PFRDA National Pension System (NPS) : Fund Regulatory & Development Authority

Organisation : Pension Fund Regulatory & Development Authority (PFRDA)
Facility Name : National Pension System (NPS)
Applicable For : Indian citizen (resident/non-resident/overseas) aged between 18-70 years
Applicable State/UT : All India
Website : https://www.pfrda.org.in/index.cshtml

What is PFRDA National Pension System (NPS)?

PFRDA National Pension System (NPS) is a defined contribution pension scheme. 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.

Related / Similar Facility : HDFC Pension National Pension System (NPS) Account

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. For more details, please refer here

Eligibility of PFRDA National Pension System (NPS)

An individual fulfilling the following eligibility criteria can voluntarily join in PFRDA National Pension System (NPS):-

** Should be an Indian Citizen (resident or non-resident) or an Overseas Citizen of India (OCI)
** Should be aged between 18 – 70 years
** Compliance of Know Your Customer (KYC) norms detailed in the Application Form

Note:
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.

Benefits of PFRDA NPS

PFRDA National Pension System (NPS) has the following features/benefits:
** Low Cost – NPS is one of the lowest cost pension schemes in the world.
** Flexible – Subscribers have choices of Point of Presence (PoP), Central Recordkeeping Agency (CRA), Pension Fund and Asset Allocation. The choices exercised can be changed subsequently.
** Portable – NPS account can be transferred across employment, location/geography.
** Tax efficient – Tax incentives are available to subscribers under the Income Tax Act 1961.
** Optimum returns – Market linked returns based on investment choice made by the subscriber/employer.
** Transparent – Subscribers can access their NPS accounts online 24X7 and public disclosures mandated.

How To Open PFRDA NPS Account?

An National Pension System (NPS) account can be opened through Point of Presence (PoPs) is the distribution channel and the first point of contact for applicants and subscribers. PoPs are mandated to provide services related to Subscriber Registration (Collection of forms and KYC verification), receiving /uploading contributions, processing subscriber requests for updation of account details, exercising choices, withdrawals, grievances resolution etc.

Points of Presence (PoP) registered with PFRDA in Online or Physical mode : https://www.pfrda.org.in/index1.cshtml?lsid=205

Online platform (eNPS) of NPS Trust :
https://npstrust.org.in/about-nps

For generation of an Individual Pension Account under NPS, an applicant is required to submit the completed Subscriber Registration Form (CSRF/NRSF/Online data fields) alongwith the following documents through physical or online mode to the Service Provider (PoP):

For Resident Individuals:
a) One Recent Photograph
b) PAN Card
c) Proof of Address
d) Proof for the Bank Account

FAQ On PFRDA National Pension System (NPS)

Frequently Asked Questions FAQ On PFRDA National Pension System (NPS)

1. I have subscribed to EPF / PPF / Superannuation Fund / Provident Fund. Am I eligible to join NPS?
Yes. NPS can be voluntarily subscribed alongwith any other pension scheme(s). However, an individual cannot have multiple NPS accounts.

2. How much pension will I receive in NPS?
The amount of pension will depend on the amount of contributions made, accrual/returns on the investments and the portion of corpus utilised by the subscriber for purchasing annuity plan from any of the Annuity Service Providers empanelled with PFRDA. Under NPS, there is no implicit or explicit assurance of benefit and the investments are subject to market conditions.

3. What is All Citizen Sector? NPS caters to which all Sectors?
NPS caters to the Central Government (CG) Sector, State Government (SG) Sector, Corporate Sector and All Citizen Sector. Individuals subscribing to NPS voluntarily are classified / categorized under All Citizen Sector.

4. What is the structure of NPS? Why there are different intermediaries in NPS?
NPS has a unique unbundled architecture wherein each intermediary (PoP, Pension Fund, Central Recordkeeping Agency, Trustee Bank, Annuity Service Provider, Retirement Advisors, Custodian, NPS Trust) is assigned a specialized activity by the Regulator. This ensures economies of scale and operational/intermediation costs at bare minimum to subscribers.

This unique structure safeguards subscribers’ interest as the role of a particular intermediary is limited to the functions assigned to it and no single intermediary/entity has complete control over NPS as a System.