PFRDA (Pension Fund Regulatory Authority)
PFRDA Guidelines 2026
Pension Fund Registration Rules
PFRDA Guidelines 2026: New Pension Fund Registration Rules & NPS Safety
- Status: Guidelines Issued
- Authority: PFRDA (Regulation Dept)
- Ref No: PFRDA/2026/REG-PF/Guidelines
- Key Impact: Higher Safety for NPS Corpus
What Changed: Tighter Entry Barriers
The Pension Fund Regulatory and Development Authority (PFRDA) has released the Registration of Pension Funds Guidelines 2026. These new rules tighten the eligibility criteria for companies (Sponsors) wanting to become Pension Fund Managers (PFMs). The move aims to ensure that only financially robust and experienced institutions manage the growing NPS corpus of Central Government employees and private subscribers.
✅ Official Orders Issued
Authority: PFRDA (New Delhi)
Subject: Guidelines for Registration of Pension Funds 2026 (Eligibility & Net Worth).
The New Protocol: ‘Fit and Proper’ Criteria
To safeguard the life savings of employees, PFRDA has mandated strict financial health checks for any entity applying to manage pension funds.
✔ New Eligibility Criteria
- Net Worth: Sponsor must have a positive net worth of at least ₹50 Crore for the last 5 years.
- AUM Requirement: Must manage assets (Monthly Average AUM) of at least ₹50,000 Crore.
- Profitability: Must be profitable in at least 3 out of the last 5 financial years.
- Experience: Minimum 5 years of experience in fund management (Equity/Debt).
✖ Disqualification Risks
- Cash Losses: Any cash loss in the last 5 years leads to rejection.
- Regulatory Action: Entities penalized by RBI, SEBI, or IRDAI recently may be barred.
Impact on Subscribers (NPS Fee Structure)
The guidelines also reinforce the cap on the Investment Management Fee (IMF) that these funds can charge you. This keeps the cost of NPS low compared to Mutual Funds.
| Parameter | Limit/Rule | Subscriber Benefit |
|---|---|---|
| Max Fee (IMF) | 0.09% of AUM | Low cost = Higher Net Return |
| Sponsor Lock-in | 5 Years | Stability in Fund Management |
| Regulation | PFRDA Direct Control | Safety of Corpus |
How to Check Your Pension Fund Manager
Government employees often do not know which Fund Manager is handling their money. You can check and change this once a year online.
“Step-by-Step Guide to Check PFM:
1. Login to your NPS Account at cra-nsdl.com or kfintech.com.
2. Go to ‘Investment Summary’ -> ‘Scheme Details’.
3. Check the name under ‘Pension Fund Manager’.
4. Common PFMs: SBI Pension Fund, LIC Pension Fund, UTI Pension Fund.
5. If you are unhappy with returns, you can switch PFM online (Option available once a year).”
Frequently Asked Questions
Why has PFRDA increased the net worth requirement?
The minimum net worth of ₹50 Crore ensures that the Pension Fund Manager has enough capital to absorb financial shocks and invest in robust technology, ensuring the safety of your retirement savings.
Can I switch my Pension Fund Manager (PFM)?
Yes. Both Central Government and Private subscribers can switch their PFM once in a financial year. There is no charge for switching, and it can be done online through the CRA portal/app.