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What Happens to Employer-Linked NPS After Switching Jobs
NPS is a retirement savings account that belongs to you, not permanently to your employer.
It uses a unique number called a PRAN.
When you change jobs, you usually keep the same PRAN and your existing savings remain invested.
If your new company offers Corporate NPS, you can connect your existing account to that company.
If it does not, you can keep contributing on your own through the All Citizen Model.
Your old employer will stop making new contributions after you leave.
Contributions already credited to your account are not lost.
A gap in contributions does not stop your existing money from being invested, but it may reduce how much you eventually save.
You should check your account, contributions and details during the job change.
Your Permanent Retirement Account Number remains portable when you change jobs.
Existing NPS savings and credited employer contributions remain invested in the same account.
A new employer offering Corporate NPS can map your existing account through the prescribed process.
If the new employer does not offer NPS, you can shift to the All Citizen Model and contribute independently.
Employees should verify contributions, account mapping, nominations, personal details and investment choices after changing jobs.
- Who
- NPS subscribers changing employers, their previous and new employers, and the Pension Fund Regulatory and Development Authority.
- What
- The article explains how employer-linked National Pension System accounts, contributions and investment arrangements are affected by a job change.
- Where
- Within India’s Corporate NPS and All Citizen Model frameworks; the article also discusses subscribers relocating abroad.
- When
- When an employee leaves one job and joins another, including when moving abroad.
- Why
- To explain how employees can preserve retirement savings, continue contributions and correctly update their NPS employer association.
Key facts
- Account identifier
- The Permanent Retirement Account Number remains with the subscriber and is portable across employers.
- Existing corpus
- Accumulated NPS savings remain invested after an employee leaves a job.
- New Corporate NPS employer
- The existing PRAN can be mapped to the new employer through the prescribed shifting process.
- Required forms
- The article identifies ISS-1 for shifting from a different sector and CS-S3 for shifting from another corporate.
- No Corporate NPS
- The subscriber can shift to the All Citizen Model and continue personal contributions independently.
- Employer contributions
- The previous employer stops making fresh contributions after the employee leaves, while contributions already credited remain part of the corpus.
- Contribution gap
- A gap does not stop existing savings from being invested, but missed contributions do not compound over the same period.
Quotes
Vishwajeet Goel
Head of Pensionbazaar
“If the new employer also offers Corporate NPS, the employee can have the existing PRAN mapped to the new employer through the prescribed shifting process. Once the process is completed, future contributions can be made through the new employer”
financialexpress.com
“The accumulated corpus remains intact and continues its investment journey; the employee does not need to withdraw or create a new account simply because they have changed jobs”
financialexpress.com
Sources
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