PFRDA (Pension Fund Regulatory and Development Authority), India has opened National Pension System (NPS) / New Pension Scheme to all Indian citizens starting today, on 1st May, 2009.
Its a safe, flexible and portable scheme introduced by Indian Government’s cell PFRDA; to replace the existing System of Pension System in the country and to provide income security after retirement.
PFRDA was established by the Government of India to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds.
National Pension System (NPS) Highlights
Any Indian citizen will be able to start a National Pension System account and can start investing any amount up for a pension.
- Open to all citizens aged between 18-60 years
- Exit age for national pension system will be 60 years.
- Attractive investment schemes to choose from
- Professional record-keeping and fund management
- Technology driven, Transparent fee based system
- Withdrawal facility as and when you wish, under Tier II
- No entry and exit loads
- Multiple fund managers
- Multiple investment options
- Minimum Contribution per installment: Rs 500
- Minimum Contribution per year: Rs 6000
- Minimum Contributions per year : 1
Under this scheme, an investor can deposit their contributions in Bank Branches and Post offices all over the country. Unlike EPF (employee provident fund schemes), there will be only one number allotted to each investor, In case of change of job or location of job, it can be easily transferred to another branch. Each Investor will be allotted a unique 16 digit Permanent Retirement Account Number (PRAN) it will valid for life like current PAN number. There will be no need to open a new account every time you change job or location unlike the current EPF (Employee Provident Fund)
In starting, there will be 23 Points of Presence (POP) including PSU banks and post offices, and they will be provide account opening and other transactions facility. Following is the participating POP list: Allahabad Bank, Axis Bank, Bajaj Allianz General Insurance Co, Central Bank of India, Citibank, CAMS (Computer Age Management Services), ICICI Bank, IDBI Bank, IL&FS Securities, Kotak Mahindra Bank, LIC (Life Insurance Corporation of India), Oriental Bank of Commerce, Reliance Capital, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, SBI (State Bank of India), State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore, South Indian Bank, Union Bank of India, UTI.
There will be multiple choices of investment and pension fund managers. All records will be kept by Central Record-keeping Agency (CRA). Central authorities and fund manager will be providing performance reports and NAVs (Net Asset value) regularly, so investor can track and invest accordingly. In Starting, NAVs will be declared once every year and switching fund manager will be allowed only once a year.
Currently seven fund managers have been chosen LIC Pension Fund Limited, SBI Pension Funds Private Limited, IDFC Pension Fund Management Company Limited, Kotak Mahindra Pension Fund Limited, Reliance Capital Pension Fund Limited, UTI Retirement Solutions Limited and ICICI Pension Fund Management Company Limited that will manage investment money for NPS.
Fund Managers will charge very low fund management charges as compared to mutual funds.
Investment Options:
Individual will also have choice to choose from 3 different asset classes: equity (E type), Govt securities(G Type) and Credit Risk-bearing Debt/fixed income based investments (C Type).
Active Choice investment: Investor can mix these three types also as per his choice. Invester actively decide as to how NPS investment is divided into 3 options (E, C and G).
Auto Choice investment: Another option will be Auto Choice life cycle fund and the investment allocation will be done based of investor’s age. In this scheme, equity portion (Asset class E) will be 50 per cent till age 35 after which it will reduce 2 per cent per year until it becomes 10% by age 55. Credit risk portion (Asset class C) will be 30 per cent till age 35 after which it will reduce 1 per cent per year until it becomes 10% by age 55.
Investor will have option of investing monthly/quarterly, but minimum 4 investments in a year will be compulsory.
As per the notification by PFRDA, Currently only half of investment can go into equities, even if investor chooses the equities type funds. This limit will only be reviewed after a year. Deepak Parekh had suggested PFRDA to allow public to invest all saving in equities but board was not ready to do that.
There will be regular account statements and information desks to keep information transparent.
Govt has extended Swavalamban initiative under which it will contribute 1,000 Rs per year (for a period of four years) to every national pension system (NPS) account opened this year with at least a matching contribution from the subscriber.
