National Pension Scheme 2020 – On 23 August 2003, the Interim Pension Fund Regulatory & Development Authority (PFRDA) was established the national pension scheme or also called the national pension system.
Main Agenda behind national pension scheme:
National Pension Scheme 2020
Pension scheme gives financial security and solidity during old age when people don’t have a source of income. Retirement plan tells that people live with satisfaction and without compromising on their standard of living after retirement years.
Who can get the national pension scheme (NPS):
NPS is applicable to all employees of Central Government service, except military and Central Autonomous Bodies joining Government service on or after 1st January 2004.
Any other government employee who is not under NPS can also sign in to NPS under “All Citizen Model” from a Point of Presence – Service Provider (POP-SP) Website
Advantage of national pension scheme:
- It is a cost-effective system where the pension is directly transferred directly into the National Pension Scheme.
- The form filling process is also very simple and anybody can easily fill it.
- It is portable in such a way that each employee gets a unique PRAN no. (Permanent Retirement Account Number)
- The charges are standard as per the authority sanctioned.
- Opening charges: Rs 50
- Annual maintenance charge per account: Rs190
- Transaction charges: Rs4
How the National pension scheme works:
The funds are locked in till you are 60 years and on retirement, then you are ready to a lump sum payment, with at least 40% used to buy annuities that will earn a monthly pension. The only freedom is that an individual can withdraw 25% of the contribution before he or she turns 60.
Which fund manager you can select?
You can choose your fund manager for investment from a list of seven – UTI, LIC, SBI, IDFC, ICICI Prudential, Kotak Mahindra and Reliance Capital. Annual portability is allowed free of cost. You can choose between equity and pure debt.
Calculation of National pension scheme?
The Net Promoter Score is finding out by the difference between the percentage of Promoters and Detractors. The NPS is not expressed as a percent value but as an absolute number lying between -100 and +100.
Is Investment in NPS is better?
NPS also gives for additional tax benefit of Rs 50,000 under Section 80CCD(1B). However, investors can withdraw from NPS only after the retirement at 60. This may we called as long-term benefits for betterment during the old age.
National Pension Schemes 2020 Complete Info – enps.nsdl.com
There are some benefits of NPS. The NPS scheme provides different benefits which are better for getting a detailed understanding of the income tax.
Benefits of NPS:
Those benefits are,
- Income Tax Benefits For Salaried Individuals: An investment which is 10% of the salary is reduced from income. This operation comes under Section of 80CCD.
- NPS Income schemes for Tax Benefits for Salaried Individuals: In that, the additional investment which has a huge amount up to Rs. 2to 4 lack is also reduced from income which came under the Section of 80CCD.
- The contribution provided using employment.
- Self-employment of professionals.
- The NPS schemes are voluntary and defined by the contributed retirement savings schemes.
- The NPS schemes activates the subscriber to make the savings for users working life.
- National Pension Scheme also provides the 2 kinds of accounts for you that are 1 and 2 services of tier.
Features of NPS:
The NPS schemes provide different features to their customers.
- Voluntary Scheme: It is the special voluntary scheme which used for every peoples of India between the age group of 18 to 65 years working in the private or in the unorganized sector.
- Flexibility: The NPS scheme provides flexibility to the peoples to pay their extended funds in the form of temporarily by using the Tier II account.
- Portability: The peoples can able to operate the accounts from anywhere from India using the fast networks of Point of Presence that is POP.
- Independence: This scheme provides access to the peoples to be independent even after getting retirement from the company.
- Safe investment: The secure and safe retirement fund developed by the Government of India as well as used by the Pension Fund Regulatory and Development Authority.
- Low-cost scheme.
Pension funds under the NPS:
In today’s era, there are total 8 fund managers are managing the deposits of NPS subscribers those are,
- Birla sun life pension fund limited.
- The Hdfc management cooperative of funds.
- Icici pension fund management limited.
- Kotak mahindra pension funds limited.
- Lic pension fund limited.
- The reliance services capital pension funds limited.
- The sbi services pension fund private limited.
- The solutions of retirement of Uti limited.
These are the different funds are works under the NPS.
How to open the account?
- To open the new account go to the official site of NPS.
- Then select the open your NPS official online account.
- Then click on the login with PRAN or IPIN.
- After that, on the make the log in process on screen, press on the Password for e-NPS.
- Create and remember the new password.
- Put all the required details that are PRAN and Date of Birth as well as New Password.
- Then confirm the password and click on the submit button.
- The OTP is sent to your registered phone number then enter the OTP to confirm your new password.
These are the easiest steps to create an account of NPS. You understand the steps easily.
Contribution information of NPS:
In the NPS Tier 1, the less primary fund is Rs. 500. And the less annual fund to your NPS Tier I account is Rs 1,000.
There are no huge amount for annual fund. The less amount as per the fund is Rs 500.
In the NPS Tier 2, the less initial fund is Rs. 1 thousands. There is no less and more annual contribution. The less amount per fund is Rs 250.
National Pension scheme is introduced for the betterment of the government employee who gives their unexceptional contribution to the nation.
This scheme also tells how government body takes care of their employee even after retirement also in order to maintain their standard of living high. This scheme returns increases as their allocated tier and also as per increase in the years.