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The Pension Fund Regulatory And Development Authority (PFRDA) has addressed confusion among corporate employers about choosing Pension Funds and investment options for employees under the Corporate NPS, especially in cases where employers also contribute. The confusion arose following the regulator’s circular on September 12, 2025.

NPS Corporate Sector Model offers a robust platform for employers to extend old age social security benefits to their employees, allowing for flexible contributions from both employer and employee.

Key Points By PFRDA In The Circular:

1, Mutual Agreement Needed

When both employer and employee contribute, or when only the employer contributes, decisions on Pension Fund and investment schemes must be made through a formal mutual agreem

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