Posts Tagged ‘Swavalamban’

Assets under Management (AUM) of National Pension System (NPS) crosses Rs. 1 lac crore

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Assets under Management (AUM) of National Pension System (NPS) crosses Rs. 1 lac crore: PFRDA Press Release
PENSION FUND REGULATORY AND DEVELOPMENT  AUTHORITY

PRESS RELEASE

Assets under Management (AUM) of National Pension System (NPS) crosses Rs. 1 lac crore

NPS has been implemented for all Government Employees (except armed forces) joining Central Govt. on or after 01 January 2004. Most of the State/UT Governments have also notified the National Pension System (NPS) for their new employees. NPS has been made available to every Indian Citizen from 01st May 2009 on a voluntary basis.

Further, from 1st June 2015, the Atal Pension Yojana, has been launched which has given the much required impetus to the social security schemes Currently, NPS and APY together have more than One Crore subscribers with total Asset Under Management (AUM) of Rs.1,00,275 crores. The segment wise status of the NPS and APY as on 03.10.2015 is as under:

Segment No. of Subscribers Asset Under Management (Rs. Cr.)
Central Government 15,71,136 32,381
State Governments 27,74,459 49,974
NPS-Private Sector 5,24,143 7,943
NPS-Lite/Swavalamban 44,67,733 1,865
Atal Pension Yojana (APY) 7,94,467 112
Total 1,01,31,938 1,00,275
PFRDA has taken various steps at the policy as well as operational level to make NPS more subscriber friendly. In addition to this additional tax benefits made available exclusively to NPS has given a fillip to the scheme. This is further expected to result into a substantial increase in the subscriber base by end March 2016.

The following steps have been taken in the recent past for the convenience of the subscriber:

  •  The investment guidelines for NPS have been revised to expand the investment avenues for optimisation of the returns.
  •  Partial withdrawal upto 25% of subscriber’s own contribution for specific purposes like higher education of children, marriage of children, construction of house and specified illness have been allowed to the NPS subscribers after completion of 10 years in NPS.
  • NPS Private Sector subscribers can continue contributing beyond 60 years upto 70 years of age.
  • NPS Subscriber can defer the withdrawal of lumpsum amount upto the age of 70 years and also have the option to defer purchase of annuity upto 3 years from the date of superannuation or 60 years. The funds during this period remain invested in the system.
  • The Statement of Transactions (SOT) being sent by CRA to the existing subscribers has been modified to reflect the returns of the individual subscriber since the date of account opening and also the return generated during the last
    financial year.
  •  To facilitate and operationalize the deposit of additional contribution of Rs.50,000/- to avail of the additional tax benefit under Section 80 CCD(1B), Government Subscribers already covered under NPS have been provided the
    facility to deposit voluntary contributions in their Tier I account through any POPSP. Government employee covered under old pension scheme can also avail this tax benefit by opening individual Tier I account through any POP-SP and contributing to the same.
  •  Online reset of password and facility to change mobile no. and email Id have been provided to all the NPS subscribers.
SMS alerts on balances in the NPS account being sent to the subscribers on quarterly basis, in addition to regular monthly alerts on contribution and other changes in the PRAN.
APY scheme provides minimum Govt guaranteed monthly pension to subscribers ranging from Rs 1000 to Rs 5000. Further, Govt. of India also co-contributes 50% of the total contribution made by a subscriber during a financial year subject to maximum of Rs 1,000/- per annum for a period of five years, if eligible subscribers open the account by 31st December 2015. All Indian Citizens, in the age group of 18-40 years are eligible to join the scheme through any bank branch. About 8 lakh subscribers have joined APY till date.
Source: PFRDA
[http://pfrda.org.in/WriteReadData/Links/Approved%20Press%20Release%20Milestone%20of%201%20lac%20crores%208d3ccf28-4a6e-44e4-91ad-61e1edfa08d8.pdf]

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Be the first to comment - What do you think?  Posted by admin - October 16, 2015 at 8:19 am

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PFRDA Order: Incentive for mobilization and registration of subscribers under Atal Pension Yojana

PFRDA Order: Incentive for mobilization and registration of subscribers under Atal Pension Yojana

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
1st Floor, ICADR Building, Plot No. 6.
Vasant Kunj Institutional Area,
Phase – II, New Delhi – 110070

No. PFRDAIAPY/4/62

19th May, 2015

To,
All Banks under APY

Sir,

Subject: Incentive for mobilization and registration of subscribers under Atal Pension Yojana.


