Last chance for NPS subscribers to switch asset classes today
25 Dec 2025

The Pension Fund Regulatory and Development Authority (PFRDA) has given National Pension Scheme (NPS) subscribers in Scheme A (Tier-1) until December 25, 2025, to switch their investments to other asset classes.

This comes as part of a larger plan by the PFRDA to merge Scheme A with Schemes C and E.

The move is aimed at providing a more stable and efficient investment experience for subscribers.

Merger aims to enhance stability and reduce concentration risk
Strategic shift

The PFRDA said, "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."

The authority added that this move would ensure NPS contributions are invested in larger, diversified portfolios under Schemes C and E.

This is expected to reduce concentration risk while enhancing stability for subscribers.

Scheme A's limited investment avenues and lock-in periods
Investment restrictions

Scheme A has a relatively small corpus and limited investment avenues. It also has assets with longer lock-in periods.

The PFRDA said, "Larger schemes offer better flexibility and portfolio management efficiency, which supports more consistent long-term returns."

This merger is seen as a way to improve the risk-reward balance for retirement investments while ensuring smoother management and efficient long-term growth of NPS contributions.

How to switch asset classes before deadline
Switching process

To switch asset classes, NPS subscribers need to log in to their account via the CRA portal or through their Point of Presence (PoP).

They have to select the option to switch asset allocation and confirm their 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.