Assets under Management (AUM) of National Pension System (NPS) crosses Rs. 1 lac crore: PFRDA Press Release

Assets under Management (AUM) of National Pension System (NPS) crosses Rs. 1 lac crore: PFRDA Press Release

 

PENSION FUND REGULATORY AND DEVELOPMENT  AUTHORITY

PRESS RELEASE

Assets under Management (AUM) of National Pension System (NPS) crosses Rs. 1 lac crore

NPS has been implemented for all Government Employees (except armed forces) joining Central Govt. on or after 01 January 2004. Most of the State/UT Governments have also notified the National Pension System (NPS) for their new employees. NPS has been made available to every Indian Citizen from 01st May 2009 on a voluntary basis.

Further, from 1st June 2015, the Atal Pension Yojana, has been launched which has given the much required impetus to the social security schemes Currently, NPS and APY together have more than One Crore subscribers with total Asset Under Management (AUM) of Rs.1,00,275 crores. The segment wise status of the NPS and APY as on 03.10.2015 is as under:

Segment	No. of Subscribers	Asset Under Management (Rs. Cr.)
Central Government	15,71,136	32,381
State Governments	27,74,459	49,974
NPS-Private Sector	5,24,143	7,943
NPS-Lite/Swavalamban	44,67,733	1,865
Atal Pension Yojana (APY)	7,94,467	112
Total	1,01,31,938	1,00,275

 

PFRDA has taken various steps at the policy as well as operational level to make NPS more subscriber friendly. In addition to this additional tax benefits made available exclusively to NPS has given a fillip to the scheme. This is further expected to result into a substantial increase in the subscriber base by end March 2016.

 

The following steps have been taken in the recent past for the convenience of the subscriber:

•  The investment guidelines for NPS have been revised to expand the investment avenues for optimisation of the returns.
•  Partial withdrawal upto 25% of subscriber’s own contribution for specific purposes like higher education of children, marriage of children, construction of house and specified illness have been allowed to the NPS subscribers after completion of 10 years in NPS.
• NPS Private Sector subscribers can continue contributing beyond 60 years upto 70 years of age.
• NPS Subscriber can defer the withdrawal of lumpsum amount upto the age of 70 years and also have the option to defer purchase of annuity upto 3 years from the date of superannuation or 60 years. The funds during this period remain invested in the system.
• The Statement of Transactions (SOT) being sent by CRA to the existing subscribers has been modified to reflect the returns of the individual subscriber since the date of account opening and also the return generated during the last financial year.
•  To facilitate and operationalize the deposit of additional contribution of Rs.50,000/- to avail of the additional tax benefit under Section 80 CCD(1B), Government Subscribers already covered under NPS have been provided the facility to deposit voluntary contributions in their Tier I account through any POPSP. Government employee covered under old pension scheme can also avail this tax benefit by opening individual Tier I account through any POP-SP and contributing to the same.
•  Online reset of password and facility to change mobile no. and email Id have been provided to all the NPS subscribers.

SMS alerts on balances in the NPS account being sent to the subscribers on quarterly basis, in addition to regular monthly alerts on contribution and other changes in the PRAN.

 

APY scheme provides minimum Govt guaranteed monthly pension to subscribers ranging from Rs 1000 to Rs 5000. Further, Govt. of India also co-contributes 50% of the total contribution made by a subscriber during a financial year subject to maximum of Rs 1,000/- per annum for a period of five years, if eligible subscribers open the account by 31st December 2015. All Indian Citizens, in the age group of 18-40 years are eligible to join the scheme through any bank branch. About 8 lakh subscribers have joined APY till date.

 

Source: PFRDA
[http://pfrda.org.in/WriteReadData/Links/Approved%20Press%20Release%20Milestone%20of%201%20lac%20crores%208d3ccf28-4a6e-44e4-91ad-61e1edfa08d8.pdf]

Read More

Incentive for mobilization and registration of subscribers under Atal Pension Yojana.

PFRDA Order: Incentive for mobilization and registration of subscribers under Atal Pension Yojana

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

1st Floor, ICADR Building, Plot No. 6.

Vasant Kunj Institutional Area,

Phase – II, New Delhi – 110070

No. PFRDAIAPY/4/62

19th May, 2015

To,
All Banks under APY
Sir,

Subject: Incentive for mobilization and registration of subscribers under Atal Pension Yojana.

I am directed to say that incentive structure for Banks to mobilize and register subscriber under Atal Pension Yojana has been under the consideration of PFRDA.

2. In consultation with the Department of Financial Services, Ministry of Finance, it has been decided that for mobilizing each account the Banks will be paid an incentive as per the table below:
i. Per capita incentive at Rs 100
ii. Incentive payable for promotion and development of APY:

S no	Number of subscribers under APY with each Bank	Incentive for promotional efforts (only for new accounts opened during the year)
1	Less than 1 lakh	Rs 20/-
2	More than 1 lakh upto 3 lakh	Rs 30/-
3	More than 3 lakh upto 5 lakh	Rs 40/-
4	More than 5 lakh	Rs 50/-

As Banks are expected to engage the Banking Correspondents (BCs) / Micro Finance Institutions (MFIs) / Non-bank aggregators to mobilize the subscribers, they can Share the incentives with such BCs / MFIs / Non-bank aggregators etc. in the ratio 50:50 :: Banks : BCs/MFIs/ Non-bank aggregators.

 

3. Banks are advised to contact aggregators for shifting of existing eligible Swavalamban subscribers to APY as per the scheme.

 

4. Payment of incentives to banks each year will be made after the completion of the financial year on receipt of funds from the government.

