Introduction: Retirement is a very subjective matter and to a very large extent it

depends on an individuals earning capacity and priorities in life.

The New Pension Scheme (NPS) is a step forward in the direction towards creating
a uniform pension system for the general populace.
NPS is a voluntary, simple, regulate, portable and flexible pension system that
allows you to make regular saving for your retirement.
Objectives of Study:
1. Tax Benefits under section 80C, 80CCC, 80CCD & 80CCG.
2. Generate regular income after retirement.
Research Design:
a. Type of research: Deacriptive.
b. Method of data collection: Secondary.
c. Sampling Framework:
- Population: 1) Total Tax Planning Schemes:- Employee Provident
Fund, Public Provident Fund, National Saving Certificate, Tax Saving
Fixed Deposit, Pension/ Annuity Schemes, Life Insurance Premium.
2) Retirement Planning Schemes:1} HDFC Pension Management Co. Ltd
2} ICICI Prudential Pension Fund Management Co. Ltd
3} Kotak Mahindra Pension Fund Ltd
4} LIC PensionFund Ltd
5} Reliance Capital Pension Fund Ltd
6} SBI Pension Funds Pvt. Ltd
7} UTI Retirement Solution Ltd
8} Pension Fund (PF) to be incorporated by Birla Sunlife Insurance
Co. Ltd
- Sampling Technique: Convenient Sampling.
d. Data analysis techniques and tests to be used: Mean CAGR.
Retirement planning and how to ensure an independent life even when
one retires from active work life:

Retirement planning involves disciplined saving, vigilant investment to build a

sufficient retirement corpus and its judicious drawdown in the post-retirement
phase. This is achieved by joining a pension/retirement plan at an early stage in
ones life so that when a person retires from active work life, he gets a regular
stream of income in the form of pension or annuity for his life.

Pension plans available in India:

National Pension System (NPS) which is administered and regulated by Pension
Fund Regulatory and Development Authority (PFRDA) created by an Act of
Parliament. Besides the NPS, some mutual funds and insurance companies also
offer Pension plan or retirement plan, which are not under the jurisdiction of
PFRDA. Apart from this the normal retirement plan options include EPFO,
Retirement gratuity etc. is offered by employers to their workers and employees.

National Pension System (NPS):

National Pension System (NPS) is a voluntary, defined contribution retirement
savings scheme designed to enable the subscribers to make optimum decisions
regarding their future through systematic savings during their working life. NPS
seeks to inculcate the habit of saving for retirement amongst the citizens. It is an
attempt towards finding a sustainable solution to the problem of providing
adequate retirement income to every citizen of India.
Under the NPS, individual savings are pooled in to a pension fund which are
invested by PFRDA regulated professional fund managers as per the approved
investment guidelines in to the diversified portfolios comprising of
government bonds, bills, corporate debentures and shares. These contributions
would grow and accumulate over the years, depending on the returns earned on the
investment made.
At the time of normal exit from NPS, the subscribers may use the accumulated
pension wealth under the scheme to purchase a life annuity from a PFRDA

empanelled life insurance company apart from withdrawing a part of the

accumulated pension wealth as lump-sum, if they choose so.

Advantages in joining NPS:

Flexible- NPS offers a range of investment options and choice of Pension
Fund Manager (PFMs) for planning the growth of your investments in a
reasonable manner and see your money grow. Individuals can switch over
from one investment option to another or from one fund manager to another
subject, of course, to certain regulatory restrictions. The returns being
totally market-related.
Simple Opening an account with NPS provides a Permanent Retirement
Account Number (PRAN), which is a unique number and it remains with the
subscriber throughout his lifetime. The scheme is structured into two tiers:
Tier-I account: This is the non-withdrawable permanent retirement account
into which the accumulations are deposited and invested as per the option of
the subscriber.
Tier-II account: This is a voluntary withdrawable account which is allowed
only when there is an active Tier I account in the name of the subscriber.
The withdrawals are permitted from this account as per the needs of the
subscriber as and when claimed.
Portable- NPS provides seamless portability across jobs and across
locations, unlike all current pension plans, including that of the EPFO. It
would provide hassle-free arrangement for the individual subscribers.
Regulated- NPS is regulated by PFRDA, with transparent investment
norms, regular monitoring and performance review of fund managers by
NPS Trust.

