Home / Money / Personal Finance /  How govt NPS subscribers can select investment options online in Tier-1 account?
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The option of Pension Funds (PFs) and Investment Pattern is available to Central Government NPS subscribers having Tier-1 accounts. Active choice, conservative auto choice, and moderate auto choice are the three investment options that are accessible to Central Government NPS subscribers. Previously, if the appropriate Autonomous Bodies and State Governments had approved the decision, subscribers who are affiliated with State Governments and Autonomous Bodies of State/Centre were able to choose their PF and investment strategy. However, central government NPS members can now modify the investment option online using CRA login, according to a recent circular released by the Pension Fund Regulatory and Development Authority (PFRDA).

PFRDA has said in the latest circular that “In the interest of the subscribers and to simplify the process, it has been decided to allow the change in Investment choice online, wherein the subscriber can submit the request directly in the CRA login and which has to be authenticated through OTP (One Time Password) received on the Registered Mobile/Email-id."

The accumulated Tier I contributions must be redeemed and reinvested in the new scheme in accordance with a defined procedure and within a specified period of time after the subscriber elects his or her investment choice. Additionally, any subsequent contributions will be invested in the new investment option that the subscriber has chosen. Before making their own investment decision, subscribers should assess the performance of each asset class and PF individually. If they so want, the subscribers may also revert to the default investment choice.

How govt sector NPS subscribers can change their investment choice online?

1. By logging into the CRA System they can submit a request for changing investment pattern.

2. The subscribers' mobile number and email address must be registered with CRA to submit the request, since the process is OTP-based.

3. In the CRA System, the subscriber's online request can be self-authorized; nodal office authorisation is not necessary.

How govt sector NPS subscribers can change their investment choice offline?

1. Subscribers have the option of submitting of duly filed Scheme Preference Change Request Form to the relevant Nodal Office.

2. The subscriber can download Form GOS-S3 (Request for Scheme Preference Change) from the CRA website and properly fill it in before submitting it to the relevant Nodal Office.

3. The request for a change to the scheme preference will then be recorded and authorized in the CRA System by the nodal office.

The following are the various PFs and investment options for Central Government NPS subscribers to select from:

A. Active Choice – 100% Allocation into Government Securities

B. Conservative Auto Choice – 25% Allocation in Equity Asset Class

C. Moderate Auto Choice – 50% Allocation in Equity Asset Class

According to the PFRDA's regulations, the above-mentioned asset allocation can be altered twice a year, but pension funds can only be adjusted once. If the relevant Autonomous Bodies and State Governments have given their consent, subscribers who are affiliated with State Governments and Autonomous Bodies of State/Centre may also implement their choice of PF and Investment pattern.

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