On 01 October 2025, the National Pension System (NPS) has received a significant upgrade with the introduction of the Multiple Scheme Framework (MSF) for subscribers. Under this new NPS rule, private sector employees, corporate employees and self-employed individuals will have a choice to invest up to 100% in equity, far beyond the existing 75% cap. This change makes NPS more flexible and investor-centric.
If you’ve ever wondered what is NPS and how it supports your retirement planning, this latest update makes the scheme even more attractive for long-term wealth creation.
The Multiple Scheme Framework is a structure under which each Pension Fund Manager (PFM) can offer multiple individual schemes within different asset class – Equity, Corporate Debt, Government Securities, etc.
From 1st October 2025, subscribers can now opt for 100% equity exposure in schemes created under MSF. This removes the prior cap of 75% equity in NPS across Common Schemes.
Under MSF, each PFM can have multiple schemes as per different asset class.
You can pick schemes from a single PFM or across multiple PFMs.
During the vesting period (first 15 years): Switching of legacy fund is permitted only to Common Schemes. However, the same is not applicable between MSF schemes.
After 15 years or at normal exit: Subscribers can switch legacy fund freely between MSF schemes.
With MSF and the 100% equity option, NPS now delivers:
Greater Flexibility and Choice — Tailor your portfolio more precisely across equity and debt.
Higher Growth Potential — For long-term investors, more equity exposure can enhance returns.
Professional Diversification — Just like other funds, but with the pension orientation and regulatory safeguards of NPS.
If you’re exploring the Types of NPS account, these changes make both Tier I and Tier II options far more attractive for personalized retirement planning.
HDFC Pension has launched customized schemes under the Multiple Scheme Framework (MSF), designed to meet the diverse financial goals of India’s evolving workforce.
This scheme is tailored for investors seeking higher exposure to equity and a long investment horizon.
It allows up to 100% equity exposure, making it ideal for those aiming to maximize their retirement corpus through market-linked growth.
Key Benefits:
Equity Advantage Fund empowers investors to harness the full potential of equity markets while benefiting from the regulatory safeguards of NPS. Click here to know more about this plan
This scheme is built for investors who value stability, steady growth, and diversified investments.
It offers a balanced approach by investing across multiple asset classes, helping mitigate risk while aiming for consistent returns.
Key Benefits:
Whether you’re planning for long-term goals or short-term milestones, HDFC PF NPS Surakshit Income Fund offers a dependable path to retirement. Click here to know more about this plan
HDFC Pension’s MSF (Multiple Scheme Framework) helps you build retirement wealth based on your risk preference while offering added value through a complimentary 1-year wellness benefit. This includes healthcare services and savings, making it a holistic solution for both financial security and well-being.
As part of this enhanced MSF framework, HDFC Pension offers an additional wellness‑focused benefit for eligible MSF subscribers through its partnership with PharmEasy.
This value‑added offering is aimed at supporting subscribers’ everyday health and wellness needs, alongside their long‑term retirement journey.
This benefit is offered as an additional value proposition under MSF and does not replace any medical insurance or health cover.
Know More About the Wellness Benefit
For detailed information on features, usage and applicable terms, please refer to the brochure below:
Download the HDFC Pension × PharmEasy Wellness Brochure
Please note : Value‑added services under MSF are subject to eligibility criteria and applicable terms & conditions and may be updated in line with regulatory guidelines.
Now is a good time to review your NPS portfolio. Open NPS Account Online (or revisit your existing account) to explore the new MSF schemes from HDFC Pension to build a retirement strategy that suits your goals and risk appetite.
This is only for Non-Government Sector (NGS) Subscribers and not for Government subscribers.
Maximum three are allowed, one with each CRA.
Yes
No. One CRA only one PRAN.
Yes, Subscriber can choose multiple schemes at any point of time under one PRAN.
Yes. Subscriber. has the flexibility to manage different scheme under both the tier. Within one tier also multiple scheme is allowed.
This will be tracked by PAN Number of the Subscriber. Multiple accounts of subscriber can be accessed through account aggregator system through PAN.
Common Schemes are existing schemes which exist before 1 Oct 2025.
For example 1) Active choice 2) Auto choice. All these are now referred as Common schemes.
No
Yes, Charges of Addition Benefits will be extra to standard NPS charges.
e.g., Accidental death benefit, term insurance, critical illness cover etc can be offered as additional features under new schemes 20(2).
Yes. These new schemes will be available in both tier 1 and tier 2.
No, Common Scheme fund cannot be switched to New Scheme.
Yes, New Scheme can be switched to Common Scheme before vesting period.
100% equity exposure is allowed. However, asset allocation is decided by PFM.
15 years (minimum) with Option to exit at age of 60yrs or at the time of retirement.
g., a subscriber entering at age of 25, can exit at age of 40 and a subscriber entering at age of 50 can exit at 60 or on retirement age.
No, Switching can be done within new schemes after completion of 15 years of vesting period or on retirement.
Subscribers can move their funds across New Schemes upon completion of Vesting Period of 15 yrs or upon time of Normal Exit.
Yes, New scheme charges include only Pension fund and POP charges.
In case of winding up of any scheme by Pension Fund, subscribers can migrate to any common or new scheme. For those subscribers who do not exercise any choice it will be migrated to tier 1 under Auto LC50 of same PFM.
These can be frozen only for 1 year, after which employee is free to choose his/her own investment choice and PFM.
New scheme are live from 1st October 2025.
Yes, At time of withdrawal 60% can withdrawn tax free and rest 40% has to be invested in Annuity policy.
Fund management charge 0f 0.30% is applied on new scheme.
