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Showing posts with label National Pension Scheme. Show all posts
Showing posts with label National Pension Scheme. Show all posts

Wednesday, 20 May 2020

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Monday, 1 January 2018

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Saturday, 3 June 2017

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Wednesday, 22 March 2017

08:23

CAPF AND ASSAM RIFLES APPOINTED ON OR BEFORE 01.01.2004 ARE COVERED UNDER NPS

CAPF AND ASSAM RIFLES APPOINTED ON OR BEFORE 01.01.2004 ARE COVERED UNDER NPS

Pension to retired personnel 

There are demands from the in service and retired Central Armed Police Forces (CAPFs) and Assam Rifles (AR) personnel for extending One Rank One Pension (OROP). CAPF & AR personnel retire only on attaining the age of 57/60 years and they are entitled for pension and other pensionary benefits as per Central Civil Services (Pension) Rules, 1972. These rules are different from the pension rules applicable to Ex-Servicemen. Further CAPF & AR personnel, who are appointed on or after 01/01/2004 are covered under New Pension System (NPS).

The Government has taken several steps for the Central Armed Police Forces (CAPFs) personnel including Next of Kin (NoK) of CAPFs personnel who lay down their lives for the country.  Following  benefits, inter alia, are  given to Central Armed Police Forces (CAPFs) personnel  including the  Next of Kin (NoK) of those who lay down their lives for the  country:-

(i)  Ex-gratia lump-sum compensation @ Rs.35 lacs for death on active duty and  @Rs. 25 lakhs for death on duty, as the case may be, is entitled to the Next of Kin of the deceased personnel. 

(ii) The NoK of the deceased is entitled to get Liberalized Family Pension (i.e. last pay drawn) under Central Civil Service (Extra Ordinary Pension) Rules, 1939 and other pensionary benefits as admissible.

(iii)    5% vacancies  are  reserved in Group “C” & “D” for compassionate appointments for NoK of the deceased personnel.

(iv) Under the Prime Minister Scholarship Scheme, amount @ Rs.2250/- pm for girls and Rs.2000/- pm for boys is being released to the wards of serving/retired CAPFs personnel.  Prime Minister Scholarship is admissible to 1000 girls  and 1000 boys. 

(v) There is a reservation of 15 MBBS and 02 BDS seats for the wards of CAPFs  personnel in the seats of Central Government for these courses. 

(vi) Central Police Canteens at various locations in the country have been functioning.

(vii)  A Welfare and Rehabilitation Board has been established for the welfare and rehabilitation of CAPFs personnel and their families including differently abled personnel.


This was stated by the Minister of State for Home Affairs, Shri Kiren Rijiju in a written reply to question by Shri Kamal Nath and Shri Jyotiraditya M. Scindia in the Lok Sabha ON 21.03.2017.

Source:PIBNEWS

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Friday, 3 February 2017

07:28

National Pension Scheme New Benefits for Subscribers Announced

National Pension Scheme New Benefits for Subscribers Announced

New Benefits announced for NPS Subscribers in Union Budget 2017-18 

In a bid to provide further impetus to the National Pension System (NPS), the following provisions have been introduced in the Finance Bill 2017 laid down in the Parliament today.  
Tax-exemption to partial withdrawal from National Pension System (NPS) 
The existing provision of section 10(12A)of the Income Tax Act, 1961  provides that payment from National Pension System (NPS)  to a subscriber  on closurer of his account or opting out shall be exempt up to 40% of total corpus  at the time of withdrawal . The amount utilized for purchase of annuity is also tax exempt. At the time of normal exit, 40% of the total corpus is mandatorily required to be purchased for annuity. The subscriber has the option to use higher amount for purchase of annuity. 
In order to provide further relief to the subscriber of NPS, it has been proposed to insert a new clause (12B) in the section 10 of Income Tax Act, 1961 to provide exemption on partial withdrawal not exceeding 25% of the contribution made by an employee in accordance with the terms and conditions specified under Pension Fund Regulatory and Development Authority Act, 2013 and regulations made there under. 
This benefit will be effective on partial withdrawal made by the subscriber after 1st April 2017. 
Further, Contribution up to 20% of the Gross Income of the Self-employed individual (Individual other than salaried class) will be deductible from the taxable income under Section 80CCD (1) of the Income Tax Act, 1961, as against 10% earlier.
This is with a view to provide parity between a salaried employee and a self-employed.
This benefit will be available on contribution made by the self employed persons on or after 1st April 2017. 
This increased limit for tax benefit will help the self-employed individuals, to save taxes on higher contribution in NPS and thereby properly plan for their old age income security.
Additional tax deduction on investment upto Rs. 50000/- under Section 80CCD (1B) will continue to remain the same for all NPS subscribers whether salaried or self-employed.

Source:PIBNEWS

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Sunday, 22 January 2017

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Friday, 17 June 2016

22:01

Non Resident Indians (NRIs) can now join and subscribe to NPS online through eNPS

Non Resident Indians (NRIs) can now join and subscribe to NPS online through eNPS

Press Information Bureau
Government of India
Ministry of Finance

Non Resident Indians (NRIs) can now join and subscribe to NPS online through eNPS

NRIs have a pivotal role to play in the Indian economy. India has the second-largest Diaspora in the world, with around 29 million people living in over 200 countries and out of these 25% live in the Gulf countries. Most of the Indians going to the Gulf and some other countries go for employment and return to India after having worked abroad for a certain period.

NPS can provide a long term solution to their old age income security. NPS has been available to NRIs for some time through Bank offices and now, to further ease the process of joining, eNPS is being extended to Non-Resident Indian subscribers.

NRIs can now open NPS Accounts online if they have Aadhaar Card or PAN card

Till now, NRIs could open NPS accounts only through paper applications by approaching Bank offices but this has now changed. Through eNPS, a subscriber will be able to open an NPS account from the comfort of his home. All he will need is an internet connection and an Aadhaar/ PanCard.

Further, NRIs will be able to open NPS accounts both on Repatriable and on Non Repatriable basis. On a Repatriable basis, an NRI will have to remit the amount through his/her NRE/FCNR/NRO account.

For Non-Repatriable scheme, NRIs will be able to join NPS through their NRE/FCNR/NRO accounts at the time of maturity or during partial withdrawal, the NPS funds would be deposited only in their NRO accounts.

Both Repatriable and Non-Repatriable schemes will greatly appeal to NRIs who intend to return to India after their employment abroad, in view of their attractive returns, low cost, flexibility and their being regulated by the PFRDA, a Regulator established by the Central Government .

