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Tag: Pension Fund Regulatory and Development Authority

  • Rajasthan and Chhattisgarh stroll out of National Pension System

    The National Pension System (NPS), managed by the Pension Fund Regulatory and Development Authority (PFRDA) and designed to unburden the Central authorities and state governments of giant future pension liabilities, has acquired a setback as two states, Rajasthan and Chhattisgarh, have walked out of the system after taking part in it for the previous couple of years.

    Sources confirmed that each the states, dominated by the Congress, have stopped contributing any funds from their facet to the NPS since April 1. “Yes, each the governments have stopped the fee. Now, regardless of the funds that they had contributed earlier will likely be taken care of by us,’’ stated an official, including that there aren’t any authorized methods by means of which the PFRDA can return the funds no matter have been contributed by these two states.

    All different states besides Tamil Nadu and West Bengal had participated within the NPS and the final state that had joined the NPS was Tripura.

    Chhattisgarh Chief Minister Bhupesh Baghel had urged Prime Minister Narendra Modi to concern a directive to the PFRDA to refund the cash deposited in the direction of the NPS since November 2004 by the state authorities together with accruals. Baghel made this demand after the PFRDA rejected the state authorities’s request to withdraw Rs 17,240 crore accrued below the NPS.

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    The state authorities has determined to reinstate the outdated pension scheme (OPS) “in the interest of government officials and employees.” Meanwhile, chatting with the media, Supratim Bandyopadhyay, Chairperson, PFRDA, stated the overall property below NPS have touched Rs 35 trillion and presently has an AUM of Rs 7.4 trillion with 5.33 crore subscribers throughout central and state authorities corporates and retail subscribers.

    Bandyopadhyay stated fairness schemes below NPA have given a return of 11.92 per cent whereas the company bonds have supplied a return of 9.21 per cent. Three new gamers, Tata Asset Management, Axis Bank and Max Financial have joined as new pension fund managers not too long ago and can begin their operations shortly.

    Bandyopadhyay hinted that the PFRDA is figuring out plans to launch a assured pension scheme, which will be linked to authorities securities and may also be made floating and could also be launched by September.

  • PFRDA extends on-line exit course of choice to authorities sector subscribers

    The Pension Fund Regulatory and Development Authority (PFRDA) has prolonged the choice of on-line, paperless strategy of exit to subscribers within the authorities sector. Earlier, solely non-government sector subscribers loved the end-to-end facility of the web exit course of.

    National Pension Scheme (NPS) subscribers in non-government sectors are at the moment empowered with complete end-to-end digitally enabled options to meet their evolving wants.

    PFRDA in a launch mentioned, “The online exit would be integrated with Instant Bank Account Verification as per the existing guidelines as part of enhanced due diligence in the interest of Subscribers. The facility would also be available to the employees of Autonomous Bodies of Central/State Government who are covered in NPS.”

    Further, the Central Record Keeping Agencies (CRAs) must allow the required technical functionalities earlier than 30 October, 2021.

    “Nodal Officers of Government Sector will play a larger role to educate their employees about the process of online exit which not only benefit Subscribers but also the nodal officers by freeing them from handling paper-based documents and dispatching those papers to the associated CRA for record keeping,” it mentioned

    NPS subscribers are inspired to make the most of the choice of on-line exit which ensures well timed strategy of exit and seamless difficulty of annuity-by-Annuity Service Providers (ASP).

     

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  • PFRDA proposes modifications in untimely exit guidelines for Atal Pension Yojana

    NEW DELHI: To enhance acceptability of Atal Pension Yojana (APY) scheme amongst casual sector employees, the Pension Fund Regulatory and Development Authority (PFRDA) has proposed modifications in untimely exit processing for the good thing about subscribers.

    APY is a social safety scheme administered by PFRDA via banks and the division of publish. The scheme provides assured pension advantages to eligible residents after reaching the age of 60 years, who subscribe and contribute to the scheme.

    According to a PFRDA round issued on 3 September, “The existing mode of premature withdrawal under APY is examined from time to time by PFRDA based on the inputs/suggestions received from various stakeholders and the changes are proposed with suitable technological intervention.”

