Superannuation Funds
A. Transfer from Approved Superannuation Fund to NPS (Applicable for Individual Employees)
1. With a view to facilitate transfer of funds from an approved superannuation fund to the National Pension System (NPS), sub-clause (v) to section 10(13) of Income Tax Act, 1961 has been inserted so as to provide for an exemption from payment of tax on transfer of funds of an assessee (employee) from his existing superannuation fund to his pension account under National Pension System (NPS), as the same is not to be treated as income of such assessee for the said assessment year.
2. In case the employee is interested to get his superannuation fund transferred to NPS, he may follow the below mentioned process:
i. The employee should have an active NPS Tier I account which can be opened either through –
a. the employer (where NPS is implemented) by filling up the prescribed subscriber registration form; or
b. the Points-of-Presence (POPs); or
c. eNPS (online) on the NPS Trust website (www.npstrust.org.in).
ii. The employee shall approach the Superannuation Fund Trust through the current employer by giving request for transfer of his superannuation fund to his NPS account.
iii. The Superannuation Fund Trust to initiate transfer of the Fund as per the provisions of the Trust Deed read with the provisions of the Income Tax Act, 1961.
iv. The Superannuation Fund to issue cheque/draft in the name of:
a. In Case of Govt. employee: Nodal Office Name (PAO or CDDO Name)<> Employee Name<> PRAN (12 Digit No.)
b. In case of Private Sector employee: POP (Name of the POP) Collection Account-NPS Trust<>Subscriber Name<>PRAN (12 Digit No.)
3. For further information, kindly refer to PFRDA’s Circular dated 06.03.2017
B. Bulk Transfer from Approved Superannuation Trust/Service Provider as a Single Amount for All Underlying Subscribers
1. In addition to the above, bulk fund transfers to NPS may be undertaken in the manner mentioned below -
i. The individual subscriber contribution details shall be provided by Superannuation Trust/Corporate to POP along with the PRAN, so that the POP can upload the Subscriber Contribution Form (SCF) in time and remit the amount to NPS Trust without any delay.
ii. The superannuation fund/Corporate to give the bifurcation of employee/employer contribution and the same will be uploaded in CRA system.
2. For further information, kindly refer to PFRDA’s Circular dated 01.06.2018
C. Bulk Transfer from Self Managed Superannuation Fund to NPS
1. Employer shall register itself with either of the CRAs under NPS.
2. Transfer of assets/securities:
i. The transfer of underlying assets of the existing Superannuation Fund will be at market value. The existing underlying assets of Superannuation Fund will be marked at market value (valued as per the existing valuation practices) for transfers to Pension Fund. Any difference in value of Superannuation Fund corpus due to marked to market valuation on transfers will be borne by the Superannuation Fund Trust or Subscribers.
ii. The underlying assets/securities will be transferred to the PF by the existing Superannuation Fund. The PF shall consent for each asset being transferred through negotiation and discussion with the SAF Trust.
3. Subscriber registration – Employees who are part of the Superannuation Fund of the corporate shall register in NPS as per the existing process.
4. For further information and detailed procedure regarding bulk transfer, kindly refer to PFRDA’s Circular dated 01.01.2019