INSUBCONTINENT EXCLUSIVE:
NPS offers two kinds of accounts: tier 1 and tier 2.National Pension System or NPS, a government-sponsored retirement planning instrument,
gives the investor the option to set his or her preferred allocation to different asset classes, such as government bonds, equity market
instruments and corporate debt, among other features
It gives the investor flexibility in terms of timing of contribution, choice of pension fund, and choice of allocation
However, if the choice is not exercised by the subscriber, NPS contributions are invested in these existing schemes - LIC Pension Fund, SBI
Pension Fund and UTI Retirement Solutions, according to National Securities Depository's (NSDL) website - npscra.nsdl.co.in
While the tier I NPS account is a pension account, the tier II NPS account is a savings account
Avail Income Tax Benefits Under National Pension System)According to NSDL's website, the central government subscribers have the option of
selecting the Pension Funds (PFs) and investment patterns in tier I account
invested in government bonds and related instruments.2
Scheme LC 25: It is the life cycle fund where the cap to equity investments is 25 per cent of the total asset.3
Scheme LC 50: It is the life cycle fund where the cap to equity investments is 50 per cent of the total asset.How can an NPS subscriber
change a scheme preferenceA subscriber has the option to change the pension fund manager
- online as well as offline.Subscriber can change scheme preference online through his/her NPS account log-in
Alternatively, the subscriber can also submit physical request (Form GOS-S3) to his/her associated Nodal Office
On receipt of physical request, the Nodal Office updates the scheme preference in the CRA system.Get Breaking news, live coverage, and
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