Government sector subscribers to the National Pension System (NPS) have cause for cheer as pension regulator PFRDA has simplified the procedure for making online changes to the investment patterns.
Henceforth, no prior approval of the nodal office would be required for making online changes to investment pattern choices for government sector NPS subscribers. Such subscribers can directly submit the request in the central record keeping agency (CRA) login and this has to be authenticated through a One-Time Password (OTP) received on the registered mobile/email-ID, sources said.
“We have done away with the need for prior approval of the Nodal office for all online requests. This has been done in the interest of subscribers and to simplify the process. A lot of delays were seen when approval had to be given via nodal office, even for online submissions for changes in investment choice. Now authorisation will happen through OTP on registered mobile,“ sources in PFRDA said.
The latest PFRDA move to ease the procedure for changes in investment patterns via online mode is expected to benefit millions of government employees. At last count, there were about 8 million NPS subscribers in the government sector.
Currently, for government NPS subscribers, the PFRDA allows the asset allocation to be changed two times a year, and the Pension Fund (PF) can be changed once a year.
The Subscribers who are associated with State Governments and Autonomous Bodies of the State/Centre can also exercise their choice of PF and investment pattern, if respective Autonomous Bodies and State Governments have permitted the choice.
Once the subscriber opts for Investment Choice, the accumulated Tier I contributions shall be redeemed and reinvested in the new scheme as per the defined process and within specified timelines. Further, all the subsequent contributions thereon will be invested in the new investment choice opted by the subscriber.
Also, subscribers can revert to the default pattern of investment as per guidelines, if they choose to do so.
As on date, pension assets AUM in the country is about ₹7.7 lakh crore, growing at a compounded annual growth rate of 27-30 per cent.