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NPS subscribers in Scheme A Tier-1 have until December 25 to switch to other asset classes as PFRDA merges Scheme A with Schemes C and E.
PFRDA’s NPS Scheme A switch window closes today
NPS Scheme: National Pension Scheme (NPS) subscribers who oped for Scheme A (Tier-1) have the last chance today, December 25, to shift to any other asset classes.
The Pension Fund Regulatory and Development Authority (PFRDA) earlier had announced to merge Scheme A (Tier-1) with Schemes C and E.
Those NPS Subscribers who had opted for Scheme A in Tier I (Active Choice) can exercise additional choice of switching their wealth from Scheme A into any other asset classes of their choice without any additional cost till 25th Dec 2025< PFRDA said in the notice.
“After a comprehensive review of the scheme’s performance and structure, and keeping your long-term retirement interests in focus, it is proposed by PFRDA to merge Scheme A with Schemes C and E. This step is intended to provide a more stable, efficient, and rewarding investment experience for subscribers.”
What Are The Objectives?
Scheme A had a relatively small corpus and limited investment avenues.
Post-merger, contributions of investors will be part of larger and more diversified portfolios under Schemes C and E, helping reduce concentration risk and enhance stability.
Certain assets under Scheme A involve longer lock-in periods.
“Larger schemes offer better flexibility and portfolio management efficiency, which supports more consistent long-term returns and a better balance between risk – reward for retirement investment,” PFRDA said in the notice.
Merging Scheme, A with Schemes C and E, PFRDA added, ensures that your NPS contributions are invested in larger, diversified, and more liquid portfolios, enabling smoother management and more efficient long-term growth.
The four asset classes are:
Asset Class E – Equity and related instruments
Asset Class C – Corporate debt and related instruments
Asset Class G – Government Bonds and related instruments
Asset Class A – Alternative Investment Funds including instruments like CMBS, MBS, REITS, AIFs, Invlts etc
How To Switch To Other Schemes?
Log in to your NPS account via the CRA portal or through your Point of Presence (PoP). Select the option to switch asset allocation and confirm your new choice before the deadline.
If no action is taken by December 25, 2025, Scheme A will be automatically merged into Schemes C and E as per PFRDA’s decision.
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December 25, 2025, 13:33 IST
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