National Pension System

Submitted by sameer on Wed, 02/19/2020 - 09:50

National Pension System (NPS) was launched by Government of India on 1st January, 2004. The main objective of the NPS is to provide retirement income to all the citizens of India. It aims to institute pension reforms and to  inculcate the habit of saving for retirement amongst the citizens. NPS has been started for all citizens of India including the unorganised sector workers on voluntary basis.

Key Features:

  • You will be given a unique Permanent Retirement Account Number (PRAN).
  • You can use this PRAN from any location in India.
  • PRAN will provide access to 2 personal accounts:
    1. Tier I Account: It is a non-withdrawal account for retirement savings.
    2. Tier II Account: It is simply a voluntary savings facility. You are free to withdraw from this account whenever you wish. No tax benefit is available on this account.

The Pension Fund Regulatory and Development Authority (PFRDA) has authorized 58 institutions as Points of Presence (POPs) for opening the National Pension System (NPS) accounts of the citizens including: -

  • public sector banks,
  • private banks ,
  • private financial institutions
  • and the Department of Posts

National Securities Depository Limited (NSDL) plays significant role in the recordkeeping, administration and customer service functions for all subscribers of the NPS. It is acting as the Central Recordkeeper for the NPS.

After exit from the NPS, .Annuity Service Providers (ASPs) would be responsible for delivering a regular monthly pension to the applicant.

Benefits of National Pension System: -

  • NPS is cost effective system wherein the pension contributions are invested in the pension fund schemes.
  • NPS is transparent as you will be able to knw the value of investment on daily basis.
  • It is simple as you just have to open an account with your nodal office and get a Permanent Retirement Account Number (PRAN).
  • It is portable as each employee is identified unique number and has a separate PRAN which is portable i.e, it will remain same even if an employee get transferred to any other office.
  • The appreciation received on the contribution and the amount used by you to buy the annuity is not taxable. Only the amount you will withdraw after the age of 60 is taxable.

How to apply Online

For account opening, you need to have :

  • Mobile number,
  • email ID
  • and an active Bank account with net Banking facility enabled

In case, an applicant selects to open the individual pension account with PAN, the activation of the PRAN is subject to KYC verification by the empanelled POP (name and address should match with POP record) selected by applicant during the registration process.

  • Scan and upload your photograph (optional for Aadhaar) and signature
  • Make online payment (Minimum amount of ₹ 500)
  • In case applicant is unable to do eSign, Print the form, paste photograph & affix signature and submit the Form to CRA

Who can apply under NPS ?

Central Government Employees
All new employees of Central Government service (except Armed Forces) and Central Autonomous Bodies joining Government service on or after 1st January 2004 can apply under NPS.
Procedure to apply

The process of registration under NPS(Tier-I) for Central Government employees is as follows:

  • Submit form S1 to the Drawing and Disbursing Officer (DDO) or equivalent offices.
  • The employment details shall be provided and certified by the DDO..
  • Subsequently, the DDO shall forward the form to the respective Pay and Accounts Office (PAO) / District Treasury officer (DTO).
  • The form should be submitted to Central Recordkeeping Agency (CRA) for registration
Contribution to NPS Contribution through their nodal office to National Pension System (NPS) is mandatory for the Central Government employees. 10% of his/ her salary (basic + DA) and equivalent government's contribution will be invested every month in NPS.
Withdrawal
  •  the applicants can withdraw from NPS on his/ her retirement, resignation or death.
  • An applicant is required to invest minimum 40% of his / her accumulated savings to purchase a life annuity from Pension Fund Regulatory & Development Authority (PFRDA) empanelled and Insurance Regulatory and Development Authority (IRDA) approved Annuity Service Providers (ASPs) on retirement.
  • On resignation Around 80% of amount has to be annuitized and remaining can be withdrawn by the subscriber . 
  • Entire amount will be handed over to the nominee in case of death of the applicant.
 