    The scheme will introduce immediate checking account verification within the curiosity of underlying subscribers for the orderly processing of their exit requests.

    The following pointers are issued for facilitating well timed switch of withdrawal quantity within the checking account of APY subscribers and in addition as extra due diligence to guard their corpus mendacity within the Permanent Retirement Account Number (PRAN). 

    There may very well be two situations on the time of exit that are defined as beneath:

    A. If the SB account particulars of subscribers on the time onboarding & exit are the identical

    1. APY subscriber ought to incorporate the sector indicating lively standing of financial savings financial institution (SB) account within the revised exit file format supplied by CRA which is necessary from 15 September, 2021.

    2. Instant Bank Account verification by penny drop shall even be undertaken by CRA to confirm the operative standing of financial savings account as a part of enhanced due diligence.

    3. The above modifications are being carried out to allow CRA system to course of the untimely withdrawal requests the place the related SB Account is operative in order to make sure receipt of APY account closure proceeds within the SB account, as per the PFRDA round.

    4. If the related financial savings account is closed/dormant, the modified course of ensures preservation of subscribers’ contribution within the PRAN itself to generate optimum market-based returns.

    B. If the financial savings account particulars on the time of onboarding & exit will not be the identical, totally different account numbers of the identical financial institution or the totally different financial institution

    1. Subscribers are suggested thatAPY closure proceeds be credited to the identical checking account quantity and should settle for the request with a special account quantity or account of a special financial institution solely as an exception. Such requests are to be accompanied by proof of alternate account quantity acceptable to the financial institution, as per the PFRDA round.

    2. Instant Bank Account verification by penny drop shall be undertaken by CRA as a part of enhanced due diligence together with identify matching between PRAN and checking account quantity.

    3. Exit requests with mismatches or with unsuccessful account verification, publish penny drop is to be confirmed by respective APY subscriber for additional processing of exit requests by CRA, as per the round.

    4.Subscribers are to be educated to maintain their respective checking account lively once they submit their untimely withdrawal request and the request is processed. An appropriate endeavor might be obtained from the subscriber as a part of the withdrawal request.

    5. The relevant costs for immediate checking account verification can be recovered by CRA from the respective PRAN for reimbursement to service supplier. Prevailing costs for verifying checking account quantity via penny drop is Rs2.40 and tax, as per the PFRDA round.

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  • NPS subscribers becoming a member of after 65 years of age can take as much as 50% fairness publicity

    The Pension Fund Regulatory and Development Authority (PFRDA), apart from easing National Pension System (NPS) exit guidelines, has permitted subscribers, who be part of it after the age of 65 years, to allocate as much as 50% of the funds in fairness.

    The Pfrda in a round stated that in response to the big variety of requests from the present subscribers to stay invested in NPS past 60 years or past their superannuation, and the will from residents above 65 years to open NPS, it has been determined to extend the entry age of NPS within the curiosity of subscribers and profit them with the chance of making a long run sustainable pension wealth. “The existing age of entry which is 18-65 years has been revised to 18-70 years,” PFRDA stated.

    “Any Indian Citizen, resident or non-resident and Overseas Citizen of India (OCI) between the age of 65-70 years can be part of NPS and proceed or defer their NPS Account as much as the age of 75 years. Those subscribers who’ve closed their NPS accounts are permitted to open a brand new NPS account as per elevated age eligibility norms,” PFRDA stated.

    The options and advantages of elevated age of entry are as talked about under:

    Choice of Pension Fund and Asset Allocation

    The subscriber, becoming a member of NPS past the age of 65 years, can train the selection of PF and asset allocation with the utmost fairness publicity of 15% and 50% beneath auto and energetic alternative respectively. The PF might be modified as soon as per 12 months whereas the asset allocation might be modified twice.

