PFRDA asks NPS subscribers to use for inter sector shifting
NEW DELHI: Before altering organisations, NPS subscribers must replace their Point of Presence (PoP) by submitting a request within the prescribed format to the Central Record Keeping Agency (CRA) System. However, some have nonetheless not up to date their National Pension System (NPS) account to the PoP of their alternative after leaving their employer.
To keep away from this, the PFRDA has requested corporations to make Inter Sector Shifting (ISS) part of exit formalities by advising the workers to switch their NPS Account to Point of Presence of their alternative.
The Pension Fund Regulatory and Development Authority (PFRDA) round mentioned, “It has been observed that there are instances wherein the NPS Subscribers under Corporate Sector have not exercised Inter Sector Shifting (ISS) before leaving their employers due to various reasons viz Resignation, Retirement etc and those employees are still tagged with their erstwhile employers in Central Record Keeping Agency (CRA) system even though they no longer work with those employers.”
According to the round, respective employers shall furnish the listing of these workers and their Permanent Retirement Account Numbers (PRANs) to CRA/ POP for flagging with an intent to de-tag these PRANs from the employer as per the rules talked about under:
1. Corporate workers (Corporate hooked up by means of a PoP)
Post flagging PRANs of such workers within the CRA system, the selection of POP must be exercised by the Subscriber inside three months and if not, the PRANs shall be tagged to the respective POP of the Corporate employer below the voluntary sector.
Corporates who’re performing as POPs and in addition supply NPS to their very own workers (predominantly banks) are coated below this class.
2. Employees of Direct Corporate (no related PoP)
Post flagging PRANs of such workers within the CRA system, alternative of PoPs must be exercised by the subscriber inside three months and if not, the PRANs shall be tagged to eNPS below voluntary sector.
The subscriber can proceed below eNPS or migrate to every other POP of their alternative.
3. Employees below Corporate CG sample of funding
Employees whose PRANs are below the Corporate CG sample of funding however have been flagged within the CRA system, must train their alternative of funding relevant as per their current standing, together with the selection of POP.
4. Intermediary costs
Post flagging of the PRANs within the CRA system, middleman costs are to be borne by the subscriber if the identical have been paid by the respective employer earlier.
CRAs are suggested to develop appropriate expertise function to be able to adjust to the rules and the subscribers are to be always communicated by CRAs for exercising their particular person alternative talked about below numerous eventualities, mentioned the PFRDA round.
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