Revised Investment Management Fee (IMF) for Pension Funds
The Pension Fund Regulatory and Development Authority (PFRDA) has announced a revised Investment Management Fee (IMF) structure for Pension Funds, effective from 01 April 2026. This new framework, based on recommendations from an Expert Committee chaired by Shri U. K. Sinha, will remain in effect for five years.
Key Highlights for Government Sector Subscribers
- No Change in Composite Schemes: There is no change to the IMF for Government sector subscribers under composite schemes.
- Individual Choices: For those opting for Auto Choice or Active Choice (with 100% allocation to Government securities), the IMF remains identical to composite scheme rates.
- Slab-Based Rates: The structure continues to use differentiated slabs based on the Assets Under Management (AUM).
IMF Structure: Government Sector (GS)
The existing slab structure continues for Government employees:
| AUM Slabs (Crore) | Investment Management Fee (IMF) |
|---|---|
| Up to 10,000 | 0.09% |
| Above 10,000 to 50,000 | 0.06% |
| Above 50,000 to 1,50,000 | 0.05% |
| Above 1,50,000 | 0.03% |
Summary of Pension Schemes
For Central Government employees, the following schemes fall under the Government Sector (GS) IMF structure:
- Scheme CG
- Scheme SG
- Scheme UPS CG and UPS Pool CG Scheme
- Tier II Tax Saver Scheme
- Scheme E, C, and G Tier I (GS)
Other Regulatory Fees
The Annual Fee payable by Pension Funds to the PFRDA remains unchanged at 0.015% p.a. of the AUM (or ₹10,00,000 per annum, whichever is higher). Additionally, 0.0025% of AUM per annum will be allocated to the Association of NPS Intermediaries (ANI) to promote pension literacy.
Download Official Circular (PDF)Educational Purpose Only: The information provided in this article is for general informational and educational purposes only.
Accuracy & Mistakes: While every effort has been made to ensure accuracy, human errors or omissions may occur.
No Liability: Under no circumstances shall the author or this website be held liable for any loss arising from the use of this information.
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