NATIONAL PENSION SCHEME–(NPS)

The Government of India in exercise of their executive powers adopted ‘National Pension System’ (NPS) based on defined contributions in respect of all new entrants to Central Government services, excepting the Armed Forces, with effect from 1st January 2004.

Most of the State Governments have since notified a similar pension system for their new entrants. PFRDA has also made NPS available to all citizens of India, with effect from 1st May 2009 on a voluntary basis.

1. It is prudentially regulated :

Transparent investment norms, regular monitoring and performance review of Fund Managers by NPS Trust.

2. Low Cost :

NPS is perhaps world’s lowest cost pension scheme. Other handling and administrative charges are also the lowest. The fund management fees will be as charged by the PFM.

3. Ensures Complete Portability :

Choice of investment mix and Pension Fund managers or select Auto Option (life cycle fund) to get better returns, if option provided by the corporate.

4. Flexibility :

NPS is perhaps world’s lowest cost pension scheme. Other handling and administrative charges are also the lowest. The fund management fees will be as charged by the PFM.

5. Simple and Web enabled/Online :

All transactions can be tracked online through CRA system. Employer and employee can check fund and contribution status through CRA website.