NPS KARMVHARIONE NIVRUTI SAMYYE GRATUETY CHUKKVVA BABAT LATEST PARIPATR
The Central Government has introduced the Defined Contribution based Pension System known as the National Pension System (NPS) replacing the existing system of Defined Benefit Pension with effect from January 01, 2004 vide its notification Ministry of Finance (Department of Economic Affairs) OM No 5/7/2003 PR Dt 22/12/2003.
National Pension System (NPS) is a contributory pension system whereby contributions from subscribers along with matching contributions from respective governments as an employer, are collected and accumulated in an individual pension account of the employee. NPS is mandatory to all employees joining services of Central Government (except Armed Forces) and Central Autonomous Bodies on or after 1st January 2004.
Pension Fund Regulatory and Development Authority (PFRDA) is the regulator for NPS. PFRDA is an Authority set up by the Government of India through the PFRDA Act, 2013 to promote old age income security by establishing, regulating and developing pension funds to protect the interest of Subscribers to schemes of pension funds and for matters connected therewith or incidental thereto.
Following are the entities involved in NPS:
NPS Trust: The National Pension System Trust (NPS Trust) was established by PFRDA on 27th February, 2008 with the execution of the NPS Trust Deed. The NPS Trust has been set up and constituted for taking care of the assets and funds under the National Pension System (NPS) in the interest of the beneficiaries (Subscribers). Individual NPS Subscribers shall be the beneficiaries of the NPS Trust. The NPS funds are managed by the Board of Trustees to realize and fulfill the objectives of the NPS Trust in the exclusive interest of the Subscribers.
Central Recordkeeping Agency (CRA): Recordkeeping, administration and customer service are the core functions of NSDL e-Governance Infrastructure Limited, which is acting as the Central Record-keeper for the NPS.
Pension Fund Managers (PFMs): Pension Fund Managers (PFMs) act as intermediary for receiving contributions, accumulating them and making payments to the Subscriber in the manner as may be specified by the Authority.
Trustee Bank: Axis Bank Ltd. has been appointed by PFRDA as the Trustee Bank for NPS effective from 1st July, 2013. Trustee Bank as an intermediary is responsible for the day-to-day flow of funds and banking facilities in accordance with the guidelines/ directions issued by the Authority under NPS. It receives NPS funds from all Nodal Offices and transfers the same to the Pension Funds/ Annuity Service Providers/ other intermediaries as per the operational guidelines.
Annuity Service Providers (ASPs): ASPs would be responsible for delivering a regular monthly pension to the Subscriber after exit from NPS. ASPs have been appointed by PFRDA.
Points of Presence (POPs): Points of Presence (POPs) are different Financial Institutions who act as the first point of interaction for the NPS Subscriber within the NPS architecture. The authorized branches of a POP, called Point of Presence Service Providers (POP-SPs), will act as collection points and extend a number of customer services to NPS Subscribers.
Central Recordkeeping Agency Facilitation Center (CRA-FC): CRA-FC is the entity appointed by NSDL to extend various services under NPS, to its users across the country. The entities who have been appointed as CRA-FC shall establish multiple branches across the country to provide services to the POPs and POP-SPs.
Tier II is a voluntary saving Account associated with your PRAN. Tier II offers greater flexibility in terms of withdrawal, unlike Tier I account, you can withdraw from your Tier II account at any point of time.
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