The National Pension System (NPS) is a retirement planning cum investment
WHAT scheme launched by the Govt. of India and regulated by PFRDA. NPS subscribers
IS NPS? contribute regularly during their working years and pension fund managers invest
this money in the markets, as per investment guidelines issued by the regulator.
It is a long-term investment with the objective to build a retirement corpus and
provide lifelong pension after exit from the scheme.
WHO Indian citizens, Aged between
KYC-compliant
CAN JOIN? NRIs and OCIs 18 and 70 years
WHY Tax benefits on investment, over and above 80C
Old tax regime: Self-contribution of up to ₹50,000 is eligible for tax benefit
JOIN NPS? u/s 80CCD(1B) & Employer contribution of up to 10% of Salary (Basic +
DA) eligible for tax benefit u/s 80CCD(2) up to ₹7.5 lakh*
New tax regime: employer contribution of up to 14% of Salary (Basic + DA)
eligible for tax benefit u/s 80CCD(2) up to ₹7.5 lakh*
₹ Low cost refers to the low operating expenses despite funds getting
invested in equities
Investment choices low subscribers to tweak investments according to
their risk appetite and age profile
Competitive returns with market-linked investments allows subscribers
to gain more, as compared to other long-term financial instruments
Portability across jobs and locations allows subscribers to seamlessly
continue investing for their future within the same account
Regulated by the statutory body PFRDA and Accessibility of investment
data through mobile app makes the scheme transparent and trustworthy
Annuity income and lump sum ensure that subscriber and spouse get
regular pension for life, and have a contingency fund that helps cope with
any sudden large expenses
HOW Visit sbipensionfunds.co.in
Click Open NPS Account and select your preferred Central Recordkeeping
TO JOIN? Agency (CRA).
Fill out the registration form online and upload documents.
This will generate PRAN (Permanent Retirement Account Number) which is
unique, i.e. , an individual can have only one PRAN number.
To know more, visit sbipensionfunds.co.in
Tier I: default mandatory pension account for NPS
subscribers, with 75% cap on equity exposure, 5% cap on
alternate assets, and restricted withdrawals
Types of
Accounts Tier II: additional investment account, optional, 100% equity
exposure allowed, no restrictions on withdrawals, no separate
Account Maintenance Charges, and One-way Switch from Tier
II to Tier I allowed
Active Choice: subscriber actively chooses asset allocation
among, E, C, G & A as per his/her risk appetite
Investment Auto Choice: subscriber contributions are invested in E, C &
Options G in predetermined proportions as per subscriber’s age,
hence, also known as Life Cycle (LC) funds – LC-75, LC-50,
LC-25
Subscriber can withdraw 25% of self-contributed amount as
Withdrawals partial withdrawals for emergencies; after 3 years of joining
NPS, up to 3 times in the entire tenure, a gap of at least 3
for years between two partial withdrawals, and only incremental
emergencies contributions made after previous partial withdrawal shall be
used for calculating the extent for the next.
• ≤60% of accumulated corpus taken as tax-free lump sum or
in phases with Systematic Lump sum Withdrawal (SLW)
Exit upon • ≥40% reinvested in annuity for guaranteed pension for life
maturity • If accumulated corpus ≤ ₹5 lakh, can withdraw entire
amount as lump sum
• ≤20% of accumulated corpus taken as lump sum
Exit before • ≥80% reinvested in annuity for guaranteed pension for life
maturity • If accumulated corpus ≤ ₹2.5 lakh, can withdraw entire
amount as lump sum
Exit due
• Nominee(s) can withdraw entire corpus as lump sum
to death
To know more, visit sbipensionfunds.co.in
