A central government employee who joined on or after 01/01/2004 comes under New Pension Scheme.
NPS Features:
Pension fund regulatory and Development Authority (PFRDA) has been established by the Government of India, Ministry of Finance vide notification F.NO. 5/7/2003-ecb & PR dated 10th October 2003 to promote old age income security. The government authorized PFRDA vide Ministry of finance, Department of Financial services letter No. 11(11)/2008-pr dated 29th July 2008 to extend NPS on a voluntary basis to all citizens of India Including workers of unorganized sector.
NPS is now available to all citizens of India with effect from May 1, 2009, other than Government employees already covered under NPS.Two Types of Accounts
1. Tire I Account.
2. Tire II Account.
Details of Tire I Account
Who can Join ?
A citizen of India , whether resident of Non Resident of India, subject to the following conditions.
Should be between age of 18 and 55.
Should comply with the Know Your Customer (KYC) norms as detailed in the subscriber registration form.
Who cannot Join
Individuals who are not granted an 'order of discharge' by a court.
Individuals of unsound mind.
Pre-existing account holders of NPS.
How to enroll in NPS?
To enroll in NPS , you need to submit the Registration Form to Post office or any other POP-SP. The list of POP-SPs is available in the website: http://www.pfrda.org.in.
NRIs should have an account with the bank based in India to open an account under NPS.
After the account is opened, CRA shall mail a "Welcome Kit" containing the subscriber's unique Permanent Retirement Account Number (PRAN) and the complete information provided by the subscriber. A telephone password(TPIN) which can be used to access the account on the call centre number (1-800-22220808). An IPIN(Internet Password) will also be given for accessing on the site www.npscra.nsdl.co.in.
Contribution Amount
Minimum Amount per contribution: 500.
Minimum Contribution Amount per year: 6000.
Minimum Number of contributions per year: 4.
The subscriber can contribute the amount through cash, local cheque or demand draft.
What are the benefits of Joining New Pension Scheme ?
a) It is voluntary-NPS is open to every Indian citizen. You can choose the amount