Scheme Preference & Investment Option in Tier I Account

1. Is the choice of Pension Fund and Investment Pattern available for Subscribers under Tier I?

As per Ministry of Finance Gazette Notification dated January 31, 2019, the Central Government
Subscribers, from April 1, 2019, will have the option of selecting the Pension Funds (PFs) and
Investment Pattern in Tier I account. A Subscriber can choose any one of the available PFs and
Investment Option as per their choice. If the choice is not exercised by the Subscriber, NPS
contributions will be invested in the existing schemes – LIC, SBI and UTI will act jointly as default PFs
as per the guidelines issued by the Government of India/ PFRDA. For more details on ‘Investment
Option’, please refer ‘Information on Scheme Preference’ available on CRA website
(www.npscra.nsdl.co.in).

2. Is the choice of Pension Fund and Investment Pattern can be exercised at the time of
registration under NPS?

Yes, a Subscriber is allowed to select the Pension Fund and Investment Pattern as per his/her choice
at the time of registration under NPS. The Subscriber is required to provide the relevant details in
the Subscriber Registration Form (CSRF).

3. What are the Investment Options available for Subscriber under Tier I?

The Subscriber can select any one of the following investment schemes:

 Scheme G: 100% of contribution will be invested in Government Bonds and related

instruments.

 Scheme LC 25 : It is the Life cycle fund where the Cap to Equity investments is 25% of the
total asset.

 Scheme LC 50 : It is the Life cycle fund where the Cap to Equity investments is 50% of the
total asset.

If the choice is not exercised by the Subscriber, NPS contributions will be invested in the existing
schemes - LIC, SBI and UTI as per the guidelines issued by the Government of India/ PFRDA. For more
details on ‘Investment Option’, please refer ‘Information on Scheme Preference’ available on CRA
Website (www.npscra.nsdl.co.in).

4. How can a Subscriber change a Scheme Preference?

There are two options available to the Subscriber – Online as well as offline.

Online: The Subscriber can change Scheme Preference online through his/her NPS account log-in.
Subscriber can follow the simple steps as given below::

 a. Go to his/ her NPS account and log-in. Superannuation

 b. Click on sub menu "Scheme Preference Change" under main menu "Transaction".

 c. Select Tier type and change the Scheme Preference as the Subscriber intends to do.

Alternatively, the Subscriber can also submit physical request (Form GOS-S3) to his/her associated
Nodal Office. The form GOS-S3 can be freely downloaded from CRA Website. On receipt of physical
request, the Nodal Office will update the Scheme Preference in the CRA system.

5. How many times a Subscriber can change ‘Scheme Preference’?

Yes. A Subscriber has the option to change the Pension Fund Manager. At present, the Subscriber
can change the Pension Fund Manager once in a Financial Year.

6. What will happen to the contributions accumulated in NPS account till March 31, 2019?

The legacy contributions i.e. contributions accumulated in NPS account till March 31, 2019 will
remain invested in the existing schemes – LIC, SBI and UTI will act jointly as default PFs as per the
guidelines issued by the Government of India (GOI)/ PFRDA. Redemption and transfer of
accumulated contributions will be carried out once guidelines and modalities are provided by GOI/
PFRDA.

7. Will there be any change in the Transaction Statement?

Yes. Transaction Statement will undergo a change for the PRANs having legacy contributions i.e.
contributions accumulated in NPS account till March 31, 2019. For the Subscribers who have opted
new schemes, the Investment details of the legacy schemes and of the new scheme will be shown in
two separate tables in the Transaction Statement.

8. Whether Subscriber can select ‘Scheme Preference’ at the time of shifting to Central
Government?

The Subscriber will have the option of selecting the Pension Funds (PFs) and Investment Pattern in
Tier I account at the time of shifting to Central Government. The Subscriber is required to provide
the relevant details in Inter Sector Shifting (ISS) Form.

9. Whether a Non-IRA Subscriber can change ‘Scheme Preference’ under NPS?

At present, Non-IRA Subscribers do not have the option of ‘Scheme Preference’ change. A Non-IRA
Subscriber should first submit the physical registration form to become an IRA compliant Subscriber.
Once he/ she becomes IRA, the Subscriber can change the Scheme Preference.

10. Is the choice of Pension Fund and Investment Pattern available for Subscribers under Central
Autonomous Bodies (CABs)?

At present, the Subscribers under CABs do not have the option of selection of Pension Fund and
Investment Pattern under NPS. In case of CABs, NPS contributions will be invested in the existing
schemes – LIC, SBI and UTI as per the guidelines issued by the Government of India/ PFRDA.