The Pension Fund Regulatory and Development Authority (PFRDA) has announced that National Pension System (NPS) members can retrieve their ‘withdrawn but unclaimed’ money by following a specified format. The regulator, sharing this format in a recent circular dated February 7, said that no interest is earned on these unclaimed amounts.
According to media reports, PFRDA is also working on a module which will enable re-investment of unclaimed amount.
There have been cases where customers’ funds could not be credited to their savings bank accounts due to incorrect bank details or because customers canceled the annuity during the “free look period” and returned the purchase price for the annuity Gone and remain in the NPS system till a new Annuity Service Provider is selected.
“These amounts, identified as ‘withdrawn but unclaimed’, do not earn any investment return for the benefit of the subscribers,” PFRDA said.
The regulator further said that the subscribers can recover the amount as per the format issued. Subscribers have to file the format after filling the details with the Nodal Officers, Points of Presence (POPs), APY Service Providers, CRA and NPS Trust (NPST) as the case may be.
evacuation module
To ease the process of retrieving unclaimed money, PFRDA is developing a digital interface called “My Withdrawal Module (MWM)” for customers. This module will provide facilities like
- Ability to submit and verify beneficiary’s bank account details through penny drop for name matching between PRAN and bank account,
- Provision for uploading proof of bank account
- Choose the Annuity Service Provider to reissue the annuity.
Once the MWM is set up, any unclaimed amount which is not transferred to the beneficiary’s bank account after one month will be reinvested in the same PRAN as per the investment / provident fund of the subscriber’s choice which is exited Time was effective. According to the regulator, this will give the subscribers the benefit of market linked returns.
questions to ask
Q1: What is National Pension System (NPS)?
National Pension System (NPS) is a government-backed pension scheme designed to provide citizens with a steady source of income after their retirement. It is a defined contribution plan, which means that the amount of pension a subscriber receives depends on the contributions made and the returns generated on the investments made.
Q2: Who regulates the National Pension System (NPS)?
Pension Fund Regulatory and Development Authority (PFRDA) is the regulator of the National Pension System (NPS) in India. PFRDA is responsible for overseeing the functioning of the NPS, ensuring compliance with laws and regulations, and protecting the interests of NPS subscribers.