NEW DELHI: To check misuse of National Pension System, the Pension Fund Regulatory and Development Authority (PFRDA) has said that contribution to savings account, also called Tier-II account, which is attached to pension funds, can only be made by the subscriber and not by any third party.
The National Pension System (NPS) is structured into Tier-I (main account) and Tier-II (voluntary savings account). For opening a Tier-II account, permanent account number, or PAN, is a must.
“Keeping in view the nature of the Tier-II account and facility of any time withdrawal, it has been decided to disallow any third party contribution in Tier-II account henceforth,” said PFRDA.
It asked the nodal offices and Points of Presence (POPs) to ensure that NPS contribution by the subscriber to the NPS Tier-II account “is being made from his/her own bank account” and through own legitimate source of funds.
Further, the Central Record Keeping Agency and nodal officers/ POPs have been asked to take a declaration from subscribers that the transaction for his or her Tier-II account is from their own bank accounts and through legitimate source of funds. However, in case the contribution is made directly through the subscriber’s bank account, the declaration would not be required.