Atal Pension Yojana : Objectives, eligibility, funding

Atal Pension Yojana is a scheme launched on 9th May 2015 by Prime Minister Narendra Modi to make the senior citizens self-reliant after their retirement. The scheme aims to increase the old age income security of the working poor. The Government launched the scheme which came into effect from 1st June 2015. It replaced the Swavalamban Yojana/NPS Lite scheme.

The APY scheme is being administered by the Pension Fund Regulatory and Development Authority. It aims to provide a universal social security system for all citizens, especially the poor, the underprivileged and the workers in the unorganized sector.

The Atal Pension plan scheme is open to all citizens of India between 18-40 years of age having a savings bank account in a bank or post-office.

Need for Scheme
Earlier pension schemes of social security were unable to address the peculiar demographic settings of the country. Swavalamban Scheme was not able to cover many people due to ambiguities in benefits. Swavalamban also failed to guarantee a minimum pension provision.

Moreover, the unorganized sector which forms a large chunk of our labor force was not covered in true sense. This all led to the formation of an integrated scheme for this section i.e. Atal Pension Yojana.

Atal Pension Yojana Information can be accessed from below-

APY Desk – Call Centre: 1800 110 069


https://www.theindianwire.com/politics/atal-pension-yojana-214496/

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PFRDA relaxes NPS exit rules on medical expenses

The Pension Fund Regulatory and Development Authority (PFRDA) has relaxed the exit rules under National Pension System (NPS) on medical grounds for the government employees, subscribers under All Citizen model, corporate model, NPS-Lite and Swavalamban subscribers.

The exit under the NPS is governed by the rules as per the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, which is amended from time to time.

PFRDA has issued a gazette notification relaxing exit guidelines on medical ground, called the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Third Amendment) Regulations, 2018.

Government sector subscribers
The exit from NPS for government sector subscribers will be allowed if the employer certifies that the subscriber has been discharged from the services of the concerned office on ..account of invalidation or disability.

Citizens, including corporate sector subscribers

The exit from NPS by citizens, including corporate sector subscribers will be allowed if the subscriber is physically incapacitated or has suffered a bodily disability leading to his incapability to continue with his individual pension account under National Pension System.

In such cases, the exit is allowed subject to the subscriber submitting a disability certificate from a Government surgeon or Doctor (treating such disability or invalidation of subscriber) stating the nature and extent of disability and also certifying that:

a) The subscriber shall not be in a position to perform his regular duties and there is a real possibility of the affected subscriber, being not able to work for the remaining period of his life.; and

b) Percentage of disability is more than seventy five percent in the opinion of such Government surgeon or doctor (treating such disability or invalidation of subscriber)

NPS-Lite and Swavalamban subscribers

The exit from National Pension System by NPS-Lite and Swavalamban subscribers is allowed provided that a subscriber who is physically incapacitated or has suffered a bodily disability leading to his incapability to continue with his individual pension account under National Pension System.

The exit in such cases shall be subject to the subscriber submitting a disability certificate from a Government surgeon or doctor (treating such disability or invalidation of subscriber) stating the nature and extent of disability and also certifying that:

a) The subscriber shall not be in a position to perform his regular duties and there is a real possibility of the affected subscriber, being not able to work for the remaining period of his life.; and

b) Percentage of disability is more than seventy-five percent in the opinion of such Government surgeon or doctor (treating such disability or invalidation of subscriber).

Partial withdrawals

Further, a subscriber is already permitted to withdraw not more than 25 percent of one's own contribution after being a subscriber for at least ten years in NPS for specific needs such as higher education, home purchase, marriage or critical illness needs. The new rule allows such partial withdrawals to meet medical and incidental expenses arising out of the disability or incapacitation suffered by the subscriber. In case of disability, one can partially withdraw even without exiting.

//economictimes.indiatimes.com/articleshow/62792368.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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The finance ministry is examining a proposal by the PFRDA to exempt NPS withdrawals from payment of tax

The finance ministry is examining a proposal by the Pension Fund Regulatory and Development Authority (PFRDA) to exempt national pension system (NPS) withdrawals from payment of tax, so as to bring it on par with the employee provident fund (EPF) scheme.

This will provide a level-playing field for the two pension schemes.

