Transfer of Legacy Funds of NPS Subscribers of Government Sectors

Last updated: 17 February 2021

Save Share

Quick Summary

This circular from PFRDA concerns the transfer of legacy funds for National Pension System (NPS) subscribers in government sectors, including State Governments, State Autonomous Bodies, and Central Autonomous Bodies. If these entities choose to allow subscribers to select their Pension Funds and investment allocations, the entire accumulated corpus in a subscriber's PRAN account will be transferred to their chosen Pension Fund(s) and asset allocation. This process is now also being applied to Central Government subscribers and is effective immediately.

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan, Qutub Institutional Area,
Katwaria Sarai, New Delhi-110016
Ph : 011-26517501, 26517503, 26133730 Fax : 011-26517507
Website : www.pfrda.org.in

CIRCULAR

PFRDA/17/07/0001/2017-SUP-C

Date: 15^th February 2021

To,

All Pension Funds
Central Record Keeping Agencies
Custodian
NPS Trust

Dear Sir/Madam,

SUBJECT: Transfer of Legacy Funds of NPS Subscribers of Government Sectors (SGs/ CABs/ SABs) pursuant to opening of choice of Investment schemes and Pension Funds- reg.

Reference is invited to the Gazette Notification F.No.1/3/2016-PR dated 31^st January, 2019 issued by Ministry of Finance, Department of Financial Services, modifying Ministry of Finance’s Notification No. 5/7/2003-ECB dated 22^nd December, 2003, based on the Government’s decision on the recommendations of a Committee set up to suggest measures for streamlining the implementation of National Pension System (NPS).

2. Further, vide PFRDA circular PFRDA/17/08/11/0031/2017-SUP-SG dated 01st June 2020 it was advised that State Governments (SGs) / SABs (State Autonomous Bodies)/ CABs (Central Autonomous Bodies) are free to adopt the provisions of the said Gazette notifications on their own volition, based on their own internal approvals and notifications, without seeking the Authority’s approval.

3. In case the State Governments (SGs) / SABs (State Autonomous Bodies)/ CABs (Central Autonomous Bodies) decide to open up the choices of Pension Funds and/or allocation of funds, then please note that upon exercise of choice of investment schemes and pension funds by subscribers, their entire accumulated corpus under their PRAN account shall be transferred to the opted Pension Fund(s) / asset allocation in one instance. In case of the subscribers, who have already exercised this option, their legacy fund shall be transferred to the Pension Fund and asset allocation opted by the subscribers immediately. The same is now being followed for the Central Government subscribers as well and is subject to review

4. This circular is issued in exercise of powers of the Authority under sub-clause (b) of sub-section (2) of Section 14 read with Section 23 of the PFRDA Act, 2013 and sub-regulation (1) of Regulation 14 of the PFRDA (Pension Fund) Regulations, 2015.

The above arrangements are applicable with immediate effect from the date of issuance of this circular.

Yours sincerely,

Sumeet Kapoor
Chief General Manager

FAQ :

The circular is about the transfer of legacy funds for NPS subscribers in government sectors (SGs/CABs/SABs).

NPS subscribers belonging to Government Sectors, including State Governments (SGs), State Autonomous Bodies (SABs), and Central Autonomous Bodies (CABs).

Upon exercising their choice of investment schemes and pension funds, the entire accumulated corpus in their PRAN account will be transferred to the opted Pension Fund(s) and asset allocation.

The arrangements are applicable with immediate effect from the date of issuance of this circular, which is 15th February 2021.

Yes, the circular states that the same process is now being followed for Central Government subscribers as well.