Source:PIBNEWS
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Tuesday, 10 May 2016

08:14

PFRDA is planning a nationwide training programme for all the government and non-government nodal offices primarily to increase the awareness and expand the reach of NPS into the nooks and corners of the country.

PFRDA is planning a nationwide training programme for all the government and non-government nodal offices primarily to increase the awareness and expand the reach of NPS into the nooks and corners of the country.

PFRDA organises its POP conference on National Pension System; Chairman, PFRDA stresses upon the need to expand the coverage of pension sector across the informal sector in the country which occupies almost 90% of the workforce

Pension Fund Regulatory Development Authority (PFRDA) organised its POP

Conference on National Pension System here today. The prime objective of the Conference was to provide a platform to discuss and deliberate on key issues encountered in the coverage of pension sector, the budget announcements relating to the tax benefits and the need and ways to expand the pension coverage across the country. The Conference saw an active participation of all the major Public and Private Sector Banks and the non-Bank Point Of Presence (POPs). In the inaugural address, Dr Badri S Bhandari, Whole Time Member, PFRDA welcomed the participants and brought to fore the scope of improvement vis a vis performance of the POPs in expanding the coverage of NPS in the Private and Corporate segment while acknowledging the good work done by some of the POPs. Currently, the unorganised (all citizen segment) and the Corporate sector comprises of only 5.6% of the subscribers and 9.0% of the AUM under NPS and only 7500 out of 55600 POP branches i.e. 13%, are active in sourcing NPS accounts. He emphasised the need for the activation of all the branches of POPs who are the eyes and face of the system and awareness creation and quality service to the subscribers. He informed that PFRDA is exploring the development of NPS module linked with core banking solutions of the Banks in line with the APY module.

Shri Hemant G. Contractor, Chairman, PFRDA, in the keynote address, stressed upon the need to expand the coverage of pension sector across the informal sector in the country which occupies almost 90% of the workforce. India has the highest percentage of informal workforce in the world, which is largely uncovered by any pension scheme. The demographic changes impacting the need to provide for pension includes increasing longevity, nuclear families and the ever increasing proportion of old age people, especially women whose longevity is higher. These factors have brought the issue of pension centre stage in most of the policies of nations worldwide. NPS has the advantage of market commensurate returns, flexible options, transparency and low cost. He also added that effort was required to meet the challenges facing the unorganised sector including low awareness, low income levels and the lack of long term vision to save for the future. Moreover, 10% of the senior citizen population in the world resides in India and this number would increase from current 100 million to 300 million by 2050 and hence the sense of urgency to expand the coverage to meet the challenge of exponentially increasing fiscal pension liability. PFRDA is planning a nationwide training programme for all the government and non-government nodal offices primarily to increase the awareness and expand the reach of NPS into the nooks and corners of the country.

The event was graced by presentations by eminent partner and tax expert Mr Kuldip Kumar, PricewaterhouseCoopers Pvt. Ltd. and Mr Kulin Patel, Actuary and Analyst, Willis Towers Watson. The eminent speakers brought to light various tax benefits available under NPS especially section 80CCD (1) and 80 CCD (1B).For Corporates, NPS entails no additional costs but offers attractive tax benefits. NPS stands at a very advantageous position in comparison to superannuation funds and there is a need to spread the awareness about benefits under NPS. An award function was also hosted during the conclave during which awards were distributed to the best performing Points of Presence for their performance in the National Pension System during 2015-16. HDFC Securities Limited received the award for being the best POP under All citizen model, Corporate model and Private sector. State Bank Of India won the award under the category of highest POP branches activation. ICICI Securities Ltd won under the category of best POP-branch with highest subscriber registration. Currently, NPS has more than 1.20 crore subscribers with total Asset Under Management (AUM) of more than Rs.1.20 Lakh crore.

Source:PIBNEWS
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Wednesday, 27 April 2016

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Friday, 15 January 2016

21:39

NPS – Revised guidelines on contribution collection and service charges

NPS – Revised guidelines on contribution collection and service charges

PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
1st Floor, ICADR Building, Plot No.6,
Vasant Kunj, Institutional Area,
Phass-II, New Delhi-110070.
CIRCULAR
PFROA/ 2016/CORP/23/1
January  12, 2016
To,
All Points of Presence, Central  Recordkeeping  Agency
Subject:  Revised  Guidelines   in  respect  of Contribution Collection and Service
Charges for opening  NPS accounts for NRls
With  a view  to promote NPS among  Non-Resident   Indians (NRls),  through  Points of Presence (POPs)  the  following changes   have   been   made   in  the  service   chargestructure  and contribution  collection.
A.  Service  Charge  structure  applicable  to POPs   for  NPS accounts  for NRls  sourced and serviced  abroad  :
Intermediary
 Charge Head
Service Charges
Method of
Collection
POP
Initial Subscriber Registration
USD 8 or Equivalent  in local currency.
To be Collected Upfront
Initial Subscriber & all
Subsequent  Contribution
USD 1,  or Equivalent in local  currency or 1%, whichever is higher subject  to maximum of
USD 8 or Equivalent  in local
currency .
All Non-FinancialTransaction
USD 1, or Equivalent  in local currency
(i)  Charges  for all other  intermediaries remain the same.
(ii) For NPS account of NRIs sourced domestically but serviced abroad, i.e. contribution  and other  non-financial transactions being done abroad by the POP, the charge for overseas servicing would  apply.
(iii)    For NPS account  of NRI sourced  overseas  but serviced  in India i.e. contribution and  other  non-financial   transaction being done  in   India,  the  charge  for  domestic servicing  under the existing  All Citizen Model would apply.
(iv)   The contribution  amounts shall  be paid by the  NRls  either by inward  remittance through  normal  banking  channels  or out of funds  held  in their own  NRE/FCNR/NRO account.
B.  Contribution structure for NPS Accounts when serviced abroad would be as under:
Particulars
Tier I 
Tier II
Minimum Contribution  at the  time  of account opening
Rs.6,000/-
Rs.2,000/-
Minimum amount per contribution
Rs.2,000/-
 Rs.2,000/-
Minimum contribution  in  a   financial year
Rs.6,000/-
Rs.2,000/-
Minimum frequency of contributions per financial year
1
 1
While servicing these accounts domestically, the contribution criteria will remain the same as applicable to the existing NPS A/cs under the All Citizen Model.
2. Once the NRI status of the subscriber changes to Resident status, the subscriber will inform the same to CRA/POP for updating the same in the CRA system.
Yours faithfully
(Akhilesh Kumar)
Deputy General Manager




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Tuesday, 24 November 2015

19:00

7th Pay Commission recommendations – New Pension System

7th Pay Commission recommendations – New Pension System

7th CPC has submitted its recommendations to the Central Government.  As part of the recommendations NPS was analysed and recommendations for more transparency suggested.

