NPS rules for employees, individuals: Who can choose CRA, who can't, charges, other guidelines clarified However, subscribers who enrol in NPS through their employers will not have this option, unless the organisations offer it. PFRDA has issued a master circular consolidating all the instructions regarding the choice of selection of Central Recordkeeping Agency (CRA) for the NPS. Know here
The Pension Fund Regulatory and Development Authority (PFRDA) has issued a master circular consolidating all the instructions regarding the choice of selection of Central Recordkeeping Agency (CRA) for the National Pension System (NPS) or any other pension scheme regulated or administered by the authority. ET Wealth Online has made a list of necessary guidelines that NPS subscribers must know.1) Choosing CRA: What NPS subscribers must know
NPS subscribers who voluntarily enrol in the pension scheme, can to choose their preferred CRA. They will also have the option to switch their CRA twice during a financial year. However, a switch of CRA owing to a change in employment status will not be accounted for, said the PFRDA master circular dated November 17, 2023. However, subscribers who enrol in NPS through their employers will not enjoy these benefits, unless employers offer them.
The following three CRAs have been registered by the PFRDA:
a) Computer Age Management Services Limited
b) KFin Technologies Limited
c) Protean eGov Technologies Limited
2) Selection of CRA: For NPS subscribers under employee-employer relationship including the Government sector
If your employer bears the charges of the CRA under NPS, it will have the right to select the CRA. "In case charges of CRA under NPS are being borne by the employer, the choice of selection of CRA shall rest with the employer, unless the employer specifically delegates the option to choose CRA to individual employees. In all other cases, the choice of selection of CRA shall rest with the employee," as per the master circular by the PFRDA. This rule will apply to both Government sector employees and private sector employees.
3) Point of Presence option for employers
The organisations offering NPS to their employees under the ‘employer-employee relationship’ who want to obtain services from a particular CRA, may open their NPS accounts through a Point of Presence (PoP), which has integrated with that CRA. In case, they register themselves with PFRDA as PoPs, they may integrate with the CRA/s of their choice.
Point of Presence are entities appointed by the PFRDA to provide services to all the citizens of India to open and operate their NPS accounts. They perform functions through their network of branches called POP Service Providers (POP-SP). The operations of these POP-SPs are coordinated and controlled by the POP, as per a FAQ released by the npstrust.org.in.
4) Choice of selection of CRA by Point of Presence under the NPS and NPS-Lite
"PoP shall have the autonomy to choose its preferred CRA to provide services to its subscribers. PoPs are not mandated to offer the services of all CRAs to their subscribers; however, PoPs can opt to provide services of all CRAs. Notwithstanding the choice of selection of CRA/s by PoPs, PoP shall prominently display the charges of all CRA side by side on its official website/mobile application to enable subscribers to make well-informed decisions," said the PFRDA master direction.
"To ensure transparency, NPS Trust will prominently display the charges of all CRAs side by side on its official website/mobile application, thereby facilitating informed decisions for subscribers," said the PFRDA master direction.
Charges of the CRAs NPS subscribers must know
Name of CRA
Schemes
Service Charge head
PRA opening charges (Rs)
PRA annual maintenance charges (Rs)
Transaction
charges (Rs)
Computer Age Management Services Limited
NPS regular
40
65
3.5
NPS Lite/APY
15
16.25
NIL
Kfin Technologies Limited
NPS regular
39.36
57.63
3.36
NPS Lite/APY
15
16.25
NIL
Protean eGov Technologies Limited
NPS regular
40
69
3.75
NPS Lite/APY
15
20
NIL
Source: PFRDA
"This Master Circular shall take effect from the date of its issuance but shall be without prejudice to their (earlier issued circulars) operation and effect, for the period when they were in force, until them being subsumed under the Master Circular," the PFRDA said.
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This story originally appeared on: India Times - Author:Faqs of Insurances