How to make investment in NPS
Biggest problem is investment is that, a person has to visit personally to POP office every-time he/she need to make contribution. There has been some respite to investors as some of the POPs have started taking deposits online.
India’s largest bank State Bank of India has started taking NPS contribution online through the onlineSBI login account. If you have internet banking of SBI, you can make payment to NPS online. You can check NPS contribution section under Payments/Transfers tab after login.
If you have NPS account opened with ICICI and you also have bank account with ICICI, you can also transfer amount online to NPS account. You need to add NPS account as biller in online ICICI account. You can go to ‘Bill Pay’ section and add a biller under Pension category. Once biller is added you can make payment to this account. The facility for online contribution payment towards national pension system (NPS) is allowed only for NPS accounts opened through ICICI Bank. Your registration for NPS contribution will be cancelled if the NPS account has not been opened through ICICI Bank. Any payments made towards such account will be reversed within three working days. Please make contribution towards the above NPS account only after you have received confirmation for registration into the mail box of your Internet Banking account.
NPS account holders can also invest through SIP or in lump-sum from their ICICI securities account (demat and online share trading account). But as this account is held by limited Indians, its of not much help.
CAMS service for online NPS payment has not started yet and page on their site shows under construction.For Govt Employees:
All new government employees (central and state) will no longer have GPF accounts and NPS account will be mandatory for them. So all who have joined government services after 1st Jan, 2004, will have NPS account.
NPS will work on defined contribution basis and will have two parts – Part I and Part II.
Tier I – Mandatory non-with-drawable Pension Account – Monthly contribution will be 10 percent of basic salary and equal amount will be deposited by Govt. This amount will be kept in a non withdrawal Pension Tier I account.
Tier II – Voluntary with-drawable Savings Account – It will be voluntary tier-II with-drawable account from which individual can withdraw money anytime without giving reason. There will not be any contribution from Govt. side in this account.
Govt Employee can exit after age of 60 years from Tier I Scheme and it will be mandatory for him to invest 40% of pension amount to purchase an annuity through a Life Insurance Company, It will provide pension for the life time. In case of employee wants to leave NPS before age of 60, the mandatory annuity will be 80 per cent of the pension amount.
Charges:
For account opening and issuance of PRAN : 50 Rupees
Annual maintenance charge: 350 280 Rupees per year
Initial subscriber registration charge: 100 Rupees
Transaction charges and contribution upload– 0.25% of the amount, subscribed by the NPS subscriber, subject to minimum of Rs.20 and a maximum of Rs. 25000.
Fund management charge: 0.0009% per year on the fund value.
Fund switch charges: 20 Rupees.
Any other transaction not involving a contribution from subscriber – Rs 20
As of now, this charge appears to be high. Considering 12 transaction a year (one every month), investor has to pay 470 Rs a year. That’s on higher side. These charges will reduce in coming years, as number of subscriber increases.
PFRDA may ask Government to partly pay the maintenance cost to reduce overall cost for investor.
Income tax treatment:
The bad part about NPS is that the returns will be fully taxable not like EPF and PPF. It will come under exempt-exempt-taxed (EET) regime, the amount would be taxed at the time of withdrawal. NPS will not attract any Security Transaction Tax (STT) and Dividend Distribution Tax (DDT).
However PFRDA has suggested government to exempt scheme from tax, but that decision will only be taken by new government.
Update: As per new notification by Finance ministry, under Direct Tax Code (DTC), NPS will also come under EEE and withdrawal will also be non-taxable from 2011. So national pension system could become the best long-term savings option.
From April 1, 2011. Employer contribution from employer towards NPS will not be included in the Section 80 C deductions (Like what happens in case EPF currently). So if employer contributes 50,000 to your account and you contributes same amount, Your 50000 will be available for exemption under 80-C and there won’t be any income tax on rest 50,000 deposited by employer. This increasing your overall deduction claim.
Where to apply for NPS
NPS is available at selected Service Provider (SP) branches of various Point(s) of Presence, Click on link for each POP for branches address. You may also view list by state-city on this link: POP/POP-SP location details.
