National Pension Scheme (NPS)

 

National Pension Scheme

                        The National Pension Scheme was introduced by the Government of India with the aim of benefiting all unorganized workers and all Indian citizens in old age. In order to join the pension scheme on their own volition, the pension scheme was expanded and renamed as the National Pension Scheme. The National Pension Scheme came into effect on 01.05.2009.

    

                     Under this new National Pension Scheme, the Government of India will pay a minimum of Rs. 1000 / - per month and a maximum of Rs. 12,000 / - per month with a minimum of Rs. The scheme will continue till the current financial year 2016-2017. Subscribers to the scheme will be issued a 'Permanent Pension Account Number' (PRAN) for use across India till death A permanent pension account consists of two tiers of personal accounts.

             Subscribers who open an account in this section can invest and repay at their convenience. This account can also be taken as an additional link to the first type of account. Subscribers can open a Tier-2 account only if they have opened a Tier-1 pension account. A minimum contribution of Rs. 2000 / - per financial year is required for such account.

(Swavalamban Account)

               The Government of India will contribute Rs. 1000 per annum to the pension account holders for the first four years.

                Those who join the National Pension Scheme must nominate one of their nominees. A subscriber in the National Pension Scheme Tier-1 and Tier-2 type accounts can nominate up to three persons as his nominee. 

Who can join the program?

       All Indian citizens can join and benefit from this scheme. They do not have to live in India. People between the ages of 18 and 60 can join this program. You can also join the program as an individual. The employee can also join on the basis of a group called the employer. Non-Resident Indians (NRIs) living in India can also join the scheme.  

          However, their contributions to the scheme are subject to the rules of the Reserve Bank and the Foreign Exchange Management Act. Those who contribute to the provident fund scheme can also join the National Pension Scheme.