**Executive Summary**
This circular from the Pension Fund Regulatory and Development Authority (PFRDA), dated October 17th, 2025, addresses the rationalization of Auto Choice/Life Cycle Funds nomenclature under the NPS and Multiple Choices of Investment under Common Schemes. It incorporates the Balanced Life Cycle Fund (BLC) within the Auto Choice category and renames the Life Cycle Funds. The changes require NPS intermediaries to update all public-facing interfaces.
**Key Points / Main Content**
* **Nomenclature Rationalization:**
* The BLC Fund is incorporated into the Auto Choice category due to its relatively higher equity allocation at the age milestones of 45 and 55 years when compared to the LC 75 Fund.
* The names across Auto Choice of investment will be rationalized to ensure alignment of fund nomenclature with their respective risk-return profiles, enhance transparency, simplicity, and uniformity.
* Revised nomenclature and asset tapering matrix are detailed in Annexure I and II, respectively.
* **Common Schemes:**
* Existing investment options under NPS, viz Auto Choice and Active Choice, are now referred to as Common Schemes (CS).
* Under the Multiple Scheme Framework (MSF), subscribers can invest across multiple schemes of one or more Pension Funds (PFs) and choose multiple Common Schemes with one or more PFs in Tier I and Tier II.
* **Investment Flexibility:**
* Subscribers can choose Active or Auto Choice of investment in Tier I and II with any one of the CRAs.
* Post-development of enhanced functionalities by CRAs, subscribers can invest in multiple investment accounts under their PRAN and open multiple PRANs with different CRAs, with each account representing:
* One or more schemes designed and operated by PFs.
* One or more Common Schemes (Active and Auto Choices).
* Exit and withdrawal guidelines issued by PFRDA will apply to each account under the PRAN.
* **Intermediary Obligations:**
* NPS intermediaries are required to update the revised nomenclature across all public-facing interfaces, including websites, subscriber portals, and mobile applications.
**Impact Analysis**
**Stakeholder: NPS Subscribers**
* **Impact:** Gain clarity and simplicity in understanding the risk-return profiles of different Life Cycle Funds and investment options. Subscribers have increased flexibility to invest across multiple schemes and CRAs.
* **Action Required:** Review the revised nomenclature and asset allocation details in Annexures I and II.
**Stakeholder: Pension Funds (PFs)**
* **Impact:** Must operate under the revised nomenclature.
* **Action Required:** Update investment schemes accordingly.
**Stakeholder: Central Recordkeeping Agencies (CRAs)**
* **Impact:** Must develop enhanced functionalities to allow subscribers to manage multiple investment accounts under their PRAN and open multiple PRANs.
* **Action Required:** Develop and implement necessary functionalities to support multiple investment accounts and PRANs.
**Stakeholder: NPS Intermediaries**
* **Impact:** Must ensure that all public-facing interfaces reflect the revised nomenclature.
* **Action Required:** Update websites, subscriber portals, and mobile applications with the new nomenclature.
Key Entities Referenced
Pension Fund Regulatory and Development Authority (PFRDA): Primary regulator for pension funds in India, issuing the circular.
National Pension System (NPS): The pension system to which this circular relates, specifically concerning the nomenclature of Auto Choice / Life Cycle Funds.
Auto Choice / Life Cycle Funds: Investment options within the NPS, being renamed and rationalized in this circular, including the Balanced Life Cycle Fund (BLC), LC 75 Fund and others.
Common Schemes (CS): Referred as Auto Choice and Active Choice under the Multiple Scheme Framework (MSF).
Multiple Scheme Framework (MSF): Framework under which subscribers can invest across multiple schemes of one or more Pension Funds (PFs)
CIRCULAR
PFRDA/2025/16/Reg-PF/02 17th October 2025
To:
All NPS Stakeholders
Subject: Rationalization of Nomenclature of Auto Choice / Life Cycle Funds under the NPS
& Multiple Choices of Investment under Common Schemes
PFRDA has undertaken a comprehensive review of the existing nomenclature based on the asset
allocation & age wise tapering pattern of Auto Choice / Life Cycle (LC) Funds under the NPS.
The Balanced Life Cycle Fund (BLC) exhibits a relatively higher equity allocation at the age
milestones of 45 and 55 years as compared to the LC 75 Fund, which is currently categorized as an
Aggressive Life Cycle Fund under Auto Choice.
To ensure the alignment of fund nomenclature with their respective risk–return profiles, and to
enhance transparency, simplicity and uniformity, it has been decided to incorporate the BLC within
the Auto Choice category and rationalize the names across Auto Choice of investment. The revised
nomenclature of the life cycle funds under Auto Choice is enclosed at the Annexure I and the asset
tapering matrix of various life cycle funds is provided at Annexure II for the information of
stakeholders.
Further, it may be noted that as per PFRDA Circular No PFRDA/2025/09/REG-PF/01 dated 16th
September 2025, the existing investment options under NPS viz Auto Choice and Active Choice shall
henceforth be referred to as Common Schemes (CS). Under the Multiple Scheme Framework (MSF),
the subscribers will have the flexibility to invest across multiple schemes of one or more Pension
Funds (PFs) and also to choose multiple Common Schemes with one or more PFs in Tier I and Tier
II. In the former, the subscribers do not allocate their contribution across Asset classes since the asset
allocation is predefined by the respective PF whereas in the latter, subscribers earmark their
contribution across the asset classes under the chosen PF.
As per the existing guidelines, the subscribers have the option to have either Active or Auto Choice
of investment in Tier I and II with any one of the CRAs. However, post development of the enhanced
functionalities by CRAs as per the revised guidelines, the Subscribers shall be having the options of
investing in multiple investment accounts under their PRAN and open multiple PRANs withdifferent CRAs (Refer Annexure III). Hence each of these account under PRAN of a CRA shall
represent
A. One or more schemes designed and operated by PFs
B. One or more common schemes (Active and Auto Choices)
Each of the account under the PRAN shall be subjected to the exit and withdrawal guidelines issued
by PFRDA at the time of exit.
All NPS intermediaries have to ensure that the revised nomenclature is updated and reflected across
all public-facing interfaces, including websites, subscriber portals, and mobile applications at the
earliest.
Yours faithfully,
Chief General Manager
Encl.: A/aAnnexure IAnnexure II
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E C G
(Earlier Name – Balanced Life Cycle Fund)Annexure III