- Allahabad Bank 033-22104754
- Axis Bank 1800 233 5577 / 1800 209 5577 / 1800 103 5577
- Central Bank of India 022-22153691
- Citi Bank- 1800-180-0123
- Computer Age Management Services Private Ltd. 044 – 30611606 / 07/ 08
- ICICI Bank 022-28308110
- IDBI Bank Toll Free Number for MTNL/BSNL subscribers 1800-22-1070 Toll Free Number for other than MTNL/BSNL subscribers 1800-200-1947
- IL&FS Securities Ltd. 022-42493000
- Oriental Bank of Commerce 011-47651319
- Reliance Capital Ltd. 022-3046 2300
- State Bank of Bikaner & Jaipur 18001806005
- State Bank of Hyderabad 09866582590/04023387471
- State Bank of India 1800 112211
- State Bank of Indore 1800-425-2241
- State Bank of Mysore 1800-425-2244
- State Bank of Patiala 1800 180 2010/0172-2648011
- State Bank of Travancore 18004255566
- The South Indian Bank 1800 843 1800 (Toll free)/1800 425 1809(Toll free)/0484 235 1923
- Union Bank of India 1800-022-2244
- UTI Asset Management Co. Ltd 1800221230
- Kotak Mahindra Bank 1800-102-6022
For more information, application form & offer document, walk into your nearest Service Provider branch of the above-mentioned Point(s) of Presence.
Application Forms
NPS (New Pension Scheme/System) - Application Form (456.0 KiB, 19,171 hits)- New Pension Scheme/System (NPS) - Offer Document (2.9 MiB, 14,003 hits)
- New Pension System (NPS) - Welcome Kit (1.2 MiB, 9,173 hits)
- NPS (New Pension Scheme) - Investment Guidelines (73.8 KiB, 10,445 hits)
- New Pension System (NPS) Contribution Instruction Slip (NCIS) (15.1 KiB, 8,384 hits)
- NPS Scheme Preference Change/Switch form (26.9 KiB, 3,228 hits)
- Swavalamban Yojana Declaration Form (139.7 KiB, 3,472 hits)
- Subscriber request form to change Point of Presence (POP) (63.3 KiB, 3,300 hits)
- Subscriber request form to change POP-SP (16.4 KiB, 3,298 hits)
- UOS-S12 Withdrawal form for Tier II account under NPS (47.0 KiB, 3,075 hits)
- Request form for change in signature and/or change in photograph (12.8 KiB, 2,867 hits)
- Request For Change/Correction in Subscriber Master details And/Or Reissue of I-Pin/T-Pin/PRAN Card (402.9 KiB, 3,183 hits)
- Request for Activation of Tier-II account under New Pension System (NPS) (215.3 KiB, 3,638 hits)
- S1 - Subscriber Registration form to get PRAN (61.3 KiB, 3,393 hits)
Launch Notification:
i have not informed my current employer (PSU) that i had 4 month exprience in another PSU previously, but i heard that through NPS they can track and get information about my previous employer, is it true? can they get information about it ? or This NPS department is diffrent.
secondly if i already have NPS accont then how would the deatails get transfer to my present employer?
is it mandatory to tell my current employer abt previos one. i dont want to tell them , hiding from them could create any problem??
@Sudha
Your query has already been answered on this page: http://www.socialfinance.in/questions/2853/can-my-current-employer-get-the-information-about-my-previous-employer-through-nps
i did not ask for investmnt porpous i have diffrnt query
i asked if my employer can track through nps that i hv wrked previously in such and such company??
i dnt wanna tell them abt my previous job.. do they get info abt it through nps
@Sudha
They don’t disclose previous details generally.
@Sudha
NPS fund stt can only be accessed by you & not anyone else.
If you recall the Terms, the employer only deposits the money using your PRAN no. Just like he deposit salary at your bank. SO No way one can get details of other contributons to your account.
So just chilll out…
sir,
I am in pvt job but my job is not secure and no any fund or medical facility provided so pls suggest me how much monthly investment in (NPS)system. my age is 35 yrs when i am 60 or above then get handsome income from (nps).
@Sunil
Assuming an average 10% return, monthly investment of Rs 5000 would be around 65-70 lakh after 25 years.
