Scheme Preference under NPS for Central Government Subscribers - FAQ

Scheme Preference under NPS for Central Government Subscribers - FAQ


Is the choice of Pension Fund and Investment Pattern available for Subscriber under Tier I?
As per Ministry of Finance Gazette Notification dated January 31, 2019, the Central Government Subscribers, from April 1, 2019, will have the option of selecting the Pension Funds (PFs) and Investment Pattern in Tier I account. A Subscriber can choose anyone of the available PFs and Investment Option as per their choice. If the choice is not exercised by the Sub scriber, NPS contributions will be invested in the existing schemes - LIC, SBI and UTI will act jointly as default P Fs as per the guidelines issued by the Government of India/ PFRDA. For more details on 'Investment Option ', please refer 'Information on Scheme Preference' available on CRA website (www.npscra.nsdl.co.in).

Is the choice o f Pension Fund and Investment Pattern can be exercised at the time of registration under NPS?
Yes, a Subscriber is allowed to select the Pens ion Fund and Investment Pattern as per his/ her choice at the time of registration under NPS. The Subscriber is required to provide the relevant details in the Subscriber Registration Form (CSRF).

What are the Investment Options available for Subscriber under Tier I?
The Subscriber can select anyone of the following investment schemes:

• Scheme G - 100% of contribution will be invested in Government Bonds and related instruments.
• Scheme LC 25 - It is the Life cycle fund w here the Cap to Equity investments is 25% of the total asset.
• Scheme LC 50 - It is the Life cycle fund w here the Cap to Equity investments is 50% of the total asset.

If the choice is not exercised by tile Subscriber, NPS contributions will be invested in the existing schemes - LIC, SBI a/ld UTI as per the guidelines issued by the Government of India/ PFRDA. For more details on 'Investment Option', please refer 'Information on Scheme Preference' available on CRA Website (www.npscra.nsdl.co.in).

How can a Subscriber change a Scheme Preference?
There are two options available to the Subscriber - Online as well as offline.
Online: The Subscriber can change Scheme Preference online through his/her NPS account log-in.

Subscriber Call follow the simple steps as given below :

a. Go to your NPS account and log-in .
b. Click on sub menu "Scheme Preference Change" under main menu "Transaction".
c. Select Tier type and Change the Scheme Preference as you intended to do.

Alternatively, the Subscriber can also submit physical request (Form GOS-S3) to his/her associated Nodal Office. The form GOS-S3 can be freely downloaded from CRA Website. On receipt of physical request, the Nodal Office will update the Scheme Preference in the CRA system.

How many times a Subscriber can change 'Scheme Preference' ?
Yes, you have the option to change your Pension Fund manager. At present, the Subscriber can change the Pension Fund Manager once in a Financial Year.

'What will happen to the contributions accumulated in NPS account till March 31,2019?
The legacy contributions i.e. contributions accumulated in NPS account till March 31,2019 will remain invested in the existing schemes - LIC, SBI and UTI will act jointly as default PFs as per the guidelines issued by the Government of India (GOI)/ PFRDA. Redemption and transfer of accumulated contributions will be carried out once guidelines and modalities are provided by GOI/ PFRDA.

Will there be any change in the Transaction Statement?
Yes. Transaction Statement will undergo a change for the PRANs having legacy contributions i.e. contributions accumulated in NPS account till March 31, 2019. For the Subscribers who have opted new schemes, the Investment details of the legacy schemes, and of the new scheme will be shown it two separate tables in the Transaction Statement.

Whether Subscriber can select 'Scheme Preference' at the time of shifting to Central Government?
The Subscriber will have the option of selecting the Pension Funds (PFs) and Investment Pattern in Tier I account at the time of shifting to Central Government. The Subscriber is required to provide the relevant details in Inter Sector Shifting (ISS) Form.

Whether a Non-IRA Subscriber can change 'Scheme Preference' under NPS?
At present, Non-IRA Subscribers do not have the option of 'Scheme Preference' change. A Non-IRA Subscriber should first submit the physical registration form to become an IRA compliant Subscriber. Once he / she becomes IRA, the Subscriber can change the Scheme Preference .

Is the choice of Pension Fund and Investment Pattern available for Subscribers under Central Autonomous Bodies (CABs)?
At present, the Subscribers under CABs do no t have the option of selection of Pension Fund and Investment Pattern under NPS. In case of CABs, NPS contributions will be invested in the existing schemes - LIC, SBI and UTI as per the guidelines issued by the Government of India / PFRDA.