I am directed to say that incentive structure for Banks to mobilize and register subscriber under Atal Pension Yojana has been under the consideration of PFRDA.

2. In consultation with the Department of Financial Services, Ministry of Finance, it has been decided that for mobilizing each account the Banks will be paid an incentive as per the table below:

i. Per capita incentive at Rs 100
ii. Incentive payable for promotion and development of APY:

S no Number of subscribers under APY with each Bank Incentive for promotional efforts (only for new accounts opened during the year)
1  Less than 1 lakh Rs 20/-
2 More than 1 lakh upto 3 lakh Rs 30/-
3 More than 3 lakh upto 5 lakh Rs 40/-
4 More than 5 lakh Rs 50/-

 

As Banks are expected to engage the Banking Correspondents (BCs) / Micro Finance Institutions (MFIs) / Non-bank aggregators to mobilize the subscribers, they can Share the incentives with such BCs / MFIs / Non-bank aggregators etc. in the ratio 50:50 :: Banks : BCs/MFIs/ Non-bank aggregators.
3. Banks are advised to contact aggregators for shifting of existing eligible Swavalamban subscribers to APY as per the scheme.
4. Payment of incentives to banks each year will be made after the completion of the financial year on receipt of funds from the government.

 

Yours sincerely,
(Purnima Sharma)
Dy. General Manager

Source: http://pfrda.org.in/WriteReadData/Links/Incentive%20Structure%20for%20APY5c598c21-5021-481a-8866-16213d2d1343.pdf

Be the first to comment - What do you think?  Posted by admin - May 21, 2015 at 11:29 am

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Amendment to Revised Investment Guidelines for NPS schemes.

Amendment to Revised Investment Guidelines for NPS schemes.

PF Regulatory and Development Authority has issued Amendment with effect from 01.04.2015 to revised investment guidelines for NPS Schemes Applicable to Government Sector, Corporate CG and NPS lite schemes of NPS

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

1st Floor, ICADR Building, Plot No. 6,
Vasant Kunj Institutional Area,
Phase – II, New Delhi – 110070

Circular

PFRDA/2015/12/PFM/06

Date: 31st March 2015

To,
All Pension Funds,

Subject: Amendment to Revised Investment Guidelines for NPS schemes.

The existing circular no. PFRDA/2014/02/PFM/1 dated 29-Jan-2014 on the subject Revision of Investment Guidelines for NPS Schemes is amended as highlighted under:

Government Sector NPS Schemes (Applicable to Government Sector, Corporate CG and NPS lite schemes of NPS)

(ii) Debt Securities (Up to 40%)/ point (a) : Debt securities having a minimum residual maturity period of three years from the date of investment by the Pension Fund issued by Bodies Corporate including banks and public financial Institutions; Provided that the investment in this category is made in instruments having an minimum “AA” or equivalent investment grade rating from at least one credit rating agency regulated by SEBI, under SEBI (Credit Rating Agency) Regulation 1999. Apart from rating by an agency, PFMs shall undertake their own due diligence for assessment of risks associated with the securities before investments.
Private Sector NPS {Applicable to E (Tier I & II), C (Tier-I & II) and G (Tier I & II)}

C/ (ii): Credit rated debt securities with residual maturity of not less than three years from the date of investment, issued by Bodies Corporate including scheduled commercial banks and public financial institutions [as defined in Section 4A of the Companies Act] 1956, Provided that the investment in this category is made in instruments having an minimum “AA” or equivalent investment grade rating from at least one credit rating agency regulated by SEBI, under SEBI ( Credit Rating Agency ) Regulation 1999. PFM has to do his own due diligence too

2. The above stated amendments are applicable to the inflow of the fresh funds w.e.f. 01.04.2015.

3. All other extant investment guidelines to continue.

Sumeet Kaur Kapoor
(General Manager)

Source: PFRDA Circular

Be the first to comment - What do you think?  Posted by admin - April 4, 2015 at 8:55 am

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NPS – Simplification of Withdrawal process and Documentary requirement for the Government subscriber

Simplification of Withdrawal process and Documentary requirement  for the Government subscriber: PFRDA’s Instructions

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDA/2015/07/EXIT/02

25 th February, 2015

To,

All Govt depts./PAO’s/PrAO’S/DDO’S/DTO’S & CRA

Dear Sir/ Madam,

SUB: Simplification of Withdrawal process – Documentary requirements 

Currently, the following documents are required to be submitted by the subscribers for processing a withdrawal request by CRA / NPS Trust for various types of withdrawals and which are common across all the sectors of National Pension System.