I am K N Shivananja from Bengaluru, I suggest you to invest in MMRP plan in metlife it is a pension scheme you have to pay for 7 years leave for 3 years from 10 years onwards you will be getting the same amount what you have paid its guranteed payment for 20 years and you will covered for 10 + 20 = 30 years insurance coverage also. What you have paid & what you are going to get back is completely income tax exempted no TDS.
@K N Shivananja
This plan would yield even lower returns than normal fixed deposit.
To get 30,000 monthly income, you would need to pay almost same amount every month as premium.
Even bank fixed deposit would yield more return that these kind of plans.
These are like most of the plans offered by insurance companies to earn money and agents push them to earn good commissions.
Nobody thinks about the investor.
Only term insurance is type of insurance one should buy. All others must be avoided.
Sir,
I have invested in fixed deposit in Union Bank for 3 years, they pay 9.25% & they will deduct TDS 10.33% what we get is less than what they have specified. where as in the mmip plan its assured and guaranteed, you will get tax exemption while taking also. no TDS
@K N Shivanja
Can you please explain what is assured and guaranteed.
Say I pay Metlife 30,000 per month for 7 years, how much I would get back after these 7 years and important question what would be sum assured. How much amount my family would get in case I die in between 7 years.
Once you answer these questions, I would be able to explain why I am suggesting term insurance + PPF/NPS/Equity mutual fund investments.
If you don’t have answers to these questions, Please stop commenting and misguiding people with so called “assured and guaranteed” schemes.
Sir, Where is the national pension system office in Hyderabad
@Naveen
If you want to know POP location, check here: https://www.npscra.nsdl.co.in/pop-sp.php
I made NPS contribution through online sbi as well as across the counter in an SBI Branch. In all cases, the had given me a 12 digit receipt number. But Whenever I checked the status of the same in cra website, it shows “No records found”. Even after the amount is credited to my PRAN, the search with Reciept number shows no record found. I contacted both CRA and SBI but nobody gave clear answer. For example receipt no. 12604877060003879 is yet to be credited and receipt no. 12604877060001020 already credited. This means, once I pay the subscription, I cannot check the status till it is credited to my account which takes minimum 7 days. I wonder what type of online system is this? This is as good as sending a cheque by post to any fund and wait till they give message that your money is received.
If its the fault of SBI (in my case) then they may not be doing it properly. If the system is designed in this way that, then either their is a technical snag in the system/procedure or why they have provided a link to search with receipt number?
Any contributor who was able to track their contribution status through the link provided by CRA may please share the information
@Hari
Receipt number provided by SBI might be their internal receipt number and may not be available in CRA system at the same time.
It is not an internal receipt number. The number format is as per the SOP of CRA. The first two digits 12 indicates it is a contribution. If it is 11, then it is registration transaction. Next 8 digits indicate the POP-SP number and the remaining digits are the serial number. This number can be generated only by the CRA module given to the POP-SP. The SOP says that subscriber can track their transaction using the receipt number given by POP-SP. But it actually never worked at least in my case (I have made about 6 transactions in the preceding six months) Anybody who has got a receipt number may please check the same using CRA website and kindly give a feedback. I request Shri. Batra also to throw some light
@Hari
Thanks for sharing knowledge with all of us on this issue.
I have also contributed to my NPS account 2-3 times through SBI but never tracked ACK number. Have just checked it now and it does not show in CRA system (https://cra-nsdl.com/CRA/limFileMisSts.do).
Seems like these online contribution system is still evolving and their systems are not in complete sync.
This system should change in few months. There is already a circular from CRA to all POPs to implement some new rules.
In my case ACK number was 12-6048770-XXXXXXXX (without hyphens). 6048770 is POP-SP Reg No for State Bank Of India, Fort – Mumbai. Last 8 digits are POP internal serial number which needs to be pushed to CRA system on-the-fly.
