PFRDA Revamps NPS Fees: New Investment Management Structure to Boost Coverage, Protect Subscribers

• PFRDA revises Investment Management Fee (IMF) structure for NPS subscribers, effective April 1, 2026, to expand coverage and safeguard interests.
• New slab-based IMF differentiates rates for government and non-government sectors, applying to Multiple Scheme Framework (MSF) schemes.
• The revised structure aims to benefit smaller pension funds in early growth while preventing excessive fees for large funds.
• Experts like Prithiviraj Senthil Nathan note lower IMF for higher AUM benefits larger funds, while higher fees for lower AUM support smaller funds' viability.
• Annual Regulatory Fee (ARF) remains unchanged; a portion goes to ANI for awareness, aiming for a competitive NPS ecosystem and better retirement outcomes.

Why It Matters: PFRDA's new NPS fee structure aims for broader coverage, subscriber protection, and a competitive ecosystem.