NPS New Rule change Update: Pension Fund Regulatory and Development Authority (PFRDA Update) changes its rules from time to time. Let us tell you, due to this, as per the recent decision, preparations have been started to make the new pension system (NPS rule change) attractive. Under these rules, same day settlement is going to be implemented in NPS as well. It has also been announced by PFRDA. Let us know about all the new rules in detail in the news-
The Pension Fund Regulatory and Development Authority (PFRDA) has announced an important change in the settlement process for the subscribers of the National Pension System (NPS). PFRDA has now provided the facility of Same Day Settlement (T+0 Settlement) to NPS subscribers (NPS latest update). The advantage of this will be that if the subscriber makes his contribution by 11 am on any settlement day, then it will be invested on the same day and the benefit of the Net Asset Value (NAV Benefits) of the same day will be available. The new system will come into effect from July 1.
Till now the contributions received by the Trustee Bank were invested on the next day (T + 1) (NPS rule change). That is, the contribution received today is invested tomorrow. PFRDA Point of Presence (POP) has advised the nodal offices and NPS Trust for eNPS to follow these new deadlines to ensure immediate benefits to the subscribers.
Big benefit to the subscriber
This move of PFRDA is going to bring NPS at par with mutual funds. This will give the benefit of same day NPA to the NPS account holder (NPS new rule change), which will help in increasing his money. Investments made in mutual funds till 3 pm get the benefit of same day NPA. On the day the market falls, people usually want to invest for more units. With the implementation of same day settlement in NPS, this investment option will also become attractive. This change of PFRDA will ensure that the trustee bank invests the NPS contribution received till 11 am on the same day.
Change in EPS withdrawal rules too
The government has changed the withdrawal rules of the Employees Pension Scheme, 1995. After this amendment, the members of the Employees Pension Scheme with less than 6 months of contributory service will also be able to withdraw money from the EPS (PFRDA rule change) account. There are lakhs of such EPS 95 scheme members in the country who quit the scheme midway despite the rule of continuously contributing to the scheme for 10 years to get pension.
Till now only the members who contributed for 6 months or more could avail this withdrawal benefit (EPS). In such a situation, the members who have contributed for less than six months
