The Pension Fund Regulatory and Development Authority (PFRDA) has made major changes in the corporate scheme of the National Pension System (NPS). Now this scheme has been divided into two parts. Government institutions and non-government legal entities. Along with this, changes have also been made in some important charges related to NPS. The new rules have come into effect from January 1, 2026.
Corporate scheme divided into two parts
In a circular issued on March 10, 2026, PFRDA said that the existing corporate category of NPS will now be classified into two parts.
- Government Entities
- Legal Entities Other than Government
What will be the government institution?
According to the new rules, government organization will include those organizations which are owned or controlled by the Central or State Government. This will include government companies, statutory bodies, corporate entities and other government entities. Along with this, Central Public Sector Enterprises (CPSEs) and State Public Sector Enterprises (SPSEs) will also fall in this category.
Separate system for government institutions
According to PFRDA, the institutions which were earlier linked under the corporate model of NPS but function as an extended part of the government, will now be included in the government model of NPS. Employees of such institutions will not be tagged through any Point of Presence (PoP). This means that PoP related charges will not be applicable on these employees.
Change in NPS charge also
PFRDA has also made changes in the PoP charge structure related to NPS. The annual charge for employees of non-government organizations has been fixed at 0.20% of Assets Under Management (AUM). This fee will be adjusted through NAV and paid to the PoP every quarter. However, this fee will not be applicable on dormant accounts.
New charges for all citizen models
New charges have also been fixed for All Citizen Model, NPS Vatsalya and NPS Lite accounts of NPS. There will be a one-time onboarding charge of ₹ 200 for opening a new account and a reduced fee of ₹ 100 for opening the account digitally. Also, in the All Citizen model, it will be necessary to contribute a minimum of ₹ 250 while opening the account and a minimum of ₹ 10 thereafter.
Relief on opening account through e-NPS
PFRDA has also clarified that investors who open an account through e-NPS and further invest through the same platform, will not have to pay charges related to PoP.