New Pension Scheme Yojana
We always worry for our future. What are we going to do once we retire? All of us do struggle from this issues in our day to day life.
Nothing to worry folks. The government has launched National pension scheme which would provide a pension for all. This will not only provide stability to every individual but would also provide hope to live life fearlessly, as they would have something to rely on in advancing years.
NPS aims to provide income for all after retirement and to institute pension reforms.
Under this scheme, the subscriber will get to open an account named Permanent Retirement Account Number (PRAN). Once opened this account would remain active throughout subscriber’s life. Two accounts will be accessible under this scheme. Under Tier 1 account, the subscriber will not be able to withdraw any funds saved. This would be a non-withdrawal account. The second Tier 2 account will enable the subscriber to withdraw money whenever he wishes to. However, no tax benefit will be applicable on this account.
The Minimum contribution at the time of opening the account under Tier One is RS 500/- at entry level, after which subscriber has to maintain a minimum balance of 6000 at the end of the year. Minimum number of times a subscriber can deposit would be one time at least, however year ending balance in the account should be maintained. For Tier Two the minimum balance at entry level is Rs 1000/-, minimum contribution would be RS 250/-, minimum account balance at the end of the year is expected to be RS 12000/- and there should be at least one contribution per year.
Penalty would be levied if the minimum criteria for maintaining an account is not followed.
Any individual who has opened a bank account would get Rs 1000/- every year contributed to his both the accounts by the government for the next three years. Subscribers who have maintained the minimum yearly balance will only be able to get the benefit provided by the government. The funds for the scheme would be available from grants of the Government of India.
Regulators and entities would include Pension Fund Regulatory and Development Authority which would develop and monitor pension in the market, Point of Presence which would be the first point for contact for the subscribers, Central Recordkeeping Agency would handle the record management, administration and customer services and finally Annuity Service Providers would be responsible for providing regular monthly pensions to the subscribers.
Except armed forces, all central and state government employees would be eligible to get benefits under this scheme.
To register under the scheme form (UOS-S1) needs to be duly filled, attached with the required documents mentioned in the form and submit to the nearest POP. Subscribers need to attach Photo Id proof, Date of birth proof and Address proof along with their application form.
This scheme is available to subscribe from May 1, 2009, any citizen’s age ranging from 18 to 60 can apply for this scheme.
Detailed information about the scheme is available on website www.pfrda.org.in,and www.npscra.nsdl.co.in, where subscribers can read the uploaded offer document.