The Pension Fund Regulatory and Development Authority (PFRDA) is directing outreach efforts toward private-sector employees for the National Pension System (NPS) as part of a broader push to expand its subscriber base beyond government workers and reach a target of 400 million enrolments within five years, according to a statement from whole-time member Sanjay Pandey on Monday.
Updated withdrawal flexibility for non-government NPS subscribers has come through a revision to the annuity retention rules set by PFRDA. Under the revised rules, government-sector NPS participants may withdraw up to 60% of their accumulated corpus as a one-time payment while directing the remaining 40% into an annuity arrangement. Those outside government employment face a different allocation — 80% available as a lump-sum disbursement against 20% channelled into annuity coverage. Separately, the upper age threshold for remaining enrolled in the scheme has been extended to 85 years, up from the earlier ceiling of 60, in recognition of longer average lifespans.
Portfolios built up by investors over time are positioned to continue expanding. Pandey noted that the platform intends to roll out more advanced products tailored to experienced investors in the period ahead.
Figures drawn from PFRDA records put the total number of enrolled members in the scheme at 2.34 crore, of whom roughly 9.1 million fall outside the government workforce. Pandey noted that the regulator has set a five-year growth target of bringing its total subscriber base to between 35 and 40 crore.
Among private-sector workers enrolled in the NPS across Maharashtra, PFRDA data shows a total of 13.05 lakh registrations, with Pune alone contributing 1.13 lakh of that figure. Nationally, the NPS corpus overseen by PFRDA has reached Rs 16 lakh crore in total assets, with Maharashtra's portion standing at Rs 59,690 crore and Pune's share accounting for Rs 9,107 crore.
Under the NPS framework, PFRDA has rolled out a retirement investment scheme (RIS) that allows accumulated funds to remain invested while holders draw down their holdings either as a fixed proportion of the total corpus or by redeeming units over time. Pandey noted that the regulator's aim is to draw investors currently active in other asset classes toward the NPS by way of the RIS.
The regulator has also introduced "NPS Swasthya," a group health insurance arrangement for NPS subscribers designed to extend the pricing advantages of collective coverage to individual policyholders. The scheme addresses a gap that arises when private-sector workers leave employment and lose access to their former employer's health plan. Individual health coverage purchased later in life tends to carry notably steeper costs than policies taken out at younger ages. Pandey noted that the scheme had been put together with such investors in mind.
Withdrawal applications handled by PFRDA are set to move through processing one day faster, with the turnaround dropping from two days to a single business day.
The scheme has additionally been opened to mutual fund distributors and banking correspondents under the "Star NPS" banner, enabling them to function as pension product distributors, with regulatory provisions put in place to guard against mis-selling. Eligibility for NPS products depends on individual circumstances. Pandey noted that the probability of mis-selling occurring under these conditions remains low.
