PFRDA issues circular on transfer of legacy funds of NPS subscribers of government sectors

For the staff of state governments, state autonomous bodies, and Central autonomous bodies, upon sweat the selection of investment schemes and pension funds, their entire accumulated corpus underneath their PRAN account shall be transferred to the opted pension fund or plus allocation in one instance.

Earlier in June 2020, it absolutely was determined that State Governments (SGs) / SABs (State Autonomous Bodies)/ CABs (Central Autonomous Bodies) are liberal to adopt the provisions supported their own internal approvals and notifications, while not seeking the PFRDA approval.

At that point, it absolutely was recommended that the transfer of a large inheritance corpus in respect of presidency subscribers from the prevailing Pension Funds is probably going to impact the market. It should be much troublesome for the PFRDA to permit Government subscribers to alter the Pension Funds or investment pattern in respect of the accumulated corpus, in one go. Therefore, it absolutely was recommended, for this, amendment within the Pension Funds or investment pattern is allowed in respect of the progressive flows solely.

In case the State Governments (SGs) / SABs (State Autonomous Bodies)/ CABs (Central Autonomous Bodies) arrange to open up the alternatives of Pension Funds and/or allocation of funds, then please note that upon exercise of selection of investment schemes and pension funds by subscribers, their entire accumulated corpus underneath their PRAN account shall be transferred to the opted Pension Fund(s) / plus allocation in one instance.

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