As per the notice to subscribers, the new slab-wise structure will be applicable to the pension funds to whom a fresh certificate of registration has been issued by PFRDA on March 30, 2021.
The Investment Management Fees to be charged by the pension fund will be on the aggregate AUM of the pension fund under all schemes and is levied on a daily basis.Investment Management Fees charged by pension funds in the National Pension System (NPS) have been increased by the Pension Fund Regulatory and Development Authority (PFRDA) effective April 1, 2021. The fund management fees which were 0.01 per cent of the asset will now stand increased but will be capped at 0.09 per cent depending on the total asset under management of the pension fund. The revised revenue structure for the pension funds will be a staggered based model, under which different slabs of the management fee will be applicable on different slabs of AUMs (assets under management).
According to these slabs, for AUMs up to Rs 10,000 crore, the maximum investment management fee will be 0.09 per cent. From Rs 10,001 to Rs 50,000 crore, the fee has been capped at 0.06 per cent; from Rs 50,001 to Rs 1,50,000 crore at 0.05 per cent, and for AUMs crossing Rs 1,50,000 crore, the management fee will be 0.04 per cent.
As per the notice to subscribers, the new slab-wise structure will be applicable to the pension funds to whom fresh certificates of registration have been issued by 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 to be charged by the pension fund will be on the aggregate AUM of the pension fund under all schemes and is levied on a daily basis.
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