Via : NPS

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NRI Investments in NPS

NRI Investments in NPS

The Pension Fund Regulatory and Development Authority (Retirement Adviser) Regulations were notified in the year 2016. The objective of the Regulations is to provide a framework for eligibility of Retirement Advisers, their registration process, fees etc. of Retirement Advisers (RA) and to define the scope of work and responsibility of the Retirement Advisers to ensure orderly growth of pension sector

In order to expand the National Pension System (NPS) to NRIs, PFRDA has decided to amend the PFRDA (Retirement Adviser) Regulations, 2016 in order to facilitate RA to provide onboarding and advisory services to the NRIs.

Non Resident Indians (NRIs) between the ages of 18-60 years are eligible to join NPS on voluntary basis. NRIs have also been provided the online facility to open account under NPS besides the conventional mode of account opening through the Points-of-Presence (PoPs).

As on 30.03.2017, 2611 NRIs have subscribed to NPS, out of which 1401 NRIs have joined NPS during the financial year 2016-17.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

PIB

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Allowing multiple choice to the subscribers/corporates to change Investment Option - PFRDA

Allowing multiple choice to the subscribers/corporates to change Investment Option - PFRDA

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

B-14/A, Chhatrapati Shivaji Bhawan
Qutab Institutional Area,
Katwaria Sarai,
New Delhi-110016
Phone : 011-26517503
Fax : 011-26517507
Website : www.pfrda.org.in

01 March 2017

CIRCULAR

PFRDA/2017/8/PD/2
To,
All Stakeholder in the National Pension System
Subject: Allowing multiple choice to the subscribers/corporates to change Investment Option and Asset Allocation Ratio during the Financial Year

1. As per the extant guidelines, subscriber can change his/her existing Pension Fund (PF), the investment option(Active or Auto choice) as well as asset allocation ratio (allocation among asset class-Equity/Corporate Bonds/Government securities/Alternate investment ) once in a financial year. This scheme preference is applicable to the existing pension corpus as well as to the prospective subscriptions. Similarly in the NPS-Corporate Model where the choice of Pension Fund and Investment Options is exercised at Corporate level, the Corporates also have the option to change the pension fund and investment option and also asset allocation ratio once in a financial year.

2. In order to provide more choices in terms of investment option and asset allocation, the following has been decided:

(i) The subscribers/corporates will have the choice for change of the investment option (Active or Auto choice) as well as asset allocation ratio (allocation among asset class-Equity/Corporate Bonds/Government Securities/Alternate Investment) two times in a financial year.
This scheme preference will be applicable to the existing pension corpus as well as to the prospective subscriptions. The option will be available separately for Tier I and Tier II accounts.
(ii) The choice of change of Pension Fund shall remain once in a financial year.

4. The changes will come into effect from 01st April 2017.

Yours faithful

(Akhilesh Kumar)
Deputy General Manager

Signed copy

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PFRDA eyes training 64,500 employees to create mass awareness on NPS, APY

PFRDA eyes training 64,500 employees to create mass awareness on NPS, APY

NEW DELHI: Pension regulator PFRDA has appointed IL&FS Skill Development Corporation to train 64,500 government employees and other stakeholders on various aspects of flagship schemes NPS and APY.

The training institute has been appointed to create mass awareness and impart training on National Pension System (NPS) and Atal Pension Yojna (APY) to the employees of Points of Presence, APY service providers, and corporates of North-West zone.

Nodal officers of central and state governments and those at state autonomous bodies too would be trained, said Pension Fund Regulatory and Development Authority (PFRDA).

"It is intended to have at least 50-60 participants in each session of 3-4 hours duration and conduct approximately 1,610 training sessions and train 64,500 participants in the NW zone over the next 12 months," PFRDA said while notifying the training institute.

Participants from Jammu and Kashmir, Himachal Pradesh, Uttar Pradesh, Uttaranchal, Punjab, Haryana, Bihar, Jharkhand, Chandigarh, Delhi, Goa, Gujarat, Maharashtra, Madhya Pradesh, Rajasthan, Chhattisgarh, Daman and Diu, Dadra and Nagar Haveli would be imparted training on various aspects of the two flagship social security programmes.

As on January 17, the overall number of NPS and APY subscribers stood at 1.42 crore, with Asset Under Management (AUM) of Rs 1.61 lakh crore. APY, which guarantees a monthly pension of Rs 1,000 - Rs 5,000, has about 43 lakh subscribers.

As on January 17, the overall number of NPS and APY subscribers stood at 1.42 crore, with Asset Under Management (AUM) of Rs 1.61 lakh crore. APY, which guarantees a monthly pension of Rs 1,000 - Rs 5,000, has about 43 lakh subscribers.