    Exit and withdrawals

    The exit situations for subscribers becoming a member of NPS past the age of 65 years can be as beneath:

    > Normal exit shall be after 3 years. The subscriber can be required to make the most of at the very least 40% of the corpus for buy of annuity and the remaining quantity might be withdrawn as lump sum. However, if the corpus is the same as or lower than ₹5.00 lakh, the subscriber might choose to withdraw the complete amassed pension wealth in lump sum.

    > Exit earlier than completion of three years shall be handled as untimely exit. Under pre-mature exit, the subscriber is required to make the most of at the very least 80% of the corpus for buy of annuity and the remaining might be withdrawn in lump sum. However, if the corpus is the same as or lower than ₹2.5 lakh, the subscriber might choose to withdraw the complete amassed pension wealth in lump sum.

    > In case of unlucky dying of the subscriber, the complete corpus can be paid to the nominee of the subscriber as lump sum.

    The subscribers are additionally eligible to open Tier II account for investing their disposable revenue to optimize their returns which not like Tier-I account might be withdrawn at any time.

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  • Assets underneath NPS rose to over ₹6 trillion as of 30 June: PFRDA

    Combined property underneath administration (AUM) of National Pension System (NPS) and Atal Pension Yojana surged 32.67% year-on-year to the touch ₹6.17 trillion as of 30 June 2021. On the identical day in 2020, the mixed AUM of each the schemes stood at ₹4.64 trillion.

    Total subscriber base as of the top of June was at 4.35 crore from 3.50 crore in June 2020, up 24.04%.

    Number of subscribers in numerous schemes underneath NPS and APY

    View Full Image.

    Besides, Pension Fund Regulatory and Development Authority (PFRDA) press launch issued on 16 July stated, “As on 30th June 2021, total pension assets under management stood at Rs. 6,16,517 crore showing a Y-o-Y growth of 32.67%.”

    Total Assets underneath Management underneath NPS and APY

    View Full Image.

    NPS was initially notified for central authorities staff as of 1 January 2004 and subsequently adopted by nearly all state governments for its staff. NPS was later prolonged to all residents of India (resident/non-resident/abroad) voluntarily and to corporates for its staff. NPS is obligatory for presidency staff who joined service after 2004 and it was opened to the non-public sector in 2009.

    To improve NPS penetration, particularly in tier-1 and tier-2 cities and to achieve out to all segments of people, PFRDA has allowed particular person and even NPS subscribers to turn into a distributor of the pension merchandise. Earlier, the regulator had allowed solely banks and Point of Presence-Service Providers to work as distributors.

    NPS is among the low-cost funding avenues. It permits publicity to fairness for as much as 75% of the corpus and is fairly tax environment friendly.

    On the opposite hand, the Atal Pension Yojana is a periodic contribution-based pension plan and gives a assured pension of ₹1,000-5,000 to subscribers.

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  • PFRDA permits withdrawal of pension corpus of ₹5 lakh with out shopping for annuity

    The Pension Fund Regulatory and Development Authority (PFRDA) has allowed subscribers to withdraw the whole accrued pension wealth with out buying annuity if the pension corpus is lower than ₹5 lakh.

    Currently, NPS subscribers having a corpus of over ₹2 lakh on the time of retirement or attaining the age of 60 years want to purchase an annuity, supplied by insurance coverage firms, on a compulsory foundation. They can take out the remaining 60 per cent as a lump sum.

    In a gazette notification, the pension regulator additionally said that the untimely withdrawal restrict on a lumpsum foundation for NPS has been elevated to ₹2.5 lakh from ₹1 lakh.

    “…where the accumulated pension wealth in the Permanent Retirement Account of the subscriber is equal to or less than a sum of ₹5 lakh, or a limit as specified by the Authority, the subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing annuity and upon such exercise of this option, the right of such subscriber to receive any pension or other amount under the National Pension System or from the government or employer, shall extinguish,” it stated.

    The regulator additionally elevated the utmost age of entry into the National Pension System (NPS) from 65 to 70. The exit age restrict has additionally been prolonged to 75 years.

    This story has been revealed from a wire company feed with out modifications to the textual content. Subscribe to Mint Newsletters * Enter a legitimate e mail * Thank you for subscribing to our publication.

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