NPS : Enabling the Govt and corporate subscribers to continue with their existing scheme choice
Circular No: PFRDA/2022/24/Sup-CRA/09
29th Sep 2022
To Govt and Corporate Subscribers & Other NPS Stakeholders
Subject: Enabling the Govt and corporate subscribers to continue with their existing scheme choice-reg
There are instances wherein the subscribers under the Corporate and Government sectors have not exercised Inter Sector Shifting (ISS) after leaving their employment on account of resignation or retirement. Those Subscribers are still associated with their erstwhile employers in NPS architecture even though they no longer work with them.
2. The subscribers have shown reluctance to shift to the All citizen sector, since in certain cases, the scheme/ investment option made available to the subscriber during their employment may not be available in case they shift to the All Citizen Sector. Currently, such Inter Sector Shifting (ISS) may entail changes in PF/Investment.
3. Continue with existing Investment Choice/PF: Hence, in the interest of those subscribers, it has been decided to permit such subscribers under the Government/ Corporate sector to continue with their existing investment pattern and Pension Fund (PF) choice as an option, on their shifting to All citizen sector. For such subscribers, their prospective and legacy contributions would continue to be invested as per the existing investment pattern/PF which was prevailing during their employment.
4. Such subscribers will be free to choose any other investment pattern and PF also, rather than continuing the same investment pattern post the inter-sector shifting.
5. Further, hitherto, Govt subscribers can not contribute to their NPS account post their superannuation until they choose to continue their account. It has been decided that such subscribers under Govt sector can continue to contribute to their NPS account seamlessly even after their superannuation without the need of submitting any request in this regard.
6. CRA Charges by the Subscriber: Annual Maintenance Charges (AMC) and Transaction Charges of CRA for the Subscribers post their resignation/retirement will be recovered from the respective PRANs from the subsequent quarter of their retirement/resignation.
Chief General Manager