Benefits of NPS:

Dual benefit of Low Cost and Power of compounding The account

maintenance costs under NPS are the lowest as compared to similar pension
products available in India, like retirement plans offered by Insurance companies
and mutual funds. While saving for a long-term goal such as retirement, the cost
matters a lot. Over 35-40 years, the charges can shave off a significant amount
from the corpus.
Till the retirement pension wealth accumulation grows over a period of time with a
compounding effect.The account maintenance charges being low, the benefit of
accumulated pension wealth to the subscriber eventually become large.
A flexible investment option: Subscribers have control on the choice of
investment made and the fund manager who manages the investments. Subscribers
can switch over from one investment option to another or from one fund manager
to another subject, of course, to certain regulatory restrictions.
Tax benefits: The first benefit of the NPS consists of the income tax deduction that
is available to the individuals when they make their own contribution to the fund.
There is an overall limit of Rs 1 lakh for contributions under eligible investments
for Section 80C, pension fund contributions (Section 80CCC) and contribution to
NPS (Section 80CCD). Apart from this, if there are co-contributions from the
employer, then
Employer contributing to the NPS on behalf of an employee will get
deduction from his income (i.e. employer's income) an amount equivalent to
the amount contributed or 10% of BASIC SALARY + DA of the employee,
whichever is less. (Section 36 (1) (iv a) of the Income Tax Act 1961)

Employer's contribution to NPS on behalf of the employee is treated as

perquisite in the hands of the employees, but is deductible u/s80CCD(2) of
the Income tax Act,1961 to the extent of 10% of basic salary. This deduction
is over and above the limit of Rs.1 lac u/s 80C of the Income tax Act,1961.
This will lessen the tax burden of the employee to the extent of amount
deductible u/s80CCD(2) of the Income tax Act,1961

A safe retirement fund : Introduced by the Government of India and regulated by

the Pension Fund Regulatory & Development Authority (PFRDA).

NPS Architecture:
The NPS is a sophisticated innovation that is based on the world's best practices
in the pension sector.
NPS is based on Personal retirement accounts (PRAs) created for individual
members. NPS accumulates savings into subscriber's PRA while he is
working and use the accumulations at retirement to procure a pension for the
rest of his life.

NPS architecture consists of NPS Trust which is entrusted with safeguarding

subscribers interests, a Central Recordkeeping Agency (CRA) which
maintains the data and records, Point of Presence (POP) and aggregators as
collection and distribution arms, competing pension fund managers for
generating and maximizing returns on investments of subscribers, custodian
to take care of the assets purchased by the Fund managers and Trustee bank
to manage the banking operations.

NPS has an unbundled Architecture, with inbuilt checks and balances, where
each function is performed by a different entity which is renowned in its
area, to achieve maximum operational efficiency and at a low cost.

NSDL is acting as Central Record Keeping agency (CRA) which is

associated with various national level projects for recordkeeping functions.

 Renowned Financial Institutions covering Public/Private Sector Banks,

NBFC, etc., acting as POPs and Aggregators.

Funds are managed by professional Fund Managers from Public & Private
sector with proven track record and as per the PFRDA approved investment
guidelines. At present there are 8 pension fund managers managing the
pension wealth of subscribers.
They are :
1} HDFC Pension Management Co. Ltd
2} ICICI Prudential Pension Fund Management Co. Ltd
3} Kotak Mahindra Pension Fund Ltd
4} LIC PensionFund Ltd
5} Reliance Capital Pension Fund Ltd
6} SBI Pension Funds Pvt. Ltd
7} UTI Retirement Solution Ltd
8} Pension Fund (PF) to be incorporated by Birla Sunlife Insurance
Co. Ltd

Agreements with all the Pension Fund Managers have been signed. Agreement has
also been signed with the Stock Holding Corporation of India who acts as
custodian of investment Instruments. So far Twenty Six State Governments /UT
have joined the NPS by signing the agreement with the NPS Trust. More State
Governments have shown their inclination to join the NPS Architecture.
A quarterly review of the Pension Fund managers is carried out by the NPS Trust
to review and evaluate the performance of the Fund Managers and make
suggestions for improvement.
NPS Trust:

