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Arthashastra
The National Pension Scheme (NPS) has made several changes in its various operational parameters in recent times, but there is one significant change that needs attention of all investors. This relates to the manner in which withdrawals can be made from the scheme once the pension age has been reached. The new norms will make it easier for individuals to actually ensure that they are able to get the required amount of money in the manner in which they see fit rather than being forced to follow the conditions laid out in the scheme....
Tuesday, 16 April 2013
Training on new pension scheme
The Corporate Relations Institute will organise an introductory training on the New Pension Scheme being introduced for appointments made from April 1, 2013, at Hotel Residency Towers on April 17. The State Government has made the New Pension Scheme (NPS) applicable for all appointments made from April 1, 2013. It would deposit 10 per cent and the employee another 10 per cent of his or her monthly salary as per provisions of the new scheme. The new system would also have the family pension component. This will be the maiden training...
Confusion over pension scheme coverage
A mix-up by the Directorate of Treasuries while allotting the Permanent Retirement Account Number (PRAN) under the New Pension Scheme (NPS) to the Department of Public Instruction (DPI) employees has led to confusion among the staff.Under the NPS, only the DPI employees who joined service after April 1, 2006, are eligible. However, according to sources, PRAN numbers have been generated even for those who joined before April 2006, causing a considerable loss to the state exchequer.“We estimate that the problem is being faced by 1,602 employees...
National Pension System Vs PPF: Which is better?
In an interview to CNBC-TV18, personal finance expert, Sumeet Vaid of Ffreedom Financial Planners discussed about various aspects of National Pension System and Public Provident Fund.Below is the verbatim transcript of Vaid's interview with CNBC-TV18.Q: The National Pension System (NPS) is fetching near double-digit returns, which is at least a percentage point higher than what Employees' Provident Fund (EPF) or Public Provident Fund (PPF) offer. Will this trend continue and is it a one year wonder because of the stock market is doing well. How...
Friday, 12 April 2013
National Pension System Trust : As on 31st March 2012 NPS has 31,33,835 subscribers
The National Pension System Trust (NPS Trust) was established by PFRDA on 27th February, 2008 with the execution of the NPS Trust Deed. The NPS Trust has been set up and constituted for taking care of the assets and funds under the National Pension System (NPS) in the interest of the beneficiaries (subscribers). Individual NPS subscribers shall be the beneficiaries of the NPS Trust. The NPS fund are managed by the Board of Trustees to realize and fulfill the objectives of the NPS Trust in the exclusive interest of the Subscribers.The Trust is...
Union Bank starts selling New Pension Scheme
The Public sector Union Bank of India has started selling of the New Pension Scheme (NPS) through over 3,000 branches across the country, giving an impetus to the scheme.The objective of the NPS is to promote old age income security to all sections of the society. Union Bank will act as a point of presence-service provider (POP-SP) of this scheme. The branches will be able to facilitate opening of NPS account, receiving contribution from time to time and switching of investment option.“Only 4,000 of the 50,000 bank branches in the country are...
Wednesday, 10 April 2013
How to make changes in your NPS subscriber data
Subscribers to the National Pension Scheme (NPS) must submit their name, date of birth, contact information, bank account details and other personal details while opening an NPS account.
This information is noted by the CRA and a Permanent Retirement Account Number (PRAN) is allotted to the investor. The subscriber can change or carry out corrections in the details provided, including nomination. If the change necessitates the reissue of a fresh PRAN card, the same will be issued by the CRA.
A request for reissue of new PRAN card with updated...
Swavalamban Scheme
The Scheme and its applicability : Swavalamban Yojana will be applicable to all citizens in the unorganized sector who join the New Pension System (NPS) administered by the Interim Pension Fund Regulatory and Development Authority (PFRDA).Benefits under the Scheme : Under the scheme, Government will contribute Rs. 1000 per year to each NPS account opened in the year 2010-11 and for the next five years, that is, 2011-12, 2012-13 and 2013-14, 2014 to 2017. The benefit will be available only to persons who join the NPS with a minimum contribution...
Architects of the National Pension System
Point of Presence (POP):Points of Presence (POPs) are the first points of interaction of the NPS subscriber with the NPS architecture. The authorized branches of a POP, called Point of Presence Service Providers (POP-SPs), will act as collection points and extend a number of customer services to NPS subscribers.
Central Recordkeeping Agency (CRA):The recordkeeping, administration and customer service functions for all subscribers of the NPS are being handled by the National Securities Depository Limited (NSDL), which is acting as the Central Recordkeeper...
POP's Services Under NPS
Subscribers can avail the following services from POP/POP-SP :
Opening of New Account under NPS.
Activation of Tier-II Account if subscriber already has Tier-I account under the scheme.
Regular subscriber's contribution.
Change in subscriber details.
Change of investment scheme/fund manager.
Processing of withdrawal request.
Processing of request for subscriber shifting.
Issuance of printed Account...