State Government Employees
All the employees of State Governments, State Autonomous Bodies joining services after the date of notification by the respective State Governments can apply under NPS.
Procedure to apply

The process of registration under NPS(Tier-I) for State Government employees is as follows:

  • Submit form S1 to the Drawing and Disbursing Officer (DDO) or equivalent offices.
  • The employment details shall be provided and certified by the DDO..
  • Subsequently, the DDO shall forward the form to the respective Pay and Accounts Office (PAO) / District Treasury officer (DTO).
  • The form should be submitted to Central Recordkeeping Agency (CRA) for registration
Contribution to NPS Contribution through their nodal office to National Pension System (NPS) is mandatory for the State Government employees. 10% of his/ her salary (basic + DA) and equivalent government's contribution will be invested every month in NPS.
Withdrawal
  •  the applicants can withdraw from NPS on his/ her retirement, resignation or death.
  • An applicant is required to invest minimum 40% of his / her accumulated savings to purchase a life annuity from Pension Fund Regulatory & Development Authority (PFRDA) empanelled and Insurance Regulatory and Development Authority (IRDA) approved Annuity Service Providers (ASPs) on retirement.
  • On resignation Around 80% of amount has to be annuitized and remaining can be withdrawn by the subscriber . 
  • Entire amount will be handed over to the nominee in case of death of the applicant.
 
Corporate
A Corporate would have the flexibility to decide investment choice either at subscriber level or at the corporate level centrally for all its underlying subscribers.
Benefits to Corporate
  • The corporate can save expenses incurred on self-administration of pension functions like
    • setting up separate trust,
    • recordkeeping,
    • fund management,
    • providing annuity, etc. 
Benefits to Subscribers
  • Tax exemption benefit to employees with a ceiling of Rs.1.00 lacs.
Procedure to apply The Corporate can register for NPS through following process:
  • Submit CHO-I form along with the details of corporate Branch offices to the designated PoP.
  • Designated PoP would ensure necessary due diligence on the status of corporate as required for Know Your Customer (KYC) verification as per AML/CFT guidelines issued by Government of India and submit the form to Central Recordkeeping Agency (CRA) duly certified.
  • CRA would register the corporate in the CRA system and allot entity registration number, which would be reflected in each subscriber registration form.
     
Contribution to NPS A Corporate would have flexibility for providing investment scheme preference (PFM and Investment choice) either at subscriber level or at the corporate level centrally for all its underlying subscribers.
Withdrawal
  •  the applicants can withdraw from NPS on his/ her retirement, resignation or death.
  • An applicant is required to invest minimum 40% of his / her accumulated savings to purchase a life annuity from Pension Fund Regulatory & Development Authority (PFRDA) empanelled and Insurance Regulatory and Development Authority (IRDA) approved Annuity Service Providers (ASPs) on retirement.
  • On resignation Around 80% of amount has to be annuitized and remaining can be withdrawn by the subscriber . 
  • Entire amount will be handed over to the nominee in case of death of the applicant.
 
Individual
Procedure to apply

The procedure of registration for an individual under NPS is as follows:

  • Submit duly filled UOS S1 form to open a Permanent Retirement Account (PRA) (Tier I and/or Tier II) in NPS with other supporting KYC documents to POP-SP.
  • For only Tier II account, an individual with an active Tier I account needs to approach the associated POP-SP and submit a copy of the PRAN Card along with UOS-S10 form (Tier II activation form).
  • POP-SP will validate the form and provide a receipt number to the subscriber.
Contribution to NPS

To contribute in Tier I and Tier II account, a subscriber is required to make his / her first contribution at the time of applying for registration (minimum contribution Rs.500 for Tier I and Rs.1000 for Tier II) at any POP-SP with NCIS (NPS Contribution Instruction Slip) form.

The NPS subscriber is required to make contributions subject to the following conditions:

  • Minimum amount at the time of Account opening - Rs.500
  • Minimum amount per contribution - Rs.500
  • Minimum contribution per year - Rs.6,000
  • Minimum number of contributions in a year - one
    A subscriber can decide on the frequency of the contributions across the year as per his / her convenience. No maximum limit has been mandated.
  • For Tier II, minimum contribution requirements are:
  • Minimum contribution at the time of account opening - Rs.1000
  • Minimum amount per contribution - Rs.250
  • Minimum number of contributions in a year - one
  • Maintain minimum balance of Rs.2000 at the end of each financial year
Withdrawal

In Tier I account, a subscriber can withdraw from NPS on his/ her retirement, resignation or death.