The National Pension System Trust (NPS Trust) was established by PFRDA on27th
February, 2008 with the execution of the NPS Trust Deed. The NPS Trust has been
set up and constituted for taking care of the assets and funds under the National
Pension System (NPS) in the interest of the beneficiaries (subscribers). Individual
NPS subscribers shall be the beneficiaries of the NPS Trust. The NPS fund are
managed by the Board of Trustees to realize and fulfill the objectives of the NPS
Trust in the exclusive interest of the Subscribers.

Board:
The Trust is managed by a Board of Trustees appointed by PFRDA (settler of NPS
Trust) from time to time. One of the Trustees from the Board is designated by
PFRDA as Chairperson of the Board. PFRDA appoints a suitable person as Chief
Executive Officer of the Trust (CEO) who shall be responsible for day to day
administration and Management of the Trust subject to the superintendence,
control and direction of the Board of NPS Trust. PFRDA has appointed Shri Kamal
Chaudhry as Chief Executive Officer of NPS Trust from 1st August, 2014.The
Board
shall
meet
once
every
three
calendar
months.
The current Board of Trustee of NPS Trust consists of Five Members as under:-

1.
2.
3.
4.
5.

Sh. Shailesh V. Haribhakti- Chairman

Smt. Pallavi S. Shroff - Trustee
Sh Pramod Kumar Rastogi - Trustee
Sh.Ashvin Parekh - Trustee
Sh.N.D.Gupta - Trustee
Functions:
In fulfillment of its objectives, as broadly mentioned in the Deed, the NPS Trust
supervises the Pension Fund Managers (PFMS) and interacts with other
intermediaries like Trustee Bank (Axis Bank), Central Record Agency (NSDL),
Stock Holding Corporation of India Ltd, etc. The Trust is empowered to enter into
agreements with other intermediaries and operating agencies to discharge its

obligations.

As part of its obligations, the NPS Trust ensures that,

The PFMs have been diligent in empanelling the brokers, in monitoring
securities transactions with brokers and avoiding undue concentration of
business with any broker.
The PFMs has not given any undue or unfair advantage to any associates or
dealt with any of the associates of the Pension Fund in any manner
detrimental to interest of the beneficiaries
The PFMs has been managing the Fund Schemes independently of other
activities and has taken adequate steps to ensure that the interests of the
beneficiaries are not compromised.
All the activities and the transactions of the PFMs are in accordance with the
provisions of the PFRDA guidelines/directions.
A memorandum of Understanding was signed between PFRDA and the NPS Trust
highlighting the rights and obligations of both the parties on 1st July 2009.
To begin with the NPS was operational for the Central Government Employees
(except defense forces) joining the service on after 1.1.2004. Subsequently the
State Governments have also started joining the NPS. Three Fund managers have
been appointed to manage the Funds of the Government employees from 1.1.2008.
SBI Pension Funds Private Limited
UTI Retirement Solutions Limited
LIC Pension Fund Limited

Central Record Keeping Agency(CRA):

NSDL e-Governance Infrastructure Limited has been appointed as Central
Recordkeeping Agency (CRA) for National Pension System (NPS) with effect
from 1st December, 2007.

Central Recordkeeping Agency is required to establish an internal system that

delivers compliance with standards for internal organization and operational
conduct, with the aim of protecting the interests of NPS subscribers and their
assets.
Central Recordkeeping Agency carries operations as directed by PFRDA. It is
responsible for recordkeeping, administration and customerservice functions for all
NPS subscribers including receiving instructions from subscribers through the
points of presence, transmitting suchinstructions to pension funds and effecting
switching instructions received from subscribers.
CRA acts as an operational interface between PFRDA and other NPS
intermediaries such as Pension Fund Managers, Annuity Service Providers, Trustee
Bank etc.
Contact detailsToll free number- 1800222080
Address
NSDL e-Governance Infrastructure Ltd,
4th Floor, A Wing, Trade World,
Kamla Mills Compound,
Senapati Bapat Marg,
Lower Parel, Mumbai-400013
Functions:
Services to subscribers of all sectors
Recordkeeping, administration and customer service functions for all NPS
subscribers
Issue of unique Permanent Retirement Account Number (PRAN) and
IPIN/TPIN
Maintaining database of all PRANs issued, scanned copies of KYC
documents and recording transactions