Introduction 

Pension has been one of the key Terms of Reference (TORs) for successive Pay Commissions. While the VI CPC was the first Pay Commission to have been constituted after the introduction of the National Pension System (NPS) which came into effect on 01.01.2004, the VII CPC is the first one to be constituted after some experience has been gained on this count.

Pension Related TOR of the Commission

The TOR of the present Commission – to examine the principles which should govern the structure of pension and other retirement benefits, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the National Pension System (NPS)–limits the mandate of this Commission only to the Old Pension System (OPS). However, during its interaction with staff associations and other stakeholders, the Commission received many grievances/suggestions relating to both the OPS and the NPS. It has also been averred, inter alia, that NPS is proving to be an impediment in attracting and subsequently retaining the best talent for the Central Civil Services/All India Services (AIS). In this backdrop, the Commissiondecided to address the grievances related to NPS, which have been discussed in this chapter.

NPS Background

The Commission notes that the NPS is the culmination of a series of social security and pension related reform initiatives in India. As in many other countries, pension reforms in India were driven by the fiscal constraints of supporting a public pension system and the longer-term problems of an ageing population. Government of India, in 1998, set up the Committee for Old Age Social and Income Security (OASIS). The OASIS committee concluded, among other things, that the Defined Benefit Scheme (DBS), serving the Central Government retirees, is unaffordable for government and it should be replaced by a Defined Contribution Scheme (DCS).

The Commission notes that the total pension liability on account of Central Government employees had risen from 0.6 percent of GDP (at constant prices) in 1993-94 to 1.66 percent of GDP (at constant prices) in 2002-03.Pension expenditure of the Central Government grew at a compound annual growth rate (CAGR) of 21 percent during the period 1990 to 2001. This was also reflected in the increasing fiscal deficits. Further, in the DBS, pensions were wage indexed, and thus the outgo on this account would have increased manifold. The stressed fiscal situation, thus, set the stage for introduction of the NPS in India. The Bhattacharya Committee Report (HLE Group on NPS) (Feb 2002) recommended that an unfunded Defined Benefit (DB), Pay As You Go (PAYG) scheme or a pure Defined Contribution (DC) scheme would not be suitable and therefore recommended a hybrid DB/DC scheme to meet the requirements of central civil servants.

International Experience on Pension Reforms

Pension reforms, in recent times, have been initiated in many countries across the world. The Commission notes that an aging population, changing social structures, uncertain and inadequate social security benefits and rising fiscal liabilities have been the major causes behind pension reforms, especially for a transition from DBS to DCS.

Introduction of NPS

On the basis of various reports, the Central Government made the decision to place all new recruits into Central Government from 01.01.2004 onwards (excluding Defence Forces) under NPS. NPS is managed by the PensionFund Regulatory and Development Authority (PFRDA), which was initially set up as an interim authority. The PFRDA Act was passed by Parliament and notified w.e.f. 01.02.2014, bestowing statutory status on the authority.

NPS Features

Under the NPS, employees contribute 10 percent of their monthly salary (basic plus DA) towards their pensionwith matching contribution from Central Government. In respect of the AIS officers working under them, the matching contribution is made by the State Governments. Three professional Pension Fund Managers invest the funds under NPS following an asset allocation framework mandated by government. The Central Record Keeping Agency (CRA) maintains a separate pension account for each individual employee identified by a unique Permanent Retirement Account Number (PRAN). Individual employees have been given online access through the CRA website to view the status of their pension wealth.

Under the NPS, upon superannuation, the individual is required to invest at least 40 percent of pension wealth for purchase of annuity and the remaining up to 60 percent is paid to him as lump sum. The annuity provides forpension for the lifetime of the employee. Individual subscribers to the NPS are not covered under the General Provident Fund. Regulations issued by the PFRDA now provide for partial withdrawals up to 25 percent of the contribution made by the subscriber to his individual account after at least ten years from the date of joining, up to a maximum of three times during the tenure of the subscription for certain specified purposes, before superannuation. The regulations issued by PFRDA also provide that if the employee dies in service, then at least 80 percent of the accumulated pension wealth shall be mandatorily utilized for purchase of annuity and the balance amount would be paid to the nominee(s)/legal heirs.

Performance of the NPS

Over 13 lakh Central Government subscribers have accumulated pension wealth of over Rs.24,000 crore by the end of 2013-14. The Compound Annual Growth Rate (CAGR) of returns on the scheme are tabulated below:-
( in percent)


The Commission further notes that all State Governments (with the exception of Tripura and West Bengal) have switched to NPS on the Central Government pattern.

Grievances against the NPS

The NPS has now been in effect for over 10 years. During this period, there has been perceptible progress in putting together the architecture and providing information to subscribers. Major concerns, however, remain. Broadly, these are as under:

i. The larger federations and staff associations advocated scrapping the NPS on the ground that it discriminates between two sets of government employees.

ii. Individuals covered under NPS have pleaded for reverting to the OPS on the grounds of uncertainty regarding the actual value of their future pension in the face of market related risks.

iii. Individuals have pointed out that under NPS, the effective salary becomes less since the employee has to mandatorily contribute 10 percent of pay towards the pension fund.

iv. Individuals have stated that grievance redressal facility is not effective and consultation with stakeholders has been non-existent. This communication gap has generated insecurity in the minds of stakeholders including staff and Group ‘A’ officers of Central Government as well as All India Service Officers.

v. Associations have complained that Family Pension after the death of the employee is not ensured in the NPS. Moreover, if an employee dies at an early age, the family would suffer since annuity from the contribution would be grossly inadequate.

vi. Individuals have complained that NPS subscribers have no recourse to GPF for their savings. Their personal savings (10% of salary) are considered part of a larger corpus. It has been pointed out that the right approach would be to consider only government’s contribution and the returns earned on it as the effective amount available for purchase of annuities.

vii. Associations have pointed out that unlike the facility under GPF, it is not possible to take refundable advances under NPS, even to meet obligatory social expenditure. This forces employees towards increased indebtedness as they have to borrow from elsewhere.

