The Pension Fund Regulatory and Development Authority (PFRDA), through Circular No. PFRDA/2026/15/REG-PF/04 dated 06 March 2026, has approved a revised Investment Management Fee (IMF) framework for Pension Funds under the National Pension System (NPS), effective from 1 April 2026 for a period of five years. The revision follows recommendations of an Expert Committee chaired by U. K. Sinha. The IMF structure will continue to differentiate between Government Sector (GS) and Non-Government Sector (NGS) subscribers. There is no change in IMF applicable to Government sector subscribers under composite schemes, and those opting for individual investment choices with 100% allocation to Government securities will be charged the same IMF as composite schemes. For Non-Government Sector subscribers, slab-based IMF rates have been set at 0.12% up to ₹25,000 crore AUM, 0.08% up to ₹50,000 crore, 0.06% up to ₹1,50,000 crore, and 0.04% beyond that. The annual fee payable by Pension Funds to PFRDA remains unchanged at 0.015% of AUM or ₹10 lakh annually, whichever is higher. Additionally, 0.0025% of AUM annually will be allocated to support NPS outreach initiatives.
Pension Fund Regulatory and Development Authority
Circular No. PFRDA/2026/15/REG-PF/04 | Dated: 06th March 2026
To:
CEOs of all Pension Funds
CEO of NPS Trust
All NPS Stakeholders
Subject: Investment Management Fee (IMF) and Annual Fee for Pension Funds w.e.f. 01 April 2026 (for a period of five years)
1. The current Investment Management Fee (IMF) charged by Pension Funds (PFs) to subscribers is valid for a period of five years ending on 31 March 2026. The existing IMF framework does not differentiate between Government Sector (GS) and Non-Government sector (NGS) subscribers based on the IMF payable by them.
2. In order to review the IMF structure, PFRDA constituted an Expert Committee under the chairmanship of Shri U. K. Sinha, former Chairperson of SEBI. Based on the Committee’s recommendations and subsequent approval of the PFRDA Board, the revised IMF structure has been approved and shall come into effect from 01 April 2026 for a period of five years.
3. There shall be no change in the IMF applicable to Government sector subscribers under composite schemes. Further, Government sector subscribers who have opted for individual investment choices, namely Auto Choice or Active Choice (with 100% allocation to Government securities), shall be charged the same IMF as applicable to those Subscribers who are under composite schemes.
4. The revised IMF structure continues to have slab-based differentiated rates for Government and Non-Government sector subscribers.
5. The IMF for the period of 5 years effective from 1st April 2026 is as under:
Table A: IMF for Non-Government Sector Subscribers (NGS)
| AUM Slabs (₹ Crore) | IMF |
| Up to 25,000 | 0.12% |
| Above 25,000 to 50,000 | 0.08% |
| Above 50,000 to 1,50,000 | 0.06% |
| Above 1,50,000 | 0.04% |
Table B: IMF for Government Sector Subscribers (GS) – Existing Slab Continues
| AUM Slabs (₹ Crore) | IMF |
| Up to 10,000 | 0.09% |
| Above 10,000 to 50,000 | 0.06% |
| Above 50,000 to 1,50,000 | 0.05% |
| Above 1,50,000 | 0.03% |
The scheme-wise applicability of IMF is detailed in the Annexure.
6. The Annual Fee payable by Pension Funds to the Authority shall remain unchanged. Accordingly, PFs shall continue to pay an annual fee of 0.015% p.a. of the AUM or ₹10,00,000 per annum, whichever is higher, plus applicable taxes and levies. The Annual fee is payable quarterly @0.00375% of the AUM, based on the AUM as on the last day of the preceding quarter or Rs. 2,50,000/-, whichever is higher.
7. Further, with a view to enhancing NPS outreach and promoting pension literacy, PFRDA shall
allocate 0.0025% of AUM per annum to the Association of NPS Intermediaries (ANI). This amount shall be disbursed on a quarterly basis at 0.000625% of AUM (based on the AUM as on the last day of the preceding quarter) to support sustained outreach initiatives. ANI shall act in close coordination with PFRDA for promoting NPS.
8. This circular is issued in exercise of the powers conferred upon the Authority under Section 14(1) read with Section 14(2)(m) of the PFRDA Act, 2013, along with sub-regulation (2) of Regulation 19 and Regulation 13 of the PFRDA (Pension Fund) Regulations, 2015
Yours faithfully,
Chief General Manager
Annexure
List of Schemes with the Government and Non-Government IMF Structure
| Government Sector (GS) Subscribers | Non-Government Sector (NGS) Subscribers |
| Scheme CG | Scheme E Tier I (NGS) |
| Scheme SG | Scheme C Tier I (NGS) |
| Scheme UPS CG | Scheme G Tier I (NGS) |
| UPS Pool CG Scheme | Scheme E Tier II |
| Scheme APY | Scheme C Tier II |
| APY Fund Scheme | Scheme G Tier II |
| NPS Lite | NPS Vatsalya Scheme |
| Composite Tier II Scheme | |
| Tier II Tax Saver Scheme | |
| Scheme E Tier I (GS) | |
| Scheme C Tier I (GS) | |
| Scheme G Tier I (GS) | |
| Scheme Corporate CG |
