T17 2019/10/14 05:03:47.697873 GMT+0530
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NPS Swavalamban

This topic contains the information related to NPS Swavalamban

Eligibility

The scheme is applicable for all citizens of India (age group of 18-60 years) in the unorganized sector, person will be deemed to belong to the unorganised sector if that person is not in regular employment of the Central or a state government, or an autonomous body/ public sector undertaking of the Central or state government having employer assisted retirement benefit scheme, are not covered by a social security scheme under any of the following laws:

  • Employees' Provident Fund and Miscellaneous Provisions Act,1952
  • The Coal Mines Provident Fund and Miscellaneous Provisions Act,1948
  • The Seamen's Provident Fund Act, 1966
  • The Assam Tea Plantations Provident Fund and Pension Fund Scheme Act 1955
  • The Jammu and Kashmir Employees' Provident Fund Act, 1961

The scheme will be applicable to all persons in the unorganised sector subject to the condition that the benefit of Central Government contribution will be available only to those persons whose contribution to NPS is minimum Rs.1,000 and maximum Rs. 12,000 per annum, for both Tier I and II taken together, provided that the person makes a minimum contribution of Rs. 1000 per annum to his Tier I NPS account.

Enrollment

  • Eligible* individuals in the age group of 18-60 years, willing to open an NPS-Swavalamban account may fill a NPS-Swavalamban form.  (Link for Form)
  • Acceptable Documents for KYC
  • Initial minimum contribution amount to be deposited at the time of registration is Rs.100/- only.
  • Submit your filled form along with the relevant documents to an Aggregator.
  • To search your nearest Aggregator

Or

  • Individual may also call to Toll free call center number 1800-110-708 or SMS “NPS” to 56677 (Charges Applicable).

Contribution

  • NPS Swavalamban, being aimed at economically disadvantaged sections of the society, shall have minimum and maximum limits of investment amount in each account prescribed by PFRDA and as amended from time to time.
  • The maximum investment limit prescribed by RBI vide their master circular number RBI/2008-09/72 dated 1st July 2001 for “ Small Deposit Accounts” shall be applicable for each NPS account opened under NPS Swavalamban, till PFRDA prescribes separate limits.
  • To become eligible for Swavalamban benefit a subscriber needs to contribute within the specified limit of Rs. 1000-12000 per year in his NPS account.
  • The subscriber will not be eligible for Swavalamban benefit of Rs. 1000/- where self contribution is not in between specified limit.

Investment Choices

An investment class can be specified by PFRDA. The investment choice shall remain uniform across all subscribers under one particular aggregator.

PFRDA shall specify, from time to time, the Pension Fund Manager(s) who may be assigned the responsibility of managing the funds under NPS Swavalamban.

PFRDA may, at its discretion and in the interest of subscribers, specify a pre-defined set of asset classes for investments from which aggregators may choose one or leave it open to the aggregators to devise their own mix.

For the present, scheme with the investment pattern similar to that prescribed by the Central government for its own employees, as amended from time to time shall be available for NPS Swavalamban.

The Aggregator on behalf of their underlying subscribers may choose one of the Single PFMs to whom the entire corpus can be invested. The Single PFMs are:

  • ICICI Prudential Pension Funds Management Company Limited
  • DSP Black Rock Pension Fund Managers Pvt. Limited
  • Kotak Mahindra Pension Fund Limited
  • Reliance Capital Pension Fund Limited
  • HDFC Pension Management Company Limited
  • SBI Pension Funds Pvt. Limited
  • UTI Retirement Solutions Limited
  • LIC Pension Fund Limited
  • LIC Pension Fund Limited
  • SBI Pension Funds Private Limited
  • UTI Retirement Solutions Limited

The aggregators may also choose to invest the contributions through all the three PFMs as per Central Govt. Scheme in the same manner as for government employees. The allocation ratio of this scheme is reviewed by PFRDA on a periodic basis. In this scheme the allocation is made across following Fund Managers:

  • LIC Pension Fund Limited
  • SBI Pension Funds Private Limited
  • UTI Retirement Solutions Limited