viii. Grievances also relate to tax treatment under NPS. While contributions and accumulations in NPS are exempt, lump sum withdrawals from NPS at any time are taxable at par with any other income. In addition, there is a service tax liability on any amount utilised for purchase of annuity.

ix. It has been pointed out that though NPS became effective from 2004, detailed instructions were issued only in late 2009 and in many cases the credit of contributions began from 2012. In the case of AIS officers in some States, contributions by the concerned State Government are yet to be fully made and deployed. The net result of this has been that contributions for the period 2004-2012 have not been made in full or have earned simple interest and did not get any market linked returns. Because of the prevailing confusion, contributions made by some AIS officer have been returned to them without interest. This will have a huge impact on the eventual corpus as the benefits of compounding were not available for the first 8 -9 years.

x. Individuals, in their presentation before the Commission, stated that annuities under NPS have no compensation for inflation unlike dearness relief under OPS. Further, in the case of OPS there is a revision in basic pension itself after every Pay Commission. This too is not available in respect of annuity of NPS subscribers.

xi. It has been pointed out that government employees are not given freedom of choice in choosing their fund manager based on performance and track record as the contributions are divided in a pre-specified ratio among selected Pension Fund Managers. It has been stated that government employees have no say in asset allocation of their money.

xii. Concerns were raised that the contribution of 10% +10%will not be sufficient to create a corpus which provides reasonable assurance that pension will be 50 percent of the last pay drawn.

Analysis of the Issues by the Commission

The Commission has examined these concerns raised by the stakeholders. The Commission also interacted with Chairman, PFRDA, and representatives of the Department of Pensions and Pensioners Welfare (DPPW), Department of Personnel and Training (DoPT), Department of Expenditure (DoE) and the Department of Financial Services (DFS).

In so far as the future value of pension under NPS is concerned, the Commission notes that this would depend upon a combination of factors: (i) performance of the invested fund, which in turn would depend on the asset mix of the investment and general economic situation of the country, (ii) cost of financial intermediation, (iii) contribution rates, (iv) period of contribution, (v) performance of the fund manager and (vi) development of the annuity market.

Analysis of the Asset Mix of Investments

On asset mix of the investment, the pension funds, the world over, are invested in different assets including government and corporate bonds, equities, foreign securities etc. government bonds are generally the lowest risk and lowest yield. Corporate bonds and equities are higher risk and higher     yield. Typically, systems use a mix of at least two types of assets– Government Bonds and Corporate Bonds/Equities.

As per the investment guidelines stipulated by the government for Central Government employees under NPS, up to 55 percent can be invested in government bonds, up to 40 percent in corporate debt securities, up to 15 percent in equities and up to 5 percent in money market instruments. International experiences on asset mix vary across countries which have adopted the DCS.

The Commission notes that an innovative approach to investment under the DCS is the Life Cycle Approach. Under this, the asset mix of each individual changes based on his/her age. The underlying assumption under this approach is that younger workers are better able to absorb year on year volatility and therefore can undertake risk while older workers should reduce risk as they approach retirement.

A carefully selected asset mix is the sine qua non to higher returns. The Commission recommends that the investment choices under NPS be calibrated on a life cycle approach and the choices be offered in a simple manner so that any lay person can understand and act accordingly. The Commission also recommends that government, in consultation with PFRDA, come up with different options for investment mix and provide subscribers a range of options.

Contribution Rates

In DCS, typically, the employees as well as the employers contribute towards a pension fund. As discussed earlier, the quantum of pension payouts would also depend upon the contribution rates. Higher the contribution rate, better would be the pension payouts. The contribution rates for both the employees and the employers vary across the globe. The Commission has received suggestions that the government’s contribution should be enhanced from the present 10 percent in aid of a higher payout under the NPS. Associations and individuals have made presentations before the Commission highlighting that forecasts suggest that a 10 percent contribution from government will not be adequate to provide reasonable post retirement financial security in all cases. The Commission, therefore, recommends that this important aspect should be re-examined in detail by an expert body for making course corrections if required.

Period of Contribution

The Commission notes that time is of the essence in building up a reasonable corpus and ensuring that effects of compounding are significant. It is therefore essential that contributions by individuals and corresponding contributions by government are made in time, and more importantly, are deployed without any loss of time. Any delays in this respect, particularly in the initial years can have a large impact on the eventual corpus.

2004-2011 Entrants

Government employees who have joined service between 2004 and 2011 have suffered due to delay in finalizing the structure of the NPS and the issue of detailed instructions. Although they have made regular contributions, in many cases, this money and/or counterpart contributions were not deployed in the market. In the case of AIS officers, some states are yet to release counterpart contributions or pay interest on delayed contributions. This has led to a situation where the accumulated corpus even after 11 years of service could be meagre. It is necessary that this situation which arose during the transition from OPS to NPS be addressed. The Commission therefore recommends that Central Governments and State Governments should, in a time bound manner, ensure that all the due contribution along with compounded interest, where contributions have been delayed, be deposited in the accounts of the beneficiaries. Advisories should be issued to the State Governments to deposit amounts, if not already done, in respect of NPS beneficiaries belonging to All India Services.

Many Association have pointed out that unlike the facility under GPF, it is not possible to make withdrawals under NPS, even to meet obligatory social expenditure. This forces employees towards increased indebtedness as they have to borrow from elsewhere.

The Commission notes that under the NPS Tier-I account, a subscriber is permitted to make partial withdrawal of twenty five percent of the contributions made to his/her individual pension account for certain specified purposes. Such withdrawals are permitted a maximum of three times during the entire tenure of subscription and a period of at least five years should have elapsed between two such withdrawals.

The Commission further notes that there exists a voluntary Tier-II account. Under this account, a subscriber can, at any time, withdraw the accumulated wealth either in full or part and there is no limit on such withdrawals provided the account has sufficient balance of accumulated pension wealth to cover the amount being withdrawn. However, the Tier-II account is yet to be made operational. The Commission therefore recommends that PFRDA should take steps to make the Tier-II accounts operational as early as possible to enable the NPS subscribers the facility of withdrawals from their accounts in case of requirement.

Transparency under NPS

Many associations and individuals have complained that the information relating to the NPS is inadequate, resulting in high degree of uncertainty in the minds of contributors about post-retirement benefits. The Commission noted that PFRDA sends a communication to every participant each month with the current pension wealth and the latest contribution that has been credited. The Commission recommends that focused efforts be made to capture email addresses and mobile numbers of subscribers so that seamless communication is ensured for all subscribers. The Commission recommends that consultation with stakeholders should also be held periodically in different parts of the country.

