All Citizen

 

 

 

NPS enables an individual to undertake retirement planning while in employment. With systematic savings and investments, NPS facilitates accumulation of a pension corpus during their working life. NPS is designed to deliver sustainable solution of having adequate retirement income at old age or upon superannuation.

 

NPS is mandatory for Central Government employees joining services on or after 1st January 2004 and has been adopted by almost all the State Government for their employees.

NPS can be subscribed by any Indian citizen (resident/non-resident/overseas) aged between 18-70 years on a voluntarily basis.

The Central Government introduced the National Pension System (NPS) for Central Government subscribers (except for armed forces) with effect from January 01, 2004. NPS was made available to All Citizens of India from May 01, 2009.

In NPS, a government employee contributes towards pension from monthly salary along with matching contribution from the employer. The funds are then invested in earmarked investment schemes through Pension Fund Managers.

For central Govt. employees, the employer’s contribution rate has been enhanced to 14% w.e.f. 01.04.2019.

 

Eligibility

An individual fulfilling the following eligibility criteria can voluntarily join in NPS: -

 

o    Should be an Indian Citizen (resident or non-resident) or an Overseas Citizen of India (OCI)

o    Should be aged between 18 - 70 years

o    Compliance of Know Your Customer (KYC) norms detailed in the Application Form

 

Hindu Undivided Families (HUFs) and Persons of Indian Origin (PIOs) are not eligible for subscribing to NPS.

NPS is an Individual Pension Account and cannot be opened on behalf of a third person. The applicant should be legally competent to execute a contract as per the Indian Contract Act.

 

   

Apply through: -

 

Online

 

https://npstrust.org.in/open-an-nps-account

 

Offline

 

Points of Presence (PoPs) have been appointed by the Pension Fund Regulatory and Development Authority (PFRDA) to service you, including your registration and acceptance of further contributions.

 

 

NPS Architecture

 

·         Specialized Functions

·         Entity Expertise

·         Registration

·         Regulations

·         Performance/Compliance

 

 

Point of Presence (Distribution Channel): - A Point of Presence (POP) is like a helper for the National Pension System (NPS). It's a company the government approves to handle your NPS account.

Central Recordkeeping Agency (Database): - The Central Recordkeeping Agency (CRA) is the central filing cabinet for the National Pension System (NPS) in India. It keeps track of all the money going into and out of your NPS account.

Trustee Bank (Banker for the system): -  

Pension Funds (Investment Management): -

Custodian (Securities Safekeeping): -

Annuity Service Provider (Provides Annuity): -

NPS Trust (Holds Assets): -