National Pension System: Government subscribers can now opt for NPS Tier II Default Scheme

financialexpress.com:

The Pension Fund Regulatory and Development Authority (PFRDA) has introduced the NPS Tier II Default Scheme exclusively for Government Sector subscribers. With this, the Government sector subscribers under NPS will be given an additional investment option of the Default Scheme along with the existing Scheme E/Scheme C/Scheme G investment options.

The NPS Tier II Default Scheme is designed to offer flexibility and convenience, aligning with the unique requirements of the Subscribers under the Government sector.

In a circular dated 22 September 2023, PFRDA said that the Government Sector Subscribers may continue with the Default Scheme under Tier II even after their shifting account to another sector.

According to the circular, the following are some benefits of the NPS Tier II account:

Greater Flexibility: There is no mandatory annual contribution requirement for Tier II. The Subscriber can open the account by paying the minimum contribution. There is no maximum limit on the amount that can be contributed under Tier II.

Easy Withdrawals: With a Tier II account, subscribers can withdraw money at any time. It’s a convenient way to access the savings when subscribers may need them the most.

Also Read: Are NPS subscribers free to choose annuity schemes and ASPs of their choice? PFRDA clarifies

Seamless Transfer: If the subscriber wishes to move the funds to the primary pension account (Tier I), it can be done at any point. This feature ensures that the investments remain dynamic and adaptable to your changing needs.

No Minimum Balance: There is no requirement for maintaining a minimum balance in the NPS Tier II account. It offers the freedom to contribute as much or as little as one wants.

Separate Nomination Facility: The