Key Takeaways
- • PFRDA issued a circular on 3 November removing the category code (A to E) from MSF scheme names, with the new format set as Pension Fund abbreviation + "NPS" + Unique Scheme Name.
- • Category and risk information must still appear in smaller font beside or below scheme names in all media, public literature, and the NPS Scheme Essentials Document and brochure.
- • Non-pension-fund PoP platforms must display schemes of all pension funds within the subscriber's selected category, replacing the earlier allowance for PoPs to show only their associated pension fund's schemes.
- • Both the 28 August provisions and the 3 November amendments take effect on 1 December.
Summary
The Pension Fund Regulatory and Development Authority (PFRDA) has amended its 28 August circular on the standardized classification and presentation of schemes under the National Pension System (NPS). The amendment, issued on 3 November, changes the naming convention for Multiple Scheme Framework (MSF) schemes and clarifies how schemes must be displayed on Point of Presence (PoP) platforms. Both the earlier provisions and the amendments come into effect on 1 December, according to Livemint.
Clause 3.2 of the August circular had required scheme names to follow the format "Abbreviation of Pension Fund Name + NPS + MSF Category Code + Scheme Name", with Category A representing the highest equity exposure and Category E the lowest. The November amendment removes the category code from scheme names. The revised format is "Abbreviation of Pension Fund Name + NPS + Unique Scheme Name." PFRDA states that where a pension fund offers more than one scheme within the same category, each scheme must have a distinct name.
Despite the removal, subscribers will still see category and risk information. In all media, public-facing literature and advertising, the scheme name must be accompanied by the applicable scheme category or growth category in a smaller font, below or alongside the name. The category must also be stated in the NPS Scheme Essentials Document and scheme brochure, where applicable.
The amendment also replaces Clause 4.2 of the August circular, which had allowed PoP platforms to display the schemes of the pension funds associated with them. The revised rule distinguishes between pension fund-owned platforms and other PoP platforms. Other PoPs operating their own platforms must display the schemes of all pension funds within the category selected by the subscriber, under the standardised navigation and scheme-selection framework. A PoP may feature a particular pension fund's schemes at the top and pre-select one, provided schemes from all pension funds in the selected category remain visible.
Pension funds that also hold a PoP licence may show only their own schemes when subscribers deliberately access the pension fund's website or application and the onboarding journey is run by that fund. The standardized navigation journey on NPS Central and Central Recordkeeping Agency (CRA) platforms, including interim redirection journeys, must display schemes of all pension funds within the selected category. The Star NPS platform used by pension funds may display their schemes to the Pension Agents they appoint. Subscriber navigation must first capture the subscriber's choice of scheme type, category or risk appetite before showing corresponding schemes, and the category need not be repeated in the scheme name if it already appears on the selection screen.
Clause 3.2 of the August circular had required scheme names to follow the format "Abbreviation of Pension Fund Name + NPS + MSF Category Code + Scheme Name", with Category A representing the highest equity exposure and Category E the lowest. The November amendment removes the category code from scheme names. The revised format is "Abbreviation of Pension Fund Name + NPS + Unique Scheme Name." PFRDA states that where a pension fund offers more than one scheme within the same category, each scheme must have a distinct name.
Despite the removal, subscribers will still see category and risk information. In all media, public-facing literature and advertising, the scheme name must be accompanied by the applicable scheme category or growth category in a smaller font, below or alongside the name. The category must also be stated in the NPS Scheme Essentials Document and scheme brochure, where applicable.
The amendment also replaces Clause 4.2 of the August circular, which had allowed PoP platforms to display the schemes of the pension funds associated with them. The revised rule distinguishes between pension fund-owned platforms and other PoP platforms. Other PoPs operating their own platforms must display the schemes of all pension funds within the category selected by the subscriber, under the standardised navigation and scheme-selection framework. A PoP may feature a particular pension fund's schemes at the top and pre-select one, provided schemes from all pension funds in the selected category remain visible.
Pension funds that also hold a PoP licence may show only their own schemes when subscribers deliberately access the pension fund's website or application and the onboarding journey is run by that fund. The standardized navigation journey on NPS Central and Central Recordkeeping Agency (CRA) platforms, including interim redirection journeys, must display schemes of all pension funds within the selected category. The Star NPS platform used by pension funds may display their schemes to the Pension Agents they appoint. Subscriber navigation must first capture the subscriber's choice of scheme type, category or risk appetite before showing corresponding schemes, and the category need not be repeated in the scheme name if it already appears on the selection screen.
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