Age 0 to 18 18 to 60 60 Onwards

Group

NPS provides a platform for saving to

create corpus, to enable subscriber for
purchasing Annuity post retirement

What is NPS ?

NPS is a defined contribution pension scheme which is highly efficient, technology

driven system to save small amounts today, to build a fund for life’s second innings.

Who Can Join ?

You can join, if you are any or all of the following:
• Citizen of India; Resident or Non-Resident
• Age between 18-60 years, as on date of joining
• Salaried or Self Employed
• Complies with KYC norms
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 Built on a highly efficient,
technology driven platform
Unmatched Lowest cost of
Investment

Attractive Tax Benefits for

Employees and Employers

Attractive Market Linked Returns

Prudentially Regulated by PFRDA

Investments managed by experienced

Pension Funds

Safe, Secure and Easily Portable

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Tier-I account: Subscribers can contribute for retirement into this non-withdrawal account.
Income Tax benefits as per IT Act, 1961 for Tier I.

Tier-II account: Voluntary savings facility, where the subscriber can avail fund management
facility at very low costs. Subscribers are free to withdraw amount from this
account. However, tax benefits are not available.

Currently, CSC is accepting registrations for Tier I only. Tier II will be available in next phase.

Particulars Tier I Tier II

Minimum Contribution at the

Rs. 500/- Rs.1,000/-
time of account opening

Minimum amount per

Rs.500/- Rs.250/-
contribution
Minimum contribution in a
Rs.1000/- Rs.2,000/-
financial year

Minimum frequency of
1 1
contributions per financial year

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 Role of CSC under NPS

To offer advice on NPS to the prospects and to facilitate opening of NPS accounts

To disseminate information about NPS

To accept contributions from subscribers and timely remit the same

To accept service request from the subscriber and to act on them

To redress the grievances of the subscribers

To process exit and withdrawal request

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• Citizen to visit any CSC & ask VLE to open a NPS account.

• VLE login into his Digi Seva Portal & Click on NPS, Enter his Aadhaar no.
& authenticate him through Aadhaar/eKYC option.

• Enter the details like Nominee, Contribution amount, Choose Fund

manager, upload his Signature and collect the contribution amount from
the subscriber.

• Pay the amount using the wallet, submit application and generate PRAN.

• Take the print out of the form, get it signed by the subscriber & dispatch it
to M/s Alankit Assignments Ltd, Alankit House, 4E/2, Jhandewalan
Extension, New Delhi 110005 with in 3 working days.

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 Choice of PFMs
1. ICICI Pension Fund Management Company Limited

2. Kotak Mahindra Pension Fund Limited

3. Reliance Capital Pension Fund Limited

4. SBI Pension Fund Private Limited

5. UTI Retirement Solutions Limited

6. LIC pension Fund Limited

7. HDFC Pension Fund Manager Company Limited

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 Investment Option
Active Choice Subscriber decides allocation pattern amongst A, E, C & G

Asset Class Cap on Investment

Alternative (A) 5%

Equity (E) 50%

Corporate Bonds (C) 100%

Government Securities (G) 100%

Auto Choice Funds managed on the pattern of a lifecycle fund

Funds to be allocate in E, C & G as per the age of the Subscriber

 Investment Option can be changed once in a financial year 7
 To Employers

• Contributions made by the employer (upto 10% of Basic + DA) is allowed as a business
expense under Section 36 (1) iv (a) of Income Tax Act 1961.

To Employees

• Employees own contribution is eligible for tax deduction under sec 80 CCD (1) of Income
Tax Act up to 10% of salary (Basic + DA). This is within the overall ceiling of Rs. 1.50 Lacs
under Sec. 80 CCE of the Income Tax Act.

• Employee also gets tax deduction for the contribution made by the employer under section
80 CCD (2) of IT act upto 10% of salary (Basic + DA) which is in addition to the tax
benefits available under Sec. 80 CCE. No Monetary ceiling.

