Job change: Will NPS linked retirement get derailed?

Changing jobs does not necessarily mean starting anew with your National Pension System (NPS) account. Your NPS account is tied to your Permanent Retirement Account Number (PRAN), which is under your control, not your employer's. So, when you switch jobs, your NPS corpus remains invested in the same asset mix, and you don't need to withdraw it.

However, how future contributions are handled does depend on whether your new employer offers Corporate NPS. If your new employer does have a Corporate NPS arrangement, you can link your existing PRAN to the new employer. If your new employer doesn't have Corporate NPS, you can keep your NPS account under the All-Citizen Model and continue making contributions independently.

When you change jobs, your PRAN remains the same, but the process for future contributions changes. If your new employer offers Corporate NPS, you'll need to tag your existing PRAN to the new employer. If your new employer doesn't offer Corporate NPS, you can continue making your own contributions under the All-Citizen Model.

It's important to note that if your new employer doesn't offer Corporate NPS, you'll lose the employer's contributions to your NPS. This can have a significant impact on your retirement savings. However, you can offset this by increasing your own NPS contributions. The tax treatment of these contributions will depend on the applicable provisions and the tax regime you have chosen.