New corporate NPS rule: Can employees change pension fund and asset allocation picked by employer?

Yes, employees can change the pension fund and asset allocation under the corporate National Pension System (NPS). However, they can make this change after one year if both the pension fund and asset allocation have already been selected by the employer.

The Pension Fund Regulatory and Development Authority (PFRDA) recently modified the rules for the exercise of choice and authorisation of employees' applications under the corporate National Pension System (NPS).

However, if the employer has chosen the pension fund and asset allocation on behalf of the employee, then the latter can revise the choice after one year or 365 days.

"Either the Employer/Corporate OR Employee/Subscriber will have choice of selecting the Pension Fund and Asset Allocation. However, whoever exercises the choice should select both the Pension Fund & Asset Allocation," the regulator said in a circular dated September 12, 2025.

"If the Employer/Corporate exercises choice of Pension Fund and Asset Allocation on behalf of Employee/Subscriber, then such Employee/Subscriber will have the option to revise the choices after 1 (one) year (i.e 365 days)." it added.

More about recent NPS changes

Bulk authorisation allowed

The PFRDA has also allowed bulk authorisation of corporate NPS applications by the employer through both the physical and online modes.

"Corporate/Employer will have the option to authorise the NPS applications of its employees individually (in the application form itself) or separately on the corporate letterhead for bulk authorisation for which CRA has to be intimated in advance for enabling this option in the CRA system," the regulator said.

"Corporate/Employer willing to authorise online the employment details employee/applicant joining NPS should submit an application on its letterhead to CRA and CRA will create a user id and login for such corporate for enabling online authorisation of employees' NPS applications," it added.