CPS Holders Personal Details Update by Submitting S2 Form. The Contributory Pension Scheme (CPS) is a mandatory retirement savings plan for all public and private sector employees in Nigeria.
It was established in 2004 to replace the old Defined Benefits Scheme (DBS) and to provide a sustainable pension scheme for Nigerian workers. As a CPS holder, it is essential to keep your personal details updated to ensure that your pension benefits are processed efficiently.
What is CPS?
The Contributory Pension Scheme (CPS) is a mandatory retirement savings plan for all public and private sector employees in Nigeria.
It is regulated by the National Pension Commission and requires both the employee and employer to contribute a minimum of 10% and 8% respectively of the employee’s basic salary and allowances.
What is an S2 form?
The S2 form is an important document used by CPS holders to update their personal details. The form is used to update personal information such as change of name, address, phone number, email address, next of kin, and beneficiary information.
Why Update Your Personal Details?
To ensure efficient pension benefit processing: Updating your personal details is crucial to ensure that your pension benefits are processed efficiently. Any incorrect or outdated information can cause delays in the processing of your benefits, leading to unnecessary stress and inconvenience.
To prevent fraud: Keeping your personal details up to date helps to prevent identity theft and fraud. Your personal information, such as your name and address, can be used by fraudsters to access your pension benefits. By keeping your personal details up to date, you reduce the risk of fraud.
How to Update Your Personal Details by Submitting S2 Form
Overall, updating your personal details as a CPS holder is an important step to ensure that your pension benefits are processed efficiently and to prevent fraud. By submitting an S2 form, you can keep your personal information up to date and enjoy a hassle-free retirement.
Obtain an S2 Form
The first step to updating your personal details is to obtain an S2 form. You can obtain the form from your employer or download it from the National Pension Commission (PenCom) website.
Fill Out the Form
Once you have the S2 form, fill it out with your updated personal details. Ensure that all the information provided is accurate and up to date.
Submit the Form
After filling out the form, submit it to your employer. Your employer will verify and sign the form, after which it will be submitted to the Pension Fund Administrator (PFA).
Confirmation of Update
After the PFA receives your updated information, they will confirm the update with you. You may be required to provide additional information or documentation to verify your updated information.
Pension Fund Regulatory and Development Authority (PFRDA) is an Authority to promote old age income security by establishing, regulating and developing pension funds to protect the interest of subscribers in schemes of pension funds and for matters connected therewith or incidental thereto.
National Pension System (NPS) means the contributory pension system whereby contributions from subscribers along with matching contributions from respective governments as an employer, are collected and accumulated in an individual pension account.
NPS uses a system of Government/ Autonomous Bodies’ Nodal offices, a Central Recordkeeping Agency (CRA) and designated Pension Funds (PFs), as specified by the respective regulations from time to time to achieve synergy and maximum efficiency in operations.
NPS is mandatory to all employees joining services of Central Government (except Armed Forces) and Central Autonomous Bodies on or after tat January 2004. Almost all State Governments have adopted NPS architecture and have implemented NPS mandatorily through Gazette Notifications for the State Government/ Autonomous body employees joining on or after their respective cut-off dates.
As a subscriber under NPS you are provided with an individual pension account identified by Permanent Retirement Account Number (PRAN) which is unique & portable across locations and employments.
The Card provided to you contains your PRAN, Father’s name, Photograph and Signature/ Thumb impression.
Along with your PRAN card, you are also provided with Internet Personal Identification Number (I-PIN) and Tele-query Personal Identification Number (T-PIN) through which you can access your pension account via the internet (through CRA website www.npscra.nsdl.cain) or telephonically at CRA Helpline (1800222080), respectively.
Benefits of NPS
The dual benefit of Low Cost & Power of Compounding: The pension wealth accumulates over a period of time till retirement; grows with a. compounding effect and the account maintenance charges being low, larger would be the eventual benefit of the accumulated pension wealth
- Tax Benefits: Benefits available under Section 80 CCD(1) and 80 CCD(2) as per relevant sections of Income Tax Act 1961, as amended from time to time.
- Safety: Regulated by the Pension Fund Regulatory & Development Authority (PFRDA) and introduced by the Government of India.
- Transparency: Through online access to your pension account.
- Portability: Across all geographical locations and employments across India.
Tier 1 and Tier 2 Account
Under NPS, two types of accounts are available to you i.e., Tier I & Tier II
A. Tier I account – where you and the Government contribute funds into your individual account. As a subscriber, you contribute 10% of your Basic Pay and DA into your Tier-I account on a mandatory basis every month, which is invested along with the matching contribution from the employer.
