NPS for Central Government Employees – FAQ – Frequently Asked Questions

The Central Government introduced the Defined Contribution based Pension System known as the National Pension System (NPS) replacing the existing system of Defined Benefit Pension with effect from January 01, 2004

NPS for Central Government Employees – All the employees who joined Government Service on or after 1st January 2004 have to subscribe for National Pension System (NPS) for getting retirement benefits

What is NPS for Central Government Employees ?

The Central Government had introduced the National Pension System (NPS) with effect from January 1, 2004 (except for armed forces). Pension Fund Regulatory and Development Authority (PFRDA), the regulatory body for NPS, has appointed NSDL as Central Recordkeeping Agency (CRA) for National Pension System. CRA is the first of its kind venture in India which is carrying out the functions of Record Keeping, Administration and Customer Service for all subscribers under NPS. CRA shall issue a Permanent Retirement Account Number (PRAN) to each subscriber and maintain database of each Permanent Retirement Account along with recording transactions relating to each PRAN.

In NPS, a government employee contributes towards pension from monthly salary along with matching contribution from the employer. The funds are then invested in earmarked investment schemes through Pension Fund Managers.

How NPS works ?

As per the Gazette Notification dated January 31, 2019 issued by the Ministry of Finance (Department of Financial Services), the Central Government Subscribers w.e.f. April 1, 2019 have the option of selecting the Pension Funds (PFs) and Investment Pattern in their Tier- I account. The Subscriber can choose any one of the available Pension Funds and Investment Option as per their choice. If the choice is not exercised by the Subscriber, NPS contributions would be invested in the existing default schemes of the 3 Pension Fund Managers (PFMs), viz, LIC Pension Fund Limited, SBI Pension Funds Pvt. Limited and UTI Retirement Solutions Limited in a predefined proportion, as mentioned in the Statement of Transaction (SoT), as per the guidelines issued by PFRDA.

The Subscriber can select any one of the investment schemes as mentioned below:

1. Default Scheme – Investments would be done in defaults schemes of LIC, UTI and SBI in a predefined proportion.
2. Scheme G – 100% of contribution shall be invested in Government Bonds and related instruments.
3. Scheme LC 50 – Life cycle fund where the Cap to Equity investments is 50% of the total asset.
4. Scheme LC 25 – Life cycle fund where the Cap to Equity investments is 25% of the total asset.

Latest FAQ on NPS for Central Government Employees

 

FAQ updated up to the year 2019

The NPS is a new contributory pension scheme introduced by the Central Government for employees joined in Government Service on or after 1.1.2004. During the year 2009, the NPS was kept open for public.

a. Employees who have joined central government service on or after 01 January 2004 including Railways, Posts, Telecommunication or Armed Forces (Civil), Autonomous Body, Grant-in-Aid Institution, Union Territory or any other undertaking whose employees were eligible to a pension from the Consolidated Fund of India., earlier.

b. This contribution pension scheme is also open to any Indian citizen between the age of 18 and 55.

No. The General Provident Fund ( Central Service) Rules, 1960 is not applicable for employees covered by NPS.

No. You will not be eligible to Gratuity.

When you join Government service, you will be allotted a unique Personal Pension Account Number (PPAN). This unique account number will remain the same for the rest of your life. You will be able to use this account from any location and also if you change your job. The PPAN will provide you with two personal accounts:

1. A mandatory Tier-I pension account, and

2. A voluntary Tier-II savings account.

1. Tier-I account: You will have to contribute 10% of your pay in pay band + grade pay + DA into your Tier-I (pension) account on a mandatory basis every month. You will not be allowed to withdraw your savings from this account till you retire at age 60. Your monthly contributions and your savings in this account, subject to a ceiling to be decided by the government, will be exempt from income tax. These savings will only be taxed when you withdraw them at retirement.

2. Tier-II account: This is simply a voluntary savings facility for you. Your contributions and savings in this account will not enjoy any tax advantages. But you will be free to withdraw your savings from this account whenever you wish.

Every month, the government will deduct 10% of your salary (14% of basic pay + DA) and automatically transfer this amount to your Tier-I account in your name.

Yes. As your employer, the Government will pay 14% of your salary (14% of basic pay + DA) and transfer this amount also to your Tier-I account in your name.

Yes. You will be permitted to contribute more than the mandated amount into your Tier-I account – subject to any ceiling that may be decided by the Government.

No. The contribution of the Government will be limited to 14% of your salary (14% of basic pay + DA)

The PPAN number will stay the same and you will be able to use the same account.

No. The 14% contribution by the Government will stop when you leave Government service. However, your savings in your Tier-I and Tier-II accounts will stay in your name and you will be able to continue using these accounts to save for your retirement.

Additional Relief on death/disability of Government servants covered by the NPS(New Pension Scheme) recruited on or after 1.1.2004 has been discussed in this Office Memorandum No.38/41/06/P&PW(A) Dated 5th May, 2009

The money you invest in NPS will be managed by professional fund managers. Currently, you have the choice of picking up one of the following six fund managers: ICICI Prudential Pension Management, IDFC Pension Fund Management, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund, SBI Pension Funds, and UTI Retirement Solutions. In addition to this there are three schemes for which you have to opt.

Scheme A This scheme will invest mainly in Government bonds

Scheme B This scheme will invest mainly in corporate bonds and partly in equity and government bonds

Scheme C This scheme will invest mainly in equity and partly in government bonds and corporate bonds.

Yes, you can switch fund managers. PFRDA, the pension fund regulator, will declare the value of your investment every year in April. At that point of time, if you are not satisfied with the performance of your fund manager, you can switch to another fund manager between May 1 and May 15.

This is where NPS wins hands down against all other modes of creating a corpus to generate income after retirement. The fund management charge of NPS is 0.0009% of the value of the investment, every year. In comparison, pension plans of insurance companies charge 0.75-1.75% as fund management charge, which is 800-2000 times higher. The other expenses charged are also very reasonable.

No. The Central Civil Service Pension Rules (1972) will not be applicable to you.

The Government has set up a new dedicated regulatory authority known as Pension Fund Regulatory and Development Authority (PFRDA). The PFRDA will be responsible for the NPS and for protecting your interests in the NPS in consultation with Ministry of Finance.

When you join Government service, your Drawing and Disbursement Officer (DDO) will instruct you to fill out a NPS form. You will be required to provide your full professional and personal details including details of your nominee in this form. The DDO will issue you the PPAN number(PRAN) and will also be responsible for all administrative matters related to your NPS accounts including deduction of your contributions, transferring your contributions and the matching contribution of the Government to your Tier-I pension account.

Your monthly contributions, and the matching contributions by the Government into your Tier-I account, will be transferred by the Government in your name to a Pension Fund Manager (PFM). The PFM will invest your contributions on your behalf. In this way, your savings will appreciate and grow over time.

Yes. If you wish, you will be able to spread your savings across multiple PFMs – where a part of your savings are managed by 2 or more PFMs.

No return is guaranteed as it is in case of EPF and PPF. The amount of money you make is dependant on how well the fund managers chosen by you perform. But, the extremely low charges in NPS sure give it an edge over the the pension plans of insurance companies.

Yes. You will be permitted to contribute more than the mandated 10% of Basic+DA+DP into your Tier-I account – subject to any ceiling that may be decided by the Government.

The NPS offers two accounts: tier I and tier II. Currently only tier I account is available. This is a non-withdrawable account and investments in this keep accumulating till you turn 60. Withdrawal is allowed only in case of death, critical illness or if you are building or buying your first house. In case of death the nominee can get 100% of NPS wealth in a lump sum. He can however continue with the NPS in case he wishes to.

You will be able to withdraw 60% of your savings as a lump sum when you retire. You will be required to use the balance 40% of your savings to purchase an annuity scheme from a life insurance company of your choice. The life insurance company will pay you a monthly pension for the rest of your life.

Yes. You can use more than 40% of your savings to purchase annuity.

You will be required to use 80% of your savings in your Tier-I account to purchase the annuity. You will be able to withdraw the balance 20% of your savings as a lumpsum. The other option is , you can continue to invest in NPS on monthly basis and then purchase annuity using 40% of your savings at the age of 60.

Yes. You will have an option of selecting an annuity which will pay a survivor pension to your spouse.

You will be able to withdraw 60% of your savings as a lumpsum when you retire. You will be required to use the balance 40% of your savings to purchase an annuity scheme from a life insurance company of your choice. The life insurance company will pay you a monthly pension for the rest of your life.

NPS by default sets the retirement age at 60. Once you attain that age, you can use the money that has accumulated to generate a regular pension for yourself. In order to do this, you have to compulsorily buy immediate annuity from a life insurance company with 40% of the money that has accumulated. As explained at the beginning, buying an immediate annuity will assure a regular payment for you.  Since a minimum of 40% needs to be used to buy an immediate annuity, a maximum of 60% of the money accumulated can be withdrawn. However, unlike other tax-saving instruments like Public Provident Fund (PPF) and Employees’ Provident Fund (EPF), wherein the amount at maturity is tax-free, in case of NPS this amount is taxable.

The benefit of encashment of leave salary is not a part of the retirement benefits admissible under Central Civil Services (Pension) Rules, 1972. It is payable in terms of CCS (Leave) Rules which will continue to be applicable to the government servants who join the government service on after 1-1-2004. Therefore, the benefit of encashment of leave salary payable to the governments/to their families on account of retirement/death will be admissible.

This provision has been made in the New Pension Scheme with an intention that the retired government servants should get regular monthly income during their retired life.

Exit from Tier-I can only take place when an individual leaves Government service.

As per the New Pension Scheme, the total Dearness Allowance is to be taken into account for working out the contributions to Tier-I. Subsequently, a part of the “Dearness Allowance” has been treated as Dearness Pay. Therefore, this should also be reckoned for the purpose of contributions.

Yes. Since the contribution is to be worked out at 10% of (Pay+ DP+DA), it needs to be revised whenever there is any change in these elements.

The PAO should calculate the interest.

As in the case of other recoveries, the recovery of contributions towards New Pension Scheme for the full month (both individual and government) will be made by the office who will draw salary for the maximum period.

Yes. Ministry of Health & Family Welfare has clarified vide their O.M. no. A45012/11/97-CHS.V dated 7-4-98 that the Non-Practicing Allowance shall count as ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the New Pension Scheme.

In cases where Government servants apply for posts in the same or other departments and on selection they are asked to render technical resignation, the past services are counted towards pension under CCS (Pension) Rules, 1972. Since the Government servant had originally joined government service prior to 1-1-2004, he should be covered under the CCS (Pension) Rules, 1972.

Yes, under Section 80CCD of the Income Tax Act investments of up to Rs 1 lakh in the NPS can be claimed as tax deductions. Readers should remember that this Rs 1 lakh limit is not over and above the Rs 1 lakh limit available under Section 80C. In fact, the combined limit of investments made under Section 80C, 80CCD and section 80CCC (for investments made into pension plans of insurance companies) is Rs 1 lakh.

About NPS

The Central Government has introduced the Defined Contribution based Pension System known as the National Pension System (NPS) replacing the existing system of Defined Benefit Pension with effect from January 01, 2004 vide its notification Ministry of Finance (Department of Economic Affairs) OM No 5/7/2003 PR Dt 22/12/2003.

National Pension System (NPS) is a contributory pension system whereby contributions from subscribers along with matching contributions from respective governments as an employer, are collected and accumulated in an individual pension account of the employee. NPS is mandatory to all employees joining services of Central Government (except Armed Forces) and Central Autonomous Bodies on or after 1st January 2004.

Pension Fund Regulatory and Development Authority (PFRDA) is the regulator for NPS. PFRDA is an Authority set up by the Government of India through the PFRDA Act, 2013 to promote old age income security by establishing, regulating and developing pension funds to protect the interest of Subscribers to schemes of pension funds and for matters connected therewith or incidental thereto.

