The Big Switch – Transferring from EPF to NPS

As a Government nominated Point of Presence (PoP), we are pleased to announce that CAMS is pioneering the movement of individuals switching from the EPF to the NPS system in India. While this switchover is imminent, here’s what you need to know about the change.

Technology in the hands of Individuals

In March 2015, during the new Government’s first budget presentation, Finance Minister Arun Jaitley revealed the idea to implement a centralised pension plan, also known as the NPS or the National Pension System in lieu of the ongoing Employee Provident Fund (EPF). It promised to be a simpler, more transparent, portable and regulated system than the current one, while its supervision would be undertaken by the Pension Fund Regulatory and Development Authority (PFRDA). This move highlighted the need for the working class to make this switch in order to facilitate a better and more organised growth graph for the pension market.

The current Employee Provident Fund option is a scheme that is provided to all salaried individuals in the country. It means that when you start working, you and your employer both contribute 12% of the basic salary (plus dearness allowances, if any) into your EPF account. The entire contribution goes into this account along with 3.67% (out of 12%) from your employer, while the remaining 8.33% from your employer is diverted into your EPS (Employee’s Pension Scheme).
For example, if minimum pay for an employee is above INR 6500 per month, the employer can only contribute 8.33% of INR 6500 (INR 541) to their EPS and the balance goes into the EPF account.

With NPS on the other hand, a portion of an employee’s salary is accumulated in an individual pension account called PRAN (Permanent Retirement Account Number) using points of presence, a central recordkeeping agency, and pension funds as specified in Government norms. A PRAN number is unique to each individual and remains with them throughout their life. NPS accounts are structured into 2 tiers, namely:
Tier-I Accounts: These are non-withdrawable where any contributions made are deposited and invested according to the scheme the subscriber opts for.
Tier-II Accounts:  A voluntary withdrawable account, which is allowed on the basis of a Tier I account already existing in the name of the individual. Withdrawals can be made as per the needs of or claims made by the subscriber.

Monthly contribution to the EPF is mandatory, whereas NPS provides employees with an option to opt out of the contribution clause.This leaves them with more disposable income at the end of each month. While both schemes are aimed at provision of retirement benefits to every employee, NPS offers a more convenient and tax benefiting option to the subscriber than EPF. It is also advisable to keep in mind that, once this switch is made, the NPS system allows an individual to shift back to the EPF plan only once, and without the availability of the perks attached to either scheme.

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. As of today, we accept service requests 6 days a week across all our platforms for individuals opting to make this switch.


Where Investments spruce up Retirement readiness

Savings for the elderly


India has been extensively romanticized as a nation that venerates the elderly. But times are changing; prevailing economic dynamics and inflation have effected fragmentation of undivided families, often leaving the old to manage life on their own. In contemplation, this is no new concept to Indians; “Vanaprastha” or the stage of the forest dweller had been in existence since the ancient times. Whilst forest dwelling in the olden days did not require extensive financial arrangements, living expenses for the aged has gone up the roof in the 21st Century.

A well etched financial planning is essential for smooth transition through the twilight years, to guarantee timely, effortless and affordable access to a dignified lifestyle and good healthcare facilities among others, ensuring graceful ageing with reduced financial dependency on children, relatives and others.

Where India stands in terms of Retirement readiness

India is found to be more than wanting in terms of retirement preparedness for the seniors. According to the reports published by Natixis Global retirement index 2016, India ranks last in a list of 43 countries from across the world, as evaluated on the basis of key factors, namely Material well-being, Health, Finances in Retirement and Quality of life.

Here, Finances in Retirement reflects the state of access to quality financial services and the savings facility for the aged, in India. At a score of 49%, there is ample headroom for improvement; not that India is deficient of schemes for retirement readiness.


The National Pension System or NPS, regulated by the Pension Fund Regulatory Development Authority (PFRDA), India, was introduced in 2004 as a tax-efficient retirement savings product with investor-friendly fund management charges. All Indian citizens between the age of 18 to 60 are eligible register and contribute through the scheme.

NPS – Corporate Solutions from the house of CAMS

The NPS – Corporate Solutions is a retirement solution scheme hosted by CAMS, designed exclusively to be adopted by Corporates, for helping their employees build financially secure futures through retirement savings via NPS. With the elimination of filing returns, assisting inspections / audits, scrutiny, penalties, notices, NPS – Corporate Solutions is less of an administrative burden and more of the ideal employee benefit initiative, providing for a dependable pension system for those in Non-Government and informal sectors.

NPS – Corporate Solutions  facilitates co-contribution by the employer and employee, with effective tax benefits for both parties.

NPS could be run parallel to Superannuation, Gratuity, PF, EPF and any other pension schemes offered to the employees of organized entities.

NPS Services for individual investors

CAMS with its penchant to simplify processes for the benefit of the end-customers, hosts conventional, offline NPS Services as well as the online based eNPS services, with Aadhar based account opening facilities.

Authorized by PFRDA, CAMS offices across India act as approved Points of Presence Service Centers (POP-SP), for the benefit of those with little or no access to online services. For those who prefer digital services, CAMS facilitates online payment of NPS contribution, even in case of accounts that were opened manually.

CAMS also hosts Transaction Acceptance, Life cycle Contribution Remittance (Cash /Cheque/ECS) and Subscriber Account services for subscribers of PRAN (Permanent Retirement Account Number), allotted after successful payment of initial contribution through NPS.

About CAMS:

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Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFC’s and Alternate Investment Funds. To know more visit