The regular NPS contributions and the accumulated amounts are reflected in your PRAN while you are in service and shall be used at retirement for procurement of your pension.
B. Tier II account – a voluntary savings account from which you are free to withdraw the savings at your own choice. An active Tier I account along with PRAN is a prerequisite for opening of Tier II. You can approach any Point of Presence- Service Provider (POP-SP- list available at CRA website) for activation of Tier II account along with a copy of PRAN card and PAN card.
Furthermore, since Tier II is a voluntary saving account, the government does not contribute any amount into your Tier II account and no tax benefits are available for the contributions made.
NSDL and Central Recordkeeping Agency (CRA)
NSDL(National Securities Depository Limited) e-Governance Infrastructure Limited and The Pension Fund Regulatory and Development Authority (PFRDA) have entered into an agreement relating to the setting up of a Central Recordkeeping Agency (CRA) for the National Pension System (NPS).
The NPS was introduced by the Government of India for its new recruits (except the Armed Forces) joining w.e.f. January 1, 2004. CRA is the core infrastructure for the National Pension System and is critical for its successful operationalization. The main functions and responsibilities of the CRA include Recordkeeping, Administration and customer service functions for all subscribers of the NPS.
Issuing of unique Permanent Retirement Account Number (PRAN) to each subscriber, maintaining a database of all PRANs issued and recording transactions relating to each subscriber’s PRAN.
Acting as an operational interface between PFRDA and other NPS intermediaries such as Pension Funds, Trustee Bank, Annuity Service Providers, etc., CRA will monitor member contributions and instructions and transmit the information to the relevant Pension Fund and schemes on a daily basis.
CRA will provide periodically, consolidated PRAN statements to each member and discharge such other duties and functions as may be determined by the guidelines, directions and regulations issued by the PFRDA from time to time. How to fill S2 Form /How to Update Subscriber Master Details
All Contributory Pension Scheme(CPS) holders have to update your address, Mobile no.& email ID in National Pension System(NPS) account by submitting S2 Form to the Nodal Officer. S2 form has two sections. first one is for update personal details of CPS Holders and the second one is for subscriber’ nominee details.
Instructions for filling S2 form:
- This form is to be used for the purpose of change/correction in (Subscriber Master-Details) subscriber personal details, nominee details, a reissue of I-Pin /T-Pin or reissue of PRAN card.
- The form is to be submitted at the Nodal office for carrying out the necessary changes
- Please tick the box on the left margin of the appropriate row where change/correction is required’ and provide the details in the
corresponding row. Please strike off the remaining blank rows for which no change is requested. - Form to be filled legibly in BLOCK LETTERS and in BLACK INK only.
- Details Marked with (*) are the mandatory fields.
- Mention 12 digits PRAN correctly.
- All Dates Should be in “DDMMYYYY” Format
- If permanent address & present address is different, all future communications will be sent to the present address.
- Nomination:
a. The subscriber can nominate maximum of three nominees.
b. The subscriber can not fill the same nominee details more than once.
c. Percentage share value for all the nominees must be an integer. The fractional value will not be accepted.
d. Sum of percentage share across all the nominees must be equal to 100. If the sum of percentage is not equal to 100, the nomination will be rejected. - Reissue of T-Pin, I-Pin and reissue of PRAN card will be chargeable by the CRA.
Download the S II Form from here
FAQs
What happens if I don’t update my personal details?
If you don’t update your personal details, there may be delays in the processing of your pension benefits. You may also be at risk of identity theft and fraud.
How often should I update my personal details?
It is recommended that you update your personal details at least once a year or whenever there is a change in your personal circumstances.
Can I update my personal details online?
No, you cannot update your personal details online. You need to fill out an S2 form and submit it to your employer.
What happens if there is an error in my updated personal details?
If there is an error in your updated personal details, it is important to contact your employer or Pension Fund Administrator (PFA) as soon as possible. They will work with you to correct the error and ensure that your personal details are updated accurately.
What other documents do I need to submit with my S2 form?
In most cases, you do not need to submit any additional documents with your S2 form. However, your employer or PFA may request additional information or documentation to verify your updated personal details.
Conclusion
Updating your personal details as a CPS holder is crucial to ensure that your pension benefits are processed efficiently and to prevent fraud. By submitting an S2 form, you can update your personal information and keep it up to date. It is recommended that you update your personal details at least once a year or whenever there is a change in your personal circumstances.
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