To withdraw from Tier II account, the subscriber needs to submit UOS-S12 form- to the associated POP-SP.On date of processing with addition of 3 days, the funds are transferred from the Trustee Bank to subscriber's bank account as registered in the CRA system.

Contact Information:

Head Office -
NSDL e-Governance Infrastructure Limited
1st Floor, Times Tower, Kamala Mills Compound,
Senapati Bapat Marg, Lower Parel,
Mumbai - 400 013
Tel. - (022) 2499 3499
Fax - (022) 2495 2594/ 2499 4974

Contact details of CRA Officials - Central Government, State Government and Unorganized Sector & Corporate

  Central Government State Government Unorganized Sector & Corporate Retirement Adviser
For Entity and Subscriber Registration : Vishal S.Masurkar
Assistant Manager
Phone number - 022-40904533
Email ID - vishalm@nsdl.co.in
Vijay Hedge
Manager
Phone Number - 022-24994298
Email ID - vijayh@nsdl.co.in
Sonukumar Singh
Assistant Manager
Phone number - 022-24994296
Email ID - sonukumars@nsdl.co.in
Akik Desai
Manager
Phone Number -022-24994751
Email ID - akikd@nsdl.co.in
Ahsanullah Shaikh
Assistant Manager
Phone number - 022-40904664
Email ID - ahsanullahs@nsdl.co.in
John Max Soares
Manager
Phone Number -022-40904943
Email ID - JohnS@nsdl.co.in
Laxmi Suvarna
Executive
Phone Number - 022-40904247
E-mail - laxmip@nsdl.co.in
Smita Nair
Senior Manager
Phone Number - 022-40904589
E-mail - smitan@nsdl.co.in
For Exit and Withdrawals Darshan H Solanki
Assistant Manager
Phone Number - 022-40904944
E-mail - darshans@nsdl.co.in
Janhavi Tandlekar
Manager
Phone Number - 022-40904246
E-mail - janhavit@nsdl.co.in
Sagar Kondvilkar
Assistant Manager
Phone Number - 022-40904668
E-mail - SagarK@nsdl.co.in
Dinesh Dalvi
Manager
Phone Number - 022-40904842
E-mail - dinesh.dalvi@nsdl.co.in
Prashant Gurav
Executive
Phone Number - 022-40904257
E-mail - prashantg@nsdl.co.in
Janhavi Tandlekar
Manager
Phone Number - 022-40904246
E-mail - janhavit@nsdl.co.in

Escalation Matrix for Central Grievance Management System (CGMS) - Only for NPS (National Pension system) related queries/complaints

Escalation Level Name of the Official Contact details
Level I

Mr. Chandrashekhar Warange Grievance Redressal Officer (GRO)

Tel No. - 022 24993499
Email ID - gro@nsdl.co.in
Level II Mr. Mandar Karlekar Chief Grievance Redressal Officer (CGRO) Fax No. - 022 24952594
Email ID - cgro@nsdl.co.in

Escalation Matrix for Exits related to NPS (National Pension System) only

Escalation Level Name of the Official Contact details
Level I Ms. Manjiri S. Salvi Tel No. - 022 24994274
Email ID - npsclaimassist@nsdl.co.in
Level II Mr. Dinesh Dalvi Email ID - dinesh.dalvi@nsdl.co.in
Level III Mr. Mandar Karlekar Fax No. - 022 24994974
Email ID - mandark@nsdl.co.in

 

Branches Address Tel. No Fax
Kolkata 5th Floor, The Millenium, Flat No. 5W, 235/2A, Acharya Jagdish Chandra Bose Road, Kolkata - 700 020 (033) 2281 4661 / 2290 1396 (033) 2289 1945
Chennai 6A, 6th Floor, Kences Towers, #1 Ramkrishna Street, North Usman Road, T. Nagar, Chennai - 600 017 (044) 2814 3917/18 (044) 2814 4593
Delhi 409/410, Ashoka Estate Building, 4th floor, Barakhamba Road, Connaught Place, New Delhi - 110 001 (011) 23705418 / 2335 3817 (011) 2335 3756
Ahmedabad Unit No. 407, 4th floor, 3rd Eye One Commercial Complex Co-op. Soc. Ltd., Above Vijay Sales Stores C. G. Road, Near Panchvati Circle, Ahmedabad - 380 006. (079) 2646 1376 (079) 2646 1375
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