NPS subscribers of presidency sectors: PFRDA points round on switch of legacy funds
For the staff of state governments, state autonomous our bodies, and Central autonomous our bodies, upon exercising the selection of funding schemes and pension funds, their complete amassed corpus beneath their PRAN account shall be transferred to the opted pension fund or asset allocation in a single occasion. Earlier in June 2020, it was determined that State Governments (SGs) / SABs (State Autonomous Our bodies)/ CABs (Central Autonomous Our bodies) are free to undertake the provisions primarily based on their very own inside approvals and notifications, with out in search of the PFRDA approval.
It was recommended that the switch of an enormous legacy corpus in respect of Authorities subscribers from the prevailing Pension Funds is more likely to affect the market. It might be virtually tough for the PFRDA to permit Authorities subscribers to vary the Pension Funds or funding sample in respect of the amassed corpus, in a single go. Subsequently, for the current, change within the Pension Funds or funding sample is allowed in respect of the incremental flows solely.
New NPS guidelines
Now, in its February 15, 2021, round, PFRDA has clarified the next:
In case the State Governments (SGs) / SABs (State Autonomous Our bodies)/ CABs (Central Autonomous Our bodies) determine to open up the alternatives of Pension Funds and/or allocation of funds, then please notice that upon train of alternative of funding schemes and pension funds by subscribers, their complete amassed corpus beneath their PRAN account shall be transferred to the opted Pension Fund(s) / asset allocation in a single occasion.
In case of the subscribers, who’ve already exercised this feature, their legacy fund shall be transferred to the Pension Fund and asset allocation opted by the subscribers instantly. The identical is now being adopted for the Central Authorities subscribers as nicely.
The above preparations are relevant with quick impact from the date of issuance of this round.
For streamlining the implementation of the Nationwide Pension System (NPS), the Gazette Notification dated thirty first January 2019 issued by the Ministry of Finance, Division of Monetary Providers had already modified the Ministry of Finance’s Notification dated twenty second December 2003.
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