Key Benefits of applying in NPS:

1. Flexible – Subscribers can choose their own investment options & pension fund & see their money grow.
2. Convenience – NPS Scheme allows for seamless portability between jobs & locations. It provide a hassle free arrangement while you transition to a new job / location.
3. Regulated & Monitored – NPS is regulated by PFRDA with transparent investment norms & regular monitoring & performance review of fund managers by NPS Trust.
4. Best of both worlds – You get the benefit of compounding as well as low management cost structure at 0.03% to 0.09%.
5. Online Accessibility –Online Subscription & seamless investments in NPS either via SIP or lump sum. View Statement of transactions, contribution book, SIP book, unit holding etc.
6. Tax Benefit – Claim deduction of upto Rs 150,000 under section 80C of Income Tax Act. Additional deduction of upto Rs 50,000 is allowed under section 80 CCD (1B) of Income Tax Act. Consult your tax advisors for the same.

Important Terms & Conditions:

1. A citizen of India resident, can avail the facility of National Pension System (“NPS”), subject to the following conditions:

• The applicant should be between 18 – 65 years of age as on the date of submission of his/her application to the Point of Presence Point of Presence-Service Provider (“POP-SP”).
• The applicant should comply with the Know Your Customer (“KYC”) norms as detailed in the subscriber registration application form. All the documents required for KYC compliance need to be mandatorily submitted.
• Existing NPS subscriber cannot open another NPS account. In case of duplication of NPS account, CRA shall reject subscriber request.

2. Minimum Contributions (For Tier-I)
Minimum contribution at the time of account opening & for all subsequent transactions – Rs. 500.

• Minimum contribution per year – Rs 1,000 excluding any charges & taxes.
• Minimum number of contributions in a year – 01.

3. Non-compliance of mandatory minimum contributions:
If the subscriber contributes less than Rs. 1000 in a year, his/her account would be frozen & further transactions will be allowed only after the account is reactivated.

• In order to reactivate the account, the subscriber would have to pay the minimum contributions.

4. Minimum Contributions (For Tier-II)
Minimum number of contributions in a year -01.

• Minimum contribution at the time of account opening – Rs. 1000/- & for all subsequent transactions a minimum amount per contribution of Rs. 250/-

5. Withdrawal/Exit

• Upon attainment of the age of 60/65 years:

At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber & balance is paid as lump sum payment to the subscriber. However, the subscriber has the option to defer the lump sum withdrawal till the age of 70 years.
In case of attainment of 60 years, exit before the age of Superannuation/attainment of 60 years, the subscribers can also initiate withdrawal requests in the CRA system which shall subsequently have to be verified by the Nodal Office (POP/Banks) in CRA system. www.cra-nsdl.com.

• At any time before attaining the age of 60/65 years:

At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber & the balance is paid as a lump sum payment to the subscriber.

• Death of the subscriber:

The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the subscriber & there would not be any purchase of annuity/monthly pension.