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Fee for NPS Advisors

Press Information Bureau,

Government of India
Ministry of Finance

18-November, 2016

Fee for NPS Advisors

A Retirement Adviser can charge three types of fee from the subscribers to whom he/she has given retirement advice in accordance with the Pension Fund Regulatory and Development Authority (Retirement Adviser) Regulations, 2016, as per details given below:

i. A Retirement Adviser is entitled to charge On Boarding fees for facilitating on-boarding to National Pension System. The upper ceiling of such fees is Rupees One Hundred and Twenty.
ii. For any subsequent services, the individual Retirement Adviser is entitled to charge a minimum of Rupees Twenty per transaction and maximum of Rupees One Hundred per annum.
iii. The Retirement Adviser may also charge 0.02% advisory fee from any existing subscriber, on their assets under management (AUM) of National Pension System (NPS) or any other scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA), on the date of advice, subject to a minimum of Rs. 100/- and maximum Rs. 1000/- per annum, for providing advice to the subscribers.

Further, the advisory fee can be charged by Retirement Adviser only when the subscriber has signed an agreement with the Retirement Adviser for providing advice, wherein the lower and upper limits of advisory fee, as specified by the PFRDA is incorporated. No advisory fee shall be charged at the time of on boarding of the subscriber along with on boarding fee of Rs.120/-.

The fees are chargeable as per the written agreement between the prospect/subscriber and the Retirement Adviser under advisory fee head as prescribed by PFRDA. The Retirement Adviser has to issue a receipt for each type of fee separately and collect all charges upfront.

This was stated by Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

PIB

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ATAL PENSION YOJANA – BENEFITS AND FEATURES

Pension Fund Regulatory and Development Authority

First Floor, ICADR Building, Plot No 6, Institutional Area Phase II,

Vasant Kunj, New Delhi-110070

ATAL PENSION YOJANA – BENEFITS AND FEATURES

1. Anybody in the age group of 18-40 years can join !!

2. You can choose your pension plan from Rs 1,000/- to Rs 5,000/- per month.

3. Your contribution depends on your age and the pension plan you choose!

4. You can be a member of any existing PF/Pension scheme such as EPF/PPF/Govt. pension and still join APY!

5. You can be an Income tax payer and still join APY.

6. For (4) and (5) above, Govt. Co-contribution is not available but Govt. guarantee for pension will be available!

7. Govt. Co-contribution of 50% of subscribers’ contribution or Rs 1,000/- per annum, whichever is lower will be available for five years only to subscribers joining by 31st December 2015.

The monthly contribution chart for different age groups and pension amounts is given below:

Joining Age	Years of Contribution	Indicative Monthly Contribution under APY (Rs.)
		Monthly pension of Rs. 1000. Indicative return of corpus Rs 1.70 lacs	Monthly pension of Rs. 2000. Indicative return of corpus Rs3.40 lacs	Monthly pension of Rs. 3000. Indicative return of corpus Rs 5.10 lacs	Monthly pension of Rs. 4000. Indicative return of corpus Rs 6.80 lacs	Monthly pension of Rs. 5000. Indicative return of corpus Rs 8.50 lacs
18	42	42	84	126	168	210
19	41	46	92	138	183	228
20	40	50	100	150	198	248
21	39	54	108	162	215	269
22	38	59	117	177	234	292
23	37	64	127	192	254	318
24	36	70	139	208	277	346
25	35	76	151	226	301	376
26	34	82	164	246	327	409
27	33	90	178	268	356	446
28	32	97	194	292	388	485
29	31	106	212	318	423	529
30	30	116	231	347	462	577
31	29	126	252	379	504	630
32	28	138	276	414	551	689
33	27	151	302	453	602	752
34	26	165	330	495	659	824
35	25	181	362	543	722	902
36	24	198	396	594	792	990
37	23	218	436	654	870	1,087
38	22	240	480	720	957	1,196
39	21	264	528	792	1,054	1,318
40	20	291	582	873	1164	1454

SUBMIT YOUR APPLICATION FORM AT YOUR BANK BRANCH

For more information, Please call on our APY Toll free No. 1800110069

Source: PFRDA

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PFRDA: ATAL PENSION YOJANA – BENEFITS AND FEATURES

Pension Fund Regulatory and Development Authority
First Floor, ICADR Building, Plot No 6, Institutional Area Phase II,
Vasant Kunj, New Delhi-110070

ATAL PENSION YOJANA – BENEFITS AND FEATURES

1. Anybody in the age group of 18-40 years can join !!

 

2. You can choose your pension plan from Rs 1,000/- to Rs 5,000/- per month.

 

3. Your contribution depends on your age and the pension plan you choose!

 

4. You can be a member of any existing PF/Pension scheme such as EPF/PPF/Govt. pension and still join APY!

 

5. You can be an Income tax payer and still join APY.

 

6. For (4) and (5) above, Govt. Co-contribution is not available but Govt. guarantee for pension will be available!

 

7. Govt. Co-contribution of 50% of subscribers’ contribution or Rs 1,000/- per annum, whichever is lower will be available for five years only to subscribers joining by 31st December 2015.

