Introduction to PRAN Card:
The Indian Government has initiated the then-ambitious New Pension System (NPS) effectively from 2004 and it currently covers new applicants to Central Government facilities. This is not extended to employees of Army, Navy or Air Force. It is eagerly anticipated to be accessible to every citizen in good time. As per the new pension system, CRA will be mandated to preserve accounts of subscribers and provide them with a distinctive Permanent Retirement Account Number, which is more commonly called as PRAN.
Under this structure, regular deductions that goes to NPS will be done from the user’s remuneration every month. The same amount will be contributed by the Government as well. The assimilated sum will remain in the specific Permanent Retirement Account while the subscriber is employed. This money can be used in the golden years as a fixed pension. A financially secure retirement life translates to worry-free years. As a subscriber, you are entitled to certain amenities and rights like transferability across employments and regions as well as access across the country.
PRAN Reactivation – Is it possible?
Pension Fund Regulatory and development Authority (PFRDA) has made it absolutely clear that reactivating this scheme is not allowed once you opt out of NPS. If there is any issue regarding missing credits, you can approach the Nodal Office to settle it quickly.
There is a clear paradigm shift as PFRDA has been getting continuous appeals from numerous government-owned nodal offices to restart the PRANs for credit of missing NPS deposits, in which requests to withdraw the funds have already been looked into and directed towards last disbursement to the subscribers.
At this time, the exit procedure is commenced with the formation of claim ID six months preceding the day of retirement. According to the PFRDA Exit & Withdrawal Regulations amended in year 2015, the employer and the staff’s contributions of the previous three months before sequestration is not allowed to be uploaded in the NPS account. Rather, it would be deposited in some other account belonging to the subscriber by the establishment directly.
When the whole process of withdrawing (which incidentally stretches for more than six months), both the user and the nodal office get adequate time to make sure and authorize that every misplaced monthly contributions have been updated in the corresponding PRAN. Considering the above scenario, PFRDA now strictly maintains that they will not bear with any such demands from here on, either to upload contributions of amount overdue or missing credits once the subscriber withdraws, exits or closes the scheme.
Hereafter, missing credits, if any, must be sorted jointly between you (the subscriber) and the Nodal office as mentioned in the common internal admin procedure guidelines. Hence every government nodal office is strongly recommended to make certain that uploading of all the pending contributions in the PRAN Card, before initiating, processing or forwarding the requests for closure, exit or withdrawal to the CRA and adopt essential step in compliance with this circular.