Yours sincerely,

(Purnima Sharma)

Dy. General Manager

Source: http://pfrda.org.in/WriteReadData/Links/Incentive%20Structure%20for%20APY5c598c21-5021-481a-8866-16213d2d1343.pdf

Read More

Amendment to Revised Investment Guidelines for NPS schemes

Amendment to Revised Investment Guidelines for NPS schemes.

PF Regulatory and Development Authority has issued Amendment with effect from 01.04.2015 to revised investment guidelines for NPS Schemes Applicable to Government Sector, Corporate CG and NPS lite schemes of NPS

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

1st Floor, ICADR Building, Plot No. 6,
Vasant Kunj Institutional Area,
Phase – II, New Delhi – 110070

Circular

PFRDA/2015/12/PFM/06

Date: 31st March 2015

To,
All Pension Funds,

Subject: Amendment to Revised Investment Guidelines for NPS schemes.

The existing circular no. PFRDA/2014/02/PFM/1 dated 29-Jan-2014 on the subject Revision of Investment Guidelines for NPS Schemes is amended as highlighted under:

Government Sector NPS Schemes (Applicable to Government Sector, Corporate CG and NPS lite schemes of NPS)

(ii) Debt Securities (Up to 40%)/ point (a) : Debt securities having a minimum residual maturity period of three years from the date of investment by the Pension Fund issued by Bodies Corporate including banks and public financial Institutions; Provided that the investment in this category is made in instruments having an minimum “AA” or equivalent investment grade rating from at least one credit rating agency regulated by SEBI, under SEBI (Credit Rating Agency) Regulation 1999. Apart from rating by an agency, PFMs shall undertake their own due diligence for assessment of risks associated with the securities before investments.
 
Private Sector NPS {Applicable to E (Tier I & II), C (Tier-I & II) and G (Tier I & II)}

C/ (ii): Credit rated debt securities with residual maturity of not less than three years from the date of investment, issued by Bodies Corporate including scheduled commercial banks and public financial institutions [as defined in Section 4A of the Companies Act] 1956, Provided that the investment in this category is made in instruments having an minimum “AA” or equivalent investment grade rating from at least one credit rating agency regulated by SEBI, under SEBI ( Credit Rating Agency ) Regulation 1999. PFM has to do his own due diligence too

2. The above stated amendments are applicable to the inflow of the fresh funds w.e.f. 01.04.2015.

3. All other extant investment guidelines to continue.

Sumeet Kaur Kapoor
(General Manager)

Source: PFRDA Circular

Read More

NPS – Simplification of Withdrawal process and Documentary requirement for the Government subscriber

Simplification of Withdrawal process and Documentary requirement  for the Government subscriber: PFRDA’s Instructions

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDA/2015/07/EXIT/02

25 th February, 2015

To,
All Govt depts./PAO’s/PrAO’S/DDO’S/DTO’S & CRA
Dear Sir/ Madam,

SUB: Simplification of Withdrawal process – Documentary requirements 

Currently, the following documents are required to be submitted by the subscribers for processing a withdrawal request by CRA / NPS Trust for various types of withdrawals and which are common across all the sectors of National Pension System.

1. Original PRAN Card or In the absence of PRAN card, notarized affidavit

2. Photo ID proof*

3. Address proof of the Claimant*

4. Cancelled cheque (containing claimant’s Name, Bank Account Number and IFS  Code) or Bank Certificate

* If a document contains both identification and address for compliance with KYC requirements, it would be sufficient for processing the withdrawals. Ex: Passport,Aadhar, Driving license, Ration card etc.

Additionally, the following documents are asked for exits arising out of death of the subscriber

5. Death certificate in original issued by local authorities

6. Legal Heir Certificate/Succession Certificate as applicable in case if nominationis not registered by the subscriber

However, feedback has been received at various meetings conducted by PFRDA with Government officials, subscribers and other stakeholders that the burden of documentation is too heavy and needs to be reduced for a smooth operation of the system. The Authority based on the feedback and also upon reexamination of the procedural requirements at various levels and has decided to simplify the documentary requirements for the Government subscriber sector to begin with. However, the long run goal is to minimise the documentary requirements for all sectors.

The following are the revised requirements for the Government sector subscriber for the Exit and withdrawal requests submitted to CRA / NPS Trust:

1. KYC documents, Bank Passbook/cancelled cheque/bank certificate and Name mis-match certification: The certification provided by the PAO/PrAO/DDO/DTO that

• the KYC requirements of proper identification of the subscriber has been done (as per Annexure I)
• that the name as provided in the withdrawal application form be accepted as final.
• Bank account details as provided in the application form be accepted as final.

Would be accepted and claims dealt accordingly.

2. Nomination – If already existing in CRA system – there is no further requirement to fill in the details, unless the subscriber wishes to change the nomination already provided

3. Original PRAN card or In the absence of PRAN card, notarized affidavit: Not required to be submitted henceforth.

4. Death certificate – Copy of the death certificate duly attested by the concerned PAO/PrAO/DDO/DTO with a specific certification that it is a true copy of the original death certificate and such certificate shall be dated and subscribed by such officer with his name, title and seal of office would be accepted as adequate for the purpose of establishing the death of the subscriber.

Yours faithfully,

Sd/-

Venkateswarlu Peri

General Manager

ANNEXURE I

1. KYC CERTIFICATION

Certified that Shri/Smt …………. Son/Wife of Shri …………………, who is an employee of (office address) ……………. from (date) ……. and is at present holding the post of ……………….. and his/her identity is certified as provided in the NPS withdrawal application form along with the address as provided.

Further, the name and Bank account details as provided in the withdrawal application form by the subscriber shall be accepted as final.

Date ……………..

Name, Designation, Address & Tel No

Of the certifying officer

Source: http://pfrda.org.in/MyAuth/Admin/showimg.cshtml?ID=583

Read More