NPS News: A significant modification to the National Pension System (NPS) settlement procedure has been announced by the Pension Fund Regulatory and Development Authority (PFRDA). NPS users can now take advantage of Same Day Settlement (T+0 Settlement) offered by PFRDA. The benefit of this is that the subscriber will be able to take advantage of the Net Asset Value (NAV) of that day if they make their contribution by 11 am on any settlement day. The contribution will be invested on that day. On July 1, the new system will go into force.
Up until now, the Trustee Bank has invested the donations on the following day (T + 1). In other words, the money acquired today is put to use tomorrow. In order to guarantee that the consumers receive benefits right away, the PFRDA Point of Presence (POP) has encouraged the NPS Trust and nodal offices regarding eNPS to adhere to these revised timelines.
Advantage for the Subscriber
PFRDA’s action will level the playing field between NPS and mutual funds. The NPS account user will benefit from same-day NVA as a result, which will help him accumulate more money. Same-day NVA is available for mutual fund investments made till 3 p.m. People often wish to invest for more units on the day that the market declines. This investing option will also gain appeal when same-day settlement is implemented in NPS. With this modification to PFRDA, the trustee bank will guarantee that the NPS contribution received is invested by 11 a.m. that same day.
EPS withdrawal guidelines updated as well The Employees Pension Scheme, 1995’s withdrawal guidelines have been modified by the government. Following this change, EPS members who have served fewer than six months as contributors will also be able to withdraw funds from their EPS accounts. Despite the requirement that participants pay into the EPS 95 scheme consistently for ten years in order to receive a pension, thousands of members of the program exit the program in the middle of it.
Till now, only those members who contributed for 6 months or more could avail this withdrawal benefit. In such a situation, those members who left the scheme after contributing for less than six months did not get any withdrawal benefit
