The Pension Fund Regulatory and Development Authority (PFRDA), through Circular No. PFRDA/2026/35/P&DCORP/01 dated 16 June 2026, has clarified the compliance requirements for entities classified as “Government Entities” under the National Pension System (NPS) and introduced a flat fee structure for availing Point of Presence (PoP) services. While the earlier circular dated 10 March 2026 required Government Entities to integrate directly with the Central Recordkeeping Agency (CRA) systems without involving PoPs, several entities represented that operational constraints made continued reliance on PoP services necessary. After examining these representations, PFRDA has permitted Government Entities to continue using PoP services by paying a flat annual charge of ₹500 per subscriber. The fee covers all PoP-related services, including account opening, contribution processing, scheme changes, nomination updates, and partial withdrawals, but excludes charges payable to other NPS intermediaries. The circular takes immediate effect under Section 14 of the PFRDA Act, 2013.
Pension Fund Regulatory and Development Authority
Circular No. PFRDA/2026/35/P&DCORP/01 | Date: 16.06.2026
To,
The Government Entities, classified as such in terms of PFRDA Circular dated 10.03.2026, PoPs and CRAs
Subject: Compliance towards ‘Government Entity’ Criteria and applicability of Flat charge structure for availing PoP services by such entity(s).
1. In continuation to the PFRDA’s Circular on ‘Reclassification of existing Corporates under NPS into Government Entities and Legal Entities (other than Government) dt. 10.03.2026, the following is stipulated.
2. As per para 3 of the above-mentioned circular, for an entity to be classified as a ‘Government Entity’ and thereby avoid payment of POP charges, the following conditions were stipulated:
i. An undertaking to the effect that all employees under the respective “Government entity” are mandatorily covered under NPS from any cut-off date.
ii. The Assets Under Management (AUM) under the Superannuation Fund (SAF), if any, whether managed directly by the “Government entity” or through any third party, shall be fully transferred to NPS Architecture within a period of one year from the date of issuance of the letter.
iii. The concerned “Government entity” shall possess full technical and operational capability to integrate directly with the CRA system(s) for NPS subscriber onboarding, contribution remittance, uploading of Subscriber Contribution Files (SCFs), grievance management, processing of exits & withdrawal cases and other related functions, without the involvement of any Point of Presence (PoP) and would implement the same at the earliest.
3. In this regard, several corporates have submitted with respect to condition (iii) have represented that they be allowed to continue availing PoP services owing to various operational requirements and constraints.
4. Based on representation received from the CPSEs, the matter was duly examined and it has been decided that a Government Entity desirous of getting PoP services may avail the services of a PoP at a flat charge of Rs. 500/ per subscriber on an annual basis. The aggregate charges may be paid by the organisation directly to the PoP where the organisation bears the charges based on an inter se arrangement. In cases where the individual subscriber has to bear the charges, such charges shall be payable through deduction of units from the individual pension account on a quarterly basis.
5. This flat charge of Rs. 500 shall cover all services like opening of an NPS account, upload of information and remittance of contribution, other services like switching Pension Fund, scheme change, updation of nomination, partial withdrawal related transactions or other transactions to be performed by a PoP. It is clarified that the flat charge payable are only in respect of PoP services and does not include any charges/fee payable to other intermediaries under the NPS architecture, as approved by the Authority.
6. This circular shall take effect immediately. This is issued in the exercise of powers conferred under Section 14 of the PFRDA Act, 2013.
Yours Sincerely
Sumit Kumar
Chief General Manager
