If you took NPS membership under the corporate model, there is a chance that the new company you plan to join may not offer the option, unlike the Employees Provident Fund (EPF), which is mandatory for all companies to facilitate the EPF account opening for their employees. However, the best part is NPS allows you to keep the account active by converting it into an all-citizen account, even if the subscriber changes jobs.

Additionally, NPS offers attractive tax benefits for subscribers. Under Section 80CCD (1) and 80 CCD (2), subscribers can claim tax benefits up to Rs 1.5 lakh in a financial year. Section 80CCD (1 B) provides an additional Rs 50,000 deduction.

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Similar to an EPF account, in the NPS corporate model, the employee and the employer contribute to the employee’s NPS account. However, corporates don’t need to mandatorily implement the NPS scheme for their employees, as in an EPF facility. So when the subscriber changes jobs, the new company may not have the NPS facility. In that case, those subscribers can convert their corporate membership into an all-citizen account. It will allow them to continue contributing to the account even though the employer’s contribution will cease.

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Convert NPS Corporate Account To All-Citizen Account

According to the NPS rules, when a corporate subscriber changes a job, the Permanent Retirement Account Number (PRAN) doesn’t change, which helps in the switch.

1. For instance, if the new employer offers the NPS option, the subscriber must submit Form CS-S3 for the subscription.
2. If the new employer does not offer an NPS facility, subscribers can change it to all-citizens model NPS, as the PRAN number remains the same. In that case, the subscriber must submit Form ISS-1 (ISS is inter-sector shifting) to the point of presence service provider (POP-SP).

Note that the change in POP-SP for corporate NPS subscribers is possible only when they change the employer or the subscription model, such as from corporate to all-citizen model.

To change the POP-SP when changing a job or the subscription model, the subscriber must submit Form UOS-S5 to the existing POP or Form UOS-S6 to the new POP.

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Keep The NPS Account Active:

The subscriber must invest at least Rs 6,000 annually in their NPS account to keep it active. The account will be suspended if the fail to make the minimum contribution. However, it can be reactivated after paying a fee and making the minimum contribution.

Read here to know more:

Here’s How You Can Reactivate Your Frozen NPS Account Online And Offline