There are three different models of NPS based on how your
contributions are being made to NPS:
·
All Citizen Model
If you are salaried person
and your employer doesn’t contributes to NPS on your behalf or you are Self
employed person.
·
Government Sector Model
If you are a Central
Government or State Government employee and your employer contributes to NPS on
your behalf.
·
Corporate Model
If you are employee under
following and your employer contributes to NPS on your behalf:
·
Entities registered under companies act.
·
Central Public Sector Enterprises.
·
State Public Sector Enterprises.
·
Registered Partnership firm.
·
Registered LLP
·
Any body incorporated under any act of parliament or
state legislature or by order of Central/State Government.
·
Proprietorship Concern
·
Trust/Society.
All Citizen Model
How to enroll?
To enroll, applicant needs to submit the subscriber
registration form to the POS-SP (Point of Presence – Service Providers) for
knowing the list of POS-SP Click here.
Also account can be opened through eNPS platform (www.npstrust.org.in),
account can be opened either through PAN and Bank KYC verification or through
adhaar based eKYC verification.
Minimum Contribution
TIER I
|
TIER II
|
||
At
the Time of Opening
|
Rs
500
|
At
the Time of Opening
|
Rs
1000
|
Subsequent
year
|
Rs
1000
|
Subsequent
year
|
Rs
250
|
Minimum
No of Contribution during the year
|
1
|
Minimum
No of Contribution during the year
|
No
minimum requirement
|
Maximum
No of Contribution during the year
|
No
such limit
|
Maximum
No of Contribution during the year
|
No
such limit
|
Further for investment in Tier II an there is requirement
of an active Tier I account.
Investment Choice
Funds are managed by following managers:
·
ICICI Prudential Pension fund Management.
·
Kotak Mahindra Pension Fund Ltd
·
LIC Pension fund Ltd
·
Reliance Capital Pension Fund Ltd
·
SBI Pension Fund Ltd
·
UTI Retirement Solution Ltd
·
Pension fund to be incorporated by Birla Sunlife
Insurance Co Ltd.
You can choose any of the fund managers to manage your
fund. Now suppose your selected fund is not giving adequate return, you can
switch to the other fund manager.
You can also choose the pattern of your investment, there
are three categories:
Category E where investment
are predominantly on Equity shares.
Category C where investment
is in fixed income instruments other than Government Securities.
Category G where investment
is made in Government Securities
Category A where Investment
are made in alternative schemes like CMBS, MBS etc.
There is also an Auto choice – Lifecycle fund
under which fund is appropriated among different categories according to the
age of investors.
Withdrawal of funds:
Tier II:
There are no restrictions on the withdrawal from Tier II
fund. But please note that contribution to Tier II fund is also not eligible
for Tax deductions under Sec 80 C and 80 CCD (1B).
Tier I:
·
Upon attainment of the age of 60 years :
At least 40 % of the
accumulated pension wealth of the subscriber needs to be utilized for purchase
of annuity providing for monthly pension to the subscriber and balance is paid
as lump sum payment to the subscriber. In case the total accumulated corpus is
less than Rs 2 Lacs, the subscriber may opt for 100% lumpsum withdrawal.
However the subscriber has
the option to defer the lump sum withdrawal till the age of 70 years.
·
At any time before attaining the age of 60 :
The subscriber may exit from
NPS before attaining the age of 60, only if he has completed 10 years in NPS.
At least 80 % of the
accumulated pension wealth will be utilized for the purchase of annuity for
monthly pension, and balance is paid as lump sum, again if the total
accumulated corpus is less than Rs 1 Lac, the subscriber may opt for 100%
lumpsum withdrawal.
C) Death of the Subscriber:
In such an event 100 % amount will be
given to the nominee.
Government Sector Model
Contribution:
Contribution is made by your employer @ 10% of Basic Pay
+ Dearness Allowance. All contribution is made in Tier I
Investment Choice:
Funds are managed by following managers:
·
LIC Pension fund Ltd
·
SBI Pension Fund Ltd
·
UTI Retirement Solution Ltd
Here pattern of investment is fixed.
Withdrawal of funds:
Tier II:
There are no restrictions on the withdrawal from Tier II
fund. But please note that contribution to Tier II fund is also not eligible
for Tax deductions under Sec 80 C and 80 CCD (1B).
Tier I:
·
Upon attainment of the age of 60 years :
At least 40 % of the
accumulated pension wealth of the subscriber needs to be utilized for purchase
of annuity providing for monthly pension to the subscriber and balance is paid
as lump sum payment to the subscriber. In case the total accumulated corpus is
less than Rs 2 Lacs, the subscriber may opt for 100% lumpsum withdrawal.
However the subscriber has
the option to defer the lump sum withdrawal till the age of 70 years.
·
At any time before attaining the age of 60 :
The subscriber may exit from
NPS before attaining the age of 60, only if he has completed 10 years in NPS.
At least 80 % of the
accumulated pension wealth will be utilized for the purchase of annuity for
monthly pension, and balance is paid as lump sum, again if the total
accumulated corpus is less than Rs 1 Lac, the subscriber may opt for 100%
lumpsum withdrawal.
C) Death of the Subscriber:
In such an event 100 % amount will be
given to the nominee.
Corporate Model
Contribution:
Contribution is made by your employer @ 10% of Basic Pay
+ Dearness Allowance. All contribution is made in Tier I
Investment Choice
Funds are managed by following managers:
·
ICICI Prudential Pension fund Management.
·
Kotak Mahindra Pension Fund Ltd
·
LIC Pension fund Ltd
·
Reliance Capital Pension Fund Ltd
·
SBI Pension Fund Ltd
·
UTI Retirement Solution Ltd
·
Pension fund to be incorporated by Birla Sunlife
Insurance Co Ltd.
You can choose any of the fund managers to manage your
fund. Now suppose your selected fund is not giving adequate return, you can
switch to the other fund manager.
You can also choose the pattern of your investment, there
are three categories:
Category E where investment are predominantly on Equity
shares.
Category C where investment is in fixed income
instruments other than Government Securities.
Category G where investment is made in Government
Securities
Category A where Investment are made in alternative
schemes like CMBS, MBS etc.
There is also an Auto choice – Lifecycle fund
under which fund is appropriated among different categories according to the
age of investors.
Withdrawal of funds:
Tier II:
There are no restrictions on the withdrawal from Tier II
fund. But please note that contribution to Tier II fund is also not eligible
for Tax deductions under Sec 80 C and 80 CCD (1B).
Tier I:
·
Upon attainment of the age of 60 years :
At least 40 % of the
accumulated pension wealth of the subscriber needs to be utilized for purchase
of annuity providing for monthly pension to the subscriber and balance is paid
as lump sum payment to the subscriber. In case the total accumulated corpus is
less than Rs 2 Lacs, the subscriber may opt for 100% lumpsum withdrawal.
However the subscriber has
the option to defer the lump sum withdrawal till the age of 70 years.
·
At any time before attaining the age of 60 :
The subscriber may exit from
NPS before attaining the age of 60, only if he has completed 10 years in NPS.
At least 80 % of the
accumulated pension wealth will be utilized for the purchase of annuity for
monthly pension, and balance is paid as lump sum, again if the total
accumulated corpus is less than Rs 1 Lac, the subscriber may opt for 100%
lumpsum withdrawal.
. Death
of the Subscriber
In such an event 100 % amount will be
given to the nominee.
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