The Commission notes that no department of Government of India is taking ownership of the NPS. The Commission recommends that a Committee consisting of Secretary, Department of Financial Services, Secretary, Department of Pensions and Pensioners Welfare and Secretary, Department of Administrative Reforms and Public Grievances may be constituted to review the progress of implementation of NPS. The Commission also recommends that steps should b e taken for establishment of an Ombudsman f or redressing individual grievances relating to NPS.

Tax Treatment under the NPS

NPS is under the Exempt–Exempt – Tax (EET) regime while the General Provident Fund under the OPS is under Exempt–Exempt–Exempt (EEE) dispensation. Under the NPS, while the contributions and the accumulations are tax-exempt, withdrawals are taxable. As such, this is an inferior tax treatment when compared to other pension programmes such as General Provident Fund, Contributory Provident Fund, Employees Provident Fund and Public Provident Fund wherein contributions, accumulations and withdrawals are tax-exempt. The Commission feels that tax neutrality should be ensured across various avenues for long term savings for postretirement incomes so that the employees covered by NPS are not at a disadvantage. The Commission therefore recommends that withdrawals under the NPS should be tax-exempt to place NPS at par with other pension schemes. The Commission also recommends that the service tax levied at the time of annuity purchase by NPS subscribers should be exempted.

Issue of Family Pension In Case Of Death of the Subscriber

Another complaint received by the Commission from staff associations and individuals is that Family Pension after the death of the employee is not ensured in the NPS. The Commission notes that the government had provisionally extended benefits under the Central Civil Service (Extraordinary Pension) Rules, Family Pension/Extraordinary Family Pension/Liberalised  Pensionary Award to government servants appointed on or after 01.01.2004.

Rules regulating these benefits have now been notified by the PFRDA. PFRDA regulations provide for an exit option from NPS in case of premature death of the subscriber by availing of additional relief from government, in which case the entire accumulated pension wealth inclusive of subscriber’s contribution would be transferred to government. The Commission recommends notification of a scheme by government for provision of additional relief in such cases consequent to exit from NPS.

Framing of Rules and Regulations

The Commission notes that rules and regulating relating to NPS are being framed and notified by PFRDA from time to time. Associations and individual officers have raised the issue of the need for greater involvement of stakeholders in finalizing these regulations The Commission recommends that government encourage the PFRDA to set up a strong consultative mechanism involving the DPPW, DoPT, DFS and some associations of employees for a review of regulations and for finalizing future regulations to bring clarity and remove uncertainty relating to NPS. The Commission also recommends that draft regulations should be widely publicized to enable subscribers to respond to any proposed changes, as normally done by other regulatory authorities. 

Source:Govemployees

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Thursday, 5 November 2015

08:28

Clarification of Deferred withdrawal of lump sum – New Pension Scheme

Clarification of Deferred withdrawal of lump sum – New Pension Scheme

PENSION FUND REGULATORYAND DEVELOPMENT AUTHORITY

1st Floor, ICADR Building, Plot No. 6

Vasant Kunj Institutional Area,

Phase – II, New Delhi – 110070

CIRCULAR

PFRDA/2015/24/EXITS/1

October 29, 2015

To,

NPS Trust, All POP’s, Aggregators, CRA,Central, State Governments and All Subscribers

Dear Sir/Madam,

Sub: Clarification of Deferred withdrawal of lump sum

PFRDA (Exits and Withdrawals from Nation Pension System) Regulations 2015 provides option to subscriber to defer withdrawal of lump sum (60%) up to the age of 70 years.

Under the Deferred withdrawal facility, the subscribers at the time Of exit from National Pension System (NPS) can exercise an option to defer the withdrawal of eligible lump sum withdrawal and stay invested in the NPS. Subscriber has an option to withdraw the deferred lump sum amount in maximum ten annualinstallments up to the age of 70 years or withdraw the entire amount at once by giving 15 days advancenotice during such a period of deferment.

If no such notice is given, the accumulated pension wealth would be automatically monetized and credited to his bank account upon attaining the age of 70 years.

This is for the information of all concerned. The circular also is being placed on PFRDA website at http://www.pfrda.org.in, NPS Trust website www.npstrust.org.in and CRA website at http://www.npscra.nsdl.co.in.

Yours faithfully,

Subroto Das

Chief General Manager
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Sunday, 2 August 2015

15:58

NATIONAL PENSION SYSTEM for NON RESIDENT INDIANS- FAQ



FREQUENTLY ASKED QUESTIONS

NATIONAL PENSION SYSTEM for NON RESIDENT INDIANS


About NPS

1. What is National Pension System?

NPS is an easily accessible, low cost, tax-efficient, flexible and portable retirement savings account. Under the NPS, the individual contributes to his retirement account. NPS is designed on Defined contribution basis wherein the subscriber contributes to his own account. The benefit subscribers ultimately receive depends on the amount of contributions, the returns made on the contributions and the period of contributions.




Contributions (Individual contributions) + Investment Growth – Charges = Accumulated Pension Wealth

2. What is the NPS Architecture?


PFRDA has put in place an unbundled architecture managed through a set of Intermediaries who have experience in their own areas of operations. Each intermediary, looking after specific activities such as record keeping, fund transfers, fund management and custodial services etc., has been selected through competitive bidding process to bring about the advantages of low-cost and effective checks & balances in the system to the subscriber.


  • Central Record keeping Agency- Appointed by PFRDA and entrusted with the record keeping of the data of individual subscribers; also acts as an interface between the different intermediaries in the NPS system.



  • Points of Presence (PoP) and POP-Service Provider (PoP-SP)- Appointed by PFRDA, they include mainly commercial banks who act as the first points of interaction of the NPS subscriber under the NPS architecture. The authorized branches of a POP, called Point of Presence Service Providers (POP-SPs), act as collection points and extend a range of customer services to NPS subscribers.

  • NPS Trust & Trustee Bank- The NPS Trust (established by the PFRDA) is responsible for taking care of the funds under the NPS. The Trust holds an account with a bank and this bank is designated as ‘Trustee Bank’. The Trustee Bank remits funds to the entities viz. Pension Funds (PFs), Annuity Service Providers (ASPs) and subscribers on receipt of instructions from CRA.