Withdrawal/Exit

The exit from the Swavalamban Scheme would be on the same terms and conditions on which exit from Tier-I account of NPS is permitted, that is, exit at age 60 with 40% minimum annuitisation of pension wealth and exit before age 60 with 80% minimum annuitisation of pension wealth. However, the exit would be subject to the overriding condition that the amount of pension wealth to be annuitised should be sufficient to yield a minimum amount of Rs. 1,000 per month. If the annuitized pension wealth does not yield an amount of Rs. 1,000 per month, the percentage of pension wealth to be annuitised would be increased so that the pension amount becomes Rs. 1,000 per month, failing which the entire pension wealth would be subject to annuitisation. This minimum pension ceiling may be revised from time to time.

Vesting Criteria Benefit
At any point in time before 60 years of Age *You would be required to invest at least 80% of the pension wealth to purchase a life annuity from any IRDA – regulated life insurance company. Rest 20% of the pension wealth may be withdrawn as lump sum.
On attaining the Age of 60 years. *At exit you would be required to invest minimum 40% of your accumulated savings (pension wealth) to purchase a life annuity from any IRDA-regulated life insurance company empanelled with PFRDA. You may choose to purchase an annuity for an amount greater than 40 percent. The remaining pension wealth can either be withdrawn in a lump sum on attaining the age of 60.
Death due to any cause In such an unfortunate event, option will be available to the nominee to receive 100% of the NPS pension wealth in lump sum. However, if the nominee wishes to continue with the NPS, he/she shall have to subscribe to NPS individually after following due KYC procedure.

*However, the exit would be subject to the overriding condition that the amount of pension wealth to be annuitised should be sufficient to yield a minimum amount of Rs. 1,000 per month. If the annuitized pension wealth does not yield an amount of Rs. 1,000 per month, the percentage of pension wealth to be annuitised would be increased so that the pension amount becomes Rs. 1,000 per month, failing which the entire pension wealth would be subject to annuitisation. This minimum pension ceiling may be revised from time to time.

Charges

Various charges and their mode of realization are attached below and are subject to revision by PFRDA from time to time.

Intermediary Charge head Service charges Method of Deduction
CRA Account Opening Charges Rs. 35/- (Digitization will be carried out by CRA-FC) Through cancellation of units
Annaul PRA Maintenance cost per account Rs. 35/- per annum,with 12 free subscriber contributions per financial year.
Charge per transaction Nil for first 12 transactions beyond 12 free subscriber contribution in each year.
Custodian(On assest values in custody) Asset Servicing charges 0.0075% p.a for electronic segment & 0.05% p.a. for Physical Segment(These charges are loaded on NAv,hence would be borne by individual subscriber) Through NAV deduction
PFM charges Investment Management Fee 0.0102% p.a. Through NA

Source: Pension Fund Regulatory and Development Authority

Related resources

3.09146341463
Prafulla kumar dubey Sep 02, 2019 12:12 AM

My PRAN No. is 50*******8284 and I have deposited more 12000 thousand rupees in UTIITSL branch Raipur Now lsat two years UTIISTL branch refuse to take premium and advise me to pay premium in SBI branch I went their and request to pay premium he refuse me that swalamban PRAN premium record not available now what to do I would like to know the premium paid by me last two year which is refundable or how I continue my premium.

Shibani Mazumder Jun 02, 2019 10:51 AM

Due to shifting from house,I have lost my Pran card no 50*******3687 .please arrange for duplicate Pran card.Beside this I can't deposit my premium at SBI for server problem from the year 2018.

Bharti Devi Apr 05, 2019 09:42 AM

Ive not received my PRAN card as of not. My Pran No.5xxxxxxxxxxx Datec 20 March 2015

rahuldeo mahadeo channe Jan 12, 2019 10:54 AM

i have a nps card. ideposited my yearly contribution. i have a receipt of 1200/- but there is no ammount is deposited, then what can i do.

Harit Oct 27, 2018 07:39 PM

I was an lic agent and have a PRAN CARD under the scheme NPS from 2012 and contribute still now in above-mentioned account every month how can I check my contribution amount.... I checked many times in NPS site but there show no record please help...

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