Key Takeaways
- • The Pension Fund Regulatory and Development Authority (PFRDA) will stop requiring category codes A, B, C, D and E in the names of National Pension System (NPS) Multiple Scheme Framework schemes, effective December 1, 2026.
- • Under the revised naming convention, scheme names will consist of the pension fund's short name, "NPS," and a distinct scheme name, such as "XYZ NPS Retirement Scheme."
- • Tier-I schemes will carry no special suffix, while Tier-II schemes must end with "Tier II."
- • Investment type and risk exposure information will not be dropped: pension funds must disclose each scheme's growth category and risk level in advertisements, websites, brochures and other public communications.
- • The changes are intended to make NPS schemes easier for investors to understand and compare.
Summary
The Pension Fund Regulatory and Development Authority (PFRDA) has revised how National Pension System (NPS) schemes are named and displayed online, according to a report published by Times Bull. The new rules take effect on December 1, 2026, and are aimed at helping investors understand and compare pension fund schemes more easily.
Under the new framework, pension funds will no longer include category codes such as A, B, C, D and E in the names of Multiple Scheme Framework (MSF) schemes. Instead, each scheme name will combine the pension fund's short name, the term "NPS," and a distinct scheme name. The regulator has directed that names be straightforward and easy to recall. As an illustration, a scheme could be titled "XYZ NPS Retirement Scheme." Where a single fund offers several schemes within a category, each must carry a unique name. Tier-I schemes will not require any special suffix, whereas Tier-II schemes must end with "Tier II."
The removal of category codes does not reduce the risk information available to investors. PFRDA has stipulated that pension funds must disclose each scheme's growth category and risk level in advertisements, websites, brochures and other public communications alongside the scheme name. Information on the type of investment a scheme is intended for and its risk exposure will therefore be provided separately, and investors should still be able to gauge a scheme's risk profile from its disclosures.
Under the new framework, pension funds will no longer include category codes such as A, B, C, D and E in the names of Multiple Scheme Framework (MSF) schemes. Instead, each scheme name will combine the pension fund's short name, the term "NPS," and a distinct scheme name. The regulator has directed that names be straightforward and easy to recall. As an illustration, a scheme could be titled "XYZ NPS Retirement Scheme." Where a single fund offers several schemes within a category, each must carry a unique name. Tier-I schemes will not require any special suffix, whereas Tier-II schemes must end with "Tier II."
The removal of category codes does not reduce the risk information available to investors. PFRDA has stipulated that pension funds must disclose each scheme's growth category and risk level in advertisements, websites, brochures and other public communications alongside the scheme name. Information on the type of investment a scheme is intended for and its risk exposure will therefore be provided separately, and investors should still be able to gauge a scheme's risk profile from its disclosures.
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