INSUBCONTINENT EXCLUSIVE:
To exit NPS before 60, you will have to use atleast 80% of fund buying an annuity
The National Pension System (NPS), regulated by the PFRDA (Pension Fund Regulatory and Development
Authority), is a retirement savings scheme that aims to make the future of subscribers financially secure
Currently, the pension scheme is disproportionately more popular among the government sector employees, but is open to the corporate sector
employees too, who are given a greater flexibility to invest into equity
The corporate sector employees can invest upto 50% of the total contributions into equity, while the cap for government employees is a
The balance funds are invested into corporate debt and government securities
Investment options: You can choose one of the two investment options: active choice and auto choice
In the active choice, the investor can decide the proportion of three asset classes: equity, corporate debt and government securities
As popularly known, equity is most unsafe, corporate debt is relatively safer, while the government securities are the safest investment
At the same time, in the auto choice, the money is invested in three asset classes in the predefined proportions and it keeps changing with
The young the subscriber is, the more proportion is invested in the equity, and less in corporate debt, and the least in the government
The equation reverses as the subscriber's age advances.2
Equity cap: Currently the government sector employees can invest upto 15% of their savings in the equity and the private sector employees
are allowed to invest upto 50% of the equity
For instance, a 35-year old subscriber's 50% of the funds are invested into equity, 30% in the corporate debt and the remaining 20% in the
government securities.A year later, the proportion in equity falls to 48%, and in corporate debt to 29% while in the government securities,
the proportion rises to 23%
Likewise, with every passing year, the proportion of funds invested in equity and corporate debtis slashed by 2% and 1%, respectively, and
the 3% saved is put into the government bonds.However, soon the NPS could offer upto 75% of corporate employees' money into equity.3
Exit from NPS: In case you happen to exit the NPS before the age of 60 years, you will have to use atleast 80% of your accumulated pension
fund towards the purchase of an annuity for a regular monthly pension
The balance funds can be withdrawn as a lumps sum.4
Agencies That control The NPS: the The NPS is regulated by the PFRDA that has appointed NSDL e-governance infrastructure as the central
recordkeeping agency (CRA)
However, to open an NPS account, you don't need to go to any of these agencies since various banks and non-banking institutions have been
appointed as point of presence
One can visit these POP-service providers and submit the common subscriber registration form.4
How To Register A Grievance: In case you have a grievance, you can approach the redressal mechanism
One can register the complaint via CRA Helpline at the toll free number (1-800-222080) and register a grievance
On successful registration of your grievance, a token number is allotted by the customer care executive for any future reference
After the grievance is raised, an alert is sent to the concerned entity
Once resolution is provided by the entity, an email alert is sent to your registered email ID
One can also check the status of the grievance at the CRA website (www.cra-nsdl.com) or through the CRA helpline by mentioning the token
number provided after successful grievance registration.Web-based grievance: There is an option of web-based interface also
You can register the grievance against any interfacing entity by login to CRA website with your IPIN
On successful registration of the grievance, an unique token number will be displayed on the screen, which can be used for future reference
In case you are not satisfied with the resolution, the same may be escalated to NPS Trust online.