Providing :

Centralized Grievance Management System

Call Centre Facility
Periodic consolidated SOT(Statement of Transactions)
Web based access to all the NPS Stakeholders
Subscriber maintenance services such as change of scheme, change of
demographic details, grievance handling etc
o Claims Processing Cell and related functionalities to process the withdrawal
requested.
o
o
o
o
o

Record Keeping & continuous enhancements:

Create and establish facilitation centers network across country
Development of various new functionalities/utilities and establishing new
processes
Continuous enhancements and development of modules to address changing
requirements of various stakeholders
Procurement of all necessary hardware and software
Setting up delivery, operations and security infrastructure
Services to intermediaries:
Pension Fund Managers (PFMs)
o Timely allocation of funds to PFMs
o Preparation and sending of consolidated Investment Preference Scheme
information
o Provision for sending net payout report
o Discrepancy/confirmation report on net payout
o Net fund transfer report to PFMs, on the basis of confirmation of fund
transfer report received from Trustee bank.
o Scheme performance reports measured using NAVs send by PFMs to
CRA.Preparation and sending of consolidated Investment Preference
Scheme information.
o Provision for sending net payout report
o Discrepancy/confirmation report on net payout
o Net fund transfer report to PFMs, on the basis of confirmation of fund
transfer report received from Trustee bank.

o Scheme performance reports measured using NAVs send by PFMs to CRA.

Trustee Bank (TB)
o Reconcile pension fund reports received from Trustee Account with pension
fund contribution information report
o Generate error/discrepancy report on fund reconciliation
o Sending instruction to Trustee Bank to remit withdrawal fund to subscribers
account and remit remaining amount to Annuity Service Providers account
against the annuity scheme
o Pension fund contribution/collection report
o Generate error/discrepancy report on fund reconciliation
o Funds transfer report
o Retirement funds transfer report
Annuity Service Providers (ASPs)
o Collection of physical application forms from the subscribers and
forwarding them to ASP.
o Funds transfer details for the subscribers annuity to ASPs
o Electronic data transfer to ASPs with respect to subscriber details.
o Sending instruction on Annuity scheme
o Confirmation on sale of annuity scheme: Annuity Service Provider should be
able to send confirmation report of sale of annuity scheme to superannuated
subscribers.
o Grievance and redressal
o Confirmation of fund transfer from Trustee Bank
Others
o Periodic and ad-hoc MIS (including Grievance redressal) to PFRDA, State
Governments, Central Government and Ministry of Finance
o Conduct periodic orientation programs for Nodal Offices
o Provide seamless and error-free system operations involving CRA system,
PFMs, TB and other entities in NPS
The following activities are classified as transactions: i) Contribution
Credits, ii) Rebalancing of Assets, iii) Change in scheme preference, iv)

Switch in / Switch out of Units, v) Withdrawals partial/ full, vi) Freeze,

vii) Un freeze and viii) Inter-sector Shifting of subscribers.

 Standard Operating Procedures

Central Government
Office Registration

Nodal Office Registration

Contribution Process

Contribution Upload Process

Contribution Process

Contribution fund Transfer Details

Contribution Process(Abridged
Contribution Upload Process(abridges Version)
Version)
Instant Reset of I-PIN

SOP for Instant Reset of I-PIN

Inter-Sector Shifting(ISS)

SOP for Inter-Sector Shifting(ISS) of

Subscribers

Error Rectification Module

SOP for Error Rectification Module(ERM)

State Government
Office Registration(Hindi)

Nodal Office Registration(Hindi)

Office Registration(English)

Nodal Office Registration(English)

Contribution Process(Hindi)

Subscriber contribution Upload( Hindi)

Contribution Process(English)

Subscriber Contribution Upload(English)

Instant Reset of I-PIN

SOP for Instant Reset of I-PIN

Inter-Sector Shifting(ISS)