 

The monthly contribution chart for different age groups and pension amounts is given below:
 

 

Joining Age	Years of Contribution	Indicative Monthly Contribution under APY (Rs.)
		Monthly pension of Rs. 1000. Indicative return of corpus Rs 1.70 lacs	Monthly pension of Rs. 2000. Indicative return of corpus Rs3.40 lacs	Monthly pension of Rs. 3000. Indicative return of corpus Rs 5.10 lacs	Monthly pension of Rs. 4000. Indicative return of corpus Rs 6.80 lacs	Monthly pension of Rs. 5000. Indicative return of corpus Rs 8.50 lacs
18	42	42	84	126	168	210
19	41	46	92	138	183	228
20	40	50	100	150	198	248
21	39	54	108	162	215	269
22	38	59	117	177	234	292
23	37	64	127	192	254	318
24	36	70	139	208	277	346
25	35	76	151	226	301	376
26	34	82	164	246	327	409
27	33	90	178	268	356	446
28	32	97	194	292	388	485
29	31	106	212	318	423	529
30	30	116	231	347	462	577
31	29	126	252	379	504	630
32	28	138	276	414	551	689
33	27	151	302	453	602	752
34	26	165	330	495	659	824
35	25	181	362	543	722	902
36	24	198	396	594	792	990
37	23	218	436	654	870	1,087
38	22	240	480	720	957	1,196
39	21	264	528	792	1,054	1,318
40	20	291	582	873	1164	1454

 

SUBMIT YOUR APPLICATION FORM AT YOUR BANK BRANCH

For more information, Please call on our APY Toll free No. 1800110069

Source: PFRDA

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Key Points - Loksabha Passes Pension Bill

Key Points - Loksabha Passes Pension Bill

The Lok Sabha today passed the Pension Fund Regulatory and Development Authority Bill 2011, which will open the doors for foreign investment in pension funds. The bill aims to create a regulator for the pension sector and extend the coverage of pension benefits to more people. The Pension Bill has been hanging fire since 2005 when it was first introduced in the Parliament. It was again reintroduced in 2011.


Features of New Pension Bill

1: The Pension Fund Regulatory and Development Authority Bill 2011 will give statutory powers Pension Fund Regulatory and Development Authority (PFRDA) which was established in August 2003 as a regulator for the pension sector.

2:  The bill allows 26% foreign direct investment (FDI) in the pension sector or such percentage as may be approved for the insurance sector, whichever is higher. At least one of the pension fund managers shall be from the public sector.

3:  The subscriber seeking minimum assured returns shall be allowed to opt for investing their funds in such scheme providing minimum assured returns as may be notified by the authority.

4: Withdrawals will be permitted from the individual pension account subject to the conditions, such as, purpose, frequency and limits, as may be specified by the regulations.

5: This bill would also provide subscribers a wide choice to invest their funds including for assured returns by opting for government bonds etc as well as in other funds depending on their capacity to take risk.

6:   The passage of the bill could see pure pension products coming into the market. At present most of the pure pension products available in the market are linked with insurance coverage.

7: In 2005, the government had earlier introduced a pension bill but it lapsed as the Lok Sabha's term got over before the legislation could be passed.

8: The Pension Fund Regulatory and Development Authority Bill 2011 was reintroduced in the Lok Sabha in 2011 by the then finance minister Pranab Mukherjee and it was subsequently referred to a standing committee.

9: PFRDA's National Pension System (NPS) was made mandatory for all new government recruits, except armed forces, joining after January 1, 2004.

10:   The NPS was later opened up to all Indian citizens from 2009 on a voluntary basis.


11:  The NPS allows its subscribers to invest in stock markets but there is a cap on equity investment. The NPS also offers subscribers the option of selecting the fund managers of their choice.

12:   The pension bill could help channelize funds into building long-term assets for the country, including the infrastructure sector. The government wants to ease rules for insurance and pension sectors to allow them to invest in infrastructure, where it is seeking $1 trillion investment till 2017.

Source: Central Government Staff News

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