The National Pension System (NPS) has long helped India’s non-government employees secure their retirement. In 2025, the Pension Fund Regulatory and Development Authority (PFRDA) introduced the Multiple Scheme Framework (MSF)—a game-changer for private sector workers (NGS). Let’s break down how MSF works, who benefits, and why it matters.
What is MSF and Who Can Benefit?
MSF allows non-government employees to manage more than one NPS scheme under a single PRAN (account). This centralised approach means you don’t need separate accounts for different strategies. It’s especially useful for those seeking tailored options for risk and retirement goals.
How MSF Differs from Previous NPS Schemes
Unlike earlier NPS variants, MSF offers:
Personalized Retirement Planning: Choose multiple schemes for diversification and flexibility.
Multiple CRAs Access: Manage schemes across Protean, KFintech, CAMS in one place.
Risk Customization: High equity exposure (up to 100%), moderate or high risk variants, and fund switching.
Active vs. Auto Choice and the Role of ECGA
MSF includes new choice models:
Active Choice: Full control to pick asset allocation and fund managers.
Auto Choice: Default allocations based on age/risk.
ECGA (Equity Choice Group A): Enables 100% equity investment for maximized growth—great for younger investors with high risk appetite.
Equity Exposure and Fund Types
Subscribers can now invest up to 100% in equities, previously capped at 75%. Each scheme is designed for different profiles—corporate, gig workers, and self-employed—with options for moderate and aggressive investment.
Vesting Period and Switching Options
MSF’s flexible vesting lets you switch schemes easily and adapt to changing retirement plans. You can modify equity and debt allocations as your risk profile evolves.
Key Factors in Scheme Selection
Age and Retirement Goals: Younger users may prefer higher equity, while older investors often choose balanced funds.
Risk Appetite: Moderate or high-risk scheme? Choose what suits your comfort level.
Fund Managers: Compare historic performance, charges, and withdrawal flexibility.
Benefits of MSF
Greater Personalisation: Customizable choices for every subscriber.
Low Cost: Annual charges capped at 0.30% of assets, with incentives for new subscribers.
Role of Central Record keeping Agencies (CRA)
Schemes are managed across major CRAs (Protean, KFintech, CAMS), ensuring seamless access and reporting. You get consolidated statements for all your accounts.
Why MSF is a Must-Know for Private Sector Employees
With greater flexibility, optimized fund choices, and enhanced growth potential, MSF helps tailor retirement planning to your unique needs. Whether you are planning your own future or helping others navigate pension options, MSF under NPS is a powerful new tool.
Watch our in-depth video in Tamil:
https://youtu.be/hGZ4VjMV2W4?si=DC725VP8VUwLPNVQ
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Disclaimer:
Suitability for MSF schemes depends on personal goals, age, and financial situation. Scheme terms can change, and past returns are not predictors of future performance.