SOP for Inter-Sector Shifting(ISS) of

Subscribers

Error Rectification Module

SOP for Error Rectification Module(ERM)

All Citizen Model

Registration of subscriber

SOP for Registration of subscriber

Tier II Activation

SOP for Tier II Activation

User ID Creation by POP/POPSP

SOP for User ID creation by POP/POP-SP

Contribution Process

SOP for Subscriber Contribution Upload

Subscriber Maintainence

SOP for Subscriber Maintainence

Instant Reset of I-PIN

SOP for Instant Reset of I-PIN

SOP for MIS Upload

SOP for MIS Upload

SOP for Tier II MIS Upload

SOP for Tier II MIS Upload

Functionalities for POP/POP-SP

Model based Functionalities for POP/POP-SP

Scheme Preference Change

SOP for Scheme Preference Change(Beta

Version)

Withdrawal-Tier II

SOP for Tier II Withdrawal

Inter POP Shifting

SOP Inter POP shifting

Inter-Sector Shifting(ISS)

SOP for Inter-Sector Shifting(ISS) for

subcribers

Error Rectification Module

SOP for Error Rectification Module(ERM)

(Under NPS Architecture)

Error Rectification Module

SOP for Error Rectification Module(ERM)

Swavalamban Yojana(NPS Lite)

Office Registration

Nodal Office Registration

Contrubution Process

Contribution Upload Process

Grievance Module for NPS-Lite

Subscribers

SOP for Grievance Module for NPS-Lite

Subscribers

Standard Operating Procedure for Transaction Statement and e-PRAN Download

Subscriber
by NLCC on NPS Lite
Annuity Service Providers (ASP):
At the time of exit from NPS for reasons other than death of the subscriber, the
subscriber is required to purchase an annuity providing for a monthly pension to
the subscriber from an Annuity Service Provider empanelled with PFRDA. In
Indian context, annuities in simple terms, are financial instruments which offer a
monthly/quarterly/annual pension at a guaranteed rate for the period you choose
for a given purchase price.
Annuity Service Providers are IRDA licensed and regulated Life Insurance
companies, transacting annuity business in India and who are empanelled by
PFRDA for servicing the annuity requirements of the NPS subscribers. At present
the following 7 ASPs are providing the Annuity services to NPS subscribers:

Life Insurance Corporation of India

SBI Life Insurance Co. Ltd.
ICICI Prudential Life Insurance Co. Ltd
HDFC Standard Life Insurance Co Ltd
Bajaj Allianz Life Insurance Co. Ltd

 Reliance Life Insurance Co. Ltd

Star Union Dai-ichi Life Insurance Co. Ltd

These ASPs are prudentially regulated and monitored by Insurance Regulatory

and Development Authority (IRDA). Under National Pension System (NPS), the
subscriber has the option to choose the type of Annuity and the Annuity Service
provider. The subscriber may choose the annuity type/scheme basing on his
requirements from amongst the available schemes offered by the respective ASPs.
Functions:
To provide Annuity services to the NPS subscribers at the time of
superannuation/annuitisation through National Pension System as per option
exercised by the subscriber.
To receive grievances from NPS subscribers during the purchase of annuity
and post purchase of annuity related to the servicing of annuity services and
redressal of the grievances.
Types of Annuities:
It is important to understand the nature and type of annuities for choosing or opting
for the same before the subscriber takes a decision to buy an annuity. There are
different kinds of immediate annuities paying for monthly pension are available in
the market. The following are the most common variants that are available:
i. Annuity for life
ii. Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter
iii. Annuity for life with return of purchase price on death
iv. Annuity for life increasing at simple rate of 3% p.a.
v. Annuity for life with a provision for 50% of the annuity to the spouse of the
annuitant for life on death of the annuitant
vi. Annuity for life with a provision for 100% of the annuity to the spouse of
the annuitant for life on death of the annuitant