• Subscriber is allowed tax deduction in addition to the deduction allowed under

Sec. 80CCD(1) for additional contribution in his NPS account subject to
maximum of Rs. 50,000/- under sec. 80CCD 1(B). Exclusive to NPS
 Interim Withdrawal

 Withdrawal will be allowed subject to

 Subscriber should be in NPS for 10 years

 Amount should not exceed 25% of the contributions made

by the subscriber

 Withdrawal can happen only against specified reasons

Withdrawal option are limited to ensure

sufficient terminal corpus

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 Pre mature Retirement

Vesting Criteria
At any point in time before
superannuation

Conditions for
Normal Retirement
Withdrawal
Vesting Criteria
On attaining the
superannuation

Death of subscriber

Vesting Criteria
Death due to any cause
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 Vesting Criteria Benefit
At any point in time before
superannuation Compulsory Annuitisation- minimum 80%
(allowed to subscriber who Lump sum withdrawal- maximum 20%
have been in NPS for at least If Corpus< Rs. 1.00 Lac, complete withdrawal
10 years)

Annuitisation- minimum 40%

Lump sum withdrawal- maximum 60%
If Corpus< Rs. 2.00 Lac, complete withdrawal
On attaining the age of
- Subscriber can stay invested in the NPS upto the age of 70 years. Fresh
superannuation as prescribed
contributions are allowed during such a period of deferment.
in service rules) and upto 70
- Can defer the withdrawal of eligible lump sum amount till the age of 70
years of age
years and withdraw the same in 10 annual instaments.
-Annuity purchase can also be deferred for maximum period of 3 years at the
time of exit.

In such an unfortunate event, option will be available to the nominee to

receive 100% of the NPS pension wealth in lump sum. However, if the
Death due to any cause
nominee wishes to continue with the NPS, he/she shall have to subscribe to
NPS individually after following due KYC procedure.
 Exit Process 40% for RS. 20
lacs
Corpus Pension
Monthly Pension of around Rs
11,883 *
At the Rs.50
age of 60 lacs Lumpsum amount of
Rs. 30 lacs

60% as RS. 30
Lumpsum lacs

80% for
Corpus Pension Rs. 20
Monthly Pension of around Rs Rs.
lacs
11,800 *

At the Rs. 25
age of 50 lacs Lumpsum amount of Rs. 5 lacs

20% as RS. 5
Lumpsum lacs

In Case of Death: Claimant will get full amount or as applicable for

exit before the age of 60
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 Variants of Annuity Plans

• Pension (Annuity) payable for life at a uniform rate to the annuitant only.

• Pension (Annuity) payable for 5, 10, 15 or 20 years certain and thereafter as long as you
are alive.
• Pension (Annuity) for life with return of purchase price on death of the annuitant
(Policyholder).

• Pension (Annuity) payable for life increasing at a simple rate of 3% p.a.

• Pension (Annuity) for life with a provision of 50% of the annuity payable to spouse during
his/her lifetime on death of the annuitant.
• Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse
during his/her lifetime on death of the annuitant.

• Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse
during his/her lifetime on death of the annuitant and with return of purchase price on
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.

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Annuity Service Providers
Intermediary Charge Head Service Charge Method of Deduction
Initial Subscriber Registration Rs. 125

Initial Contribution
0.25% Min: Rs. 20 &
POP To be Collected Upfront
All Subsequent Contribution Max : Rs.25,000

All Non-Financial Transaction Rs. 20

Earning : VLE will get 80% - TDS of above charges upfront

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 Aadhaar Based Registration of Subscriber.

 Instant PRAN allotment

 No Paperwork for Subscribers.

 PRAN kit will be delivered to the subscriber within 30 days from NSDL.

 Direct contribution through Payment Gateway Service Provider (PGSP) by all

existing Subscribers. Online Credentials will be in the PRAN Kit.

 Subsequent contribution by furnishing only PRAN Number to the VLE.