PFRDA cancels Max Life Pension Fund's registration: How will it impact subscribers?

The Pension Fund Regulatory and Development Authority (PFRDA) has cancelled the Certificate of Registration of Max Life Pension Fund Management (PFM), effective June 2, 2025. This is in response to the company’s own request for cancellation dated December 31, 2024.

“In reference to the request submitted by Max Life Pension Fund Management Ltd. through its letter dated December 31, 2024, the Certificate of Registration granted to the said Pension Fund stands cancelled with effect from June 2, 2025 by the Authority,” PFRDA said in a notice dated October 6, 2025. 

Max Life Pension Fund has also ceased operations as a Pension Fund Manager (PFM) and Point of Presence (PoP) under the National Pension System (NPS), as per its official website. 

According to Max Life PFM, this is in line with its corporate rebranding and a voluntary liquidation process.

"Max Life Pension Fund Management Limited (Max Life PFM) has ceased operations as a Pension Fund Manager (PFM) and Point of Presence (POP) under the National Pension System (NPS) due to rebranding by the sponsor company. The company has initiated the steps for voluntary liquidation,” as per the message on the company’s website. 

This is an important development for National Pension System (NPS) investors, as investors who had chosen Max Life PFM for managing their NPS contributions will now have to be migrated to another PFM.

What will happen to subscribers’ fund?

All pension funds managed by Max Life have been migrated to another regulated fund manager, the PFRDA said in its notice. 

“All subscribers associated with Max Life Pension Fund Management Ltd. have been migrated to other Pension Fund as per the defined process, with the option for those Subscribers to exercise their own choice of Pension Fund,” it said. 

After the transition, all NPS pension funds previously under Max Life PFM were transferred to the UTI Pension Fund on April 19, 2025. From June 21, 2025, subscribers using Max Life as their PoP were transferred to Axis Bank. Subscribers’ account management, contributions and customer service are now handled by Axis Bank. 

This means that subscribers’ investments transitioned smoothly to the UTI Pension Fund and continue to be managed through Axis Bank as their Point of Presence. 

Additionally, subscribers have the option to switch their pension fund manager at any time. 

What should subscribers do?

  If you wish to move to any other PFM, like SBI Pension Fund or HDFC, you can do so whenever you want. However, no immediate action is required from your end. 

Your investment continues with the UTI Pension Fund with management support from Axis Bank. So, you don’t need to change it mandatorily. 

If you want to verify your fund details, you can log in to your CRA (Central Recordkeeping Agency) account to see your transfer details.

Moreover, if you want a different fund management strategy, you can switch to a PFM of your preference. To choose the best NPS fund manager, you can look at their past performance, risk level and investment strategy, among other things. 

Individuals who have a higher risk appetite and want higher returns usually go for a fund manager with bigger equity investments. On the other hand, if one prefers stability more, a PFM that focuses on government bonds could be more suitable for them. 

How to switch your NPS fund manager?

If you wish to switch your NPS fund, you can follow these steps: 

• Log in to your NPS account
• Navigate to ‘make transaction’
• Go to change PFM - Asset Class
• Select Tier Type
• Click on Submit
• Select Scheme Preference
• Complete OTP verification

NPS reforms

The National Pension System (NPS) is a government-backed savings plan that helps subscribers plan their retirement savings. NPS is a voluntary savings scheme regulated by PFRDA. The money in NPS is invested in various instruments such as shares, bonds, etc. 

Pension Fund Managers (PFM) manage NPS funds for individuals by investing their contributions in a mix of equities, government securities and corporate bonds to help them grow their retirement savings safely over time. 

PFRDA recently introduced a Multiple Scheme Framework (MSF) allowing non-government NPS subscribers to choose between low, medium or high-risk portfolios. Many top pension funds, such as HDFC, ICICI Prudential, Kotak, etc., have already launched customised MSF-based NPS schemes. 

Under the new rules, partial exits after 15 years of vesting are allowed. Earlier, the mandatory age limit was 60 years. This makes NPS more flexible and attractive for investors. 

Further, fund management charges have been marginally increased to 0.30% of assets under management (AUM).