PFRDA: Investment Management Fees Charged By Pension funds In NPS Hiked

The Pension Fund Regulatory and Development Authority (PFRDA) has increased the Investment Management Fees charged by pension funds in the National Pension System (NPS) since April 1, 2021. The investment management fees, which were previously 0.01 per cent of the asset, will now be raised but limited to 0.09 per cent of the overall asset under management of the pension fund. The new revenue system for pension funds will be a phased model, with different management fee slabs applicable to various AUM (assets under management) slabs. The maximum investment management fee will be 0.09 per cent for AUMs up to Rs 10,000 crore, according to these slabs. The fee has been set at 0.06 percent for AUMs between Rs 10,001 and Rs 50,000 crore, 0.05 percent for AUMs between Rs 50,001 and Rs 1,50,000 crore, and 0.04 percent for AUMs above Rs 1,50,000 crore. According to the notice to subscribers, the current slab-based structure will be applicable to pension funds that have issued new certificates of registration from the PFRDA on March 30, 2021.

SBI Pension Funds

• Up to Rs 10,000 crore: 0.09% per annum
• Rs 10,001-Rs 50,000 crore: 0.06% per annum
• Rs 50,001-1,50,000 crore: 0.05% per annum
• Rs 1,50,000 crore and above: 0.03% per annum

LIC Pension Funds

• Up to Rs 10,000 crore: 0.09% per annum
• Rs 10,001-Rs 50,000 crore: 0.06% per annum
• Rs 50,001-1,50,000 crore: 0.05% per annum
• Rs 1,50,000 crore and above: 0.03% per annum

UTI Retirement Solutions

• Up to Rs 10,000 crore: 0.07% per annum
• Rs 10,001-Rs 50,000 crore: 0.06% per annum
• Rs 50,001-1,50,000 crore: 0.05% per annum
• Rs 1,50,000 crore and above: 0.03% per annum

HDFC Pension Management

• Up to Rs 10,000 crore: 0.09% per annum
• Rs 10,001-Rs 50,000 crore: 0.06% per annum
• Rs 50,001-1,50,000 crore: 0.05% per annum
• Rs 1,50,000 crore and above: 0.03% per annum

ICICI Prudential Pension Funds

• Up to Rs 10,000 crore: 0.09% per annum
• Rs 10,001-Rs 50,000 crore: 0.06% per annum
• Rs 50,001-1,50,000 crore: 0.05% per annum
• Rs 1,50,000 crore and above: 0.03% per annum

The Investment Management Fees imposed by the pension fund will be based on the pension fund's overall AUM for all schemes and will be charged on a regular/daily basis.