  • Pension Funds- Appointed to invest the Pension Fund contribution of all the subscribers in various schemes.

  • Annuity Service Providers- Are life insurance companies regulated by IRDA and empanelled with PFRDA for investing subscriber retirement savings in Annuity scheme and delivering monthly pension to the subscriber.

  • Custodian- Stock Holding Corporation of India Limited has been appointed as a Custodian for providing custodial services to the NPS.


3. What are the features of the retirement account provided under NPS?

The following are the most prominent features of the retirement account under NPS:
  • Every individual subscriber is issued a Permanent Retirement Account Number (PRAN) card which has a 12 digit unique number.


  • Under NPS account, two sub-accounts – Tier I & II are provided. Tier I account is mandatory and the subscriber has option to opt for Tier II account opening and operation. The following are the salient features of these sub-accounts:
  • Ø Tier-I account: This is a permanent retirement account where under withdrawals up to 25% of the subscribers’ own contribution are permitted as per the Withdrawal and Exit Regulations (discussed in detail under Exit & Withdrawal section of this FAQ).

  • Ø Tier-II account: This is a voluntary savings facility available as an add-on to any Tier-1 account holder. Subscribers will be free to withdraw their savings from this account whenever they wish.


4. In what way is the NPS Portable?

The following are the portability features associated with NPS
  • NPS account can be operated from anywhere in the country irrespective of individual employment and location/geography.

  • Subscribers can shift from one sector to another like Private to Government or vice versa or Private to Corporate and vice versa. Hence a private citizen can move to Central Government, State Government etc with the same Account. Also subscriber can shift within sector like from one POP (Point of Presence) to another POP and from one POP-SP (Point of Presence Service Provider) to another POP-SP. Likewise, an employee who leaves the employment to become a self-employed, can continue with his individual contributions. If he enters re-employment he may continue to contribute and his employer may also contribute and so on.

  • – The subscriber can contribute to NPS from any of the POP/ despite not being registered with them and from anywhere in India.


5. Can I have more than one NPS account?

No, multiple NPS accounts for a single individual are not allowed and there is no necessity also as the NPS is fully portable across sectors and locations.

Eligibility

6. Can an NRI join NPS?

Yes, an NRI between the age of 18 – 60 years, as on the date of submission of his/her application and complying with the extant KYC norms, can open an NPS account.

7. Can an NRI open a joint account in NPS?

No, only an individual account can be opened in NPS.

8. Is account operation with Power of Attorney (POA) allowed under NPS for NRIs?

At present, POA facility is not available in NPS.


NPS Account Opening

9. How and where can I open a NPS account?

NPS is distributed through authorized entities called Points of Presence (POP). Almost all the banks (both private and public sector) in India are enrolled to act as Point of Presence under NPS. To invest in NPS, you are required to open an NPS account through a POP bank, preferably where you have your NRI account. You can send your NPS application form to your Bank for opening of the NPS account.

10. How will I know about the status of my PRAN (Permanent Retirement Account Number) application form?

Subscriber can check the status by accessing NSDL e-Governance Infrastructure Ltd., the CRA website: https://cra-nsdl.com/CRA/ by using the 17 digit receipt number provided by POP-SP or the acknowledgement number allotted by CRA-FC (Facilitation Centre) at the time of submission of application forms by POP-SP. Once the PRAN is generated, an email alert as well as a SMS alert will be sent to the registered email ID and mobile number of the subscriber.

11.What are the documents that need to be submitted for opening a NPS account?

The following documents need to be submitted to your Bank (POP) for opening of a NPS account:

a. Completely filled in subscriber registration form

b. Copy of Passport

c. Proof of Address, if the local address is different from the address in your passport.

12. Can I appoint nominees for the NPS Tier I and Tier II Account?

Yes, you need to appoint a nominee at the time of opening of a NPS account in the prescribed section of the registration form. You can appoint up to three nominees in your NPS Tier I and NPS Tier II account. In such a case you are required to specify the percentage of share, which should not be in decimals that you wish to allocate to each nominee. The share percentage across all nominees should collectively aggregate to 100%.

13. I have not made any nomination at the time of registration. Can I nominate subsequently? What is the process?

If you have not made the nomination to your NPS account at the time of registration, you can do the same after the allotment of PRAN. You will have to visit your PoP and place Service Request to update nominations details.

14.Are there any charges for making a nomination?


If you are making the nomination at the time of registering for PRAN, no charges will be levied to you. However, a subsequent request for nomination updation would be considered as a service request and you will be charged an amount of Rs. 20/- plus applicable service tax for each request.

15.Can I change the Nominees for my NPS Accounts?

Yes, you can change the nominees in your NPS Tier I account at any time after you have received your PRAN.


NPS– Charges


16.What are charges applicable in NPS?

Intermediary
Charge Head
Service Charge
Method of Deduction
POP
Initial Subscriber Registration
Rs. 125
To be Collected Upfront
Initial Contribution
0.25% Min: Rs. 20 & Max : Rs.25,000
All Subsequent Contribution
All Non-Financial Transaction
Rs. 20
CRA
PRA Opening (One Time)
Rs. 50
Through NAV cancellation/ deduction
PRA Maintenance (Per Annum)
Rs. 190
Per Transaction (Financial/Non- Financial)
Rs. 4
Custodian
Asset Serving (Per Annum)
0.0075%
PFM
Investment Management (Per
Annum)
0.01%

NPS– Contributions, Investments and Asset Classes
17.Are there any minimum annual contribution requirements under NPS? How can I reactivate / unfreeze the account if frozen due to minimum contribution requirements?

Yes, a subscriber has to contribute a minimum annual contribution of Rs.6000/- for his Tier I account in a financial year and if not contributed the account will be frozen. In the first year, the account will remain active, but from 2nd year onwards if minimum contribution is not made, account will be frozen. In order to unfreeze the account, the customer has to pay the total of minimum contributions for the period of freeze, the minimum contribution for the year in which the account is reactivated and a penalty of Rs.100/-. In order to unfreeze an account the subscriber has to approach the Point of Presence (POP) and deposit the required amounts. The following table provides the complete information on the minimum contribution requirements:

For All citizens model
Tier I
Tier II
Minimum Contribution at the time of account opening
Rs. 500
Rs. 1000
Minimum amount per contribution
Rs. 500
Rs. 250
Minimum total contribution in the year
Rs. 6000
Rs. 2000
Minimum frequency of contributions
1 per year
1 per year

18.How are the funds contributed by the subscribers managed under NPS?

