Pension Fund Regulatory and Development Authority Introduces NPS Sanchay: Key Details and Benefits
Pension Fund Regulatory and Development Authority Launches NPS Sanchay to Support Informal-Sector Employees
The Pension Fund Regulatory and Development Authority (PFRDA) has launched NPS Sanchay, a new pension scheme aimed at supporting informal-sector employees, who account for almost 90 percent of the workforce. This initiative was announced in a circular issued by the PFRDA on May 6, 2026.
According to the circular, NPS Sanchay is a simplified variant of the National Pension System (NPS) under the All Citizen Model and the Multiple Scheme Framework (MSF). The All Citizen Model is a voluntary, market-linked retirement scheme, while the MSF enables subscribers to manage multiple pension fund schemes through a single account. The default design of NPS Sanchay is intended to reduce complexities associated with selection of investment options and determination of asset allocation, while also addressing constraints arising from limited advisory support at the last-mile level.
Eligibility Requirements for NPS Sanchay
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To invest in NPS Sanchay, any citizen aged 18 to 85 years must have a National Pension System (NPS) account. This account can be opened online instantly through the eNPS portal or KFintech, or offline by visiting a bank or a financial institution registered as a Point of Presence (POP-SP).
Key Features of NPS Sanchay
| Feature | Description |
|---|---|
| Investment Guidelines | Aligns with existing investment guidelines applicable to government sector schemes, such as the Unified Pension Scheme (UPS), the National Pension Scheme (NPS), and the Atal Pension Yojana (APY) |
| Exit and Partial Withdrawals | Follows existing guidelines and directions applicable to other pension schemes |
| Charges and Contribution Limits | Follows those applicable to PoP services under common NPS schemes |
| Change of Pension Fund & Asset Allocation | Subscribers can change their Pension Fund and asset allocation in line with regulations and guidelines issued by the Authority for the All Citizen Model |
PFRDA Enables Scheme Launches under MSF
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Pension Funds can launch schemes under the Multiple Scheme Framework (MSF), with an investing pattern prescribed by the PFRDA. As per the circular, "Pension Funds shall be permitted to launch schemes under the Multi Scheme Framework (MSF), as may be prescribed by the Authority from time to time, subject to the condition that all terms and conditions governing such schemes shall remain identical in all respects to those applicable under the existing framework, save and except the investment pattern, which shall be governed exclusively by and construed in accordance with the provisions specified."
Investor Takeaway
Investors should consider NPS Sanchay as a simplified retirement savings option.
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