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Aditya Birla Sun Life Pension Fund Management Limited
An employee in a company that is registered under the NPS Corporate Model can contribute to NPS in addition to his PF contribution. The employer can offer NPS as a benefit and will need to make a contribution to the scheme in the employee's NPS account. This contribution can be made only in tier I accounts. The employer can claim tax benefit for its contribution on behalf of an employee (up to 10% of basic + DA) by showing it as business expense. Under Section 80CCD(2) this amount contributed by the employer to NPS is not included in the employee's income for tax computation.
Subscribers can subsequently request to change the choices exercised as under:
| Choice | Frequency | Mode / method |
|---|---|---|
| Pension Fund | Once in a Financial Year | i. Online – Login to your account or ii. Offline - Physical Application to PoP |
| Investment Choice | Four times in a Financial Year | i. Online – Login to your account or ii. Offline - Physical Application to PoP |
If the Employer/Corporate exercises choice of Pension Fund and Asset Allocation on behalf of Employee/Subscriber, then such Employee/Subscriber will have the option to revise the choices after 1(one) year (i.e 365 days) or else will continue with the existing choices made by employer (applicable to corporates adopting NPS on or after 14th Nov 2018).
The employer cannot forfeit pension corpus from an NPS account if an employee resigns from the organization. However, in case of employer being owned and controlled, either by the Central / State Government or a Government company, if so specifically provided in the service rules governing the terms of employment of the subscriber with it, the employer has the right to withhold its co-contributions including accruals hereon, for the purpose of recovery of the whole or part of any pecuniary loss caused, provided such loss is established, in any departmental or judicial proceedings, initiated against such subscriber by such employer.
NO.
There is flexibility to select scheme and Pension Fund either at corporate level or Subscriber Level. Corporations may opt for Pension Fund and investment choice or leave the option to employees