Following are the entities involved in NPS:

  • NPS Trust: The National Pension System Trust (NPS Trust) was established by PFRDA on 27th February, 2008 with the execution of the NPS Trust Deed. The NPS Trust has been set up and constituted for taking care of the assets and funds under the National Pension System (NPS) in the interest of the beneficiaries (Subscribers). Individual NPS Subscribers shall be the beneficiaries of the NPS Trust. The NPS funds are managed by the Board of Trustees to realize and fulfill the objectives of the NPS Trust in the exclusive interest of the Subscribers.
  • Central Recordkeeping Agency (CRA): Recordkeeping, administration and customer service are the core functions of NSDL e-Governance Infrastructure Limited, which is acting as the Central Record-keeper for the NPS.
  • Pension Fund Managers (PFMs): Pension Fund Managers (PFMs) act as intermediary for receiving contributions, accumulating them and making payments to the Subscriber in the manner as may be specified by the Authority.
  • Trustee Bank: Axis Bank Ltd. has been appointed by PFRDA as the Trustee Bank for NPS effective from 1st July, 2013. Trustee Bank as an intermediary is responsible for the day-to-day flow of funds and banking facilities in accordance with the guidelines/ directions issued by the Authority under NPS. It receives NPS funds from all Nodal Offices and transfers the same to the Pension Funds/ Annuity Service Providers/ other intermediaries as per the operational guidelines.
  • Annuity Service Providers (ASPs): ASPs would be responsible for delivering a regular monthly pension to the Subscriber after exit from NPS. ASPs have been appointed by PFRDA.
  • Points of Presence (POPs): Points of Presence (POPs) are different Financial Institutions who act as the first point of interaction for the NPS Subscriber within the NPS architecture. The authorized branches of a POP, called Point of Presence Service Providers (POP-SPs), will act as collection points and extend a number of customer services to NPS Subscribers.
  • Central Recordkeeping Agency Facilitation Center (CRA-FC): CRA-FC is the entity appointed by NSDL to extend various services under NPS, to its users across the country. The entities who have been appointed as CRA-FC shall establish multiple branches across the country to provide services to the POPs and POP-SPs.

Tier II is a voluntary saving Account associated with your PRAN. Tier II offers greater flexibility in terms of withdrawal, unlike Tier I account, you can withdraw from your Tier II account at any point of time.

Tax Benefit Under NPS

Income Tax Act allows benefits under NPS as per the following sections:

  • On Employee’s contribution: Employee’s own contribution is eligible for tax deduction under sec 80 CCD (1) of Income Tax Act up to 10% of salary (Basic + DA). This is within the overall ceiling of Rs. 1.50 Lacs under Sec. 80 CCE of the Income Tax Act.
  • On Employer’s contribution: Up to 10% of Basic & DA (no monetary ceiling) under 80CCD (2). This rebate is over and above 80 CCE limit of Rs. 1.50 lacs.
  • Voluntary Contribution: Employee can voluntarily invest an additional amount of Rs. 50,000 (or more) to the NPS Tier I account and claim tax deduction on the same under section 80 CCD 1(B), subject to a maximum of Rs. 50,000.

A copy of the Annual Transaction Statement (Tier I) can be used as investment proof in order to avail tax benefits.

No. At present, a Subscriber cannot avail loan against NPS holdings.

There is no investment return guarantee. As per the present guidelines of Pension Fund Regulatory & Development Authority (PFRDA, the regulator for NPS), in case of government employees, contributions towards pension are invested by three Pension Fund Managers (PFMs), viz., LIC Pension Fund Limited, SBI Pension Funds Private Limited and UTI Retirement Solutions Limited as per the stipulated guidelines.

The returns under NPS are totally market based i.e. they are based on the NAV of the Pension Fund schemes. The benefits will entirely depend upon the amount contributed and the investment growth upto the point of exit from NPS.

Features & Other Benefits

  • Transparent: NPS is transparent and cost effective system wherein the pension contributions are invested in the pension fund schemes and the employee will be able to know the value of the investment on day to day basis.
  • Portable: Each employee is identified by a unique number and has a separate Permanent Retirement Account which is portable i.e., will remain same even if an employee gets transferred to any other office.
  • Simple: All the subscriber has to do is to open an account with his/ her Nodal Office and get a PRAN.
  • Safety: NPS is regulated by PFRDA with transparent investment norms & regular monitoring and performance review of fund managers by NPS Trust.
  • Dual benefit of Low Cost and compounding effect: The pension wealth accumulates over a period of time till retirement; grows with a compounding effect and the account maintenance charges are also low.

Following are the services offered by CRA to NPS Subscribers:

  • CRA registers the Subscribers and allots unique Permanent Retirement Account Number (PRAN) post registration.
  • Introduction of NPS Mobile App wherein Subscribers can access their NPS accounts from any location. CRA issues a PRAN card and PIN mailers to access Mobile App, CRA website and CRA Call Centre.
  • CRA maintains the Permanent Retirement Account (PRA) of the Subscribers and facilitates the creation of units in Subscribers account as per the contribution details and funds received from the Nodal Offices.
  • At the end of every Financial Year, CRA sends a physical Transaction Statement to the Subscriber containing the details of the transactions in Subscribers Permanent Account.
  • CRA registers grievances (received through CRA system or through G1 form) and sends the resolution details to the Subscribers by email.
  • CRA has provided various online functionalities to NPS Subscribers viz; for updation of Mobile No. / Email ID, Seeding of Aadhaar and Address update using Aadhaar.

No. You need not close your NPS account upon Shifting of Job/ Location.

PRAN allotted under NPS is portable. PRAN can be shifted from one office to another across sectors. Further, the PRAN remains active in the CRA system till the Subscriber exits from NPS. Once the Subscriber exercises the exit option (i.e., on successful processing of withdrawal request), the PRAN will get deactivated in the CRA system.

For e.g. Subscriber can shift from one sector to another sector with the same PRAN e.g. from Central Government (CG) to State Government (SG) or from one State Govt. to another State Govt., etc.

For shifting PRAN from one sector to another or from one State Govt. to another State Govt., Subscriber is required to submit Form ISS-1 (Inter Sector Shifting form) to the target Nodal Office/ Point of Presence (PoP) with whom the Subscriber will be associated after shifting. Form ISS-1 is available on the CRA website – www.npscra.nsdl.co.in. The target Nodal Office/ PoP will facilitate the shifting of PRAN along with accumulated NPS contributions of source sector in the CRA system.

For shifting of PRAN within Central Government/ within same State Government, Subscriber is required to intimate his PRAN to the target (new) office with whom he/she will be associated after shifting. There is no need to fill form ISS-1. The new office will facilitate shifting of PRAN in the CRA system. On successful processing of monthly NPS contributions by new office, PRAN will get associated to new office in the CRA system. Further, the new office is required to update subscriber’s employment details (such as DDO office name, department, pay scale and salary details, etc.) in the CRA system.

Subscribers have the following options in IVR:

  • Change T-PIN.
  • Check scheme preference (for Tier II) and holding details.
  • Check the status of any change request (like change of address, nomination, etc.).
  • Check details of last contribution credit and last withdrawal request (for Tier II only).
  • Request for Transaction Statement for last 3 Financial Years.
  • Check the status of Subscriber Shifting
  • Speak to a Customer Care Executive for any further query.

Below are few significant benefits of Tier II NPS Account:

  • Saving for your day to day need (withdrawal at any point of time)
  • Transfer fund to pension account ( Tier I) any time
  • No minimum balance required
  • No levy of exit load
  • Separate Nomination facility available

No, there is no need to re-open NPS account when you change your Job or location. Portability is one of the key features of NPS, it can be operated from anywhere in the country irrespective of individual employment and location/geography. This implies that you can shift your PRAN from one sector to another, e.g. Central Government to Corporate sector, State Government to Central Government etc. and vice versa.

For shifting PRAN from one sector to another or from one State Govt. to another, the Subscriber is required to submit Form ISS-1 (Inter Sector Shifting from). The form ISS-1 is available on the CRA website to the target Nodal Office i.e. to the Nodal Office with whom he/ she will be associated after shifting. However, the Inter Sector Shifting is not required for Subscribers shifting within same Sector (i.e. within Central Govt. or same State Govt.).

Registration

Government employees who are mandatorily covered under NPS are required to submit the duly filled CSRF along with supporting documents to the associated DDO. DDO after authorization of form forwards it to PAO/ CDDO/ DTO for onward submission to CRA-FC for PRAN generation.

CSRF can be downloaded from the CRA website (www.npscra.nsdl.co.in) at the given link:
https://npscra.nsdl.co.in/download/government-sector/central-government/forms/Subscriber%20Registration%20Form-CSRF.PDF

Subscriber can also obtain from the associated Nodal Office.

Yes. you can generate PRAN Online using e-NPS (either Aadhaar based or PAN based) and subsequently you are required to shift your PRAN under your associated Nodal Office by submitting Form IIS-1 (Inter Sector Shifting Form).

Please refer Q. 11 above for detailed procedure.

No. You are permitted to have only one PRAN under NPS which is unique, permanent and portable across jobs, employments and locations.

PRAN is an acronym for Permanent Retirement Account Number, which is a unique and portable number provided to each Subscriber under NPS upon successful registration and remains with the Subscriber till he/ she exits from NPS.

After a PRAN is generated, PRAN Kit is sent to the associated Nodal Office for onward distribution to the underlying Subscriber. A PRAN kit contains PRAN card, Subscriber details (referred to as Subscriber Master Report) and an information booklet along with the PIN Mailers.

I-PIN: I-PIN, is a password to access your NPS account online/ through NPS Mobile App. Through your NPS account log-in, you can view details of NPS account and initiate various service requests. I-PIN is dispatched along with PRAN kit.

To reset the I-PIN, please refer Question no. 5 under Service Request

T-PIN: T-PIN can be used to access your NPS account through the toll free helpline (1800-222-080). The Bilingual ‘Interactive Voice Response’ (IVR) service helps you to access your account details and avail various services including request for Transaction Statement to your registered email ID. You can also speak to Customer Care Executive for any specific query. You can reset the T-PIN through the option available in IVR.

To reset the T-PIN, please refer Question no. 6 under Service Request

Once the PRAN is generated, an email alert as well as a SMS alert will be sent to the registered email ID and mobile number of the Subscriber. NSDL-CRA also intimates the Subscriber about the dispatch details once the PRAN kit for the Subscriber is dispatched.

Subscriber can check the status of his/ her PRAN application by 17 digit acknowledgement number allotted by CRA-FC at the time of submission of application forms by Nodal Office.

You may check the status of you PRAN application through below tabs given under “Important Links” section available on ‘Home’ page of this website

i. PRAN application Status (through Ack. ID) – (acknowledgement number allotted by CRA-FC)
ii. Track PRAN Card Status (NPS Regular) – (to know the PRAN card dispatch status)

Once the PRAN is generated, PRAN kit containing PRAN card is dispatched to the respective Nodal Offices for onward distribution to the Subscribers. In case of non-receipt of PRAN Card, a Subscriber can enquire with the concerned Nodal Office or can check the dispatch status by accessing CRA website: http://www.npscra.nsdl.co.in under ‘Value Added Services’.

Activation of Tier II account is very easy, it can be done through online at eNPS website (https://enps.nsdl.com) or the associated Nodal Office or by visiting the nearest POP–SP. For more details, please refer “How to activate the Tier II account” section under “Knowledge Centre” available on this website.

Home / Subscriber Corner / Knowledge Centre / How to activate the Tier II account
To find the nearest POP-SP, you may visit “Find your nearest POP-SP” under “Important Links” section available on Home page of this website.

Any Subscriber having an Active Tier I account can activate a Tier II account.

A Subscriber can activate Tier II account in the following ways:

  • By approaching the nearest POP-SP and submitting a duly filled Form UOS-S10 along with copy of PRAN Card, PAN Card, cancelled cheque and initial contribution of Rs. 250/-.
  • Govt. sector NPS Subscribers can also approach their associated Nodal Office for activation of Tier II account by submitting Form S10 (Subscriber Registration Form Tier-II)
  • Tier II account can also be activated through the eNPS platform (https://enps.nsdl.com).