NPS is Designed For
The Central Government Employees: The Central Government had introduced the New Pension System (NPS) with effect from January 1, 2004 (except for armed forces). NPS has been made mandatory for new entrants in government job sector.All employees of Central Govt. or autonomous departments ( financed by Central Govt.) who have joined on or after January 1, 2004 will be covered by new pension scheme. These employees are not permitted to contribute in General Provident Fund (GPF). Monthly contribution (10% of basic +DA+DP) from the salary of the employee...
NPS has the following feature and benefits
Open to all Indian citizens including NRI's aged between 18-60 yrs.
Pension contribution invested by professional PFM's.
Lowest Fund Management charges.
Regulatory efficiency.
Offers/portability - account can be operated from anywhere in the country.
After subscribers retire at the age of 60, they may choose to purchase an annuity for an amount 40% or greater than it and withdraw the remaining pension wealth in lump sum.
...
CAG has appreciated JK’s financial achievements: FinMin
Dispelling the notion that the state is wholly and solely dependent on central assistances, Minister for Finance, Abdul Rahim Rather Monday said the tax share distributed among different states comes from the central divisible pool under the provision of the Constitution.
He said it is the Finance Commission which decides the grants for different states out of the consolidated fund of India. “So it is not correct to say that state’s dependence on Central Assistance is increasing.”In his exhaustive one-and-a-half-hour reply to the general...
Financial reforms: The long road to becoming a Super Power
There has been a long list of financial sector reforms in India and much of the impact will actually be felt some time down the line. There might be some initial enthusiasm as the various steps in reforming the financial sector are announced but the real benefit is actually going to come only later. The introduction of the Goods and Services Tax (GST) or the Direct Tax Code (DTC) and even pension sector reforms will ensure that the financial landscape of the future is completely different from what is actually witnessed right now. A big...
Swavalamban Benefit for NPS Account Holders
Eligible Account Holders are Required to Submit Declaration form to the PoPsUnder the Swavalamban guidelines approved by the Govt. of India, all NPS accounts opened in 2009-10 will be entitled to the benefit of Government co-contribution of Rs. 1,000 subject to fulfilling the prescribed eligibility criteria. A list of eligible account holders is available on the Website of Pension Fund Regulatory & Development Authority (PFRDA) as well as the concerned PoPs.The PFRDA has requested the concerned NPS account holders to submit the requisite declaration...
Monday, 8 April 2013
Forced saving in equities good for retirement corpus
There is many a slip between the cup and the lip. This adage is apt for the New Pension Scheme (NPS), which was rolled out a few years ago. The objective behind the NPS is noble indeed. The provision of post-retirement income in the form of pension to any Indian citizen. While Central Government employees were the first to sign on (albeit compulsorily), the initial proponents of the scheme also sought to make it popular among those who were not...
Saturday, 6 April 2013
NPS gives near double-digit returns
NEW DELHI: The National Pension System (NPS) is fetching near double-digit returns, which is at least a percentage point higher than what employees' provident fund or public provident fund (PPF) offer.NPS is a voluntary longterm saving scheme for the private sector but mandatory for those who joined the government from 2004.According to the latest data , in case of the private sector, the top performance was on offer for those who had a significant...
Tuesday, 2 April 2013
EPFO-NPS turf war: Companies tread neutral ground
The Employees' Provident Fund Organization (EPFO) and the National Pension System (NPS), the two pension scheme operators in the country, seem to be heading for a turf war. The NPS is wooing subscribers from the private sector, earlier a domain of the EPFO.NPS has reported so far, 522 private companies, including Reliance Industries Limited (RIL), Reliance Group, Colgate Palmolive, Cognizant, Capgemini, Pantaloons and Wipro, have opted for it.However,...
Monday, 1 April 2013
Returns on NPS funds only marginally better than EPF
NEW DELHI: National Pension Scheme (NPS) funds for government workers have not been able to beat the debt-based Employees' Provident Fund (EPF) by a significant margin in the past five years.
The five-year returns on the NPS fund managed by UTI Retirement Solutions, assuming that the investor was following a systematic investment plan ( SIP), work out to 8.78% while the Employees Provident Fund has yielded 8.62% during the same period. The calculation...
Sunday, 31 March 2013
Muthoot Finance to implement NPS for its employees
CHENNAI: Gold loan company Muthoot Finance has launched the National Pension System (NPS) initiative for the employees of the company and the group.For the employees of the company, this will be a distinctive social security benefit and a unique Staff Welfare Scheme as the employee contribution to NPS will be linked with a contribution by the company. Muthoot Finance Ltd in its capacity as Point of Presence (POP) will absorb certain applicable POP related transaction charges, according to a company statement.NPS, a social security measure of the...
Funding your future
India’s National Pension System, exposed to the vagaries of the stock market and unable to help investors assess retirement income, fallsshort of worker expectations. The NPS should do more to meet a basic social security goal.The National Pension System (NPS), which was opened up from May 2009 for all citizens to join on a voluntary basis, is considered a good option for retirement planning.V. R. Narasimhan, Chief Executive Officer, Kotak Mahindra Pension Fund, says the pension saving scheme under the NPS model is the most economical and flexible...