vii. Annuity for life with a provision for 100% of the annuity payable to the
spouse of the annuitant for life on death of the annuitant, with return of
purchase price on the death of last survivor
In all above options annuity/monthly pension shall be paid during the life time of
the annuitant with following provisions on death of the annuitant for different
options as given below:
a) Under option (i) payment of annuity ceases
b) Under option (ii)
1. On death during the guarantee period annuity is paid to the nominee till
the end of the guaranteed period after which the same ceases
2. On death after the guarantee period payment of annuity ceases
c) Under option (iii) payment of annuity ceases and the purchase price is
returned to the nominee.
d) Under option (iv) payment of annuity ceases
e) Under option (v) payment of annuity ceases and 50% of the annuity is
paid to the surviving named spouse during his/her life time. If the spouse
predeceases the annuitant, payment of annuity will cease after the death of
the annuitant
f) Under option (vi) payment of annuity ceases and 100% of the annuity is
paid to the surviving named spouse during his/her life time. If the spouse
predeceases the annuitant, payment of annuity will cease after the death of
the annuitant
g) Under option (vii) payment of annuity ceases and 100% of the annuity is
paid to the surviving named spouse during his/her life time and purchase
price is returned to the nominee after the death of the spouse. If the spouse
predeceases the annuitant, payment of annuity will cease after the death of
the annuitant and purchase price is paid to the nominee.
These annuity variants are available with different specifications for age at entry
for different Annuity Service Providers. Also, the companies quote different rates
of premium or monthly pension that could be payable with the accumulated
pension wealth used to purchase the annuity as per their internal rules on premium
calculations. However, all these premium rates would be as per the approvals

received by the respective Annuity Service Provider from Insurance Regulatory

and Development Authority (IRDA) for the annuity product and variant.
Click here to details about the products offered, pricing, forms etc forms by
various Annuity Service Providers(ASPs)
Empanelment Process:
Life insurance companies registered and licensed under IRDA can apply to get
empanelment to become ASP through sending their application in prescribed
format along with relevant document after ensuring that they are meeting the
eligibility criteria.

Point of Presence (POP):

POP is the first point of interaction between the subscriber and the NPS
architecture. Point of Presence (POP) shall perform the functions relating to
registration of subscribers, undertaking Know Your Customer (KYC) verification,
receiving contributions and instructions from subscribers and transmission of the
same to designated NPS intermediaries. PoP(s) and their authorized branches (PoPSPs) shall also be required to comply with the provisions of the Prevention of
Money Laundering (PML) Act , 2002 and the rules framed thereunder, as may be
applicable, from time to time.

Functions:
1. To receive the duly filled application form along with the KYC
documentation as may be applicable from time to time.
2. To verify KYC documents as may be required from time to time.

3. To collect and verify contributions that may be received through

cash/cheque/Demand Draft/Electronic Clearing System (ECS).
4. To collect/deduct NPS application processing fees and issue of receipt to the
Subscriber against the same.
5. To submit complete and accepted forms on a daily basis, to CRA/CRA
Facilitation Centre (FC).
6. To upload the subscriber contribution files into CRA system and
simultaneously arrange to transfer the funds into the account of the NPS trust
maintained with the Trustee Bank.
7. To maintain and report records of all transactions in accordance with the
provisions of PML Act, 2002 and Rules framed thereunder, as may be
applicable, from time to time.
8. Regular subscriber contribution upload
Verify PRAN card details on the deposit slip, the format for which shall be
prescribed by PFRDA.
Collection and verification of contributions that may be received through
cash/cheque/Demand Draft/Electronic Clearing System (ECS).
Collection/deduction of contribution processing fee and issue of receipt to
the subscriber against the same.
Uploading subscriber contribution details online into the CRA system, in
respect of subscribers for whom clear funds are available, on a daily basis.
Remit clear funds into the account of the NPS trust maintained with the
Trustee Bank on at least T+1 basis.
Maintain hard copies of deposit slips.
9. Subscriber servicing
Carry out changes in subscriber details on request by subscriber
subject to the conditions stipulated by PFRDA
Receiving switch request for change in PFM and/or investment option
from subscriber and transmitting the same to CRA.
Receiving withdrawal requests from subscriber and transmitting the
same to CRA. For this purpose, subscriber would put in a withdrawal
request to PoP-SP. The subscribers pension wealth would be credited
directly to his bank account by trustee bank, on receiving instructions

