NPS subscribers can now have multiple pension fund managers

The Pension Fund Regulatory and Development Authority (PFRDA) has allowed NPS subscribers to opt for multiple pension fund managers. However, this is subject to a maximum of three pension funds and can be exercised based on asset classes.

“The facility of selection of multiple (maximum of 3) pension funds in accordance with asset classes (except Alternate Asset Class or Scheme A) is available to the existing subscribers under NPS All Citizen Model (Tier-I), NPS Corporate Model (Tier-I) and Tier-II (all subscribers)”, said PFRDA in a circular.    

For instance, all existing NPS subscribers can now have different pension fund managers for asset class E (equity and related instruments, asset class C (corporate debt and related instruments) and asset class G (government bonds and related instruments).

Also, the said option applies to existing subscribers under the NPS All Citizen Model and the NPS Corporate Model having Tier-I accounts. And in the case of Tier-II accounts, it is applicable for subscribers across categories.

However, in the case of new accounts, eligible subscribers can exercise this option three months after registration.

Also, PFRDA further clarified, “This facility is available under the Active Choice (asset allocation) mode only.”