NPS – National Pension Scheme – Best Retirement Plan, PFRDA,Tax saving Scheme – Govt of India

NPS – National Pension Scheme – Best Retirement Plan, PFRDA,Tax saving Scheme – Govt of India

The NPS was introduced by the government last year to give people a way to get a pension during their old age. Employees of the government sector already get a pension, so this scheme was introduced as a social security measure that enables people from the unorganized sector to draw a pension as well.

NPS offers following important features to help you save for retirement:

  1. You will be allotted a unique Permanent Retirement Account Number (PRAN). This unique account number will remain the same for the rest of your life. You will be able to use this account and this unique PRAN from any location in India.
  2. PRAN will provide access to two personal accounts:
  • Tier-I pension account: You will contribute your savings for retirement into this non-withdrawable account.
  • Tier-II savings account: This is simply a voluntary savings facility. You will be free to withdraw your savings from this account whenever you wish.

Tier-I account is available from 1st May 2009, while Tier II account has been made available from 1st December, 2009.
Under NPS, how your money is invested will depend upon your own choice. NPS offers you a number of fund managers (six) and multiple investment options (three) to choose from. In case you do not want to exercise a choice as regards asset allocation, your money will be invested as per the “Auto Choice” option.
You can open an NPS account with authorized branches of service providers called ‘Points of Presence’ (POPs).You have the option to shift from one branch to another branch of a POP at your convenience.
The tax benefits under NPS will be as per the provisions of the Income Tax Act, 1961 as amended from time
to time.

Swavalamban Scheme
Under the scheme, Government will contribute Rs. 1000 per year to each eligible NPS account opened in the year 2010-
11 and for the next three years, that is, 2011-12, 2012-13 and 2013-14. The benefit will be available only to persons
who join the NPS with a minimum contribution of Rs. 1,000 and maximum contribution of Rs. 12,000 per annum.Conditions apply


List of Pension Fund Managers

  1. ICICI Prudential Life Insurance Company Limited
  2. IDFC Asset Management Asset Management Company Limited
  3. Kotak Mahindra Asset Management Company Limited
  4. Reliance Capital Asset Management Company Limited
  5. SBI Pension Funds Limited
  6. UTI Retirement Solutions Limited

Various Points of Presence have been constituted, which act as a customer interface for investors. You may chose from the below mentioned list to open your account.

List of Points of Presence (PoP)*

  1. Allahabad Bank
  2. Axis Bank Ltd.
  3. Bajaj Allianz General Insurance Co Ltd.
  4. Central Bank of India Citibank N.A.
  5. Computer Age Management Services Private Ltd.
  6. ICICI Bank Ltd.
  7. IDBI Bank Ltd.
  8. IL&FS Securities Services Ltd.
  9. Kotak Mahindra Bank Ltd.
  10. Life Insurance Corporation of India Oriental Bank of Commerce Reliance Capital Ltd.
  11. State Bank of Bikaner & Jaipur State Bank of Hyderabad
  12. State Bank of India
  13. State Bank of Indore
  14. State Bank of Mysore
  15. State Bank of Patiala
  16. State Bank of Travancore
  17. The South Indian Bank Ltd.
  18. Union Bank of India
  19. UTI Asset Management Company Ltd.

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