from CRA, through RTGS/ NEFT or by way of a pay order where

his/her personal bank details are not available.
Attending to subscribers request for shift to another PoP-SP
Any other NPS account related service as may be prescribed by
PFRDA from time to time.
10.Grievance handling
Receiving of grievances submitted by the subscriber against PoP /
PoP-SP or any other NPS Intermediary in the format prescribed by
PFRDA and uploading of all grievances in the Central Grievance
Management System (CGMS) of CRA on a daily basis. The CGMS
system of CRA would route the grievances to respective NPS
intermediaries.
Receiving grievances raised by the subscriber against PoP/PoP-SP
through the CRA call center/CGMS of CRA by accessing the CGMS.
Exit Procedure from NPS:
A subscriber can exit from National Pension System (NPS) only in accordance
with PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 which are
notified on 11th May, 2015. The said regulation is a comprehensive document
giving details of all the benefits that can be withdrawn under the National Pension
System and the applicable conditions thereof. The said regulation is available on
our website atwww.pfrda.org.in.
Withdrawal Procedure
Under National Pension System (NPS), The Central Recordkeeping Agency (CRA)
has been entrusted with the responsibility of receiving instructions related to all
types of withdrawals, processing and settlement of all such claims from NPS
account holders under National Pension System. CRA has created a specific Claim
Cell called NPS Claim processing cell (NPSCPC) for processing all claims under
NPS and the contact details of the same are as given below whom the subscribers

can contact for obtaining the information, forms and procedure pertaining to the
Exit and withdrawal of benefits upon exit from National Pension System (NPS):

NPS
Claim
Processing
Cell,
COMMUNICATION
Central Record Keeping Agency, NSDL, 4th Floor, A
ADDRESS OF CRA
Wing, Trade World, Kamala Mills Compound, Senapati
CLAIM CELL
Bapat Marg, Lower Parel, Mumbai - 4000013
TELEPHONE
NUMBERS

022-24994512
022-24994862
022-249904200 (Board)

E-MAIL IDS

SarvdeepS@nsdl.co.in ; Sudhanshus@nsdl.co.in

CONTACT PERSON /
Mr.Sarvdeep Singh / Mr. Sudhanshu Shekhar
PERSONS
SECOND OR SENIOR
LEVEL
CONTACT Mr.Prasenjit Mukherjee
PERSON
E-MAIL ID

PrasenjitM@nsdl.co.in

Subscribers / PAO / POP / AGGREGATOR can contact the personnel mentioned

above in case of any doubt / queries on the withdrawal process or any other
information pertaining to the withdrawal of benefits under NPS.
The withdrawal process for claiming the benefits under NPS is common to all
the subscribers i.e., Government employee subscribers and all others and
involves the following broad and generic steps:
1.
Receipt of Withdrawal Claim Intimation from subscriber/PAO-DTODD/POP/Aggregator
2.
Receipt of completed Documentation from Subscriber/ PAO-DTODD/POP/Aggregator
Withdrawal application form
Original PRAN Card / notarized affidavit in case if the original is not
submitted.

 Photo ID proof
Residence proof
Cancelled cheque/bank certificate/copy of the bank passbook with
photograph and all the other details like IFS Code, Account no, Branch
address and Code.
Direct credit mandate
Annuity application form duly filled and signed by subscriber
Death certificate in original, if the claim is for the benefits arising out of the
death of the subscriber
Legal heir certificate wherever applicable
Relieving letter and NOC, if applicable.
3. Receipt and Processing of Claim made, as per exit guidelines by CRA Claim
Cell and resulting in intimation of deficiencies / requirements, if any
Approval of Claim withdrawal by CRA Claims cell (60% 40% 100% etc)
basing on the entitlement as per NPS Exit rules.
Instructions to PFM and TB for crediting lump sum withdrawal
Forwarding Annuity form to ASP and crediting the ASP account with the
pension wealth as per the instructions provided in the withdrawal application
form by the subscriber.
4. Intimation to Subscriber/Govt/POP on the settlement with full details.Closure
of claim as completely settled account.
Overall, the entire effort is to minimize the time required for settlement of
withdrawal claims and minimize the hardships to the NPS subscribers.

Online Withdrawal Process

Online Demo for Subscribers