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Can I Access My Private NPS Account After Joining Government Sector In 2020?

T S Khurana

T S Khurana   |490 Answers  |Ask -

Tax Expert - Answered on Aug 31, 2024

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more
Asked by Anonymous - Aug 25, 2024Hindi
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Dear Sir, I was private employee till 2020 and had NPS account (All citizens scheme) and was contributing from 2012. Now from 2020 onwards joined government organisation and the account was shifted from all citizens to central government sector. Now my doubt or query is Can I withdraw the amount that I have contributed when I was in all citizens scheme. Waiting for your kind reply and suggestions.

Ans: Since you have contributed to this scheme for more than 3 years, You can partially withdraw the amount, for some specific purpose.
Most welcome for any further clarifications. Thanks.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |9719 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 02, 2025

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I was working in a PSU Bank since 2014 and I left the job in Jan 2025 not on good terms with my previous employer. They have not accepted my resignation but they have stopped NPS contribution. My last NPS contribution was on Jan 25. Now if I want to do pre mature withdrawal. For this do we need to contact with previous employer for generating claim id or should I switch to ALL CITIZEN SCHEME. Please guide me what is the best option as I don't want to contact with previous employer and they might not generate claim ID. Right now i don't wanna go to the court for this.
Ans: You have taken the right step by seeking guidance. Let us now carefully assess the best way to handle your NPS account without needing to contact your previous PSU employer.

This answer will cover your current position, potential options, legal considerations, and the next actions. I will keep it simple, structured, and detailed for better clarity.

Your Current Situation
You worked in a PSU bank since 2014.

   

You left your job in January 2025.

   

Your resignation was not accepted officially.

   

But your NPS contributions stopped from January 2025.

   

You now want to do a premature withdrawal from NPS.

   

You do not want to contact your old employer.

   

You also want to avoid legal action at this point.

   

NPS Withdrawal Rules
A premature NPS withdrawal needs a Claim ID to be generated.

   

For Government Sector NPS, only the employer can generate this ID.

   

This makes it difficult when relations with employer are not good.

   

If you wait, you may lose time or even face delays in withdrawal.

   

Option to Shift: All Citizens Model
NPS has a separate route called All Citizens Model.

   

This is a voluntary model open to every Indian citizen.

   

This model allows full control to the subscriber.

   

You can contribute, withdraw, or manage your NPS yourself.

   

You do not need employer approval for any activity.

   

How to Shift from Govt Sector to All Citizens Model
This shift is called Inter-Sector Shifting.

   

You need to submit an ISS-1 Form.

   

Visit any Point of Presence (PoP) of NPS near you.

   

Carry KYC documents like PAN, Aadhaar, and address proof.

   

Submit the filled form and documents to PoP staff.

   

This process takes a few working days.

   

Once shifted, your NPS PRAN will be under All Citizens Model.

   

The PRAN number will remain the same.

   

What You Can Do After Shift
Once you are under All Citizens Model, no employer permission is needed.

   

You can log in to the CRA website and manage everything.

   

You can also raise a withdrawal request on your own.

   

You will still need to submit KYC, bank account, and nominee proof.

   

A good Certified Financial Planner can help in documentation and decision-making.

   

Conditions for Premature Withdrawal
If total corpus is less than Rs. 2.5 lakh, full amount can be withdrawn.

   

No annuity is required in that case.

   

If corpus is more than Rs. 2.5 lakh, you must buy annuity for 80%.

   

You can withdraw only 20% lump sum in that case.

   

Also, you must not be in any other active employment.

   

Tax Aspects to Consider
The lump sum you withdraw from NPS is taxable.

   

It is added to your income in the year of withdrawal.

   

You must check your income tax slab before withdrawing.

   

A Certified Financial Planner can plan withdrawals in tax-efficient way.

   

Advantages of Shifting to All Citizens Model
Total independence over your NPS funds.

   

No need to contact PSU employer again.

   

Can continue investing in NPS voluntarily if you want.

   

Full control over pension choices and nominee details.

   

Risks of Not Shifting
If you stay under Government Model, only employer can start the withdrawal.

   

You may get stuck for months if employer refuses to act.

   

It could lead to stress, waste of time, and possible legal fights.

   

What You Should Do Next
Visit any PoP branch and ask for ISS-1 Form.

   

Submit your documents and shift to All Citizens Model.

   

Check your updated status after 7–10 working days.

   

Then decide whether to withdraw fully or partially.

   

Consult a Certified Financial Planner if you are unsure about the next step.

   

Things to Keep Ready Before Shift
PAN Card

   

Aadhaar

   

Bank passbook or cancelled cheque

   

Recent photo and address proof

   

Nominee details

   

Other Long-Term Options After Withdrawal
If you withdraw now, invest funds wisely for retirement.

   

Mutual funds through a Certified Financial Planner offer strong long-term returns.

   

Avoid direct mutual funds to reduce personal error and mismanagement.

   

Avoid index funds as they lack active decision-making during volatility.

   

A Certified Financial Planner can manage funds actively and help you rebalance.

   

Do Not Delay This Decision
Every month that passes without action is a missed opportunity.

   

Move your NPS to All Citizens Model soon.

   

It is the simplest and safest path for your case.

   

You avoid employer, legal stress, and retain control.

   

Final Insights
Your PSU employer is no longer controlling your future.

   

The NPS system allows full flexibility to shift to citizen model.

   

You can take control without legal fights or stress.

   

Once shifted, plan your withdrawal and reinvest smartly.

   

Think long-term wealth, not short-term relief.

   

A Certified Financial Planner will help you make this turning point productive.

   

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

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