A Subscriber can view the detail of the associated Nodal Office by logging into the CRA system or in NPS Mobile App with the User ID and I-PIN.

Subscriber is allowed to register up to three nominees in NPS. Subscriber needs to provide name, nominees’ relation with Subscriber and Percentage share. Value of Percentage share must be an integer. Sum of percentage share across all the nominees must be equal to 100. If sum of percentage is not equal to 100, entire nomination will be rejected.

A Subscriber, at the time of joining NPS is required to make a nomination mandatorily in the prescribed form, conferring on one or more persons the right to receive the amount in the unfortunate event of death of a Nominee.

In case of a male Subscriber, his legally wedded wife, his children, whether married or unmarried, his dependent parents and his deceased son’s widow and children.

In the case of a female Subscriber, her legally wedded husband, her children, whether married or unmarried, her dependent parents, her husband’s dependent parents and her deceased son’s widow and children.

If Subscriber has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his family. Any nomination made by such Subscriber in favour of a person not belonging to his family shall be invalid.

For other terms and conditions, please refer PFRDA regulations.

Yes, minor can be a nominee. In such a case, Subscriber will be required to provide guardian’s details and date of birth of the minor.

FATCA stands for the Foreign Account Tax Compliance Act. It is a new piece of legislation to help counter tax evasion in the US. Introduced by the United States Department of Treasury (Treasury) and the US Internal Revenue Service (IRS), the purpose of FATCA is to encourage better tax compliance by preventing US persons from using banks and other financial organizations to avoid US taxation on their income and assets. India has signed inter-governmental agreements (IGAs) relating to FATCA compliance with the United States government.

For information related to FATCA compliance, please visit “FATCA Self-Certification” Section available under Subscriber’s Corner on this website.

Yes. As per the amendment in PMLA rules by the Government, NPS accounts should be linked with Aadhaar.

Based on the notification dated June 1, 2017, issued by the Dept. of Revenue, Ministry of Finance, bearing No. GSR 538 (E) being the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017, both Aadhaar and PAN have been made mandatory for existing and new accounts to be opened under NPS.

Subscribers can seed Aadhaar in their PRAN by logging into the CRA System (www.cra-nsdl.com) with the User ID (PRAN) and I-PIN (Internet Password).

The option is available under Menu >> Update Details; Sub-menu >> Update Aadhaar/ Address Details. PAO/ CDDO/ DTO are required to authorise the request in the CRA System.

Subscribers can update their PAN by submitting Form S2 (Subscriber Details Change) to their associated Nodal Office (PAO/ CDDO/ DTO). Nodal Office can carry out necessary changes in the NPSCAN system (www.npscan-cra.com).

Contribution

A subscriber contributes 10% of his Basic Salary + DA into his Tier-I (pension) account on a mandatory basis every month which is invested along with the matching contribution from the employer. Further, Subscriber can contribute voluntarily through online contribution facility (www.enps.nsdl.com) or through Point of Presence (POP). POP list is available on the CRA website (www.npscra.nsdl.co.in) under ‘Quick Links’.

In case of Tier I account, Subscriber’s associated Nodal Office is uploading his/ her monthly pension contribution in CRA system along with the transfer of funds to the Trustee Bank appointed for this purpose. CRA will match the contribution details uploaded by the Nodal Office and the amount confirmed to be received by Trustee Bank and instruct the Pension Fund Managers to invest the contribution as per your scheme setup preference. The units created are credited by CRA to your Permanent Retirement account.

No. Contribution amount in case of Tier I is deducted from the Salary of the Subscriber by the employer i.e. Central/ State Government Office. Further, subscriber can voluntarily contribute over and above mandatory contribution in Tier I account to avail exclusive tax benefit.

Govt. Employees can voluntarily contribute for Tier II account and the minimum requirement is given below:

  • Minimum contribution at the time of account opening- Rs. 500/-
  • Minimum amount per contribution- Rs. 250/-

For Tier II, Subscribers can submit the contribution Online by visiting https://enps.nsdl.com/eNPS or through NPS Mobile App and make payment through Net Banking/ Credit Card/ Debit Card.

Subscribers can also contribute through any of the POP-SP or through associated Nodal Office.

Yes. To contribute in NPS, only Permanent Retirement Account Number (PRAN) is required. Once PRAN is allotted to a Subscriber, contribution can be made irrespective of whether PRAN card is received or not.

Subscriber can view the total value of holdings in the following ways:

  • View Transaction Statement which displays the total value of funds as on date by accessing CRA System (www.cra-nsdl.com) using the User ID and I-PIN provided by CRA.
  • View Statement of Holding through by accessing CRA System.
  • View current holdings in NPS Mobile App.
  • Request transaction statement on e-mail ID through IVR (CRA toll free number)
  • Know the holdings with the help of Quarterly SMS alerts sent by CRA.
  • Monthly Transaction Statement pdfs send to subscriber’s registered email ID

Under Tier II, there should be at least 1 contribution in a financial year.

For Tier II, Subscribers can submit the contribution to any of the POP-SP. List of POP-SPs are available at CRA website www.npscra.nsdl.co.in. Subscriber can select a nearest POP-SP.

For Tier II account, there will be a time lag between the time a subscriber deposits Cash/DD/cheque with the POP-SP and the time of credit of units to his / her account, which may range upto 15 working days at the time of initial registration and upto 7 working days for subsequent contribution. Once the contribution is credited to his / her account, an e-mail alert as well as a SMS alert will be sent to the registered e-mail ID and mobile number of the subscriber. This service is currently available to State Government employees and the same will be made available to the Central Government employees shortly.

Under NPS, Subscriber accounts are identified by unique PRAN allotted to them by CRA. The Nodal office can remit for Tier I account, once PRAN is generated and need not wait till receipt of PRAN Kit from CRA. However, in order to activate the Tier II account, subscriber needs to submit a copy of the PRAN Card along with the duly filled UOS-S10 form. (Except in case of Non-IRA compliant Subscriber, wherein Tier II can be activated without PRAN card).

Service Request

The Annual Account Statement (Transaction Statement) as of March 31 of every year has been sent to the registered address of the Subscriber. Also, if a Subscriber wishes to have a Transaction Statement on an adhoc basis, he/ she can login into the CRA system using the User ID and I-PIN provided by CRA. Subscriber needs to go to Menu – Transaction Statement and mention the PRAN.

Subscriber can also access the account details by calling on the Toll free number 1800 222 080. Subscribers can also request their concerned PAO/ CDDO/ DTO for a copy of the Transaction Statement. In addition, CRA can also send soft copy of Transaction Statement (on request through IVR/ mobile app), if email id of that subscriber is registered in CRA System.

A Subscriber can request for change/ correction in personal details, nomination details, bank details, reissue of I-PIN/ T-PIN/ PRAN Card to the associated Nodal Office. A Subscriber can also update photograph and signature by submitting written request to the associated Nodal Office for onward submission to CRA-FC.

Subscriber needs to submit the following forms for change request:

  • Form S2 – for change in personal or nomination details or request for re-issue of T-PIN/ I-PIN or Reprint of PRAN card.
  • Form S7 – Request for change in Photograph and/ or Signature.

Yes, certain services related to NPS can be availed online. These are as follows:

  • Change of address (correspondence and permanent): using Aadhaar based authentication through OTP.
  • Change of scheme preference: Govt. Subscribers (for Tier II only) can change their Scheme Preference in CRA system.
  • Change of mobile number and email: Subscriber can change mobile number and email ID directly by logging into CRA system using I-PIN or through Mobile App.
  • Instant reset of I-PIN (Internet Password): Subscriber can reset I-PIN instantly in case I-PIN is locked/ forgotten using either Mobile No. or email ID to receive OTP.
  • Online view of Statement of Holding (SOH) /Transaction (SOT): Subscriber can view SOH as well as SOT online in CRA system, anytime anywhere by using the password (I-PIN) and need not wait for physical SOT sent on yearly basis. Year wise SOT can also be obtained by calling CRA Call Centre using T-PIN (Telephone Password). SOH and recent contributions can also be viewed by using NPS Mobile App.
  • ePRAN card view: Subscriber can view, download and print ePRAN card from CRA system, in case of loss of PRAN card issued by CRA.
  • Aadhaar Seeding: Subscriber can add/ update Aadhaar by logging into CRA System using Aadhaar based authentication through OTP. Such requests needs to be authorized by associated Nodal Office.
  • Reprint of PRAN card: Reprint PRAN card by logging into CRA System using mobile based authentication through OTP.

Subscribers can check the status of the change request by calling CRA Call Centre using T-PIN and select the option of checking the status of the change request and input the acknowledgement number generated by the CRA system once the request is initiated/ processed by the Nodal Office. Subscribers can also speak to the Call Center Executive to check the status. Following are some of the menus available in the IVR:

  • Change T-PIN
  • Information on scheme preference and Holding
  • To check change request Status
  • Information on last contribution credited
  • Status of last withdrawal request for Tier II
  • Other Services
  • Information on subscriber Shifting status
  • Speak to Call Centre executive

Subscriber can generate password by doing few steps even without log-in to your account.

  • Visit welcome page for NPS account log-in
  • Click on the “Forgot Password” link
  • Select “Instant Reset I-PIN”
  • Enter minimum required details like PRAN, Date of Birth
  • Enter New Password of your choice

Subscriber should select any one of the following options:

  • Generate OTP: Once Subscriber selects this option, a One Time Password (OTP) will be sent to the Subscribers registered Mobile Number / email ID. After receiving the same, Subscriber needs to enter this OTP in the system.
  • Go to Nodal Office: In this option, Subscriber needs to print the acknowledgment and handover the same to associated Nodal office for authorization. After successful authorization by the Nodal Office, Subscriber can use the new password (provided during the initiation of the request) for log-in to the CRA system.

To reset the T-PIN, Subscriber can call the CRA toll free number 1800-222-080 to access IVR (Interactive Voice Response) system. After selecting the appropriate option, system will prompt the Subscriber to reset T-PIN by providing the existing T-PIN and the required new T-PIN. In case Subscriber has forgotten T-PIN, upon successful verification of the personal details, the Subscriber will be transferred to a helpline executive to change the T-PIN.

In case of loss or damage of PRAN card, the Subscriber needs to submit a duly filled Form S2 to the concerned DDO. After verifying the form, the associated Nodal Office will process the request in the CRA System. Once the request is processed, a fresh PRAN Card is printed and sent to the respective Nodal Office for onward distribution to the Subscriber.

Alternatively, Subscriber can log-in to CRA System with the User ID and password and select the option of Reprint of PRAN Card. This is a chargeable transaction. Subscriber can also download ePRAN through CRA login.

Under Tier II, there should be at least 1 contribution in a financial year.

For Tier II, Subscribers can submit the contribution to any of the POP-SP. List of POP-SPs are available at CRA website www.npscra.nsdl.co.in. Subscriber can select a nearest POP-SP.

For Tier II account, there will be a time lag between the time a subscriber deposits Cash/DD/cheque with the POP-SP and the time of credit of units to his / her account, which may range upto 15 working days at the time of initial registration and upto 7 working days for subsequent contribution. Once the contribution is credited to his / her account, an e-mail alert as well as a SMS alert will be sent to the registered e-mail ID and mobile number of the subscriber. This service is currently available to State Government employees and the same will be made available to the Central Government employees shortly.

Under NPS, Subscriber accounts are identified by unique PRAN allotted to them by CRA. The Nodal office can remit for Tier I account, once PRAN is generated and need not wait till receipt of PRAN Kit from CRA. However, in order to activate the Tier II account, subscriber needs to submit a copy of the PRAN Card along with the duly filled UOS-S10 form. (Except in case of Non-IRA compliant Subscriber, wherein Tier II can be activated without PRAN card).

Grievance

NSDL-CRA has built a multi layered Grievance redressal mechanism which is easily accessible, simple, quick, responsive and effective.

