For all these who are contributing towards NPS beneath the Corporate Sector model and have left working with their employers, there is an vital piece of procedural work that wants to be performed. If you have retired or resigned from your job, you might nevertheless be tagged with your erstwhile employer in the Central Record Keeping Agency (CRA) System even even though you might no longer be working with these employers.
PFRDA in a current circular has stated that it has observed that there are situations wherein the Subscribers beneath Corporate Sector have not exercised Inter Sector Shifting (ISS) prior to leaving their employers and these personnel are nevertheless tagged with their erstwhile employers in the Central Record Keeping Agency (CRA) System even even though they no longer work with these employers.
In order to prevent such situations, the Corporate might total ISS as portion of the exit formalities by suitably advising the personnel to transfer their NPS Account to Point of Presence (POP) of their option.
Alternatively, the respective employers are essential to furnish the list of these personnel and their Permanent Retirement Account Numbers (PRANs) to CRA/ POP for flagging with an intent to de-tag these PRANs from the employer as per the recommendations under:
a) Corporate personnel ( Corporate attached by means of a POP)
(i) Post flagging PRANs of such personnel in the CRA method, the option of POP wants to be exercised by the Subscriber inside 3 months and if not, the PRANs shall be tagged to the respective POP of the Corporate employer beneath the voluntary sector.
(ii) Corporates that are acting as POPs and also present NPS to their personal personnel (predominantly banks) are covered beneath this category.
b) Employees of Direct Corporate (no connected POP)
(i) Post flagging PRANs of such personnel in the CRA method, option of POPs wants to be exercised by the Subscriber inside 3 months and if not, the PRANSs shall be tagged to eNPS beneath voluntary sector.
(ii) The Subscriber can continue beneath eNPS or migrate to any other POP of their option.
c) Employees beneath Corporate CG pattern of investment
The personnel whose PRANs are beneath a Corporate central government (CG) pattern of investment but have been flagged in the CRA method, want to exercising their option of investment applicable as per their current status, along with a option of POP.
Intermediary Charges: Post flagging of the PRANs in CRA method, intermediary charges are to be borne by the Subscriber if the exact same have been paid by the respective employer earlier.
What is POP
POPs present the kinds of help beneath NPS by means of their organization of branches referred to as POP Service Providers (POP-SP). From supporting enrollment to modify of investment scheme to the issuance of printed account statement, POPs assists in discharging all NPS associated activities. Practically each and every one of the economic institutions like banks, insurance coverage agencies have chosen themselves as POPs.
A subscriber is supplied with the solution of altering his/her POP/POP-SP. A subscriber beneath the Corporate model having said that can not modify his/her connected POP/POP-SP on his personal till he/she alterations employment or moves out of the sector. The Subscriber, having said that, can not opt for diverse POP-SPs for his/her Tier I and Tier II account respectively.
Procedure to modify POP
In the case of the Corporate Sector subscriber, if the subscriber alterations job and joins an organisation not registered beneath NPS, the subscriber can continue the PRAN beneath the All Citizen of India sector. The subscriber wants to submit an Inter Sector Shifting (ISS-1) Form to the POP-SP with whom he or she desires to be connected in NPS. If the subscriber alterations job and joins an organisation registered beneath NPS, the subscriber can continue the PRAN beneath the new Corporate by submitting the CS-S3 type.