Skip to main content

Posts

Showing posts from June, 2026

Corporate NPS: The Fine Print Nobody Talks About

Employer NPS has become increasingly attractive, especially under the New Tax Regime. In fact, the employer's NPS contribution under Section 80CCD (2) is one of the few meaningful tax deductions still available. Because of this, many employees may be tempted to move their existing NPS accounts to the Corporate Sector model. While the tax benefits are undoubtedly attractive, there are several operational changes and lesser-known implications that are rarely discussed. None of these are deal-breakers, but they're worth understanding before making the switch. Here are some things I discovered along the way. 🎯 PFM & Asset Allocation Lock-In Under Corporate NPS, the employer may choose the Pension Fund Manager (PFM) and asset allocation on the behalf its employees. The problem? One size doesn't fit all. You might be a young investor with a long investment horizon and a high risk appetite. Yet your employer may select a conservative scheme with lower equity exposure. Over de...