You have the option of registering grievance/complaint through the following alternatives:

  • Web based interface:
    A Subscriber can register the grievance against any entity under NPS through log-in to the account. Alternatively, they can visit at “Log Your Grievance / Enquiry” section under “Subscriber’s Corner” of this website to log the grievance/query. Through this platform, Subscriber can register grievance/query even without having the PRAN Details. On successful registration, a token number will be displayed on the screen for future reference.
  • Call Centre/ Interactive Voice Response System (IVR):
    Subscriber can contact the NSDL-CRA call centre at toll free telephone number and register the grievance. Subscriber has to authenticate themselves through the use of T-pin allotted to raise the grievance. On successful registration of grievance, a token number will be allotted by the Customer Care representative for any future reference.
  • Physical forms:
    Subscriber can also submit the grievance in a prescribed format to the associated Nodal Office. Subscriber has to mention the PRAN as the means of authentication on the form. Upon submission of form to the associated Nodal Office, Subscriber will get an acknowledgement receipt. The token number would be emailed to you by NSDL-CRA (if the email id is mentioned), otherwise the same will be emailed to the associated Nodal Office.
  • Approach the associated Nodal Office, who can raise a grievance on Subscriber’s behalf.
    A Subscriber may also write to Grievance Redressal Cell, PFRDA, B-14/A, ChatrapatiShivajiBhawan, Qutab Institutional Area, Katwaria Sarai, New Delhi-110016 (Email: [email protected]) for taking appropriate action.

Whenever Subscriber raises a grievance, a system generated alert goes to the entity against which the grievance is raised. The respective entity then resolves the grievance and post resolution details in CRA system.

When a Subscriber registers a grievance at the CRA website, a unique token number is assigned to each and every grievance. Subscriber can use that token no. to know about the status of the grievances either through the Call Center or through the CRA website. Please visit “Log Your Grievance / Enquiry” section under “Subscriber’s Corner” to check the status of the grievance lodged.

A Subscriber can approach the Nodal Office in case of the following grievances:

  • Non-receipt of PRAN Card.
  • Re-issue of PRAN Card.
  • Re-issue of I-PIN/ T-PIN.
  • Pending Subscriber details modification requests such as change/ modification in personal details, nomination details, employment details, PAN details, etc.
  • Delay in processing of request for Shifting of Subscriber (Form ISS-1).
  • Contribution not uploaded by Nodal Office.
  • Delay in contribution upload by Nodal Office.
  • Non-receipt of Transaction Statement.
  • Pending withdrawal requests.

In case a Subscriber is dissatisfied with the resolution of their grievances, they may write to Grievance Redressal Cell (GRC), PFRDA at the below mentioned address for taking appropriate action.

Grievance Redressal Cell,
Pension Fund Regulatory and Development Authority,
1st, Floor, ICADR Building, Vasant Kunj Institutional Area Phase II, New Delhi 110070
e-mail: [email protected]
NPS Information Desk Toll Free No. (at PFRDA): 1800 110 708

The latest updates on NPS procedure/guidelines etc., are available on the PFRDA website www.pfrda.org.in/ CRA website – www.npscra.nsdl.co.in. Subscribers may visit the said websites for details of NPS.

Ombudsman is a person appointed by Pension Fund Regulatory and Development Authority (PFRDA). PFRDA may appoint one or more Ombudsmen for different territorial jurisdiction.

Ombudsman’s important role is to receive, consider and facilitate resolution of complaints or grievances which fall within the ambit of PFRDA (Redressal of Subscriber Grievance) Regulations, 2015 (hereinafter referred as ‘the regulations’).

At present there is only one Ombudsmen appointed by PFRDA. Shri Vinod Kumar Pande is appointed as Ombudsman by PFRDA. The details of the ombudsman are as follows.

Address:

Shri Vinod Kumar Pande
C/o Pension Fund Regulatory and Development Authority,
Plot No-14/A, Chhatrapati Shivaji Bhawan, Qutab Instititional Area,
New Delhi-110016
The details of Ombudsman appointed are also available on PFRDA website – www.pfrda.org.in.

An appeal can be filed with the Ombudsman under the regulations –

(a) by a complainant whose grievance has not been resolved within thirty days from the escalation of the grievance to National Pension System Trust

(b) by a complainant, where a complaint has been made directly against the National Pension System Trust and no other intermediary and the same remains unresolved within the specified period of thirty days(a) by a complainant whose grievance has not been resolved within thirty days from the escalation of the grievance to National Pension System Trust

The appeal shall be in writing, duly signed by the complainant or his authorised representative (not being a legal practitioner) in the form as specified the regulations and supported by documents, if any.

The Ombudsman may dismiss an appeal when such appeal is frivolous in his opinion or if the appeal is not adhering to the conditions specified in the regulations.

For more details, PFRDA (Redressal of Subscriber Grievance) Regulations, 2015 can be referred under the menu ‘Regulations’ on PFRDA’s website www.pfrda.org.in.

Exit / Withdrawal

An exit is defined as closure of individual pension account of the subscriber under National Pension System.

As per PFRDA (Exits & Withdrawals under NPS) Regulations 2015, following Withdrawal categories are allowed:

  • Upon Normal Superannuation – At least 40% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity providing for monthly pension to the Subscriber and the balance is paid as lump sum to the Subscriber.
    In case the total corpus in the account is less than or equal to Rs. 5 lakh as on the Date of Retirement, Subscriber can avail the option of complete Withdrawal.
  • Upon Death – At least 80% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity providing for monthly pension to the Spouse and the balance is paid as lump sum to the nominee/legal heir.
    In case the total corpus in the account is less than or equal to Rs. 5 lakh as on the Date of Death of the Subscriber (Government sector), nominee/legal heir can avail the option of complete Withdrawal.
    Further, if family member opts for family pension, as per the Regulations, all the accumulated pension wealth shall be transferred to the bank account of the Nodal Office for further settlement as per Government directives.
  • Pre-mature Exit – At least 80% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity providing the monthly pension to the Subscriber and the balance is paid as a lump sum to the Subscriber.

In case the total corpus in the account is less than or equal to Rs. 2.5 lakh as on the Date of Resignation, the Subscriber can avail the option of complete Withdrawal.

Subscriber can decide to remain invested in NPS (Up to 70 years) or can exit from NPS. Following options are available to NPS Subscribers:

  • Continuation of NPS account: Subscriber can continue to contribute to NPS account beyond Retirement (Up to 70 years) and avail additional tax benefit on the contribution.
  • Deferment of Withdrawal: Subscriber can defer his/her Withdrawal and stay invested in NPS upto 70 years of age. Subscriber can defer only lump sum Withdrawal, defer only Annuity or defer both lump sum as well as Annuity.
  • Start your Pension: If Subscriber does not wish to continue/defer NPS account, he/she can exit from NPS. He/she can initiate exit request online and as per NPS exit guidelines start receiving pension.

You can find the withdrawal form of respective sector from “Form” section available on this website. Based on the different types of Withdrawal request, following forms are made available:

  • Superannuation
  • Premature
  • Death

In the context of NPS, voluntary retirement is treated as pre-mature Exit.

  • In case of Superannuation, Exit Claim ID is generated 6 months before the Date of Retirement. It enables nodal office or Subscriber to make any changes (like DOB, address etc.) in the system until one day before Date of Retirement. Withdrawal request cannot be raised without generation of Claim ID.
  • Generation of Claim ID is not required to process death online Withdrawal request. Nodal office can directly raise the Withdrawal request for death cases., the Subscriber needs to contact the Nodal office for generation of Claim ID for Withdrawal of NPS funds. Generation of Claim ID is not required if Withdrawal request is initiated by Nodal Office.

Generation of Claim ID is not required to process death online Withdrawal request. Nodal office can directly raise the Withdrawal request for death cases.

Claim ID will be generated by the CRA six months before the Date of Retirement. Once the claim ID is generated, Subscriber/Nodal Office will be able to initiate the online Withdrawal request in CRA system.

Withdrawal request will be processed once the nodal office verifies (if initiated by Subscriber) and authorize the Withdrawal request and Subscriber attains his/her Date of Retirement.

Online Withdrawal request can be initiated by the Subscribers using I-PIN provided to them. Such requests need to be verified and authorized by the nodal office. In case Subscriber is not able to initiate online Withdrawal request, Subscriber need to submit the physical Withdrawal form along with the required documents to the nodal office based on which Nodal Office will initiate online Withdrawal request on behalf of the Subscriber.

  • For Superannuation Withdrawal: In case Subscriber is not able to initiate online Withdrawal request, Nodal Office can capture (on behalf of Subscriber) the online Withdrawal request six months in advance from the date of Retirement. Nodal Office can initiate the request by logging using I Pin provided into the CRA website (www.cra-nsdl.com) under the menu ‘Exit Withdrawal Request’. Nodal Office can refer Demo for capturing online Withdrawal request which is available on CRA website (www.npscra.nsdl.co.in).
  • For Pre-mature Exit & Death Withdrawal: Nodal Office can initiate the request by logging using I Pin provided into the CRA website (www.cra-nsdl.com) under the menu ‘Exit Withdrawal Request’. Nodal Office can refer Demo for capturing online Withdrawal request which is available on CRA website (www.npscra.nsdl.co.in).

Yes maker-checker concept is applicable in Withdrawal request.

Nodal Office has to capture the Withdrawal request using one user Id (maker) and authorize the same using other user Id (checker).

Further, if superannuated Subscriber has captured the Withdrawal request in CRA system, Nodal Office has to verify that Withdrawal request in CRA system using one user Id (maker) and authorize the Withdrawal request in CRA system using other user Id (checker).

Following documents are to be obtained along with the completely filled Withdrawal form for Superannuation & Pre-mature Exit:

  • Advanced stamped receipt needs to be duly filled and cross-signed on the Revenue stamp by the Subscriber.
  • KYC documents (address and photo-id proof)
  • Cancelled Cheque’ (having Subscriber’s Name, Bank Account Number and IFS Code) or ‘Bank Certificate’ on Bank Letterhead having Subscriber’s name, Bank Account Number and IFS Code required to be submitted as bank proof. ‘Copy of Bank Passbook’ can be accepted, however, it should have Subscriber’s photograph, Name and IFS Code on it and should be self-attested by the Subscriber.
  • “Request Cum Undertaking” form if eligible for complete Withdrawal.

After obtaining required documents, Nodal Office should capture the online Withdrawal request through maker and checker concept. Nodal Office should authorize Withdrawal form & supporting documents and attach covering letter and forward the same to CRA for storage purpose.

  • Advanced stamped receipt needs to be duly filled and cross-signed on the Revenue stamp by the Subscriber.
  • In case of Superannuation, a Subscriber can claim 100% Withdrawal if the total accumulated corpus is less than Rs. 5 Lakh at the time of Superannuation/attaining age of 60 years.
  • In case of Pre-mature Exit, if the total accumulated corpus is less than Rs. 2.5 Lakh, the Subscriber can avail the option of complete Withdrawal.

No, Non-IRA Subscriber has to submit CSRF form to become IRA compliant. Once the Subscriber is IRA compliant he/she can initiate the online Withdrawal request in CRA.

However, in case of exit due to death, Subscriber need not be IRA Compliant. Nodal Office can capture the online request even though Subscriber is non IRA Compliant.

Nodal Office has to submit following documents where disability/family pension is being paid:

Annexure 1: Declaration by Nodal Office (disability/family pension is being paid) mentioning bank account details of Nodal Office.

Annexure 2: Declaration from nominee/legal heir mentioning that nominee/legal heir will not get NPS benefits.

The employer shall send a confirmation of such nominations in its records, to the National Pension System Trust or the NSDL-CRA, while forwarding the claim for processing.

No, Withdrawal proceeds are credited electronically to the bank account of the Subscriber/Claimant, as the case maybe. It is necessary for the Subscriber /Claimant to have a bank account.

No, w.e.f. April 1, 2016, PFRDA has made it mandatory for all the nodal office to raise the Withdrawal request online using the ‘Online Withdrawal’ module available in CRA system. Physical Withdrawal request submitted by the Nodal Office will not be processed by CRA.

