Utilisation of Accumulated Pension Wealth on exit from the National Pension System for Corporates

As per the rules regarding exit of government employees from the National Pension System (NPS) before the age of normal superannuation, at least 80% of the accumulated pension wealth of the subscriber needs to be utilised for purchase of annuity providing for monthly pension to the subscriber and the balance is to be paid as a lump-sum payment to the subscriber. A subscriber at the time of exit from NPS can lodge his claim through his/her nodal office at NPS Claims Processing Cell (NPSCPC) at Central Recordkeeping Agency (CRA).             The Pension Fund Regulatory and Development Authority (PFRDA) settle the claims of the subscribers who have lodged their claims along with complete set of documents with NPS Claims Processing Cell through the CRA             The details of the NPS account settled in Government Sector are: Sector No. of PRANs Total amount disbursed (Rs.) Central Government 431 27,890,438.19 State Government  46   3,748,157.53 All contributions received from Government and employees are accounted for and invested once they are uploaded in the CRA System by the concerned Government department. Pension Fund Regulatory and Development Authority (PFRDA) is taking proactive steps to encourage corporate employer to join the National Pension System (NPS) for providing pension benefits to their employees.             PFRDA, inter alia, supports its intermediaries in their promotional efforts. PFRDA officials visit corporate, including with intermediaries, for creating awareness and interface with corporate to provide NPS related information/clarifications. PFRDA officials also participate in conferences/seminars/panel discussions organised by intermediaries or by industry associations like CII, FICCI, ASSOCHAM, PHD Chamber of Commerce etc.