PFRDA changes NPS fee rules to help smaller funds grow

Business Jan 02, 2026

The Pension Fund Regulatory and Development Authority (PFRDA) is switching up how investment management fees work for the National Pension Scheme (NPS), starting April 1, 2026.
Announced just this week, the new slab-based system is expected to expand NPS coverage across corporate, retail, and gig-economy segments.

What's different now?

Smaller pension funds will get a better shot at growing, since they can keep higher margins early on.
Meanwhile, bigger funds won't be able to rack up extra fees just because of their size—fees actually drop as assets get larger.
The fee structure also sets separate rates for government and non-government subscribers, and keeps supporting financial literacy efforts with an unchanged regulatory fee.