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/-)
1.Subscriber Registration Form
2.NPS Contribution Instruction Slip
TO open an account pl contact:
Head Post Master.
Alibag HO.
402201.
