There is big news about the NPS of Employees-Pensioners. Then in front, this government has made a big argument on changes in the rules to enable corporates and government employees to continue with NPS even after resignation and retirement.
Along with this, new orders have been issued by PFRDA. It has been decided to allow all civil sector employees working under NPS to continue with the investment pattern and pension fund (PF) even after transfer.
The order said that in many cases where customers in the corporate and government sectors have not exercised Inter Sector Shifting (ISS) after leaving their employment due to resignation or retirement. Those subscribers are still associated with their former employers in the NPS structure, though they no longer work with them.
Clients all have shown reluctance to move to the civilian sector, as in some cases, the scheme/investment option provided to the clients during their employment may not be available if they all move to the civilian sector. At present there may be changes in PF/Investment in such Inter Sector Shifting (ISS).
Continuing with Existing Investment Option/PF: In the interest of all those customers on their transfer to Civil Sector, Govt./Corporate Sector to allow such customers to continue with their existing investment pattern and Pension Fund (PF) option. decision has been taken. For such subscribers, their future and legacy contributions will continue to be invested as per the existing investment pattern/PF, which was prevalent during the course of their employment.
Such customers will be free to choose any other investment pattern and PF after inter-sector shifting instead of continuing with the same investment pattern.
Further, as of now government subscribers cannot contribute to their NPS account after their retirement unless they choose to continue with their account. It has been decided that such public sector subscribers can continue to contribute to their NPS account uninterruptedly even after their retirement without submitting any request in this regard.
CRA Charges by Subscribers: Annual Maintenance Charges (AMC) for post resignation/retirement of Subscribers and Transaction Charges of CRA will be recovered from the respective PRANs from the next quarter of their retirement/resignation.
