NATIONAL PENSION SYSTEM (NPS)

Option to continue in NPS Scheme post retirement- Provision to contribute till 75 years or to defer withdrawal upto the age of 75 years.

·      Flexible

·      Portable

·      Tax efficient

·      Transparent

account

• Online platform – Internet Banking, IndSMART(Mobile Banking app) and Bank’s website

a)   One Recent Photograph

b)   PAN Card

c)   Proof of Address

d)   Proof for the Bank Account

For NRIs and OCIs

NRI/OCI having Tier-I account are restricted to activate Tier-II account

·      SBI Pension Funds Pvt. Ltd.

·      LIC Pension Fund Ltd.

·      UTI Retirement Solutions Ltd.

·      HDFC Pension Management Co. Ltd.

·      ICICI Prudential Pension Fund Management Co. Ltd.

·      Kotak Mahindra Pension Fund Ltd.

·      Aditya Birla Sunlife Pension Management Ltd.

·      Tata Pension Management Pvt. Ltd.

·      Max Life Pension Fund Management Ltd.

·      Axis Pension Fund Management Ltd.

·      DSP Pension Fund Managers Pvt. Ltd.

Asset Class E – Equity and related instruments

Asset Class C – Corporate debt and related instruments

Asset Class G – Government Bonds and related instruments

Asset Class A – Alternative Investment Funds including instruments like CMBS, MBS, REITS, AIFs etc

While choosing the asset class, subscribers must note that the percentage contribution value cannot exceed 5% for Alternative Investment Funds

The total allocation across E, C, G and A asset classes must be equal to 100%.

For Tier-I, you can allocate 75% to Equity.

For Tier-II, you can allocate 100% to Equity.

Note: Investment in Asset Class A is available only for NPS Tier 1 account.

Auto Choice– NPS offers an easy option for you to invest in a Life-cycle fund in which the proportion of funds invested across three asset classes that are determined by a pre-defined portfolio and would change as per your age.

There are four different options available within ‘Auto Choice’ – Aggressive, Moderate and Conservative. One can choose Lifecycle Fund – Aggressive -LC-75 (75% equity), Moderate LC-50 (50% equity) or Conservative-LC-25 (25% equity) and Balanced Life cycle fund- BLC

Tax deduction up to 10% of salary (Basic + DA) under section 80 CCD(1) within the overall ceiling of ₹1.50 lakh under Sec 80 CCE.

Tax deduction up to ₹50,000 under section 80 CCD(1B) over and above the overall ceiling of ₹1.50 lakh under Sec 80 CCE.

Benefits to employees on Employer’s contribution

Tax deduction up to 10% of salary (Basic + DA) (14% if such contribution is made by Central Government) contributed by employer under Section 80 CCD(2) over the limit of ₹7.50 lakh provided under section 80 CCE.

and death

(i) Partial Withdrawal – after completion of 3 years subscriber can withdraw 25% of his/her own contributions for specific reasons viz illness, disability, education or marriage of children, purchasing property, starting a new venture. A subscriber can partially withdraw upto a maximum of 3 times during his/her entire tenure in NPS.

(ii) Premature Withdrawal – after completion of 5 years or before completion of 03 years (if subscriber has joined NPS after 60 years of age), subscriber can withdraw maximum 20% of the corpus as lump sum and minimum 80% of the corpus has to be utilized for purchasing an annuity plan for receiving the pension. If the accumulated corpus is less than Rs. 2.5 lakh, the entire corpus is paid as lump sum to the subscriber.

(iii) Normal Withdrawal – on completion of 60 years of age (if subscriber has joined NPS before 60 years of age) or after completion of 03 years (if subscriber has joined NPS after 60 years of age), subscriber can withdraw maximum 60% of the corpus as lump sum and minimum 40% of the corpus has to be utilized for purchasing an annuity plan for receiving the pension. If the accumulated corpus is less than Rs. 5 lakhs, the entire corpus is paid as lump sum to the subscriber

Subscriber also has the option to:

(a) Continue in NPS till the age of 75 years or exit any time after such continuance before 75 years.

(b) While exiting from NPS, subscriber can;

▪      defer receiving the lump sum (60% corpus) till the age of 75 years or withdraw the same in instalments till 75 years

▪      defer Annuity purchase (40% corpus) till the age of 75 years.

In case of unfortunate event of death of a subscriber, the nominee/legal heir can withdraw the entire accumulated corpus. The nominee / family members of the deceased subscriber can also purchase annuity, if they so desire.

Withdrawal/Exit from NPS Tier-II Account is unrestricted and will be compulsorily closed upon closure of Tier-I Account.

To be collected upfront

(Minimum ₹30/- Maximum ₹25000/-)

(Minimum ₹30/- Maximum ₹25000/-)

Minimum ₹125 Maximum ₹500

Ø ₹50 per annum for annual contribution ₹1000 to ₹2999

Ø ₹75 per annum for annual contribution ₹3 000 to ₹6000

Ø ₹100 per annum for annual contribution above ₹6000

(only for NPS All Citizen)