The Pension Fund Regulatory and Development Authority (PFRDA) has issued a circular making Source Nodal Office authorization mandatory for all Inter-Sector Shifting (ISS) and Exit Requests initiated by Government Sector National Pension System (NPS) subscribers. This decision modifies a previous circular from December 22, 2022, which had exempted this authorization requirement after a subscriber’s retirement or superannuation. The revised procedure is implemented to strengthen control and oversight over cessation of relationship and sector shifting requests. This mandatory requirement applies consistently across all government segments, including Central and State Governments, and government-owned entities registered under the corporate sector model, regardless of the subscriber’s superannuation date. Points of Presence (PoPs) servicing employees of Public Sector Undertakings (PSUs) and Public Sector Banks (PSBs) must also ensure that any cessation-related requests are processed only with the explicit consent and documentation from the respective employer. This circular is effective immediately for all affected stakeholders.
Pension Fund Regulatory and Development Authority
Circular No: PFRDA/2025/15/SUP-CRA/1 Date: 10th Oct 2025
To
All Govt Nodal Offices, Points of Presence, Central Recordkeeping Agencies and Subscribers under NPS
Subject: Mandatory Source Nodal Office Authorization for Inter-Sector Shifting (ISS) and Exit Requests for Government Sector Subscribers-reg
This is in reference to PFRDA Circular No: PFRDA/2022/39/SUP-CRA/14 dated 22.12.2022 which states that authorization of Inter Sector Shifting (ISS) requests by the source Nodal Office is not required after retirement/superannuation in the Government Sector and PSU/PSB Corporate Subscriber segments.
2. To ensure robust control and oversight in the processing of subscriber exit and sector shifting requests, it has been decided that source Nodal Office authorization shall be mandatory in all cases of cessation of relationship between the subscriber and the Government/Government employer, including inter-sector shifting.
3. This requirement shall apply uniformly across all segments within the Government sector, including Central and State Governments, and government-owned entities registered as corporates, irrespective of the subscriber’s date of retirement or superannuation.
4. Accordingly, the relevant provision under PFRDA Circular No: PFRDA/2022/39/SUP-CRA/14 dated 22.12.2022, which exempted such authorization post-superannuation, stands modified to reflect the revised procedure.
5. PoPs servicing employees of PSUs / PSBs / any entity under the ownership and control of Government, under NPS Corporate Sector Model shall ensure that any request of such subscriber leading to cessation of relationship between subscriber and the concerned PSU/PSB (i.e. any kind of Exit or ISS) shall be processed only with due consent from the concerned employer, by obtaining appropriate documentation/communication confirming such cessation of employment.
6. This circular shall be effective immediately.
Yours sincerely,
Chief General Manager
