The Pension Fund Regulatory and Development Authority (PFRDA) on November 7, 2025, has issued revised provisions for exercising choices of Pension Funds and Investment Schemes under the Corporate Model of the National Pension System (NPS). This circular partially modifies the earlier circular No. PFRDA/2025/07/PDES/01, dated September 12, 2025, to address concerns raised by corporate employers regarding fund selection and asset allocation, especially in cases involving joint or employer-only contributions.
The circular clarifies that in a joint contribution structure, the selection of pension funds and investment schemes shall be made through a formal mutual agreement between employers and employees. Employers are required to review the Pension Fund choice annually, taking into account long-term performance and employee consultation. Employees may also make voluntary investments in common or multiple scheme frameworks within NPS, and corporates must ensure appropriate grievance redressal through HR channels before escalation.
Further, corporates are directed to engage with Points of Presence (PoPs) as per the PFRDA (PoPs) Regulations, 2018, and communicate any mutual investment arrangements to Central Recordkeeping Agencies (CRAs) in writing. CRAs are instructed not to alter any records without official employer directions. This circular has been issued under the authority of Section 14 of the PFRDA Act, 2013.
[Notification No. PFRDA/2025/20/PDES/03]