 

1. Original PRAN Card or In the absence of PRAN card, notarized affidavit

 

2. Photo ID proof*

 

3. Address proof of the Claimant*

 

4. Cancelled cheque (containing claimant’s Name, Bank Account Number and IFS  Code) or Bank Certificate

* If a document contains both identification and address for compliance with KYC requirements, it would be sufficient for processing the withdrawals. Ex: Passport,Aadhar, Driving license, Ration card etc.

Additionally, the following documents are asked for exits arising out of death of the subscriber

 

5. Death certificate in original issued by local authorities

 

6. Legal Heir Certificate/Succession Certificate as applicable in case if nominationis not registered by the subscriber

 

However, feedback has been received at various meetings conducted by PFRDA with Government officials, subscribers and other stakeholders that the burden of documentation is too heavy and needs to be reduced for a smooth operation of the system. The Authority based on the feedback and also upon reexamination of the procedural requirements at various levels and has decided to simplify the documentary requirements for the Government subscriber sector to begin with. However, the long run goal is to minimise the documentary requirements for all sectors.

 

The following are the revised requirements for the Government sector subscriber for the Exit and withdrawal requests submitted to CRA / NPS Trust:

 

1. KYC documents, Bank Passbook/cancelled cheque/bank certificate and Name mis-match certification: The certification provided by the PAO/PrAO/DDO/DTO that

  • the KYC requirements of proper identification of the subscriber has been done (as per Annexure I)
  • that the name as provided in the withdrawal application form be accepted as final.
  • Bank account details as provided in the application form be accepted as final.

Would be accepted and claims dealt accordingly.

2. Nomination – If already existing in CRA system – there is no further requirement to fill in the details, unless the subscriber wishes to change the nomination already provided

3. Original PRAN card or In the absence of PRAN card, notarized affidavit: Not required to be submitted henceforth.

4. Death certificate – Copy of the death certificate duly attested by the concerned PAO/PrAO/DDO/DTO with a specific certification that it is a true copy of the original death certificate and such certificate shall be dated and subscribed by such officer with his name, title and seal of office would be accepted as adequate for the purpose of establishing the death of the subscriber.

Yours faithfully,

Sd/-

Venkateswarlu Peri

General Manager

ANNEXURE I

1. KYC CERTIFICATION

Certified that Shri/Smt …………. Son/Wife of Shri …………………, who is an employee of (office address) ……………. from (date) ……. and is at present holding the post of ……………….. and his/her identity is certified as provided in the NPS withdrawal application form along with the address as provided.

Further, the name and Bank account details as provided in the withdrawal application form by the subscriber shall be accepted as final.

Date ……………..

Name, Designation, Address & Tel No

Of the certifying officer

Source: http://pfrda.org.in/MyAuth/Admin/showimg.cshtml?ID=583

Be the first to comment - What do you think?  Posted by admin - February 26, 2015 at 2:20 am

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Exposure Draft on Guidelines for withdrawal of 25% accumulated contributions by NPS Subscribers

Exposure Draft on Guidelines for withdrawal of 25% accumulated contributions by NPS Subscribers

 PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

EXPOSURE DRAFT

ON GUIDELINES FOR WITHDRAWAL OF 25 % OF ACCUMULATED CONTRIBUTIONS BY NPS  SUBSCRIBERS

Issued on: 15th January, 2014
Last date to accept Comments: 15th February, 2014

As per Chapter VI, Sec 20 (2b) of the PFRDA act, 2013 it has been provided that withdrawals, not exceeding twenty-five percent (25%) of the contribution made by the subscriber, may be permitted from the individual pension account subject to the conditions, such as purpose, frequency and limits as may be specified by the regulations.

Keeping the above in perspective, the draft guidelines for withdrawal of 25 % of accumulated contributions by NPS subscribers are proposed and comments from the public and all concerned are invited. It may also be noted that suggestions on addition/alteration in the proposed guidelines can also be given. Comments/Feedback may be forwarded by email to the e-mail id k.sumit@pfrda.org.in latest by 15.02.2014.