Friday, 29 March 2013
Should changes in the New Pension Scheme worry you?
What is NPS? Most people can be pardoned if that is their response to a question about their views on the recent changes in the New Pension Scheme, which is more popularly known as NPS. This is despite the fact that NPS has been available for the general public since the last four years.Let's take a quick look at what is NPS. Any Individual can start a NPS account by contributing money regularly and if the individual is employed, his employer can also contribute money up to a certain limit. The account holder can choose the proportion of money...
On exit, PFRDA allows lump sum NPS withdrawal
To give more flexibility to subscribers of the New Pension Scheme, the Pension Fund Regulatory and Development Authority (PFRDA) has moved away from the earlier norm of phased withdrawal and has allowed deferred withdrawal of corpus.The pension regulator has said that subscribers will be given a specific option to defer or time the entire lump sum withdrawal, subject to a maximum of 60%, at the time of exit from the National Pension System (NPS),...
Pension Fund Regulatory and Development Authority (PFRDA) sets limits on equity investment by fund managers
The appeal of the National Pension System (NPS) is headed for some extra polish. To ensure higher returns forinvestors, the Pension Fund Regulatory and Development Authority (PFRDA) on Monday rolled out a detailed set of investment guidelines.The regulator has specified sectoral caps and limits on the amount of funds invested under the asset class E, which has a maximum exposure of 50% to the equity market. According to the new guidelines, funds under scheme E now have an investment exposure limit of up to 15% of pension fund managers’ equity...
Thursday, 28 March 2013
Saturday, 23 March 2013
At Rs.10,359 crore, aam aadmi gets the lion’s share
Delhi’s Aam Aadmi is the centre of the budget proposals of chief minister Sheila Dikshit, who is seeking to win a landmark fourth consecutive term in the assembly elections scheduled for later this year.A series of sops were announced for widows, persons with disabilities, transgenders and labourers in the unorganised sector. The social sector got the lion’s share of the budget.Of the total plan outlay of Rs.16,000, a whopping Rs.10,359 has been earmarked for the social sector, making up for the 65% of the plan outlay. Dikshit announced the extension...
Swavalamban Scheme: Operational Guidelines
The Scheme and its applicability1.The scheme will be called Swavalamban Yojana. It will be applicable to all citizens in the unorganised sector who join the New Pension System (NPS) administered by the Interim Pension Fund Regulatoryand Development Authority (PFRDA).Benefits under the Scheme2.Under the scheme, Government will contribute Rs.1000 per year to each NPS account opened in the year 2010-11 and for the next five years, that is, 2011-12,2012-13 and 2013-14 upto 2016-17. The benefit will be available only to persons who join the NPS with...
Thursday, 21 March 2013
Economic Survey 2013: Making investors savvy is the new mantra
NEW DELHI: The Economic Survey makes a strong pitch to raise financial literacy levels and called for scaling up efforts to increase investor awareness. It also backed the idea of spreading awareness about the New Pension Scheme (NPS) and outlined steps that the pension regulator should take to attract flow of long-term savings for development.The survey said as part of the strategy to shift national spending from consumption to investment and combating inflation, efforts must be made to increase the opportunities for savers to get strong...
Saturday, 16 March 2013
New Pension System(NPS)
PFRDA (Pension Fund Regulatory and Development Authority), India has opened New Pension System/ Scheme (NPS) to all Indian citizens starting today, on 1st May, 2009.Its a safe, flexible and portable scheme introduced by Indian Government’s cell PFRDA; to replace the existing System of Pension System in the country and to provide income security after retirement.PFRDA was established by the Government of India to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to...
Government to give Rs 2,065 cr more to Swavalamban pension scheme
NEW DELHI: In a move that will benefit 70 lakh unorganised sector workers, the Centre today approved an additional support of Rs 2,065 crore to Swavalamban Scheme, a pension programme, and also extended the funding support to subscribers for another two years.Extending funding support for implementing the scheme under the New Pension System (NPS) from present three years to five years for all subscribers enrolled during 2010-11, 2011-12 and 2012-13 has been approved, HRD and Telecom Minister Kapil Sibal told reporters after the Cabinet meetin...
Pension scheme allows lump sum withdrawal on exit
NEW DELHI: Subscribers of the New Pension Scheme can now time the withdrawal of their money when leaving the income security plan, the pension fund regulator has said, moving away from the earlier facility of phased withdrawal.The decision, announced by the Pension Fund Regulatory and Development Authority (PFRDA) on Thursday, comes into effect immediately.It follows a feedback from stakeholders that subscribers should be given the option to defer...
Thursday, 14 March 2013
PFRDA allows subscribers deferred withdrawal on exit from NPS
Pension fund regulator PFRDA has allowed investors in the New Pension Scheme (NPS) to opt for 'deferred withdrawal' of their money at the time of exit, as against the current practice of 'phased withdrawal'.
The replacement of 'phased withdrawal' with 'deferred withdrawal' was taken after PFRDA received feedback from various stakeholders, the pension fund regulator said.
Stakeholders informed PFRDA that subscribers be given a specific option...
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