Good news for NPS customers, discussion on portability of NPS policy
Newz Fast, New Delhi: The NPS subscriber has to mandatorily keep a part of his retirement fund in the pension policy at the time of retirement. The minimum pension purchase amount for central government employees is 40 per cent of its total corpus.
If you also invest in NPS then there is good news for you.
Pension fund regulator PFRDA has held preliminary discussions with insurance sector regulator Irdai (IRDAI) on the issue of 'portability' of pension policies for NPS subscribers, which will pave the way for portability of pension plans.
PFRDA discusses portability of NPS policy with IRDAI
At present, no pension product under NPS can be changed once selected.
Supratim Bandyopadhyay, Chairman, Pension Fund Regulatory and Development Authority (PFRDA) said in this context, “We have discussed the issue of portability with the Insurance Regulatory and Development Authority of India as well as service providers. However, this discussion is still in its initial stages.
At present there is no policy port after the initial period of 15-20 days
“The problem is that once the pension product is selected, it cannot be changed after the initial period of 15-20 days.
But, it has been observed that many subscribers opt for this in a hurry and later they get an idea of the better product of another product.
However, the facility of porting the NPS policy already exists at the fund collection stage.
The NPS subscriber has to mandatorily keep a part of his retirement corpus in the pension policy at the time of retirement. The minimum pension purchase amount for central government employees is 40 per cent of its total corpus.