The funds contributed by the Subscribers are invested by the PFRDA registered Pension Fund Managers (PFMs) as per the investment guidelines prescribed by PFRDA. The investment guidelines are framed in such a manner that the portfolio is adequately diversified across financial securities so that there is minimal impact on the returns on subscribers contributions even if there is a market downturn, by ensuring a judicious mix of investment instruments like Government securities, corporate bonds and equities. At present there are eight Pension Fund Managers who manage the funds at the option of the subscriber.

They are as follows:
  • ICICI Prudential Pension Funds Management Company Limited
  • LIC Pension Fund Ltd
  • Kotak Mahindra Pension Fund Ltd
  • Reliance Capital Pension Fund Ltd
  • SBI Pension Fund Pvt Ltd
  • UTI Retirement Solutions Ltd
  • HDFC Pension Management Company
  • Pension fund to be incorporated by Birla Sun Life Insurance company limited

19.Where will the funds contributed by NRIs in NPS be invested?


NRIs have option to select Pension Fund Manager and exercise investment choice under NPS All Citizen Model. The fund is invested by the selected Pension Fund Manager in the various classes of securities, as per the investment guidelines prescribed by PFRDA. The investment is usually in Equity (E), Corporate Bonds (C) and /or Government Securities (G). The individual subscriber has a choice of selecting investment mix (E,C,G), as per his/her risk appetite.

20.In what form can the contribution be made i.e. foreign exchange or Indian currency?

The contributions made by NRIs can be from either of the following sources subject to normal foreign exchange conversion norms:

– NRE Account
– NRO Account/ Local sources

21.What are the different Fund Management Schemes available to the subscriber?

The NPS offers two approaches to invest subscriber’s money:

  • Active choice – Here the individual would decide on the asset classes in which the contributed funds are to be invested and their respective proportions (Asset class E- maximum of 50%, Asset Class C, and Asset Class G )
  • Auto choice – Lifecycle Fund- This is the default option under NPS and wherein the management of investment of funds is done automatically based on the age profile of the subscriber. As the age of the subscriber progresses, the exposure of the fund to Equity (E) and Corporate Debt (C) is reduced and enhanced in Government securities as a risk protection measure. For full details, one may go through our website www.pfrda.org.in wherein the full details of the investment choices and fund management details are provided.

22.Can I switch from one investment scheme to another and/or Pension Fund Manager and if so, how?

Yes, NPS offers its subscribers the option to change the scheme preference. Subscriber has an option to realign his investment in asset class E, C and G based on age and future income requirement. Also, the subscriber has option to change the PFM and the investment option (active/auto choice) once a year, free of charge.

23.Is there any default Pension Fund Manager (PFM) Option provided under NPS?

Yes, there is a default PFM provision under NPS and presently, SBI Pension Funds Private
Limited is the default Pension Fund Manager.

24.Can I have a different Pension Fund Manager and Investment Option for my Tier I and Tier II account?

Yes. You may select different PFMs and Investment Options for your NPS Tier I and Tier II accounts.

Tax Benefits and Implications
25. For NRIs, what would be the status of repatriation of the pension/ annuity and lump sum to be paid out of the invested funds ?

When the pension/ annuity is to be paid, it shall be in local currency only (i.e. in INR). However, there is no restriction on repatriation of pension, whether paid as annuity or in lump sum. Provisions of Income Tax Act, 1961 subject to amendments from time to time, would be applicable.

26.Will payment of pension and withdrawal of the lump sum amount be treated as a current account transaction or a capital account transaction?

Since withdrawal of lump sum or payment of pension is treated as income and chargeable to Income Tax, therefore both the operations will be treated as a current account transaction.

27.What income tax reliefs are available to the individuals contributing to NPS?

Tax benefit to self-employed:

Eligible for tax deduction up to 10 % of gross income earned from Indian sources under Sec 80 CCD(1) with in the overall ceiling of Rs. 1.5 lac under Sec 80 CCE of IT Act, 1961.

Additional Tax benefit w.e.f 2015-16

From F.Y. 2015-16, subscriber are allowed extra 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) of IT Act, 1961.

Exit & Withdrawal
28.Will NRIs have different Exit & Withdrawal rules?

No, Exit & Withdrawal rules for NRIs shall be the same as for residents under the PFRDA (Exit and Withdrawals under the National Pension System) Regulations, 2015. All forms are available at www.npscra.nsdl.co.in.

29.What are the Exit rules applicable for NRIs?

The Exit rules applicable for NRIs are
  • Upon attaining the age of 60 years
  • Exit from NPS before the age of 60 years
  • Upon Death of the Subscriber

30.What are the applicable provisions for withdrawal of the accumulated pension wealth once I attain 60 years of age?

At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of an annuity providing for the monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber. In case, the accumulated pension wealth is equal to or less than a sum of two lakh rupees, the subscribers have the option to withdraw the entire accumulated pension wealth without purchasing any annuity.

31.What will happen to my savings if I decide to retire or do not want to continue in the NPS before age 60?

Such a premature exit would only be allowed to subscribers who have been with the NPS for at least 10 years. In such case, at least 80% of the accumulated pension wealth of the subscriber needs to be mandatorily utilized for purchase of an annuity providing for the monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber.

32.In the event of the death of subscriber before attaining the age of 60 years, what will be the benefit that is payable and who will get the benefits ?

In the unfortunate event of death of the subscriber, the entire accumulated pension wealth of the subscriber shall be paid to the nominee or nominees or legal heirs, as the case may be, of such subscriber. Also, the nominee or family members of the deceased subscriber shall have the option to purchase any of the annuities being offered upon exit, if they so desire.

33.How to withdraw the benefits available under NPS?

The subscriber wishing to exit from NPS has to submit a withdrawal application form to the concerned POP along with the documents specified for withdrawal of the benefits and the POP in turn would authenticate the documents and forward them to CRA – NSDL. CRA in turn would register your claim and forward you the necessary application form along with the procedure to be followed and documents that need to be submitted. Once the documents are received, CRA in consultation with NPS Trust processes the application and settles the account. . All forms are available at www.npscra.nsdl.co.in.

34.What are the documents that need to be submitted along with the withdrawal forms?