"We have made a proposal to the finance minister ahead of the Budget, where exemption of NPS withdrawals from tax is one of the key recommendations. It will be a game-changer for NPS resulting in a substantial increase in the assets under management with more private subscribers coming on board," said a PFRDA official.

The Seventh Pay Commission had also recommended an exempt-exempt-exempt (EEE) status for NPS, to bring it on a par with the EPF scheme in terms of tax-free withdrawals.

The pay panel also pitched for extension of co-contribution incentive by the government beyond 31 December to attract subscribers under Atal Pension Yojana

The government has so far got over one million subscribers on board

Currently, the EPF withdrawals after five years of completion of service are tax-exempt, while premature withdrawals before five years attracts tax ranging between 10 per cent and 34.608 per cent, barring exceptions.

The EPF enjoys 'EEE' status, while NPS accounts have exempt-exempt-taxed status, where any contributions to the schemes and its earnings are not taxed but amount received on withdrawal is taxed.

"There is indeed a case to provide EEE status to NPS, but the matter is still under examination," said a government official.

The finance minister had in his last budget provided employees the option of choosing between EPS and NPS, and a cabinet note for amendment of EPF and MP Act, 1952, has been sent to the law ministry for vetting.

Also, while the Employees' Provident Fund Organisation has been giving a return of 8.25-9.5 per cent to its subscribers, NPS has given a return of 9.2 per cent and NPS Lite has given a compounded annual growth return of 9.68 per cent.

Of the over Rs1,00,000 crore assets under management of NPS, 90 per cent falls under the central and state government schemes.

Meanwhile, the APY scheme got over one million subscribers on board by December. APY guarantees subscribers a monthly pension of Rs1,000, Rs2,000, Rs3,000, Rs4,000, or Rs5,000 in return for the contribution varying from Rs42 to Rs210 per month.

Under the scheme, the government contributes 50 per cent of the subscriber's contribution or Rs1,000 per annum, whichever is lower, to each eligible subscriber account for five years to 2019-20, who joined the NPS before 31 December 2015 and who are not income taxpayers.

Currently, eight pension fund managers manage private-sector funds and only three run by state-owned financial institutions are allowed to manage central and state government funds.

SBI Pension Funds, UTI Retirement Solutions, and LIC Pension Fund manage the government corpus. They also manage the private-sector corpus along with ICICI Prudential Pension Fund Management, Kotak Mahindra Pension Fund, HDFC Pension Management, Reliance Capital Pension Fund and the pension fund incorporated by Birla Sun Life Insurance.

http://www.domain-b.com/finance/general/20160108_exemption.html

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NPS to submit applications online for settlement of withdrawal claims from April 1: PFRDA

Pension fund regulator PFRDA has made it mandatory for the subscribers of New Pension System (NPS) to submit applications online for settlement of withdrawal claims from April 1 next year.

According to a PFRDA directive, no request in physical form would be entertained with effect from April 1, 2016.

"It has...Been decided that with effect from April 1, 2016 only such withdrawal requests raised on online platform will be accepted at CRA (Central Recordkeeping Agency) system for further processing.

"Physical withdrawal request forms received at CRA will not be accepted for further processing," the Pension Fund Regulatory and Development Authority said.

NSDL is the CRA for the NPS. A subscriber can exit NPS due to superannuation, premature exit and death.

PFRDA said it is committed to support the 'Digital India' campaign of the government and efforts were being made to make various NPS related services available on online platform.

Making withdrawal process online wherein subscribers can raise withdrawal request using online platform is one of the such initiatives, it said.

"This will make withdrawal process paperless to a great extent and seamless and exit claims of the subscribers can be settled in least possible time," it said.

NPS has been implemented for all government employees (except armed forces) joining Central Government on or after January 1, 2004.

Most of the State/UT Governments have also notified the NPS for their new employees. NPS has been made available to every Indian Citizen from May 2009 on a voluntary basis.

Further, from June 2015, the Atal Pension Yojana (APY), has been launched which has given the much required impetus to the social security schemes.

NPS and APY together have more than one crore subscribers with total Asset Under Management of more than Rs 1 lakh crore.