Comments should be given in the following format:

Name of entity/ person
Sr.No. Pertains to which Section/sub-section and Page number Proposed/ suggested changes Rationale

Written comments in the above format may be addressed to:

Mr. Sumit Kumar
Dy. General Manager
Pension Fund Regulatory & Development Authority
1st Floor, ICADR Building, Vasant Kunj Institutional Area Phase – II
Vasant Kunj, New Delhi – 110070
 PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
INTRODUCTION
As per Chapter VI, Sec 20 (2b) of the PFRDA act, 2013 it has been provided that withdrawals, not exceeding twenty-five percent (25%) of the contribution made by the subscriber, may be permitted from the individual pension account subject to the conditions, such as purpose, frequency and limits as may be specified by the regulations. In order to finalise the regulations for withdrawals, it becomes imperative to develop the formal aspects of the permitted withdrawals allowed under the Act for the benefit of NPS subscribers.

EXISTING EXIT / WITHDRAWAL GUIDELINES UNDER NATIONAL PENSION SYSTEM (NPS)

The current exit / withdrawal guidelines under NPS are framed in such a manner that the subscriber has a long period of accumulation of corpus for providing him with a decent accumulated pension wealth when he retires or he moves out of the regular work routine due to age. Also, it lets the subscriber have the freedom to move out of the scheme at any point of time, irrespective of cause or reason which determines the complete exit from the scheme.

The following are the current rules/guidelines for withdrawals under NPS as approved by PFRDA:

a) Exit from NPS upon attaining the age of Normal superannuation (for govt. employees only) or upon attaining the age of 60 years (for all subscribers other than govt. employees): At least 40% of the accumulated pension wealth of the subscriber needs to be mandatorily utilized for purchase of an annuity providing for the monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber.

b) Exit from NPS before attaining the age of Normal superannuation (for govt. employees only) or before attaining the age of 60 years (for all subscribers other than govt. employees): At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of an annuity providing for the monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber.

c) Upon Death: The entire accumulated pension wealth (100%) would be paid to the nominee / legal heir of the subscriber.

For Swavalamban withdrawals under (a) & (b) in the previous page, there is an overriding condition on the lump sum payment payable due to which the entire accumulated pension wealth would be annuitised in case if the monthly pension obtained by using the 40%/80% of the pension wealth is below Rs.1000/- per month. Also, these exit/withdrawal rules as applicable to NPS can be modified/altered from time to time by the Authority as the NPS progresses.

BACKGROUND
The withdrawal of 25% of accumulated contributions under NPS is in addition to the withdrawal permitted at the time of exiting from NPS by the subscriber as specified above. The subscriber can continue to contribute in the scheme while using such withdrawal facility. These guidelines shall determine the circumstances under which the NPS subscriber can avail such withdrawal functionality under different time frames and thereby putting certain limits to which shall be adhered by him/her.

The guidelines are framed taking into the purpose and object of NPS i.e., to ensure a decent accumulated pension wealth in the accounts of the subscribers at the time of exit.

FEEDBACK /COMMENT PERIOD
The Feedback /Comments on this exposure draft received till 15th February, 2014 would be considered for evaluation by PFRDA. The decision of PFRDA on all and any matters related to the subject matter is final and binding on all stakeholders.

PROPOSED GUIDELINES FOR WITHDRAWAL OF 25 % OF ACCUMULATED CONTRIBUTIONS BY NPS SUBSCRIBERS
As per Chapter VI, Sec 20 (2b) of the PFRDA act, 2013 it has been provided that withdrawals, not exceeding twenty-five percent (25%) of the contribution made by the subscriber, may be permitted from the individual pension account subject to the conditions, such as purpose, frequency and limits as may be specified by the regulations. As the decision in this regard has to form part of the regulations to be made
under Sec 52 of PFRDA Act, we need to arrive at a decision on the matter purpose, frequency and limits of such withdrawals which would be allowed.