Following documents are required to be submitted along with the withdrawal forms in order to settle the claims:

1. PRAN card in original

2. Attested copy of Proof of Identity (e. g. Passport, Aadhar Card, PAN Card, Valid Driving License, Voter ID Card etc.)

3. Attested copy of Proof of Address (e. g. Passport, Aadhar Card, Valid Driving License, Voter ID Card etc.)

4. Cancelled cheque (containing Subscriber Name, Bank Account Number and IFS Code) or Bank Certificate Containing Name, Bank Account Number and IFSC code, for direct credit or electronic transfer.

Note: An illustrative list of documents acceptable as proof of identity and address can be seen at PFRDA circulars available on PFRDA’s website pfrda.org.in.

35.Can an NPS subscriber defer his lump sum withdrawable amount (up to 60%) under NPS at the time of exit at 60 years?

Yes, one can defer the withdrawal of the eligible lump sum amount payable under NPS till the age of 70 years.

36.Upto what age can an NPS subscriber contribute beyond the age of 60 years?

The subscriber can continue to subscribe to the National Pension System beyond the age of sixty years, the age, not exceeding seventy years, until which he would like to contribute to his individual pension account.

37.Can I use more than 40% of my accumulated pension wealth to purchase the annuity at the time of exit from NPS upon attaining the age of 60 years?

Yes, a subscriber at the time of attaining the age of 60 years can purchase annuity up to 100% of his accumulated pension wealth.

38.Can a NPS subscriber defer his annuity purchase under NPS at the time of exit on 60 years?

Yes, one can defer the mandatory purchase of annuity for a maximum period of 3 years, at the time of exit from NPS.

39.What will happen to my withdrawal if my PRAN is in frozen or inactive state at the time of withdrawal?

The CRA will unfreeze the account by charging the penalty applicable and process the withdrawal claim without payment of any extra amounts by the subscriber.

Partial Withdrawals under NPS
40.Are partial withdrawals allowed under NPS?

Yes, partial withdrawals are allowed under NPS.

A partial withdrawal of accumulated pension wealth of the subscriber, not exceeding twenty-five per cent of the contributions made by the subscriber provided, that the subscriber shall have been in the National Pension System at least for a period of last ten years from the date of his or her joining.

41.What are purposes for which the partial withdrawals are allowed under NPS?

– For the purpose of higher education of his/her children,

– For marriage of his/her children,

– For purchase or construction of residential house or flat

– For treatment of specified illnesses.

42.What can be the frequency of the partial withdrawals as allowed under NPS?

The subscriber shall be allowed to withdraw only a maximum of three times during the entire tenure of subscription under the National Pension System and not less than a period of five years shall have elapsed from the last date of each of such withdrawal.

Annuity, Annuity Schemes and Annuity Service Providers

43.What is an annuity?

An annuity is a financial instrument which provides for a regular payment of a certain amount of money on monthly/quarterly/annual basis for the chosen period for a given purchase price or pension wealth. In simple terms it is a financial instrument which offers monthly/ quarterly/ annual pension at a specified rate for the period you chosen by you.

44.What are the different types of annuities providing for monthly pension available to the subscribers of NPS?

The following are the generic annuities that are offered by Annuity Service Providers to the subscribers of NPS. However, some of the ASPs may offer some variants which have slightly different or combination of annuities.
  1. Pension (Annuity) payable for life at a uniform rate to the annuitant only.
  2. Pension (Annuity) payable for 5, 10, 15 or 20 years certain and thereafter as long as you are alive.
  3. Pension (Annuity) for life with return of purchase price on death of the annuitant (Policyholder).
  4. Pension (Annuity) payable for life increasing at a simple rate of 3% p.a.
  5. Pension (Annuity) for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
  6. Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.
  7. 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.
45.What are the factors that determine the annuity income when you buy an annuity?

The size of your pension wealth/corpus determines your monthly annuity/pension. Bigger the accumulated pension wealth or corpus used for purchase of annuity, the higher would be the monthly pension that is received. Besides that, amount of annuity may also vary according to the type of annuity variant selected by the subscriber.

46.What are the Annuity Service Providers under NPS and what are their names?

Indian Life Insurance companies which are licensed by Insurance Regulatory and Development Authority ( IRDA) are empanelled by PFRDA to act as Annuity Service Provider’s to provide annuity services to the subscribers of NPS. Currently, the following ASPs are empanelled by PFRDA.

2. Life Insurance Corporation of India
3. SBI Life Insurance Co. Ltd.
4. ICICI Prudential Life Insurance Co. Ltd.
5. Bajaj Allianz Life Insurance Co. Ltd.
6. Star Union Dai-ichi Life Insurance Co. Ltd.
7. Reliance Life Insurance Co. Ltd.
8. HDFC Standard Life Insurance Co. Ltd

Note: The ASP empanelment process is an ongoing process and the list of ASPs may change in future.

47.What is the default annuity scheme and default ASP under NPS?

The following default annuity service provider along with the annuity scheme is available to all the subscribers under National Pensions System.

1. Default Annuity Service Provider – Life Insurance Corporation of India (LIC)

2. Default Annuity Scheme – Annuity for life with a provision of 100% of the annuity payable to spouse during his/her life on death of annuitant and under this option, payment of monthly annuity would cease once the annuitant and the spouse die or after death of the annuitant if the spouse pre-deceases the annuitant, without any return of purchase price.

However, it may be noted that default option is being purely provided in the subscribers’ interest and to avoid any delay in claim processing and is not with a view to endorse/promote any particular ASP or annuity variant being offered by the ASP. If the amount available in NPS account of subscriber is not adequate to buy the default annuity variant and from the default ASP, the subscriber has to compulsorily choose an ASP who offers an annuity at the available corpus in the account of the subscriber.

48.How the annuity OR monthly pension is paid?

Monthly pension /Annuity will be paid through direct bank transfer to the specified subscribers account only through Annuity Service Providers.

Grievance Redressal Management System

49.I have a NPS account and have a grievance on the services provided. To whom should I complain and how?

The subscriber can raise grievance through any of the modes mentioned below:

– Call Centre/Interactive Voice Response System (IVR)
Ø The Subscriber can contact the CRA call center at toll free telephone number 1-800-222080 and register the grievance by using T-PIN.
Ø Dedicated Call center executives.

– Physical forms direct to CRA
Ø The Subscriber may submit the grievance in a prescribed format to the POP – SP who would forward it to CRA Central Grievance Management System (CGMS).
Ø Subscriber can directly send form to CRA.

– Web based interface
Ø The Subscriber may register the grievance at the website www.npscra.nsdl.co.in with the use of the I-pin allotted at the time of opening a Permanent Retirement Account.

SOURCE: Staffnews.


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