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How can an employee change his scheme preference in NPS

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A subscriber / Corporate has an option to change the scheme preference in NPS.

 

Corporate National Pension Scheme (NPS) was launched by Pension Fund Regulatory Authority in December 2011.

Just like your Employee Provident Fund, under Corporate NPS both the employer as well as the employee can contribute towards the employees’ NPS pension corpus.

A subscriber / Corporate have the option to choose or switch the Fund Schemes, PFM (Pension Fund Manager) and the Investment Options (from active to auto choice or vice versa) once in a financial year.

How can a corporate employee change his scheme preference in NPS?

Corporate which like to change the NPS Scheme Preference or Pension Fund Manager (PFM) can change it for Tier I only by submitting a CHO-2 Form (CHO-2 is nothing but the Application Form for Corporate Scheme Preference Change). This CHO-2 Form has to be submitted to CRA through the POP.

The CHO-2 Form can be downloaded from the NPSCRA website https://www.npscra.nsdl.co.in/organised-sector-forms.php. Note that this is a chargeable transaction. 

Also, Corporate can indicate their preference by mentioning the ratio in which their contribution will be invested in various investment options like equity, government bonds and corporate bonds.

A Subscriber or Corporate can request for a change once in a financial year for each of Tier I and Tier II account. Forms for Tier I and Tier II accounts should be submitted separately. The CRA charges for this transaction at standard rates approved by the PFRDA.

Once the change request is submitted, a subscriber or Corporate can track the status of change request by contacting with his/her POP-SP or by calling to CRA toll free number 1800 222 080.

CRA system will also send an email to the Subscriber’s registered email ID once the request is processed. Changes can be verified by logging into the NPS account using the I-PIN.

Hope you find above information useful. Do share your views/queries below as comments.

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