New Code on Social Security 2019 to facilitate joining of NPS by new employees
The Centre is making efforts to simplify procedure for the working class by introducing a new Code on Social Security 2019. And in respect of the same, an initial draft has been put for the domain for suggestions and comments until October 25. The Code on Social Security will be amending and consolidating all laws concerning social security.
And in the draft code there is provided a condition that employees will be allowed to make a switch from EPF to NPS. And the draft code accordingly says, “The Chief Executive Officer of the Board or any other officer authorised by him in this behalf may, upon receipt of an application, in such form as may be prescribed by the Central Government, and after conducting such inquiry as may be necessary, allow any employee or a class of employees to exercise the option to join the National Pension System.” This will further be dependent on two conditions:
1. The application will be considered to have been allowed from the date of application submission if no order is passed within the sixty days time period from the submission date.
2. And if a person is joining job for the very first time then he or she does not need to make any application under this sub-section. “Provided further that any person joining the first employment in an establishment to which this Chapter applies may join the National Pension System without making application under this sub-section for allowing him for such joining,” it says.
Further, the section 18 (3) stipulates that as and when an employee joins NPS scheme, he or she would be considered to have withdrawn from the EPF, EPS and insurance scheme from the date of application submission date for the purpose of such joining.
Also, there will be granted flexibility in the sense that if subscribers are not satisfied with the performance of NPS or other such similar aspect then there will be provided an option to move back to the original scheme.