**Executive Summary**
This circular, issued by the Pension Fund Regulatory and Development Authority (PFRDA) on October 17, 2025, addresses the rationalization of nomenclature for Auto Choice / Life Cycle Funds under the National Pension System (NPS) and Multiple Choices of Investment under Common Schemes. It incorporates the Balanced Life Cycle (BLC) Fund within the Auto Choice category and renames existing investment options under NPS as Common Schemes. NPS Intermediaries must update all public interfaces accordingly at the earliest.
**Key Points / Main Content**
* **Nomenclature Rationalization:**
* Balanced Life Cycle Fund (BLC) is now categorized under Auto Choice due to its relatively higher equity allocation at age milestones of 45 and 55.
* Names across Auto Choice Investments are being rationalized. Revised nomenclature is provided in Annexure I.
* **Common Schemes (CS):**
* Existing investment options under NPS (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).
* Subscribers can choose multiple Common Schemes with one or more PFs in Tier I and Tier II accounts.
* In the former, 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.
* **Investment Options:**
* Subscribers can choose Active or Auto Choice of investment in Tier I and Tier II with any one of the CRAs as per the existing guidelines.
* After the development of enhanced functionalities by CRAs as per the revised guidelines, subscribers can invest in multiple investment accounts under their PRAN and open multiple PRANs with different CRAs
* Each account under PRAN of a CRA shall represent :
* One or more schemes designed and operated by PFs
* One or more common schemes (Active and Auto Choices)
* Each account under the PRAN shall be subjected to the exit and withdrawal guidelines issued by PFRDA at the time of exit.
* **Annexures:**
* Annexure I: Revised nomenclature of life cycle funds under Auto Choice.
* Annexure II: Asset tapering matrix of various life cycle funds.
* Annexure III: Architecture of Multiple Scheme Framework (MSF)
**Impact Analysis**
**All NPS Stakeholders**
* **Impact:** Will need to understand the new nomenclature and revised investment options, to make informed decisions about their NPS investments. The nomenclature impacts the stakeholders' understanding of the funds' risk-return profiles and asset allocation.
* **Action Required:** Review Annexures I and II for new fund names and asset tapering matrices. Become familiar with the Common Schemes framework and how it impacts investment choices.
**NPS Intermediaries**
* **Impact:** Need to update their systems and interfaces to reflect the new nomenclature and Common Schemes structure. This ensures that subscribers have accurate and up-to-date information when making investment decisions.
* **Action Required:** Update all public-facing interfaces (websites, subscriber portals, mobile applications) with the revised nomenclature and Common Schemes at the earliest. Ensure the necessary system changes are implemented to support the Common Schemes framework.
**CRAs (Central Recordkeeping Agencies)**
* **Impact:** Need to develop enhanced functionalities as per the revised guidelines for the subscribers to have the options of investing in multiple investment accounts under their PRAN and open multiple PRANs with different CRAs.
* **Action Required:** Develop and implement enhanced functionalities as per the revised guidelines.
Key Entities Referenced
Pension Fund Regulatory and Development Authority (PFRDA): The regulator responsible for the NPS, issuing the circular.
National Pension System (NPS): The pension scheme to which this policy applies.
Auto Choice / Life Cycle Funds: Investment options within the NPS, subject to nomenclature rationalization.
Common Schemes (CS): Replaces Active and Auto choice scheme nomenclature.
Multiple Scheme Framework (MSF): Framework for multiple schemes under which subscribers will have flexibility to invest across multiple schemes.
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
Life Cycle 25 - Low (5E/55Y)
95
90
90 87
84
85
81
80 78
75
75 72
69
70
66
65 63
60
60 57
)%
54
n 55
i(
n
51
o 50 48
it
a 45 45
c o lla 45 43 41 42
t 3939
e s s A 40 36 37 35
35 33 33
31
30
29
30 27
25
24 25
23
25 22 23
21
20 21
19
18 19
20 17 16 17
15
14 15
13
15 12 13
11
10 11
9
8 9
10 7 67
5
5
5
0
35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55
Age (in years)
E C G
(Earlier Name – LC 25 Conservative Life Cycle Fund)
E- Equity C- Corporate Bonds G – Govt SecuritiesLife Cycle 50 - Moderate (10E/55Y)
85
80
80
77
74
75
71
70 68
65
65
62
59
60
56
55 53
50 50
)%
50 48
n i(
n
46
44 44
47
o it 45 42 41
a 40
c
o 40 38 38
lla
36
t e 35 34
s 35
s 32 32
A
30 30 29 28 29 30 28
26 27 26 26
25 23 25 24 23 22 24 22
20 21 20 20
20 19 18 18
17 16 16
15 15 14 13 14 12 12
11 1010
10
5
0
35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55
Age (in years)
E C G
(Earlier Name – LC 50 Moderate Life Cycle Fund)Life Cycle 75 - High (15E/55Y)
90
85
80
75
75
75
71 72
69
70 67
66
63
65 63
59 60
60
57
55
54
55
) % 51 51
n
i( 50 47 48
n
o 45
it
a c 45
43
42
o
lla
40
39 39
t e 36 35
s
s
A 35 33 32
30 29
30
27 26
24 23
25
21 20
20 20 20 20 20 20 19
19 18
20 18 18 18 17
17 16
16 16 15
15 15
14 14
15 13
12 12
11
10 10
10
5
0
35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55
Age (in years)
E C G
(Earlier Name – LC 75 Aggressive Life Cycle Fund)Life Cycle - Aggressive (35E/55Y)
90
85
80
75
70
65
60
55
55
) 52
% 50 50 50 50 50 50 50 50 50 50 50
n 48 49
i(
n
50
46
46
o 44
it
a 45 42 43
c
o 40
lla 40 39
38
t e 40 37 36
s 36 35
s
A
35
32
30 30 30 30 30 30 30 30 30 30 30
30 28 28
26
24 24
25
22
20 20 20 20 20 20 20 20 20 20 20 20
20 18
16
14
15
12
10
10
5
0
35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55
Age (in years)
E C G
(Earlier Name – Balanced Life Cycle Fund)Annexure III