Unique number planned for new pension system

NEW DELHI: All government employees subscribing to the new pension system (NPS) will have to secure a permanent retirement account number (PRAN) from the central record keeping agency (CRA) — National Securities Depository (NSDL). Under the new pension system, each member will have a unique individual Permanent Retirement Account (PRA) which will be portable.

Under the NPS, which covers new entrants to central government services (excluding defence forces) that joined after 1 January 2004, each member will have a unique individual permanent retirement account which will be portable. A portable account will benefit subscribers since they would have the option of switching from one fund manager to another.

According to regulations, the CRA will be required to maintain these accounts and issue a unique PRAN to each member. The CRA will maintain a master database of all personal retirement accounts and record the transactions related to each member’s PRAN.

Among other functions, the CRA will provide periodic, consolidated PRAN statements to each member and function according to directions and regulations issued by the pension fund regulatory and development authority (PFRDA) from time to time.