Meanwhile the retirement fund body EPFO is also in the process of providing facility of filing PF withdrawal claims online with an ultimate aim to process such applications with 24 hours of receiving it.

http://www.business-standard.com/article/pti-stories/apply-online-for-nps-withdrawals-from-april-next-pfrda-115112200197_1.html

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National Pension System (NPS) has soared to Rs 90,327 crore with the 1.15 crore subscribers

The total corpus of National Pension System (NPS) has soared to Rs 90,327 crore with the contribution of nearly 1.15 crore subscribers, the Finance Ministry said on Tuesday. The total assets under management (AUM) are worth Rs 1.09 lakh crore while AUM per subscriber on average is Rs 95,000, a finance ministry statement said. "NPS had 1.15 crore subscribers with a total corpus of Rs 90,327 crore as on January 23, 2016," it said.

NPS subscribers of central government are 14.1 percent of the total subscribers while that of the state governments are 24.9 percent. The number of NPS subscribers in the central government is 16.11 lakh with a total corpus of Rs 34,754 crore. State governments contribute Rs 45,486 crore to the corpus, from their 28.59 lakh subscribers. There are 4.48 lakh NPS subscribers in the corporate sector and 1.28 lakh in the unorganised sector. The number of subscribers under Atal Pension Yojana (APY) 19.48 lakh. The pension fund regulatory body (PFRDA) completed two years of its statutory status on February 1, 2016 and to mark this occasion, it is observing NPS Service Week from February 1-6.

During the NPS Service Week, PFRDA will create awareness about the scheme, take efforts to reduce subscribers' grievances, update subscriber details and advise subscribers regarding benefits associated with Permanent Retirement Account among others. The Pension Fund Regulatory and Development Authority (PFRDA) will also organise a Pension Conclave on February 4.

http://www.moneycontrol.com/news/economy/nps-corpus-swells-to-rs-90327-cr115-cr-subscribers_5266501.html

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How to open NPS Account online in eNPS?

National Pension System – How to open an online NPS account – Step by Step by procedure discussed.

Government of India under National Pension System Trust enables opening online account.  The procedure for opening such account is given below:

• Opening of Individual Pension Account under NPS (only Tier I / Tier I & Tier II)
•  Making initial and subsequent contribution to your Tier I as well as Tier II account

For Account opening, you need to:

✔  Have a PAN Card, mobile number, email ID and an active bank account with enabled net baking facility

✔  Fill up all the mandatory details online

✔  Scan and upload your photograph and signature

✔  Make online payment (Minimum amount of Rs 500)

✔  Print the form, paste photograph & affix signature and submit the Form to CRA

Kindly note that the eNPS facility can not be used for enrolment under Atal Pension Yojana (APY).

Click here for online eNPS website

To open an Individual Pension account online.

National Pension Scheme Registration

✔  You must have a ‘Permanent Account Number’ (PAN) and a Bank account with any of the registered Point of Presence empanelled for KYC verification for subscriber registration through NPS

✔  Your KYC Verification in NPS will be done by your Bank selected by you during the registration process.

✔  You need to upload your scanned photograph and signature in *.jpeg/*.jpg format having file size between 4kb – 12kb.

✔  You will be routed to a payment gateway for making the payment towards your NPS account from Debit / Credit card or Internet Banking.

After successful payment of initial contribution, a Permanent Retirement Account Number (PRAN) will be allotted to you. After online account opening process is completed,

➤  The PRAN Kit containing a PRAN Card, IPIN/TPIN, Subscriber Master Report, Scheme Information Booklet alongwith a Welcome Letter will be sent to your registered address.

➤  You need to take a printout of the form, paste your photograph (please do not sign across the photograph) & affix signature.

➤  You should sign on the block provided for signature.

➤  The photograph should not be stapled or clipped to the form.

➤  The form should be sent within 90 days from the date of allotment of PRAN to CRA at the following address or else the PRAN will be ‘frozen’ temporarily:

Central Recordkeeping Agency (eNPS),
NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai – 400 013

Please note that registration for APY cannot be done through www.enps.nsdl.com. For registration under APY please contact your Bank Branch.

Processing of subsequent nps contribution:

All existing subscribers (registered through both online and offline mode) can contribute in Tier I & Tier II account using ‘eNPS’. To contribute online, you need to

✔  Have an active Tier I / Tier II account

✔  Authenticate your PRAN using the OTP sent to your registered mobile number

✔  Pay through your Debit / Credit card or use Internet Banking option.

For queries please contact : 022 – 4090 4242 or write to: eNPS@nsdl.co.in

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