Investment needs are unique to each and every Individual. No single financial plan would be suitable to everyone. It is necessary, that awareness is created. Such awareness ,created and understood , is the Individual’s responsibility, who undertake decisions and apply the same to their situations. This website or any Individual or entity related with this website , would not take or assume any liability towards the decisions undertaken by such individuals. Individuals are encouraged to make inquiries, validate such information, from available resources on both online and offline content , before undertaking any financial decisions. This website does not charge any fees for such services rendered. Information sought and sharing of such information is permissions based . The website focuses only on the NPS All Citizen model and the Corporate model only as more awareness needs to be created on this models. Government model and the erstwhile NPS swavalamban model (Now Atal Pension Yojana ) are already being undertaken by the Government agencies through their own network and marketing channels.
There are in all, Four different types of models or variants of the National Pension system. (1) All Citizen Model (2) Government Sector Model (3) Corporate Model (4) NPS Swalamban / NPS lite / Atal Pension (to be implemented shortly.
|Serial No||NPS model or variant||Comments|
|1||All Citizen Model||For t he benefit of citizens of India ,who are not dependent on the Government of India for any financial support like Self employed category , Professionals like Doctors , CAs, CS, CMAs ,Lawyers , Architects etc.|
|2||Government sector model||For Citizens who are employees of the Government of India ,State Government etc who derive the pension income after retirement. The NPS scheme is compulsory for staff joining such services after 2004 except the Armed forces|
|3||Corporate Model||This model is applicable for the employees of corporate. Please refer to the section under the eligibility criteria section.|
|4||NPS Swalamban / NPS lite/Atal||These are socially disadvantaged sections of the society . They receive a support from the Central government as well from the state government in share for the pension contribution. Each state has it’s own set policies which it implements through it’s department of labour and social welfare.|
Note : This website information would focus only on the All Citizen model and the corporate model.
There are two types of account , in the NPS account set up for an subscriber. The first account which the subscriber , creates or needs to create , is the basic retirement account number . In view of the basic function for retirement, it is called the Tier 1 account or main account . This account captures the essence of the retirement planning process.
The Tier 2 account is secondary and can come into creation only after the primary Tier 1 account is created. It is for the management of the liquidity requirements of the subscriber . This account can be used for withdrawal of funds . This account can be created at the time of the account opening of the retirement account or even after the Tier 1 account has been established and is in operation.
|FEATURES OF||TIER 1 ACCOUNT||TIER 2 ACCOUNT|
|Account opening||Compulsory : The account needs to be opened compulsorily in order to participate in the NPS account||Voluntary : It is not mandatory to open the above tier 2 account . Account need not have tier 2 account|
|Tax benefits||The Tier 1 account get the tax benefits on an annual basis .||The tier 2 does not get any benefits . In case the units are withdrawn within one financial year , applicable tax rates would apply|
|Liquidity facility||Not applicable as it is of long term nature towards the retirement goals||In the case of Tier 2 , it is only for the purpose of liquidity facility .Funds can be withdrawn ,deposited in this account|
|Fund managers||A tier 1 account can have a different fund manager from the tier 2 account according to the choice of the subscriber. He may also have the same fund manager ,for the tier 2 account . There is no compulsion to have the same fund managers for the two tiered funds||A tier 1 account can have a different fund manager from the tier 2 account according to the choice of the subsscriber. He may also have the same fund manager ,for the tier 2 account . There is no compulsion to have the same fund managers for the two tiered funds|
|Allocation ratios||Different allocations can be submitted to the both the tiers. It is however to be noted that Equities cannot be allocated for more than 50 % .||Different allocations can be submitted to the both the tiers. It is however to be noted that Equities cannot be allocated for more than 50 % .|
|Minimum contributions to be made||Rs 1000 per annum||No such fixed amount . The opening of the account is Rs 1000 /- . At any time of withdrawal , there should be a balance of minimum Rs 2000 in the account . Bank account details are to be furnished and the amount would be transferred only to this mapped bank account.|