Max Life Pension Fund licence surrendered: What happens to NPS subscribers now?

In a major development for National Pension System (NPS) investors, the Pension Fund Regulatory and Development Authority (PFRDA) has announced that Max Life Pension Fund Management Ltd has surrendered its licence as a Pension Fund Manager (PFM) with effect from June 2, 2025.

The decision comes after Max Life itself requested the cancellation in a letter dated December 31, 2024, citing corporate rebranding and a voluntary liquidation process. Following this, the PFRDA confirmed that all subscribers managed by Max Life have been smoothly migrated to other pension fund managers to ensure uninterrupted service, a report in the Economic Times stated.

Max Life Pension Fund stated on its website, “Max Life Pension Fund Management Limited (Max Life PFM) has ceased operations as a Pension Fund Manager (PFM) and Point of Presence (PoP) under the National Pension System (NPS) due to rebranding by the sponsor company. The company has initiated steps for voluntary liquidation.”

The PFRDA notice added, “All subscribers associated with Max Life Pension Fund Management Ltd. have been migrated to other Pension Funds as per defined process, with the option for those subscribers to exercise their own choice of Pension Fund.”

This means that existing NPS subscribers under Max Life have not lost their investments or benefits — their pension corpus has simply been transferred to another regulated fund manager.

What happens to existing subscribers?

According to Max Life’s official communication, all NPS pension funds previously managed by Max Life PFM were transferred to UTI Pension Fund on April 19, 2025.

Additionally, effective June 21, 2025, all subscribers who were using Max Life as their Point of Presence (PoP) — the platform through which NPS transactions are made — have been transferred to Axis Bank.

This means that subscribers’ investments continue seamlessly under UTI Pension Fund’s management, while Axis Bank now serves as the contact point for account management, contribution tracking, and customer service.

Subscribers also have the flexibility to switch their pension fund manager at any time if they wish to move to another PFM, such as HDFC, ICICI Prudential, Kotak, or SBI Pension Fund.

What subscribers should do

For existing Max Life NPS subscribers, no immediate action is required. Their funds are already secure under UTI Pension Fund, and service support continues via Axis Bank. However, subscribers are encouraged to log in to their CRA (Central Recordkeeping Agency) account and verify the transfer details.

They can also switch to another PFM of their choice if they prefer a different fund strategy.

New NPS reforms

The PFRDA recently introduced a Multiple Scheme Framework (MSF) to enhance flexibility for subscribers. Under this new structure, non-government NPS investors can select from low-, moderate-, or high-risk portfolios, giving them mutual fund-like control over their investments.

Additionally, the new rules permit partial exits after 15 years of vesting instead of the earlier mandatory age-60 limit — a change designed to make NPS more attractive for life goals such as home purchase, education, or early retirement.

While fund management charges have marginally increased to 0.30% of assets under management (AUM), this flexibility and choice are seen as a major step forward.

Leading pension funds such as HDFC, ICICI Prudential, Axis, and Kotak have already launched customised MSF-based NPS schemes, catering to different investor profiles — from conservative income seekers to aggressive equity investors.

NPS and investment

The National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by PFRDA. It allows individuals to contribute regularly toward their retirement, with investments allocated across equity (Scheme E), corporate bonds (Scheme C), government securities (Scheme G), and alternative investments (Scheme A).

Subscribers can choose their asset mix based on risk appetite — from conservative (mostly debt) to aggressive (high equity). The accumulated corpus can later be used to purchase an annuity, ensuring a stable post-retirement income.

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