The Withdrawal form needs to be submitted at the following address for further processing:

NPS Claim Processing Cell
Central Recordkeeping Agency,
NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower, Kamala Mills Compound,
SenapatiBapatMarg, Lower Parel,
Mumbai-400013.

The Withdrawal proceeds are credited in Subscriber/Claimant bank account (as per the bank details provided at the time of initiating online Withdrawal request) through electronic mode only.

Nodal Office/Subscriber can check Withdrawal status as per below mentioned option:

  • Nodal Office/Subscriber can check through the ‘Limited Access View’ (Pre Login) functionality which is available at CRA website home page (www.cra-nsdl.com).
  • Nodal office/Subscriber can also check the status under the menu ‘Exit Withdrawal Request’>>’Withdrawal Request Status View’ by logging into website (www.cra-nsdl.com).

No, NPS Subscriber can’t avail loan against his/her NPS account.

Yes, Partial Withdrawal facility is available for NPS Subscribers whereby Subscriber can opt for Withdrawal of certain amount out of his own contribution.

Following are the conditions of Conditional Withdrawal:

  • Subscriber should be in NPS system for 3 years
  • Withdrawal amount will not exceed 25% of the contributions made by the Subscriber
  • Withdrawal is allowed only against the specified reasons-
    – Higher education of children
    – Marriage of children
    – For the purchase/construction of residential house or flat in his or her own name or in a joint name with his or her legally wedded spouse. In case, the Subscriber already owns either individually or in the joint name a residential house or flat, other than ancestral property, no Withdrawal under these regulations shall be permitted.
    – For treatment of specified illnesses – suffered by Subscriber, his legally wedded spouse, children including a legally adopted child and dependent parents.
  • Withdrawal can happen maximum of three times during the entire tenure of subscription.

If Subscriber has initiated the Withdrawal request in CRA system, Nodal Office is required to ‘Verify’ and ‘Authorize’ the Withdrawal request in CRA system.

  • The PAO/DTO will verify Withdrawal request in CRA system using one user Id by clicking sub-menu ‘Verify Conditional Withdrawal Request’ under ‘Transaction’ menu.
  • PAO/DTO is required to authorize the request in CRA system using another User Id. User is required to click sub-menu ‘Authorise Conditional Withdrawal Request’ under ‘Authorise Request’ Menu to authorize the Partial Withdrawal Request.

Alternatively, Nodal Office can also initiate the Partial Withdrawal request on behalf of Subscriber as mentioned below:

  • The PAO/DTO will capture Withdrawal request in CRA system using one user Id by clicking sub-menu ‘Initiate Conditional Withdrawal’ under ‘Transaction’ menu.
  • PAO/DTO is required to authorize the request in CRA system using another User Id. User is required to click sub-menu ‘Authorise Conditional Withdrawal Request’ under ‘Authorise Request’ Menu to authorize the Partial Withdrawal Request.

In order to withdraw from Tier II account, the Subscriber needs to submit a duly filled form (______) to the associated Nodal Office. Subscriber can also put an online withdrawal request after logging into the CRA system or through Mobile App.

Exit / Withdrawal

In case of Death of NPS Subscriber (before attaining the age of superannuation), at least 80% of the accumulated pension wealth of the Subscriber needs to be utilized for purchase of an Annuity providing for monthly pension to the Family Members i.e. to Spouse of Subscriber, if any and then to dependent mother & then to dependent father of Subscriber. The balance pension wealth is paid as lump sum to the nominees or legal heirs, as the case may be, of such Subscriber. Further,

  • In case, the total corpus in the NPS account is less than or equal to Rs. 5 lakh as on the Date of Death of the Subscriber, the nominees or legal heirs as the case may be, shall have the option of complete (100%) Withdrawal.
  • If none of the family members of deceased Subscriber (Spouse, if any, Mother and Father) are alive, then NPS Corpus meant for issue of annuity shall be returned to the surviving children of the Subscriber and in absence of children, the legal heirs of the subscriber as applicable.

Further, if family pension is being paid/payable to family members from Government, then as per the Regulations, entire pension wealth (100% corpus) shall be transferred to the Nodal Office for further settlement as per Government directives.

From at least 80% NPS corpus, the annuity (Pension) shall be paid to the Spouse of the Subscriber (if any) for the lifetime. In case, spouse is not there/not alive, annuity shall be paid to living dependent mother and then to living dependent father of the deceased Subscriber. After the coverage of all such family members, the purchase price of the annuity shall be returned to the surviving children of the Subscriber and in absence of children, the legal heirs of the subscriber as applicable.

At least 80% NPS corpus needs to be mandatorily utilized for annuity if corpus is more than Rs. 5 lakh. The nominee/Claimant is required to select Annuity Service Provider (ASP) and annuity Scheme in Death Withdrawal Form.

The Nominee/Claimant is required to submit duly filled-up Death Withdrawal Form alongwith supporting documents such as [Death Certificate, KYC Documents (ID Proof & Address Proof), Bank Account Proof and other required documents]. The list of documents required is given in Death Withdrawal Form. The Death Withdrawal Form is available under “Forms” section, which is available under respective sector on this website.

Withdrawal Form needs to be submitted by each of the Nominee/Claimant.

The Nominee/Claimant is required to submit the Death Withdrawal Form alongwith relevant supporting documents to the associated Nodal Office of the Subscriber i.e. to the Drawing & Disbursing Office (DDO) / Pay & Accounts Office (PAO) / District Treasury Office (DTO).

The Nodal Office will process death withdrawal request online in the CRA system. On processing of withdrawal request by Nodal Office, the funds will be transferred to Nominee/Claimant within stipulated timelines. Also, if annuity is applicable, then Claimant’s details are shared with Annuity Service Provider (ASP) for completion of annuity formalities.

On receipt of physical documents from all the Nominees/Claimants, the associated Nodal Office will verify the documents. On successful verification of documents, the Nodal Office will process death withdrawal request online in the CRA system (www.cra-nsdl.com) with Maker-Checker.

The Maker User of Nodal Office will initiate death withdrawal request and Checker User of Nodal Office will authorize the request in the CRA system. Scanned copies of Withdrawal Forms & supporting documents also need to be uploaded in CRA system by the Nodal Office. The Standard Operating Procedure (SOP) on processing of death withdrawal request is available under “Nodal Office Corner” section, which is available under respective sector on this website.

On successful processing of withdrawal request by Nodal Office, the funds will be transferred to Nominee/Claimant within stipulated timelines. Also, if annuity is applicable, then Claimant’s details are shared with Annuity Service Provider (ASP) for completion of annuity formalities.

The Withdrawal proceeds are credited in Nominee/Claimant Bank Account (as per the bank details provided at the time of initiating online Withdrawal request) through electronic mode only.

Default Annuity Scheme i.e. NPS Family Income Scheme is mandatory in case of exit due to death. This scheme shall provide for Annuity (pension) for life to the Spouse of the Subscriber (if any) for the lifetime. In case, spouse is not there/not alive, annuity shall be paid to,

  • Living dependent mother of the deceased Subscriber;
  • Living dependent father of the deceased Subscriber.

After the coverage of all the family members specified above, the price of the annuity shall be returned to the surviving children of the Subscriber and in absence of children, the legal heirs of the subscriber as applicable.

The amount of annuity (pension) depends on the NPS Corpus of the Subscriber and on the other factors such as the Annuity Service Provider (ASP) selected, age of Claimant etc. The list of ASPs, Annuity rates and other details can be checked at: https://www.npscra.nsdl.co.in/Annuity-service-providers.php on this website

In case of death of NPS Subscriber, it is mandatory for the family members (Spouse/Mother/Father of deceased Subscriber) to select Default Annuity Scheme i.e. NPS Family Income Scheme, if NPS Corpus of the Subscriber is more than Rs. 5 lakh as on Date of Death of the Subscriber.

Such Withdrawal request will be processed as per below mentioned scenario:

  • Withdrawal form needs to be submitted by all the Nominees registered in CRA system.
  • If some Nominee/s doesn’t not want to claim the NPS corpus:
    -Relinquishment deed is to be submitted by the Nominee/s who doesn’t want to claim the NPS benefits.
    -Indemnity Bond is to be submitted by the Nominee who is claiming the NPS benefits.
    -Format of Relinquishment deed and Indemnity Bond is available under “Forms” section, which is available under respective sector on this website.
  • In case one Nominee is a major and other is a minor,
    – Major Nominee will submit his/her Withdrawal form
    – Guardian (on behalf of minor) will submit the Withdrawal form along with the birth proof of the minor.

If none of the family members (Spouse, Mother and Father of deceased Subscriber) are alive, then NPS Corpus meant for issue of annuity shall be returned to the surviving children of the Subscriber and in absence of children, the legal heirs of the subscriber as applicable.

The children of Subscriber / legal heirs are required to submit duly filled-up Death Withdrawal Form alongwith supporting documents to the associated Nodal Office of the Subscriber. The list of documents required is given in Death Withdrawal Form which is available under “Forms” section, under respective sector on this website.

In case, the nomination is not registered by the deceased subscriber before his/her death, the accumulated pension wealth shall be paid to the family members on the basis of the legal heir certificate issued by the Revenue authorities of the State concerned or the succession certificate issued by a court of competent jurisdiction.

As per Pension Fund Regulatory and Development Authority (PFRDA) (Exits and Withdrawals Under the National Pension System) Regulations 2015 and amendments thereto, where no valid nomination exists in accordance with these regulations, at the time of exit of such Subscriber on account of death, the nomination, if any existing in the records of such Subscriber with his or her employer for the purpose of receiving other admissible terminal benefits shall be treated as nomination exercised for the purposes of receiving benefits under the NPS.

In the context of NPS, Annuity refers to the monthly sum received by the Claimant (Family Member – Spouse/Mother/Father of Subscriber) from the Annuity Service Provider (ASP). A percentage of the pension wealth as decided by the Claimant (minimum 80% is to be invested with ASP in case exit due to death) is utilized for purchase of Annuity from the empaneled Annuity Service Providers.

Indian Life Insurance companies which are licensed by Insurance Regulatory and Development Authority (IRDA) can act as Annuity Service Providers. However, Annuity Service Providers need to be empaneled by PFRDA to provide Annuity services to the NPS Subscribers. The list of Annuity Service Providers empaneled by PFRDA to provide annuity under NPS can be accessed at: https://www.npscra.nsdl.co.in/Annuity-service-providers.php on this website.

The amount of annuity depends on the NPS Corpus of the Subscriber and on the other factors such as the Annuity Service Provider (ASP) selected, age of Claimant etc. The Annuity rates and other details can be checked at:https://www.npscra.nsdl.co.in/Annuity-service-providers.php on this website.

The annuity (pension) will be issued by the Annuity Service Provider (ASP).

On execution of withdrawal request in CRA, the annuitant’s details (Claimant details) and scanned documents will be shared with ASP as opted by Claimant. If the annuitant’s details and scanned documents are correct, annuity policy will be issued by ASP.

If documents uploaded are not sufficient/incorrect or any additional documents required, then ASP may contact Claimant for completion of annuity formalities. Alternatively, if required, Claimant may contact ASP. The complete contact details of ASPs are available on this Website under Annuity Service Provider Section at: https://www.npscra.nsdl.co.in/Annuity-service-providers.php

On completion of annuity formalities, ASP will confirm Annuity request online in the CRA system and Funds (Annuity Corpus) will be transferred to ASP for issuance of annuity to Claimant within stipulated timelines. ASP will issue annuity policy to family members within T+2 working days of receiving the funds at their end.

Partial (Conditional) Withdrawal Request – Government Sector

No, NPS Subscriber can’t avail loan against his/her NPS account. Though Subscriber may opt for Partial Withdrawal subject to certain conditions.

Yes, Partial Withdrawal facility is available for NPS Subscribers whereby Subscriber can opt for Withdrawal of certain amount out of his own contributions subject to certain conditions.