Posts examining the various aspects of the probable needs and duration, following aspects have been proposed in respect of the aforesaid guidelines:

(a) Purpose:

This withdrawal may be treated as partial withdrawal and whereby the subscriber can withdraw not exceeding twenty-five percent (25%) of the contribution made by the subscriber, may be permitted from the individual pension account for any of the following purposes only:

i) For Higher education of his/her children including a legally adopted child.

ii) For the marriage of his/her children, including a legally adopted child.

iii) For the purchase/construction of residential house or flat. However, if the subscriber already owns a residential house or flat, the same is not allowed as a ground for the withdrawal.

iv) Treatment for prescribed illnesses – suffered by subscriber or his legally wedded spouse and children. For this purpose, the prescribed illness referred above consists of hospitalization and treatment for the following diseases/illnesses:

1. Cancer
2. Kidney Failure (End Stage Renal Failure)
3. Primary Pulmonary Arterial Hypertension
4. Multiple Sclerosis
5. Major Organ Transplant
6. Coronary Artery Bypass Graft
7. Aorta Graft Surgery
8. Heart Valve Surgery
9. Stroke
10. Myocardial Infarction (First Heart Attack)
11. Coma
12. Total blindness
13. Paralysis

b) Limits:

It has been proposed that there should be limitation on eligibility as well as the maximum limit for each withdrawal that can be permitted till the person stays invested in National Pension System. We propose the following eligibility criteria and limit for availing the benefit:

1. The subscriber should have been in NPS for at least ten years and contributing to the scheme.
2. Subscriber can withdraw accumulations not exceeding twenty-five percent (25%) of the contributions made by him and standing to his credit in his NPS account, as on the date of application for withdrawal.

c) Frequency:
It is recommended that the subscriber may be allowed to withdraw at the most three (3) times from the scheme during the tenure and should have a gap of at least 5 years before availing the withdrawal facility for the next time. However, the mandatory requirement of 5 years gap between two successive permitted withdrawals would not be applicable in case of “treatment for above prescribed illnesses”.

We are proposing the above frequency in order to make sure that the subscriber should be left with a decent and considerable accumulated pension wealth at the time of superannuation/age of 60 years enabling him to purchase sustainable annuity.

The request for withdrawal should be sent along with relevant document through the Nodal Office/POP/Aggregator to Central Record Keeping Agency for processing of the withdrawal claim.

Source:  www.pfrda.org.in

[http://www.pfrda.org.in/writereaddata/linkimages/Exposure%20Draft%20withdrawal.pdf]

2 comments - What do you think?  Posted by admin - January 16, 2014 at 4:24 pm

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New Pension Scheme: Corpus up to Rs 2 lakh can be fully withdrawn at retirement

New Pension Scheme: Corpus up to Rs 2 lakh can be fully withdrawn at retirement

New Pension Scheme (NPS) holders can withdraw the entire fund on retirement if the total amount is Rs 2 lakh or less. The Finance Ministry has notified the change.

“When, on superannuation, a request is received from a subscriber, other than the subscriber under NPS-Lite Swavalamban Scheme, having pension wealth of two lakh rupees or less, he/she may opt for withdrawal of total pension wealth,” according to a Finance Ministry gazette notification . At present, over 4,400 accounts have accumulated amounts of Rs 2 lakh or lower. Out of these, nearly 680 have made a request for withdrawal.

Normally, an individual can exit either at or after the age of 60. However, from March 2013, subscribers were allowed to stay invested till the age of 70, but with some conditions such as no-contribution or part-withdrawal between the ages of 60 and 70.

ANNUITY PROBLEM

At the time of exit, 60 per cent of the total amount is given as lump sum, while 40 per cent is used to purchase an annuity, which provides lifetime pension to an employee and his dependent parents/spouse at the time of retirement. The problem was that the accumulated amount was inadequate for pension payouts. The thinking is that accumulated funds of less than Rs 2 lakh are not enough to purchase an annuity or annuity providing for a decent monthly income.

Now, subscribers, with pension wealth of Rs 2 lakh or less, will have to make a request for an ‘opt-out’ option. Those who have not made a request for withdrawal as lump sum may like to continue, which is why a specific ‘opt out’ option is being proposed, rather than a default option.

NPS is a contributory scheme that was made mandatory for Union Government employees (except those joining the Armed Forces) joining on or after January 1, 2004. Under the scheme, an employee contributes 10 per cent of his/her salary and dearness allowance and an equal contribution is made by the Union Government.

Source: The Hindu Business Line

Be the first to comment - What do you think?  Posted by admin - October 22, 2013 at 4:21 pm

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