Corporate NPS: How National Pension System subscribers can report their grievances?

The circular partially modifies the earlier guidelines (Circular No. PFRDA/2025/07/PDES/01 dated 12th September 2025).

This update addresses concerns raised by corporate employers regarding the selection of Pension Funds (PFs), investment choices, and the process for reporting employee grievances under joint contribution arrangements.

New grievance redressal process

• First Level: Employees must first lodge their grievance with the Human Resources (HR) Department of their organisation.

• Escalation: If the HR Department fails to act within a reasonable time, the employee may escalate the grievance, but must attach proof of inaction by HR when submitting the complaint to the next level .

"The first level of grievance shall be lodged by an employee with the HR department of the corporate and can only escalate the grievance upon proof of inaction by the HR department, being attached alongside the complaint," PFRDA said in the circular.

Mutual agreement on investment choices

Annual review of pension fund

"Decision of Pension Fund made initially shall be reviewed by the employer on an annual basis... based on the pre-determined conditions of the mutual agreement," the circular adds.

Employee's voluntary contributions

Employees may make voluntary investments in Common Schemes or those under the Multiple Scheme Framework (MSF).

"Apart from the arrangement of investment made under the co-contribution scheme... they can do it as a voluntary investment," according to the circular.

Accommodating risk appetite

Agreements must allow sufficient scheme choices to suit employees’ varying risk appetites.

"The mutual agreement shall permit sufficient choice of schemes within a Pension Fund such that the risk appetite of different employees is suitably accommodated," as per the PFRDA circular.

Employer option for full employee choice

Employers can allow employees full control over their investment decisions.

"Employers may at any time decide that the decision of investment... may be taken fully by the employee without reference to any mutual agreement," as per the circular.