The Pension Fund Regulatory and Development Authority (PFRDA) has provided relief to certain government entities under the National Pension System (NPS) by allowing them to continue using Point of Presence (PoP) services on payment of a flat annual charge.
In a circular dated June 16, 2026, the pension regulator said that government entities that wish to avail PoP services can do so by paying a fixed fee of Rs 500 per subscriber per year.
The move comes months after PFRDA had issued a circular on March 10, 2026, under which certain organisations were reclassified as “Government Entities” under NPS. These entities were expected to have the technical capability to directly integrate with the Central Recordkeeping Agency (CRA) systems and carry out subscriber-related activities without the involvement of a PoP.
Why has PFRDA issued this clarification?
Under the March 2026 circular, entities seeking classification as a Government Entity were required to meet several conditions.
These included ensuring that all employees are mandatorily covered under NPS from a specified cut-off date, transferring any existing Superannuation Fund assets to the NPS framework within one year, and developing the technical and operational capability to directly handle subscriber onboarding, contribution uploads, grievance management, withdrawals and other NPS-related functions without relying on a PoP.
However, PFRDA said that several organisations represented that they should be allowed to continue using PoP services because of “various operational requirements and constraints.”
After examining these representations, particularly from Central Public Sector Enterprises (CPSEs), the regulator decided to permit Government Entities to continue availing PoP services for a fixed annual fee.
What will be the charge?
According to the circular, a Government Entity can avail PoP services by paying a “flat charge of Rs. 500/- per subscriber on an annual basis.”
The regulator has also clarified how the charges can be paid.
Where the organisation bears the cost, the aggregate amount can be paid directly to the PoP based on a mutual arrangement. If the subscriber is required to bear the cost, the fee will be recovered through deduction of units from the individual’s pension account on a quarterly basis.
Which services are covered?
PFRDA has clarified that the annual fee will cover a wide range of PoP services.
These include opening an NPS account, uploading subscriber information, remittance of contributions, changing pension funds, scheme preference changes, nomination updates, partial withdrawal requests and other transactions handled by a PoP.
However, the regulator noted that the Rs 500 charge covers only PoP-related services and does not include charges payable to other intermediaries within the NPS architecture.
Effective immediately
The circular states that the revised charge structure comes into effect immediately.
“This circular shall take effect immediately,” PFRDA said, adding that it has been issued under powers granted to the Authority under Section 14 of the PFRDA Act, 2013.
For government entities that are not yet ready to fully manage NPS operations directly through CRA systems, the latest move provides an alternative route while ensuring continued access to essential subscriber services.
Disclaimer: This article is based on the PFRDA circular dated June 16, 2026. The information is intended for general awareness only and should not be construed as legal, tax or financial advice. Readers should refer to the original PFRDA notification or consult a qualified professional for guidance specific to their circumstances.
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