alibagho

New Pension System (NPS) for all Citizens

NPS is regulated by PFRDA

Sustainable & Efficient voluntary defined contribution system in India

Objectives:

ü  Provides old age income( post retirement)

ü  Reasonable market based returns over the long term

ü  Extends old age security coverage to all citizens (including NRIs)

Benefits:

ü  Lowest cost as compared to any other investments

ü  Very simple: open an account with any POST OFFICE PoP-SP and get PRAN

ü  Subscriber can operate from anywhere in the country

ü  Transparent Investment norms with regular monitoring by PFRDA

ü  Nomination facility (max. of three nominees can be made)

ü  Tax benefits – Get tax benefits on investments upto Rs 1 lakh under Section 80 ( c) of I.T.Act (only for Tier I)

Eligibility:

ü  Any Indian Citizen  in the age group of 18 to 60 years

ü  NRIs are also eligible to open

ü  Salaried/ business persons/ professionals/ factory workers/ small traders/ house wives etc,

What type of accounts?

ü  Tier I- contribute your savings for post retirement life into this non- withdrawable Pension account (normally withdrawal is permitted only at 60 years)

ü  Tier II- this is simply a voluntary savings facility. You will be free to withdraw your savings account from this account whenever you wish.

Contribution requirements: Tier I ( non-withdrawable pension account)

ü  Min. contribution at the time of account opening: Rs.  500/-

ü  Min. amount per subsequent contributions:         Rs.   500/-

ü  Minimum annual contribution:                             Rs. 6000/-

ü  Minimum number of contributions in an year                   4

(All four contributions can be made in one day)

Contribution requirements: Tier II

ü  Min. contribution at the time of account opening: Rs.  1000/-

ü  Min. amount per subsequent contributions:         Rs.   250/-

ü  Minimum annual contribution:                             Rs. 2000/-

ü  Minimum number of contributions in an year                   4

(All four contributions can be made in one day)

Requirements for joining the NPS:

Ø  Application form in duplicate

Ø  Color photograph-one

Ø  ID proof

Ø  Address proof

Ø  Proof of Date of Birth

Investment choices:    

•       Investors can choose their fund managers out of six PFMs (SBI Pension Funds Private limited is one among them.(“Outperformed Competition  by providing 16.37% return to the subscribers during the first year of operation)

•       Investment option: Active Choice & Auto Choice

Service Charge:

Ø  Rs.20/-plus service tax per transaction( Rs:23/-)

Download forms:
1.Subscriber Registration Form  
2.NPS Contribution Instruction Slip

TO open an account pl contact:

Head Post Master.

Alibag HO.

402201.