Thank Shri Batra. Since both of us used SBI as POP-SP, We cannot be sure about what went wrong. The reply I received from CRA is reproduced below:
“As regards non availability of the status of the aforesaid receipt number on CRA website, we would like to inform you that as per the NPS architecture approved by PFRDA, POP-SP issues a 17 digit receipt number as an acknowledgment to the subscriber against various requests received including PRAN generation request and contribution request. Further, POP-SP has to upload the details of such receipt numbers issued by it in CRA system to facilitate subscriber to track the status of his/her requests. Subscriber can track the status of the request submitted only if the respective POP-SP has uploaded the details of receipt numbers in CRA system. In your case, POP-SP has not uploaded the details pertaining to the above mentioned receipt number issued to you in CRA system. As a result, though your contribution file was uploaded, the status could not be viewed on CRA website. ”
The above reply sent by them on 08-12-2011 indicates that their system is working and the POP-SP did not do it properly. In fact I spoke to concerned person in SBI Fort Mumbai branch then and he said that he did everything as per the SOP- which mau or may not be true. Any way after getting your comment I forwarded the mail from CRA along with my comments to SBI , Fort Mumbai Branch. Also planning to write to some officials of Internet Banking Dept, SBI, CBD Belapur. I have some of them’s mail id, but not sure they are still working there. I will post any progress in this regard
Once again thank you for keeping this forum with valuable information.
@Hari
Thanks for providing feedback.
Whenever I will get time, I would also post to SBI and CRA for this issue.
When more people would raise questions, they will have to correct the systems.
I have also have the same problem. I am not able to check the balance amount, I invested thro union bank of India.
sir, i want to invest 1000/- p/m for my child education who is 3years old in PPF or SIP UTI or other.please suggest and give the best option.
@Debojyoti
It would be better if you can invest into a mix of equity mutual funds and PPF. PPF would provide a safe and tax free return. Equity mutual fund would help you in getting excellent returns on investments in long term.
sir, i am thinking to invest in NPS. pl. suggest me which PFM and invest option should i select in the form.
@Debojyoti
As per returns declared as on 31st March 2011, Kotak and ICICI have delivered best returns in Scheme E, SBI and Kotak in Scheme C, UTI and SBI in Scheme G.
Hi Pankaj….Pl see my data from PRAN Stt. I foudn ICICI to be a Poor returns in E as negative 3.09%…
Pl share yoru data & method of calculation
Thanks
A Note on performance of my NPS Tier-I during FY 2011-12..
Others Pl post their Fund manager performance so we can see some trend.
Open NAV is on 1 Apr’2011 & End Nav is on 31 Mar’12
Fund Manager – ICICI
T-I Open NAV End NAV Nav growth %Nav Growth
Equity 13.0401 12.6378 -0.4023 -3.09%
C-Safe 12.0966 13.4159 1.3193 10.91%
G-Ultra Safe11.2859 11.9389 0.653 5.79%
@Sanjay
As of now NPS website does not show comparative analysis and percent returns over various periods.
We will have to compute the returns ourselves by NAV computations.
However for last year 2010-11, they reported the annual returns in this document: http://www.pfrda.org.in/writereaddata/linkimages/PERFORMANCE%20SHEET_%20MARCH%2031_20112595365271.pdf
Good one! Very helpful. If you don’t mind questions… I will shoot a few of them too.
Thanks
@Alan
Sure, let us know your queries.
i have worked in central govt. deptt. and i have a pran no. issued by them. i have resigned this deptt. and joined psu and as of now in psu (bpcl) they dont have nps in running. so i want to know from u that how to transfer the pran to psu and what are the possibility of opting this nps in future so that i can transfer my pran a/c.
@Rinku
PRAN need not to be transferred to different employers. Its a single account maintained by CRA. If your employer is not contributing on NPS, you need to put minimum amount every year yourself to keep NPS account active.
Have a Query on Tier-I Asset allocation.
1. AFter completing one Year with NPS T-1, I intend to change my asset allocation ratio.
So the new ratio will be applicable to Fresh funds which I put in NPS or my earlier Units will be sold & then reallocated in new ratio?
2. If I change my PFM, NPS states that all units will get sold & will be repurchased by new NFM at NAV rate. However it is silent to mention the Sale/Buy charges which a typical MF levies. What are the charges here?
Thanks
@Sanjay
NPS website and documents does not provide any information on both of your questions.
