PFRDA introduces standardized risk-based classification for NPS schemes

Pension Fund Regulatory and Development Authority (PFRDA) has started a standard way to classify and show all National Pension System (NPS) schemes, starting from the circular dated 28 August 2026. All schemes now fall into five groups: lifecycle-based schemes, Active Choice, NPS Sanchay, Multiple Scheme Framework (MSF), and 4A schemes.

Risk classification and naming

Under this new system, MSF schemes get risk labels from A to E, where A means the highest equity risk and E the lowest. Pension funds must move schemes that cross multiple categories within 30 days and merge or close extra schemes within 45 days. Scheme names must follow a standard format: pension fund abbreviation + NPS + category label + scheme name.

Subscriber disclosures

All MSF schemes must show a risk-o-meter and match against market indices. Platforms must list schemes in this order: scheme type, risk category, and pension fund. Subscribers can hold many MSF schemes and may change their pension fund or scheme up to two times each financial year.