Following are the conditions for availing Partial Withdrawal:

1. Subscriber should be in NPS for 3 years after joining.
2. Withdrawal amount will not exceed 25% of the contributions made by the Subscriber.
3. Withdrawal is allowed only against the specified reasons such as,

A. Higher education of children
B. Marriage of children
C. For the purchase/construction of residential house.
D. For treatment of specified illnesses for Subscriber, Spouse, children.
E. To meet medical and incidental expenses arising out of the disability or incapacitation suffered by the Subscriber
F. For Skill development/re-skilling or any other self-development activities

4. Withdrawal can be done maximum of three times during the entire tenure of NPS subscription.
5. For Establishment of own venture or any start-up (Only for ’All Citizens’ Sector Subscribers).

For more detailed description of Partial Withdrawal option under NPS, please refer Regulation 8 of PFRDA (Exits & Withdrawals under NPS) Regulations 2015 and amendments thereto.

  • Subscriber should have fulfilled the conditions for Partial Withdrawal as per PFRDA guidelines as mentioned above.
  • Bank Account details of the Subscriber are updated in his/her NPS account. Bank of the Subscriber should be empaneled for Online Bank Account Verification.
  • Subscriber is required to submit the request using OTP Authentication / eSign. Hence, valid Mobile Number and email ID of the Subscriber should be registered in CRA to receive OTP as part of OTP Authentication. Else, the Mobile Number registered with Aadhaar should be valid to receive OTP as part of eSign.

As per PFRDA guidelines, the Subscribers will have an option to avail Partial Withdrawal based on self-declaration and no supporting documents (w.r.t. stated withdrawal reason) are required to be submitted by the Subscriber for availing Partial Withdrawal. The Subscriber will follow below steps:

  • Subscriber will initiate online Partial Withdrawal request in CRA system (www.cra-nsdl.com) by logging with PRAN as User ID & Password.
  • Subscriber will select the “Withdrawal” option under “Transact Online” Menu and Sub menu “Partial Withdraw from Tier 1”.
  • The eligible amount for Partial Withdrawal will be displayed to the Subscriber.
  • Subscriber will provide the required percentage and reason for partial withdrawal.
  • During request initiation, the name and Bank Account of the Subscriber (registered in CRA) will be verified through online Bank Account Verification (Penny drop facility). The Bank of the Subscriber should be empaneled for Online Bank Account Verification. Only if name and Bank Account verification
    is successful, then the Subscriber will be allowed to initiate Partial Withdrawal request.
  • Subscriber will accept the self-declaration for reason of Partial Withdrawal.
  • Subscriber is required to submit the request using OTP Authentication / eSign. In case of OTP Authentication, two distinct One Time Password (OTP) will be sent on Mobile Number and email ID registered in CRA. Whereas in case of eSign, the OTP will be sent on Mobile Number registered with Aadhaar.
  • On successful submission, request will get executed in CRA. No supporting documents are required to be submitted to the associated Nodal Office / NSDL-CRA. Also, request is not required to be verified & authorized by the Nodal Office.
  • Partial Withdrawal amount will be transferred to Subscriber’s Bank Account on T + 4th Working day, T being date of submission of online request in CRA system through successful OTP Authentication/eSign.

For more information, please refer the Standard Operating Procedure (SOP) on Partial Withdrawal, which is available under respective sector on CRA website (www.npscra.nsdl.co.in).

In case of failure in online Bank Account Verification (Penny drop),

  • Due to Bank Account related rejection – Subscriber is required to update the correct (new) Bank Account details in his/her NPS account. Once the Bank details are updated in CRA, then Subscriber can initiate new request in CRA.
    For updation of Bank details in CRA records, the Subscriber has an option to update the same online in CRA system (www.cra nsdl.com) or submit Form S2 – Subscriber details change Form to associated Nodal Office. The Form S2 is available under “Forms” section, which is available under respective sector on CRA website (www.npscra.nsdl.co.in).
  • Due to name mismatch – If failure in online Bank Account Verification (Penny drop) is due to name mismatch and if Subscriber’s name registered in CRA is correct, then the Subscriber is required to submit the physical Partial Withdrawal Form to Nodal Office alongwith Bank Proof. Partial Withdrawal Form is available under “Forms” section, which is available under respective sector on CRA website (www.npscra.nsdl.co.in). On receipt of physical Partial Withdrawal Form, Nodal Office will initiate & authorize Partial Withdrawal Request in CRA.
    Alternatively, if Subscriber’s name and/or Bank Account details registered in CRA are not correct, then Subscriber is required to update new Bank Account details and/or update his/her name in NPS account. The name as per Bank Account and name registered in CRA should match. Once Subscriber’s Name/Bank details are updated in CRA, then Subscriber can initiate new request in CRA.

  • If OTP Authentication / eSign is not possible or the Subscriber is not able to initiate online Partial Withdrawal request in CRA system for any reason, then the Subscriber is required to submit physical Partial Withdrawal Form (with self-declaration) to the associated Nodal Office.
  • Subscriber will accept self-declaration for reason of withdrawal in Form and submit copy of Bank Proof for Bank Account registered in CRA.
  • The Nodal Office will initiate and authorize the Partial Withdrawal request in the CRA system with Maker-Checker User ID. No supporting documents (w.r.t. stated withdrawal reason) are required to be submitted by the Subscriber.
  • Partial Withdrawal Form (with self-declaration) is available under “Forms” section, which is available under respective sector on CRA website (www.npscra.nsdl.co.in).

Partial Withdrawal amount will be transferred to Subscriber’s Bank Account T + 4th Working day, T being date of submission of online request in CRA system by the Subscriber through successful OTP Authentication/eSign.

Yes, Partial Withdrawal is permitted for treatment of specified illnesses which includes Covid as well.

No supporting documents (w.r.t. stated withdrawal reason) are required to be submitted by the Subscriber for availing Partial Withdrawal. The Subscriber is required to accept the self-declaration for reason of Partial Withdrawal.

  • In case of physical request, the Subscriber is required to submit dully filled-up Physical Partial Withdrawal Form along with Bank Proof (Bank Proof of the details of Bank Account registered in CRA system) to Nodal Office. The Subscriber will accept self declaration for reason of withdrawal in Form.
  • No Supporting Documents (w.r.t. stated withdrawal reason) are required to be submitted to the associated Nodal Office by Subscriber.
  • On receipt of documents & on verification of the same, Nodal Office has to capture the Withdrawal request online in CRA system (www.cra-nsdl.com) using one User ID (maker) and authorize the same using other User ID (checker).
  • At the time of authorization of request, the name and Bank Account of the Subscriber (registered in CRA) will be verified through online Bank Account Verification (Penny drop facility). The Bank of the Subscriber should be empaneled for Online Bank Account Verification. Only if Bank Account verification is successful, then system will allow to authorize Partial Withdrawal request.
  • Partial Withdrawal amount will be transferred to Subscriber’s Bank Account T + 4th Working day, T being date of authorization of request in the CRA system by Nodal Office.

For more information, please refer the Standard Operating Procedure (SOP) on Partial Withdrawal, which is available under respective sector on CRA website (www.npscra.nsdl.co.in).

In case of failure in online Bank Account Verification (Penny drop),

  • Due to Subscriber name mismatch – In such case, authorization of request will be allowed in CRA. Nodal Office is required to verify the name of the Subscriber & Bank details with the Bank Proof submitted alongwith physical Partial Withdrawal Form. Accordingly, Nodal Office will accept the relevant declaration for the same at the time of authorization in the CRA system and will authorize Partial Withdrawal request.
  • Due to Bank Account related rejection – In such case, authorization of request will not be allowed. The Subscriber is required to update the correct (new) Bank Account details in his/her NPS account. Once the Bank details are updated in CRA, then Subscriber can initiate new request in CRA or submit physical request to Nodal Office.
    For updation of Bank details in CRA records, the Subscriber has an option to update the same online in CRA system (www.cra -nsdl.com) or submit Form S2 – Subscriber details change Form to associated Nodal Office. The Form S2 is available under “Forms” section, which is available under respective sector on CRA website (www.npscra.nsdl.co.in).

Annuity Related

In the context of NPS, Annuity refers to the monthly sum received by the Subscriber from the Annuity Service Provider (ASP). A percentage of the pension wealth as decided by the Subscribers (minimum 40% & 80% is to be invested with ASP in case Withdrawal is due to Superannuation & Pre-mature Exit and Death respectively) is utilized for purchase of Annuity from the empaneled Annuity Service Providers.

Indian Life Insurance companies which are licensed by Insurance Regulatory and Development Authority (IRDA) can act as Annuity Service Providers. However, Annuity Service Providers needs to be empanelled by PFRDA to provide Annuity services to the NPS Subscribers. The list of Annuity service providers empaneled by PFRDA can be accessed at: https://npscra.nsdl.co.in/annuity-service-provider.php.

Annuity (Pension) starts immediately, if Subscriber fulfills the Age and Corpus criteria for purchasing Annuity (depending upon choice of ASP and Annuity scheme of the respective Annuity Service Provider).

Following schemes are available with ASPs:

  • Annuity for life – On death of the annuitant, payment of Annuity ceases.
  • Annuity for life with return of purchase price on death – On death of the annuitant, payment of Annuity ceases and the purchase price is returned to the nominee.
  • Annuity payable for life with 100% Annuity payable to spouse on death of annuitant – On death of the annuitant, Annuity is paid to the spouse during his/her life time. If the spouse predeceases the annuitant, payment of Annuity will cease after the death of the annuitant.
  • Annuity payable for life with 100% Annuity payable to spouse on death of annuitant with return on purchase of Annuity – On death of the annuitant, Annuity is paid to the spouse during his/her life time and purchase price is returned to the nominee after the death of the spouse.
  • Default Annuity Scheme (Applicable in case of Government Sector Subscribers only): kindly refer question no. 5 for detail description.

Default Annuity Scheme shall provide for Annuity for life of the Subscriber and his or her spouse (if any) with provision for return of purchase price of the Annuity and upon the demise of such Subscriber, the Annuity be re-issued to the family members in the order specified hereunder at a premium rate prevalent at the time of purchase of such Annuity by utilizing the purchase price required to be returned under the Annuity contract (until all the family members in the order specified below are covered):

(a) Living dependent mother of the deceased Subscriber;
(b) Living dependent father of the deceased Subscriber.

After the coverage of all the family members specified above, the purchase price shall be returned to the surviving children of the Subscriber and in the absence of children, the legal heirs of the Subscriber, as may be applicable.

In case of Superannuation & Pre-mature Exit, Subscriber can purchase any one scheme which are available with respective Annuity Service Provider. However, In case of death, Spouse has to purchase Default Annuity Scheme.

Details of Annuity rates and other details may be checked on CRA website https://npscra.nsdl.co.in/annuity-service-provider.php

Once an Annuity is purchased, the option of cancellation or reinvestment with another Annuity Service Provider or in other Annuity scheme shall not be allowed unless the same is within the time limit specified (free look period as provided in terms of the Annuity contract or specifically provided by the IRDA) by the Annuity Service Provider.

The mode and manner of payment of amount (if any) will depend on the type of Annuity scheme selected by the Subscriber while buying the Annuity. Family members of the deceased Subscriber need to contact concerned Annuity Service Provider.

The contact details of the ASPs are available at https://npscra.nsdl.co.in/annuity-service-provider.php

Deferment/ Continuation under Withdrawal and Tax Benefits

Continuation/Deferment option shall be exercised at least fifteen days prior to the age of superannuation and same should be authorised by the Nodal Office in the CRA system. The Subscriber may exit at any point of time from National Pension System.

If Subscriber has initiated the Continuation/Deferment Withdrawal request in CRA system, Nodal Office is required to ‘Verify’ and ‘Authorize’ the request in CRA system.

1. The PAO/DTO will verify request in CRA system using one user Id by clicking sub-menu ‘Verify Deferment’ under ‘Exit Withdrawal Request’ menu.

2. PAO/DTO is required to authorize the request in CRA system using another user Id. User is required to click menu ‘Exit Withdrawal Request’ and sub-menu ‘Authorise Deferment’ to authorize the Continuation/Deferment Request.