I have called CRA call center (1800-222-080) to inquire about same.
As per call center guy:
1. Existing units would remain as it is on same ratio if one shifts from one ration to another.
2. He was not sure about redemption/purchase charges in case of switching from one fund manager to another. He asked to contact POP office.
I am not really sure if POP guys would also be able to answer these questions.
I am going to do both of these things in next 1-2 months and update on this post about any charges levied.
Thanks Pankaj.
1. My Logic – SO If I am changing PFM & Also changing Ratio, the new PFM will buy the units in new Ratio as he may not be aware of old ratios…Am I correct?
2. If 1 is correct, then I will be a bigger loooser by changing either PFM or Ratio as the new NAV will be higher (Thats why I am switching to a better PFM) and existing NAV is less….
Ha Ha.. So PFRDA rules are really made to ensure that you stick to your PFM ???
@Sanjay
1. I believe CRA first divides amount of contribution on basis of ratio applicable and then allocates this amount to fund manager’s different funds. This should happens on each contribution. So no matter if you have changed fund manager or not, new ratio would be used once its in force.
2. Higher NAV does not mean loss. Fund value’s would still be same in both. Say if you have 10 units of SBI with NAV Rs 10 and if you switch to Rs 20 NAV of ICICI, you get 5 units. So fund value would still be Rs 100.
Moreover like mutual funds, higher NAV does not necessarily mean a better fund. A fund house may join NPS later and have lower NAV than an older fund manager but provides better annualized return.
PFRDA rules are currently forcing to stick to one fund manager in all categories. This would change as NPS becomes big, which would happen in next 2-3 years once direct tax code is applicable.
sir,i m a trustee and i want to serve this scheme to poor people(NPS-LITE).how can i help them.As i have having problem on nps-lite none one of pop-sp clear the difference between NPS MAIN and LITE.where and how we can open nps-lite account and what is first time registraion charge under NPS-LITE.
@Vikash
You can get all details about NPS Lite on this page: http://www.pfrda.org.in/indexmain.asp?linkid=185
sir, i am working abu dhabi. i investment yearly 50000RS.NPS system.now may age48 .so ipay 13year.after how much i can get.i am NRI.this god for or not pls give me sagtion.
@Shantilal
The return under NPS is market driven. Hence, there is no guaranteed/defined amount of return.
It would depend on your ratio of investment in equity, debt and bonds, fund manager chosen and market performance.
sir i had contact to the aggregator for nps lite. as in this scheme according to pfrda one can open a account by regestring Rs100.but the aggregator had asked me Rs1000 at the time of registration.is it right.but in in pfrda website (manual of swavalamban it is Rs100).can u clear.tnx
@Vikash
You must tell aggregator that you want only NPS lite account. They may be opening normal NPS account for you sometimes.
sir i am 42 years old.if i invest Rs 10000 annualy in NPS. when il be 60, how much pension or return il get. is this scheme better for me. kindly suggest any other besides this.
Hi Tarun,..
As stated by Pankaj & known to all of us. Return in NPS is Mkt driven & hence no assurance. You can seek comfort if your employer is contributing upto Rs 1L in NPS from your salary, will give you Income Tax benefit applicable to your IT slab us 80CCD(2). If your risk appetite is low & you are looking for assured returns, then use PPF where current return is 8.6% with Sec 80C benefit.
sir i open a nps account on 28/4/2012 through SBI shillong branch, but till date I didnot receive any material.how can i know the status of my application.
Write to [email protected] giving details of your application etc. Quote your appl Ack no, PAN no & Full Name. Please provide the acknowledgement number of your application and contribution remitted with your PoP-SP;
Address to
Mr Kamal Kumar Chaudhry, Chief General Manager
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
FIRST FLOOR, ICADR BUILDING, PLOT NO. 6,
VASANT KUNJ INSTITUTIONAL AREA,
PHASE – II, NEW DELHI – 110070
OFFICE TELEPHONE & FAX NO.:- Tel- 91-11-26897948/49 Fax- 91-11-26897938
Dear Pankaj,
I have opened my account in October, 2011 and when you deposit cheque with your bank then bank will debit the amount from your account within a week and the credit in PRAN Account will reflect in 10-15 days time i.e., from the date of deposit of cheque to credit the total time it takes 20-25 days.
