for Subscribers Under MSF

The most apparent change is the increased variety of options available. The MSF structure allows pension funds to offer schemes based on different investment strategies, which became operational in October 2025.

Strategies available under MSF include:

● Equity-focused options

● Balanced and dynamic asset allocation strategies

● Income-oriented approaches

● Risk-based retirement solutions

The MSF caters to non-government subscribers, including self-employed individuals, entrepreneurs, corporate workers, and those in the digital economy, providing tailored investment pathways within the NPS.

Important Rules for Subscribers

While MSF introduces flexibility, it also comes with specific guidelines that define what subscribers can do once they opt in.

Key points to note include:

● Some MSF schemes permit up to 100% equity allocation, but this applies only to new contributions under MSF.

● Existing NPS contributions will remain in standard schemes; new contributions can be directed to MSF options.

● Subscribers can revert to regular schemes if they find MSF unsuitable later.

When considering the option of 100% equity, it’s essential to view it as just one aspect of a broader retirement strategy, focusing on suitability, risk tolerance, and investment horizon.

NPS Registration and MSF

The MSF is not a standalone product outside the NPS, meaning that NPS registration is the first step. Once registered, subscribers can choose to direct their new contributions into the MSF framework.

To clarify:

● NPS registration makes you an NPS subscriber.

● NPS MSF is an option for new contributions, offering a broader range of strategy-led schemes.

For those with existing NPS accounts, the MSF option applies only to new funds, as existing contributions cannot be transferred into MSF.

Evaluating NPS Benefits with MSF

The MSF does not alter the fundamental purpose of the NPS as a long-term retirement solution; rather, it enhances the choice aspect, allowing for better alignment with individual goals.

When exploring 'NPS benefits' in the context of MSF, subscribers typically seek three main advantages:

● A better fit: Schemes that align with their investment preferences (growth-oriented, balanced, income-focused, or life-stage based).

● Greater clarity: Strategy-defined schemes can be more comprehensible than generic allocations, provided subscribers understand their objectives.

● Increased control: With more options, subscribers are less confined to a single default path.

However, more choices also entail greater responsibility. Strategies may not always meet expectations, market conditions can change, and high-equity options can be volatile. Thus, MSF should be viewed as a framework that enhances choice rather than a shortcut to guaranteed outcomes.

Conclusion

The rapid achievement of ₹145 crore in AUM and the growing number of accounts indicate that the Multiple Scheme Framework is gaining traction, primarily due to its expansion of choices within the NPS while maintaining its retirement-focused intent. When considering the MSF, it’s crucial to approach it as a strategic decision regarding fit and risk comfort for new contributions, rather than merely a headline-driven change.

Frequently Asked Questions

Q1: What is the Multiple Scheme Framework (MSF) in NPS?

The MSF in NPS is a structure that enables pension funds to provide differentiated, theme-based, and strategy-oriented pension schemes, offering subscribers a broader range of choices.

Q2: What does “NPS MSF crossed ₹145 Crore AUM” mean?

This indicates the assets under management accumulated under MSF schemes shortly after launch, reflecting early adoption and contributions directed into MSF options.

Q3: Can I transfer my existing NPS corpus into the MSF?

No, existing NPS contributions cannot be moved into MSF; 100% equity allocation is only available for new contributions under MSF.

Q4: How many schemes are available under the MSF NPS?

There are 25 MSF schemes under NPS, with an initial set launched and others operationalized subsequently by pension funds.

Q5: Is 100% equity allocation allowed under MSF?

Certain MSF schemes permit up to 100% equity allocation, but only for new contributions. Suitability depends on individual risk tolerance and investment horizon.