Alternatively, Nodal Office can also initiate the Continuation/Deferment Withdrawal request on behalf of Subscriber as mentioned below:

  • Log-in to CRA system (www.cra-nsdl.com) using one user Id
  • Select option Exit Withdrawal request ->Initiate Deferment
  • Select transaction type-> new request and click on submit and enter PRAN on the next screen
  • Select appropriate option – Continuation or Deferment
  • Select POP SP name (for Govt. Subscribers) – If POP-SP is not selected, Govt. Subscribers will be tagged to e-NPS by default.
  • Submit the request.
  • Nodal Office is required to authorize the request in CRA system through another user Id. User is required to click menu ‘Exit Withdrawal Request’ and sub-menu ‘Authorise Deferment’ to authorize the Continuation/Deferment Request.

Facility of phase Withdrawal is available for NPS Subscribers. Subscriber can opt for Withdrawal of lump-sum amount in a phased manner (upto 10 installments) over the period from 60 years (or any other retirement age as prescribed by the employer) to 70 years. However, Subscriber has to buy Annuity prior to Phased Withdrawal.

No, lump-sum deferment option is not available to Subscribers who are exiting NPS due to Pre mature Exit.

No, Subscriber can’t exercise the option of deferment (lump-sum and Annuity) after obtaining the continuation option.

Yes, Subscriber can continue his/her Tier-2 account till the time his/her Tier-1 account active.

No, upon exit from Tier-1 account, Tier-2 account gets closed automatically.

For queries related to tax benefits under NPS, please refer questions on “Tax Benefit under NPS” of this FAQs section.

No. Tax benefits are not available in case of Tier -2 Withdrawal

Scheme Preference & Investment Option in Tier I Account

As per Ministry of Finance Gazette Notification dated January 31, 2019, the Central Government Subscribers, from April 1, 2019, will have the option of selecting the Pension Funds (PFs) and Investment Pattern in Tier I account. A Subscriber can choose any one of the available PFs and Investment Option as per their choice. If the choice is not exercised by the Subscriber, NPS contributions will be invested in the existing schemes – LIC, SBI and UTI will act jointly as default PFs as per the guidelines issued by the Government of India/ PFRDA. For more details on ‘Investment Option’, please refer ‘Information on Scheme Preference’ available on CRA website (www.npscra.nsdl.co.in).

Yes, a Subscriber is allowed to select the Pension Fund and Investment Pattern as per his/her choice at the time of registration under NPS. The Subscriber is required to provide the relevant details in the Subscriber Registration Form (CSRF).

The Subscriber can select any one of the following investment schemes:

  • Scheme G: 100% of contribution will be invested in Government Bonds and related instruments.
  • Scheme LC 25 : It is the Life cycle fund where the Cap to Equity investments is 25% of the total asset.
  • Scheme LC 50 : It is the Life cycle fund where the Cap to Equity investments is 50% of the total asset.

If the choice is not exercised by the Subscriber, NPS contributions will be invested in the existing schemes – LIC, SBI and UTI as per the guidelines issued by the Government of India/ PFRDA. For more details on ‘Investment Option’, please refer ‘Information on Scheme Preference’ available on CRA Website (www.npscra.nsdl.co.in).

There are two options available to the Subscriber – Online as well as offline.

Online: The Subscriber can change Scheme Preference online through his/her NPS account log-in. Subscriber can follow the simple steps as given below::

  • a. Go to his/ her NPS account and log-in.Superannuation
  • b. Click on sub menu “Scheme Preference Change” under main menu “Transaction”.
  • c. Select Tier type and change the Scheme Preference as you intended to do.

Alternatively, the Subscriber can also submit physical request (Form GOS-S3) to his/her associated Nodal Office. The form GOS-S3 can be freely downloaded from CRA Website. On receipt of physical request, the Nodal Office will update the Scheme Preference in the CRA system.

Yes, you have the option to change your Pension Fund Manager. At present, the Subscriber can change the Pension Fund Manager once in a Financial Year.

The legacy contributions i.e. contributions accumulated in NPS account till March 31, 2019 will remain invested in the existing schemes – LIC, SBI and UTI will act jointly as default PFs as per the guidelines issued by the Government of India (GOI)/ PFRDA. Redemption and transfer of accumulated contributions will be carried out once guidelines and modalities are provided by GOI/ PFRDA.

Yes. Transaction Statement will undergo a change for the PRANs having legacy contributions i.e. contributions accumulated in NPS account till March 31, 2019. For the Subscribers who have opted new schemes, the Investment details of the legacy schemes and of the new scheme will be shown in two separate tables in the Transaction Statement.

The Subscriber will have the option of selecting the Pension Funds (PFs) and Investment Pattern in Tier I account at the time of shifting to Central Government. The Subscriber is required to provide the relevant details in Inter Sector Shifting (ISS) Form.

At present, Non-IRA Subscribers do not have the option of ‘Scheme Preference’ change. A Non-IRA Subscriber should first submit the physical registration form to become an IRA compliant Subscriber. Once he/ she becomes IRA, the Subscriber can change the Scheme Preference.

At present, the Subscribers under CABs do not have the option of selection of Pension Fund and Investment Pattern under NPS. In case of CABs, NPS contributions will be invested in the existing schemes – LIC, SBI and UTI as per the guidelines issued by the Government of India/ PFRDA.

FAQs applicable for Central Government Sector (CG) and Central Autonomous Bodies (CABs)

An exit is defined as closure of individual pension account of the subscriber under National Pension System.

A subscriber can exit from NPS at any point but complete withdrawal is subject to certain conditions.

Yes, under NPS both are same. Pre-mature exit is defined under NPS as exit before the superannuation/retirement age. Under NPS, Voluntary retirement is treated as pre-mature exit.

However, eligibility & terms of Voluntary retirement are defined/ governed by service rules and regulations of the respective organization.

a). Pre-mature exit or Voluntary retirement-

Minimum Annuitisation- 80% of accumulated wealth.
Maximum Lump sum Withdrawal- 20% of accumulated wealth.

If the accumulated pension wealth of the subscriber is equal to or less than one lakh rupees or a limit to be specified by the Authority, such subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing any annuity.

b). In Case of disability/incapacitation of subscriber

Minimum Annuitisation- 40% of accumulated wealth.
Maximum Lump sum Withdrawal- 60% of accumulated wealth.

Authority has also notified regulations under PFRDA(exit and withdrawal under NPS) (third amendment) 2018, for facilitating normal exit from NPS to the subscribers with disability and incapacitation during the accumulation phase if employer certifies that the subscriber has been discharged from the services of the concerned office on account of invalidation or disability.

Retirement / Superannuation –

Minimum Annuitisation- 40% of accumulated wealth.

Maximum Lump sum Withdrawal- 60% of accumulated wealth.

The Subscriber may choose to purchase an annuity for an amount greater than 40 percent also.

If the accumulated pension wealth of the subscriber is equal to or less than two lakh rupees, or a limit to be specified by the Authority, such subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing any annuity.

1. As per Office Memorandum No. 38/41/06/P&PW (A) dated. 05.05.2009, the central government subscribers covered under NPS are eligible for family pension in case of death / disability during the service.

2. If the family member opts for family pension, as per regulations all the accumulated wealth shall be transferred to the bank account of the nodal office for further settlement as per government directives.

3. However – our exit regulations say (not applicable as mentioned above)

i. In case of Death:

Minimum Annuitisation- 80% of accumulated wealth.
Maximum Lump sum Withdrawal- 20% of accumulated wealth.

4. If the accumulated pension wealth of the subscriber is equal to or less than two lakh rupees, or a limit to be specified by the Authority, such nominees/legal heirs shall have the option to withdraw the entire accumulated pension wealth without purchasing any annuity.

Where no valid nomination exists in accordance with these regulations, at the time of exit of such subscriber on account of death, the nomination, if any existing in the records of such subscriber with his or her employer for the purpose of receiving other admissible terminal! benefits shall be treated as nomination exercised for the1 purposes of receiving benefits under the National Pension System. The employer shall send a confirmation of such nomination in its records, to the National Pension System Trust or the central recordkeeping agency, while forwarding the claim for processing.

No.

Yes.

The lump sum can be deferred till the age of 70 years and which can be withdrawn at any time between superannuation and 70 years of age or every year till age of 70 years. The subscriber has to give in writing (intimation to the employer) in the specified form at least fifteen days before the attainment of age of superannuation and same should be authorized by the associated Nodal office in the CRA system . If deferment is availed by the subscriber, subscriber has to bear the maintenance charges like CRA, PFM etc.

Annuity purchase can also be deferred for maximum period of 3 years. The subscriber has to give in writing (intimation to the employer) at least fifteen days before the attainment of age of superannuation and same should be authorized by the associated Nodal office in the CRA system.

If the death of the subscriber occurs before such due date of purchase of an annuity after the deferment, the annuity shall mandatorily be purchased by the spouse.

Yes.

Yes. The Subscriber shall have the option to do so by giving in writing and up to which age he would like to contribute to his individual pension account but no1 exceeding seventy years of age.

In such scenario, subscriber has to shift his/her PRAN to any POP or e-NPS. Nodal office shall not assist in uploading of contribution after the date of superannuation. Subscriber has to operate account in his/her individual capacity only.

Such option shall be exercised at least fifteen days prior to the age of attaining sixty years or age or superannuation, as the case may be, and same should be authorized by the associated Nodal office in the CRA system.

Such subscriber who has not exercised the option within the period of fifteen days, so stipulated, but desires to continue with his individual pension account under National Pension System, beyond the age of sixty years or the age of superannuation, as the case may be, and to the extent so permitted, may do so by making an application in writing with reasons for such delay to the National Pension System Trust, within one hundred and eighty days of attaining such age or superannuation. Where an application is received by the National Pension System Trust, from any subscriber, beyond the period of one hundred and eighty days, together with justification and sufficient cause, so shown by the subscriber, the National Pension System Trust, shall cause to forward such application along with its recommendation thereon, for consideration and approval of the Authority.

Subscriber has to bear the maintenance charges like PoP, CRA, PFM etc.

No, Upon exercise of the option of continuation after the superannuation, the other options of deferment of benefits (lump sum and annuity) shall not be available to such a subscriber.

Even after exercise of such option, the subscriber may exit at any point of time from National Pension System, by submitting a withdrawal request as prescribed.

Subscriber has to bear all the applicable charges including maintenance charges like PoP , CRA, PFM etc., if he avails such facility.

No.

Upon exit from Tier 1 account, the Tier 2 account gets closed automatically.

Yes.

A subscriber can contribute to his Tier 2 account till the time he has an active Tier 1 account.

An annuity is a product that pays out regular income. It is a contract for deferred payment. The main objective o1 an annuity is to give regular income to the subscriber even after retirement/working age.

Annuity starts immediately after the minimum age required for purchasing any annuity (depending upon choice of ASP and Annuity scheme. For e.g. 30, 35 or 38) from any of the empanelled annuity service providers. Subscriber need not wait till the age of 60 years.

The following are the most common variants that are available:

a. Default scheme : Annuity for life of the subscriber and his or her spouse (if any) with provision for return of purchase price of the annuity– After the demise of such subscriber, the annuity will be re issued to the family members in the order specified hereunder :

b. living dependent mother ;
C. living dependent father.

After the coverage of all the family members specified above, the purchase price shall be returned to the surviving children of the subscriber and in the absence of children, the legal heirs of the subscriber, as may be applicable.

If subscriber does not want to purchase default annuity scheme , he may choose any of the following schemes:

b. Annuity for life with return of purchase price (amount given to annuity service provider) on death– Employee shall get annuity (monthly pension) till he/she is alive and payment of annuity ceases on the death and the purchase price is returned to the nominee.

C. Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter

• On death during the guarantee period – Employee shall get annuity and after his/her death during the guaranteed period, annuity is paid to the nominee till the end of the guaranteed period after which the same ceases and no return of purchase price to the nominee.

