scorecardresearchNPS: Govt employees can change investment pattern on their own without

NPS: Govt employees can change investment pattern on their own without seeking nod

Updated: 08 Aug 2022, 09:46 AM IST
TL;DR.

As the changes comes into effect, NPS subscribers can change the investment pattern without the nodal office’s approval

At last count, there were about 8 million NPS subscribers in the government sector. 

At last count, there were about 8 million NPS subscribers in the government sector. 

National Pension System (NPS) subscribers in the government sector have a cause for cheer as pension regulator PFRDA has simplified the procedure for changing investment patterns online, Business Line reported.

As the changes comes into effect, subscribers can change the investment pattern without the nodal office’s approval. They can directly submit the request in the central record keeping agency (CRA) login and this has to be authenticated through a One-Time Password (OTP) received on the registered mobile/email-ID, sources said.

“A lot of delay was seen when approval had to be given by the nodal office, even for online submissions for changes in investment choice. Now, authorisation will happen through an OTP on registered mobile,” sources in PFRDA said.

At last count, there were about 8 million NPS subscribers in the government sector. Currently, for government NPS subscribers, the PFRDA allows the asset allocation to be changed twice a year, and the Pension Fund (PF) once.

Subscribers associated with State governments and autonomous bodies of the State/Centre can also exercise their choice of PF and investment pattern, if the agencies permit it.

Once the subscriber opts for the Investment Choice, the accumulated Tier I contribution shall be redeemed and reinvested in the new scheme as per the defined process and within specified timelines. Further, all subsequent contributions will be invested in the new investment choice opted.

Subscribers can revert to the default pattern of investment as per guidelines.

First Published: 08 Aug 2022, 09:46 AM IST