Fresh registration under Swavalamban Scheme has been discontinued w.e.f April 1, 2015. The subscribers of Swavalamban/ NPS Lite who are in the age group of 18-40 years have been given option to migrate to new Atal Pension Yojana (APY) launched by the Govt. of India in May 2015 which provide minimum guaranteed pension and is focused towards the poor and the under-privileged citizen of India. NPS Lite/ Swavalamban subscribers who are above 40 years of age and thus cannot migrate to APY can continue in the Swavalamban scheme till they attain the age of 60 years. If they wish, they can also exit from the scheme.
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:
The scheme is 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.
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:
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:
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.
|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.
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|
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