• On death after the guarantee period – Employee shall get payment of annuity till he/she is alive even after the guaranteed period and annuity ceases after his/her death and no return of purchase price to nominee.

d. Annuity for life – Employee shall get payment of annuity till he/she is alive & payment of annuity ceases on death and no return of purchase price to nominee.

e. Annuity for life increasing at simple rate of 3% p.a. Employee shall get payment of annuity till he/she is alive & payment of annuity ceases on death and no return of purchase price to nominee.

f. Annuity for life with a provision for 50% of the annuity to the spouse of the annuitant for life on death of the annuitant- Payment of annuity ceases on death of subscriber and 50% of the annuity is paid to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, payment of annuity will cease after the death of the annuitant. It can be with or without return of purchase price.

g. Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.- Payment of annuity ceases after death of the annuitant and full annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases after death of the annuitant. It can be with or without return of purchase price.

Subscriber can also add spouse in any of the variants (other than default) above.

All ASPs may not provide all the variants .It may vary from ASP to ASP.

Pricing of annuity also varies ASP to ASP.

The subscriber can choose any other annuity, other than default annuity, available with the empanelled Annuity Service Providers (ASPs).

Details of annuity rates and other details may be checked on CRA website (link given below). https://www.npscra.nsdl.co.in/annuity-service-providers.php

Once an annuity is purchased, the option of cancellation or reinvestment with another Annuity Service Provider or in other annuity scheme shall not be allowed unless the same is within the time limit specified by the Annuity Service Provider, for the free look period as provided in the terms of the annuity contract or specifically provided by the Insurance Regulatory and Development Authority.

Annuity Service Providers (ASPs) are empaneled by PFRDA to annuity to subscribers through their various schemes. Subscribers will have the option to invest their amount into one annuity scheme upon retirement/resignation. ASPs would be responsible for delivering a regular monthly pension (annuity) to the subscriber for the rest of his/her life.

Yes, but there are some scenario where the subscriber/nominees/legal heirs can withdraw the whole accumulated wealth.

1. Life Insurance Corporation of India

2. SBI Life Insurance Ltd

3. ICICI Prudential Life Insurance Ltd.

4. HDFC Standard Life Insurance Co Ltd

5. Star Union Dai-ichi Life Insurance Ltd

*Subject to change from time to time.

Only in annuity types where there is a provision of return of purchase price.

CRA network sends a communication 6 months before the superannuation/retirement date generating a Claim ID to the subscriber and nodal office. It is advisable that     the subscriber should submit all the documents to the nodal office atleast 1 month before    superannuation/retirement date.  

Yes, it is termed as Partial Withdrawal.

Up to 25% of the contribution made by the subscriber (without considering the appreciation/returns on the amount) as on date of application of withdrawal.

No. A subscriber is allowed to withdraw only three times during the entire tenure of service.

Conditions:

  1. The subscriber shall have been in the National Pension System at least for a period of three years from the date of his or her Joining;
  2. Withdrawal is allowed for some specific purposes only.

a. For the higher education of children

b. For the marriage of children

c. For the purchase/construction of residential house or flat in his or her own name or in a joint name with his or her legally wedded spouse. In case, the subscriber already owns either individually or in the joint name a residential house or flat, other than ancestral property, no withdrawal under these regulations shall be permitted.

d. Treatment for prescribed illnesses – suffered by subscriber, his legally wedded spouse, children including a legally adopted child and dependent parents.

Prescribed illnesses includes:

  • Cancer;
  • Kidney Failure (End Stage Renal Failure);
  • Primary Pulmonary Arterial Hypertension;
  • Multiple Sclerosis;
  • Major Organ Transplant;
  • Coronary Artery Bypass Graft;
  • Aorta Graft Surgery;
  • Heart Valve Surgery;
  • Stroke;
  • Myocardial Infarction
  • Coma;
  • Total blindness;
  • Paralysis;
  • Accident of serious/ life threatening
  • Any other critical illness of a life threatening nature as stipulated in the circulars, guidelines or notifications issued by the Authority from time to

e. To meet medical and incidental expenses arising out of the disability or incapacitation suffered by the

f. Towards meeting the expenses by subscriber for skill development/ re-skilling or for any other self-development activities, as may be permitted by the Authority by issuance of appropriate guidelines, in that behalf

g. Towards meeting the expenses by subscriber for establishment of own venture or any start-ups, as may be permitted by the Authority by issuance of appropriate guidelines, in that

Yes.

Yes as per latest OM No. 7/5/2012-P&PW (F)/B dt. 26.08.2016 issued by Department of Pension and Pensioners Welfare, the Central Government employees covered under NPS are eligible for ‘Retirement Gratuity and Death Gratuity’.  

I. On Contributions:

Employee’s   own    Contribution- Eligible for tax deduction under sec 80 CCD (1) of Income Tax Act up to 10% of salary (Basic + DA) within the overall ceiling of Rs. 1.50 Lacs under Sec. 80 C of the Income Tax Act. From F.Y. 2015-16, subscriber will be allowed tax deduction in addition to the deduction allowed under Sec.80CCD(1) for    contribution in his NPS account subject to maximum of Rs. 50,000/- under sec. 80ccD 1(B).

Employer’s contribution: Up to 10% of Basic & DA (no upper monetary    ceiling) under 80CCD(2). This rebate is over and above 80 C. (This tax benefit is only available for NPS subscribers).

II. Partial Withdrawal- Tax

III. Lump sum Withdrawal- In case of superannuation, lump sum withdrawal ( 40 % of the accumulated corpus) is tax

IV. Annuity- Amount utilized for purchase of annuity is not taxable in the hands of the subscriber.

No tax benefit is available for Tier 2 account.

Yes.

Employer can withhold its co-contribution along with income accrued on it under Tier-I account of the subscriber and the investment income accruing thereon, for the purpose of recovery of the whole or part of any pecuniary loss caused, provided such loss is established in any departmental or judicial proceedings, initiated against such subscriber by the employer concerned

2. Right of withholding shall have to be exercised prior to the date of superannuation of the subscriber, pursuan1 to a notice to be given to the National Pension System Trust or an entity to whom such authorization has been given, and seeking to withhold the said pension wealth of such Upon such right of withholding being validly exercised-

  • the pension wealth which are payable under the National Pension System shall not be paid to such subscriber until the conclusion of the departmental or judicial proceedings, as the case may be and subject to the final orders, passed in such proceedings.
  • the amount withheld as specified in sub-clause (i) shall remain subscribed to the scheme in the mode and manner in which it was held prior to resorting to such action by the employer specified, and the final settlement of the withheld amount shall be made by the National Pension System Trust, or any intermediary or other entity, authorized for this purpose by the Authority, in normal course within ninety days of the receipt of an appropriate order from the concerned employer;
  • the amount withheld becomes payable to the subscriber on the final settlement, as certified by the employer specified, which has sought withholding of such benefits, and shall be paid to the subscriber as soon as possible and in no case beyond ninety days of receipt of the final order by the National Pension System Trust or any other entity or person, authorized for the purpose by the Authority;

If the nominee predeceases the subscriber, the nomination shall so far as it relates to the right conferred upon the said nominee, become void and of no effect; 

Yes, a subscriber may in his nomination distribute the amount that may stand to his credit in the fund amongst his nominees at his own discretion;

If a subscriber has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his family. Any nomination made by such subscriber in favour of a person not belonging to his family shall be invalid;

the expression “family”,

  1. in relation to a male subscriber, means his legally wedded wife, his children, whether married or unmarried, his dependent parents and his deceased son’s widow and children;
  2. in relation to a female subscriber, means her legally wedded husband, her children, whether married or unmarried, her dependent parents, her husband’s dependent parents and her deceased son’s widow and children;

Explanation II — In either of the above two cases, if the child of a subscriber [or as the case may be, the child of a deceased son of the subscriber] has been adopted by another person and if, under the personal law of the adopter, adoption is legally recognized, such a child shall be considered as excluded from the family of the subscriber.

A fresh nomination is  required to  be  made  by  the subscriber on his marriage and any nomination made before such marriage shall be deemed to be invalid;

Voluntary Contribution in Tier I account by Govt. Sector Subscribers

Govt. Subscribers may approach their associated Nodal Offices (PAOs/ CDDOs) for processing of Voluntary Contributions in their Tier I account. The Nodal Office is required to carry out the following activities:

  • Download necessary utilities for preparation of contribution file i.e. File Preparation Utility (FPU) and File Validation Utility (FVU). Kindly note, these are separate utilities through which only Tier-II and Tier I Voluntary contributions can be prepared and validated. The utilities are available on CRA website – www.npscra.nsdl.co.in at the following link: https://npscra.nsdl.co.in/download/FPU_and_FVU_For_upload_of_Voluntary_and_Tier_II_contribution.zip
  • Prepare voluntary contribution details by using the FPU. Ensure that contribution type is selected as “Voluntary Contribution”.
  • Validate voluntary contribution file prepared using the FVU.
  • Upload Subscriber Contribution File (SCF) in the NPSCAN application (www.npscancra.com) by logging with the User ID and Internet Password (IPIN) provided by NSDLCRA. The procedure of Contribution upload will be similar to the upload of regular contribution files in NPS.
  • Nodal Office shall upload the SCF in respect of the Subscribers for whom clear funds are available on daily basis. The Nodal Office is required to remit the funds to the Trustee Bank latest by T+1 day (T being the date of receipt of clear funds) post upload of contribution details in the CRA system.

The Subscribers can also pay voluntary contributions under Tier I online through eNPS. In order to contribute through eNPS, the Subscribers need to follow the below mentioned steps:

  • Visit the eNPS portal (https://enps.nsdl.com).
  • Click on the “Contribution” option
  • On the next screen, the Subscriber will have to provide PRAN, Date of Birth, enter Captcha details and click on the “Verify PRAN” option. On clicking the “Verify PRAN” option, system will prompt for a One Time Password (OTP) and the same will be sent on the registered mobile number of the Subscriber. System will display a message to the Subscriber about generation of OTP. The Subscriber will enter the OTP and click on submit OTP option.
  • After submission of OTP, on the next screen the Subscriber will select the Tier Type as “Tier I” and enter the amount in “Voluntary contribution amount” section, select the “Payment Gateway Option”, tick on the declarations and finally click on “Make Payment” option.
  • Upon successful processing of the contribution, the units will be credited to Subscribers’ NPS account and an SMS/ Email alert will be sent to the Subscribers’ registered Mobile Number/ Email ID.

Voluntary contribution in Tier I account can also be made using the NPS Mobile App.

  • NPS Mobile App can be downloaded from Playstore for android phones and Appstore for IOS phones (iPhone).
  • In NPS Mobile App, Subscriber is required to click on the “Contribution” option available on the Home screen.
  • On the next screen, Subscriber needs to enter the PRAN, Date of Birth and the Captcha details and click on “Verify PRAN” option.
  • App will prompt for a One Time Password (OTP) and the same will be sent to the registered mobile number of the Subscriber. App will display a message to the Subscriber about generation of OTP. The Subscriber will enter the OTP and click on submit OTP option.
  • After submission of OTP, on the next screen the Subscriber will select the Tier Type as “Tier I” and enter the amount, select the “Payment Gateway Option”, tick on the declarations and finally click on “Confirm Payment” option.
  • Upon successful payment, a receipt will get generated confirming the payment details.

One more option for Subscribers to contribute voluntarily in Tier I account is by logging into the CRA System with the User ID (i.e. the PRAN) and the Internet Password (IPIN).

  • In the CRA system, at the Home page, the Subscriber needs to go to Menu – Contribute Online <<>> Sub-menu – Make Online Contribution.
  • System will re-direct the Subscriber to the eNPS portal.
  • Further, the Subscriber needs to follow the procedure as explained under Point C above.

  • Subscribers may also approach the PoP/ PoP-SPs for making Voluntary Contribution in their Tier I account.
  • The list of PoPs/ PoP-SPs is available on CRA website (www.npscra.nsdl.co.in).

 

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