PFRDA Cancels Max Life Pension Fund's Registration: How it Will Impact Fund's NPS Subscribers ?

The Pension Fund Regulatory and Development Authority (PFRDA) has cancelled the registration of Max Life Pension Fund Management Ltd. with effect from June 2, 2025, as per the news reports. The decision came after the company requested cancellation through a letter dated December 31, 2024, as part of its rebranding and voluntary liquidation process.

Transfer of Pension Fund Accounts

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

Movement of Funds and Services

As per Max Life’s official statement, on April 19, 2025, all NPS pension funds managed by it were moved to the UTI Pension Fund. In addition, from June 21, 2025, Point of Presence (PoP) services provided by Max Life were transferred to Axis Bank, covering activities such as contributions, account management, and customer service.

Options for Subscribers

Subscribers whose accounts were moved do not need to take any immediate steps. Their funds are already managed under UTI, and customer services are available through Axis Bank. However, subscribers have the option to log in to their Central Recordkeeping Agency (CRA) accounts to verify the transfer. They can also switch to another pension fund manager, such as HDFC, ICICI Prudential, Kotak, or SBI, if they wish.

Changes in NPS Rules

Separately, the PFRDA has introduced a Multiple Scheme Framework (MSF). This allows non-government NPS subscribers to choose between low, medium, or high-risk portfolios. New rules also allow partial withdrawals after 15 years of vesting, instead of waiting until age 60. Fund management charges have been revised to 0.30% of assets under management (AUM).

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Conclusion

With Max Life Pension Fund exiting, subscribers’ accounts have been smoothly shifted to UTI Pension Fund and Axis Bank. Investments and services continue without disruption, while new NPS rules provide additional flexibility.

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