A Chakrabarti 26 June 2023

Transfer of superannuation corpus from lic ngsca scheme to nps tier-1 account ...

Hello,

I am looking for advice and references on cases for transfer of Superannuation Fund corpus from LIC NGSCA scheme to NPS Tier-1 account.

I understand that this transfer is possible as per provisions laid out by GOI and PFRDA through Circular no PFRDA/2017/11/PD/3 ( Dt. 6th March 2017), circular no PFRDA/2018/48/P&D/1 (Dt. 01-Jun-2018) and circular no PFRDA/2019/1/P&D/1 (Dt. 1-Jan-2019). However, I could not locate any cases of such transfer of corpus.

Let me present my case here :

I have worked in Hewlett Packard India for 21 years. Our company provided option for contributing to Superannuation Fund Corpus under LIC NGSCA scheme maintained for HP. Contribution was deducted from directly from salary. I contributed to the scheme till my exit from HP in 2020. However I did not withdraw the Superannuation Corpus till I reach 60 years.

Apart from the said SAF Fund, I have opened an NPS Tier-1 account and regularly contributing .

Now that I have attained pensionable age, I requested Hewlett Packard SAF Fund and LIC to transfer my accumulated SAF corpus to my NPS Tier-1 account as per aforementioned PFRDA circulars.

Unfortunately , both LIC and Hewlett Packard SAF Fund has not honored my request.

I have registered my grievance to LIC Grievance redressal authority ( scz_rmcrmps@licindia.com and co_crmgrv@licindia.com ) on 3rd Feb 2023 , but unfortunately they did not even respond to my grievance.

Please advise what should be my next course of action.

Also let me know if you know about any precedent case involving transfer of SAF Corpus to NPS Tier-1 account as per provisions in abofe mentioned PFRDA circulars .

Thanking in anticipation of your valued advice,
Abhijit Chakrabarti.

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1 Replies

Vanya Garima Kachhap 16 December 2024

Hello Mr. Abhijit Chakrabarti,

I have gone through your query and fully understand your situation. Allow me to offer some advice that I believe will be helpful to you.

There are certain laws and circulars issued by the Government of India (GOI) and Pension Fund Regulatory and Development Authority (PFRDA) that allow for the transfer of a superannuation corpus to an NPS Tier-1 account.

As per the provisions:

Section 10(13) of the Income Tax Act, 1961:

This section allows for tax benefits on superannuation fund amounts transferred to NPS Tier-1 accounts. It supports your right to transfer the corpus without additional tax implications.

In your case:

1. Since both LIC and Hewlett Packard SAF Fund have not responded to your request, and LIC’s grievance redressal authority has not addressed your concerns, you can escalate the matter to PFRDA.

2. File a formal complaint through the Centralized Public Grievance Redress and Monitoring System (CPGRAMS) portal at pgportal.gov.in, as this platform handles grievances related to government bodies, including LIC and PFRDA.

3. If the issue persists, you may approach the Insurance Ombudsman for LIC’s non-compliance and the High Court under a writ petition for enforcing your right as per the provisions of the above circulars.

Although no precedent case has been explicitly documented under these provisions, you can cite the aforementioned circulars and the principle of natural justice to strengthen your case. It would also be helpful to highlight any similar grievance escalations resolved by PFRDA.

Thank you for reaching out to us. Please feel free to ask any follow-up questions that you may have.