You recently quit your Government job. While in your job, you had to make mandatory contributions to your NPS account. Everything was on auto-pilot mode. Now that you have quit your job, you do not know how to make further contributions to NPS. Earlier, the contributions were automatic. Now you need to figure out a way to continue contributions.
If you can’t figure out an easy way to access and make contributions to your NPS account, you will rather exit your NPS account.
In this post, I will discuss the way to continue (shift) your NPS account in such cases. In a subsequent post, I will discuss the steps you need to take if you want to exit NPS.
Before I move on to the process to shift NPS account, let’s discuss a few things about NPS.
You can check your NPS account details online
If you are a NPS Subscriber, you can register on CRA website (https://cra-nsdl.com/) using your PRAN (Permanent Retirement Account Number).
You merely need to enter a few details and you will get an OTP to register your password.
Even those who opened their accounts in offline mode can register on this portal.
Hence, Central/State Government employees, corporate subscribers or those who opened their NPS through banks or any PoP (Point of Presence) or PoP-SP (Point of presence –Service Provider) can register on this portal and view their NPS account details.
eNPS (CRA website) lets you make contributions online, view your holdings and even place withdrawal/exit request online. By making contribution through eNPS portal, you can save various NPS charges.
NPS account is portable. You do not have to quit NPS.
Many subscribers who consider quitting NPS are those who are changing jobs. They do not want to go through the hassle of shifting NPS from one employer to the other. Sometimes, the old employer offers NPS while the new employer does not.
A few are quitting jobs to join higher studies or shift abroad or simply quitting employment.
Whatever your reason may be, you do not have to quit NPS when you quit your job or shift to an employer which does not offer NPS.
You can continue the account with own contributions. The only difference will be that your employer will not make any further contribution.
PFRDA recently reduced mandatory annual contribution to NPS from Rs 6,000 per annum to Rs 1,000 per annum in Tier-I NPS Account. You can read PFRDA circular here.
Hence, you merely need to make contribution of Rs 1,000 to keep your NPS account active. Don’t rush to close your NPS account.
NPS is meant for your retirement savings. You shouldn’t withdraw from it unless in cases of emergency. Whether you should invest in NPS in the first place is a different question altogether.
PRAN is completely portable. You can use the same PRAN across different Government departments, state governments, employers or even after quitting job. So, you can open account as Central Government Employee but continue under All Citizens model after quitting your Government job.
You can have just 1 PRAN. To put it in a different way, you cannot have two Tier-I NPS accounts. If you are switching employers and both employers offer NPS, you must transfer your NPS account from old to the new employer. You cannot open a second NPS account (till such time your first NPS account is open).
Book Suggestion: Rich Dad, Poor Dad (Robert T. Kiyosaki)
How to shift your NPS account?
Let’s consider an example. You are a Central Government. You quit your job and start your own business. How do you shift from Government NPS to All Citizens NPS? Here are the steps.
- Download the Form for subscriber shifting (Form ISS-1) from CRA website.
- Visit the nearest PoP or PoP-SP. Submit the duly completed form with requisite documents to the target PoP-SP.
- You can make subsequent contributions through PoP/PoP-SP or eNPS.
When is Form ISS-1 applicable?
Form ISS-1 applicable when you are shifting your NPS account across sectors (Central Government, State Government, All Citizens Model and Corporate Sector).
- Shifting from Central Government to All Citizens model or vice versa.
- Shifting from one State Government to another State Government.
- Shifting from State Government to Central Government or vice versa.
- Shifting from Corporate Sector to any other sector (Central or State Governments or All Citizens model) or vice versa.
When you are shifting to Government NPS, you will have the Form to Nodal office (typically accounts section in your office).
However, there are other scenarios which, though not as important, can require you to shift NPS account. Let’s consider such scenarios.
Within Central Government Offices
You need to intimate your office (new) about your PRAN. There is no need to fill in Form ISS-1. The new office will facilitate everything. Hence, there is not much you have to do.
Changing PoP/PoP-SP under All Citizens Model
You need to submit duly completed Annexure-UOS-S6 along with a copy of your PRAN card to the target PoP-SP.
ICICI Bank is a PoP while its branches are PoP-SP.
If you need to shift within PoP (you want to change only PoP-SP), you need to submit UOS-S5 at the target PoP-SP.
So, if you need to change your PoP from ICICI Bank to SBI, you need to submit UOS-S6.
If you want to change PoP-SP to a different branch of ICICI Bank, you need to submit UOS-S5.
Can I shift my NPS account to eNPS?
Yes, it has been allowed now. However, as I understand it is permitted only if your account is opened under All Citizens model.
For this, you need to log in to eNPS portal and click on the Shift to eNPS under Transactions tab. You can read more about this here.
However, as I understand it is permitted only if your account is opened under All Citizens model i.e.the functionality has been enabled for changing PoP (and not exactly for shifting across NPS sectors).
Unfortunately, you cannot port your NPS account to eNPS i.e. eNPS cannot be your target PoP when you are shifting. You must open account using eNPS portal for it to be your PoP.
To give an example, I opened an NPS account (Yes, I did!!!) through eNPS portal using my Aadhaar card. When I logged into CRA portal (https://cra-nsdl.com/), I could check my registration details. (eNPS PoP: 5000682 PoP-SP: 6396950). I am not sure if you can use these details in Form ISS-I (in case you are shifting from corporate and Government sectors). Didn’t get a clear answer from CRA (NSDL).
However, as mentioned before, you can still register on CRA website (after shifting account to PoP) and make online contributions.
Read: How to invest in NPS online?
Additional Links
- NPS Subscriber Forms
- NPS FAQs on Subscriber Shifting
- Book Suggestion: You can be Rich too: With Goal Based Investing (P.V.Subramanyam, M.Pattabiraman)