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NPS
Start with Government Accreditation.

On 23rd August, 2003, Interim Pension Fund Regulatory & Development Authority (PFRDA) was established through a resolution by the Government of India to promote, develop and regulate pension sector in India.  The contributory pension system was notified by the Government of India on 22nd December, 2003, now named the National Pension System (NPS) with effect from the 1st January, 2004. The NPS was subsequently extended to all citizens of the country w.e.f. 1st May, 2009 including self employed professionals and others in the unorganized sector on a voluntary basis.

The Pension Fund Regulatory & Development Authority Act was passed on 19th September, 2013 and the same was notified on 1st February, 2014. PFRDA is regulating NPS, subscribed by employees of Govt. of India, State Governments and by employees of private institutions/organizations & unorganized sectors. The PFRDA is ensuring the orderly growth and development of pension market.

What is NPS?
The National Pension System Trust (NPS Trust) was established by PFRDA on 27th February, 2008 with the execution of the NPS Trust Deed. The NPS Trust has been set up and constituted for taking care of the assets and funds under the National Pension System (NPS) in the interest of the beneficiaries (subscribers). Individual NPS subscribers shall be the beneficiaries of the NPS Trust. The NPS funds are managed by the Board of Trustees to realize and fulfil the objectives of the NPS Trust in the exclusive interest of the Subscribers.
Benefits of NPS.
  • It is transparent - NPS is transparent and cost effective system wherein the pension contributions are invested in the pension fund schemes and the employee will be able to know the value of the investment on day to day basis.
  • It is portable - Each employee is identified by a unique number and has a separate Permanent Retirement Account which is portable i.e., will remain same even if an employee gets transferred to any other office.
  • It is simple - All the subscriber has to do, is to open an account with his/her nodal office and get a PRAN.
  • It is regulated - NPS is regulated by PFRDA, with transparent investment norms & regular monitoring and performance review of fund managers by NPS Trust.
  • Income Tax Act allows benefits under NPS as per the following sections; Section 80CCE provides that the aggregate amount of deduction under Section 80CCC and 80CCD shall not exceed Rs 1 lakh.
Eligibility Criteria.
A citizen of India, whether resident or non-resident, subject to the following conditions:
  • Applicant should be between 18 – 60 years of age as on the date of submission of his/her application to the POP/ POP-SP.
  • Applicant should comply with the Know Your Customer (KYC) norms as detailed in the Subscriber Registration Form. All the documents required for KYC compliance need to be mandatorily submitted.
How to Exit from NPS.
A subscriber can exit from National Pension System (NPS) only in accordance with PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 which are notified on 11th May, 2015. The said regulation is a comprehensive document giving details of all the benefits that can be withdrawn under the National Pension System and the applicable conditions thereof. The said regulation is available on our website at www.pfrda.org.in.

The withdrawal process for claiming the benefits under NPS is common to all the subscribers i.e., Government employee subscribers and all others and involves the following broad and generic steps:
1. Receipt of Withdrawal Claim Intimation from subscriber/PAO-DTO-DDO /POP/Aggregator
2. Receipt of completed Documentation from Subscriber/ PAO-DTO-DDO /POP/Aggregator
  • Withdrawal application form
  • Original PRAN Card / notarized affidavit in case if the original is not submitted.
  • Photo ID proof
  • Residence proof
  • Cancelled cheque /bank certificate/copy of the bank passbook with photograph and all the other details like IFS Code, Account no, Branch address and Code.
  • Direct credit mandate
  • Annuity application form duly filled and signed by subscriber
  • Death certificate in original, if the claim is for the benefits arising out of the death of the subscriber
  • Legal heir certificate wherever applicable
  • Relieving letter and NOC, if applicable.
3. Receipt and Processing of Claim made, as per exit guidelines by CRA Claim Cell  and resulting in intimation of deficiencies / requirements, if any
  •  Approval of Claim withdrawal by CRA Claims cell (60% 40% 100% etc) basing on the entitlement as per NPS Exit rules.
  • Instructions to PFM and TB for crediting lump sum withdrawal.
  • Forwarding Annuity form to ASP and crediting the ASP account with the pension wealth as per the instructions provided in the withdrawal application form by the subscriber.
4. Intimation to Subscriber/Govt/POP on the settlement with full details. Closure of claim as completely settled account.
Overall, the entire effort is to minimize the time required for settlement of withdrawal claims and minimize the hardships to the NPS subscribers
Scheme Details (brochure, Recent Circulars).

(A)The corporate or subscriber (employee) can select any one of the following Pension Funds:-
  • SBI Pension Funds Pvt. Limited
  • LIC Pension Fund Limited
  • UTI Retirement Solutions Limited
  • ICICI Prudential Pension funds Management Company Limited
  • Kotak Mahindra Pension Fund Limited
  • Reliance Capital Pension Fund Limited
  • HDFC Pension Fund Ltd.
  • Pension fund to be incorporated by Birla Sun Life Insurance company limited
(B)Investment Choice for Asset Allocation:

The Corporate as well as the Subscriber can have any of the two choices for their asset allocation:
Active Choice: Corporate/ Subscriber, as the case may be, will have the option to actively decide as to how the NPS pension wealth is to be  invested across Asset class E (upto 50%), Asset Class C, and Asset Class G. Or

Auto Choice: In this option, the investments will be made in a life-cycle fund. Here, the proportion of funds invested across three asset classes will be determined by a pre-defined portfolio (which would change as per age of subscriber). 

Grievance Redressed.

1. Grievances received through call centre:

a. The grievances received are recorded in the system.
b. The grievances that can be answered by the call centre executives will be answered immediately.
c. The grievances that need escalation/need additional details will be escalated within the system.

2. Grievances received through written communication:

a. The grievances can be received through registered email, G1 form or letter.
b. The grievances received will be recorded in the system.
c. The grievance will be resolved and then appropriate reply will be sent to the customer.

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