@Phani
Pl chk your PRAn acct stt.
I had deposited online with SBI giving my PRAN no. The amount was credited to my PRAn no within 2 days.
I can invest upto 5L per year for next 5 years, what retirement plan do you suggest to maximize annual payback. I need not have returns for first 5 yrs, my age 58 yrs.
Can you please suggest 2 options.
Thanks and regards,
@Hari
As you are 58, NPS is not suitable for you. NPS is good for those who have more time left & maturity is at 58-60Yrs.
1. Option A: Invest in Recurring deposit which will give you safe & assured returns. Open a 2Yr RD to start with. Once you turn 60, open another RD which will give you Sr citizn rate
2. Optio2 : Invest 30% in Equity MF & 70% in Debt funds.
I lost my I-pin And also T-pin code, I apply for that in USO-S2 forms. How many days I will get it.
@Abhijit
It may take 15-20 days in receiving new passwords.
hi pankaj, what u suggest choice of seven fund manager
Sachin – In current Mkt scenario, Debt & Bonds are safe bet than equity. So your choice of allocation is more important than Fund Mgr. I did a tabulation of Last 1 Yr return of 6 PFMs & found ICICI to be most effective. However past perf may not be true in coming yrs. So you need to allocate & observe your T-I acct perf over a year before deciding on change of PFM
Hi Pankaj. I am 24 years guy and I joined in a Central Govt organization recently. I have a valid Tier-I account in NPS. I want to start Tier-II account. I am confused to select which PFM in the six PFM’s. Can you suggest me which is the best one.
Apart that, I want to know how can we withdraw money in our Tier-II account. What is the procedure for that. Whether the amount can be withdrawl using our Bank ATM or what exactly the procedure to with draw the amount in Tier-II account.
Varun – you dont get any IT benefit in Tier-II acct. So pl use Tier-II only after you exhaust your 80C ceiling of Rs 1L. ALso, MFs & Equity investment will give you better returns than T-II acct.
@Varun
Adding to reply posted by Mr. Sanjay:
In order to withdraw from Tier II account, the subscriber needs to submit a duly filled UOS-S12 form to the associated POP-SP. If the request is entered and authorised in CRA system by the POP/POPSP before 1.30 PM, then it goes for same day’s processing, or else it goes for the next business day. The redemption amount may vary due to the variation of NAV. Units are redeemed based on the NAV declared at the end of the processing day. On T+3 days, (T being the date of processing) the funds are transferred from the Trustee Bank to subscriber’s bank account as registered in the CRA system.
Dear Mr.Pankaj,
I resigned from a private company and am entitled for pension as I have completed more than 12 years of service. I have been asked by my ex-employer to open a separate account (PENSION ACCOUNT) exclusively for receiving pension either with SBI or PNB. The bankers say, it is not mandatory to open a separate account for pension instead I can receive the same in the existing savings account.
Please clarify.
Thanks
N.Hariharan
@N.Hariharan – Banker is correct. When you fillup your pension form, you can give details of any existing account. It neednot be with SBI or PNB. Any Nationalised or Pvt sector bank will do. My pension acct is with HDFC Bank & I get my pension through LIC to my credit wout any issues. Sometimes employer have their employee Salary acct with particular banks & hence try to coerce employees to open accts with those banks. Bank agents also have targets & they try to take advantage of people like you to meet their targets. So go ahead & give your existing acct nos. Also if you read the Terms & conditions of pension form, you will see that no such restriction/new acct reqt exists…If they still insist, make a complaint to PFRDA.
While thanking you for your clarification I feel the reason for insisting on opening a separate account could also be just to make sure that the account is not a joint account.
You are wrong. You can link a joint accct to your NPS. It is good also. In case of any unfortunate event, your family can continue to get the pension provided they are the noninee in your nPS acct. Eitherway, there is nothing stopping you from connecting a joint acct to NPS…
Thanks Sanjay for clarifying the matter.