NPS Lite (Swavalamban )
The scheme is applicable for all citizens of India (age group of 18-60 years) in the unorganised sector, person will be deemed to belong to the unorganised sector if that person is not in regular employment of the Central or a state government, or an autonomous body/ public sector undertaking of the Central or state government having employer assisted retirement benefit scheme, or is not covered by a social security scheme under any of the following laws:
- Employees’ Provident Fund and Miscellaneous Provisions Act,1952
- The Coal Mines Provident Fund and Miscellaneous Provisions Act,1948
- The Seamen’s Provident Fund Act, 1966
- The Assam Tea Plantations Provident Fund and Pension Fund Scheme Act 1955
- The Jammu and Kashmir Employees’ Provident Fund Act, 1961
The scheme will be applicable to all persons in the unorganised sector subject to the condition that the benefit of Central Government contribution will be available only to those persons whose contribution to NPS is minimum Rs.1000 and maximum Rs. 12,000 per financial year.
- Individuals in the age group of 18-60 years, willing to open an NPS-Swavalamban account may fill a NPS-Swavalamban form. (Link of the Online Application Form )
- Acceptable Documents for KYC (POA & POI).(Link of the Document sheet )
- Initial minimum contribution amount to be deposited at the time of registration is Rs.100/.
- Individuals with Internet Access : Fill Online Subscriber Application form and Upload KYC along with Photo & take print out of the application form along with the relevant documents and send to CSC e Governance Services India Limited office .
- Individuals without Internet Access : Locate CSC centre (Click here to find nearest CSC ) and get yourself enrolled through CSC operator .
Withdrawal / Exit :
The exit from the Swavalamban Scheme at age 60 with 40% minimum annuitisation of pension wealth and exit before age 60 with 80% minimum annuitisation of pension wealth. However, the exit would be subject to the overriding condition that the amount of pension wealth to be annuitised should be sufficient to yield a minimum amount of Rs. 1,000 per month. If the annuitized pension wealth does not yield an amount of Rs. 1,000 per month, the percentage of pension wealth to be annuitised would be increased so that the pension amount becomes Rs. 1,000 per month, failing which the entire pension wealth would be subject to annuitisation. This minimum pension ceiling may be revised from time to time.
|At any point in time before 60 years of Age
||*You would be required to invest at least 80% of the pension wealth to purchase a life annuity from any IRDA – regulated life insurance company. Rest 20% of the pension wealth may be withdrawn as lump sum.
|On attaining the Age of 60 years.
||*At exit you would be required to invest minimum 40% of your accumulated savings (pension wealth) to purchase a life annuity from any IRDA-regulated life insurance company empanelled with PFRDA. You may choose to purchase an annuity for an amount greater than 40 percent. The remaining pension wealth can either be withdrawn in a lump sum on attaining the age of 60.
|Death due to any cause
||In such an unfortunate event, option will be available to the nominee to receive 100% of the NPS pension wealth in lump sum.
*However, the exit would be subject to the overriding condition that the amount of pension wealth to be annuitised should be sufficient to yield a minimum amount of Rs. 1,000 per month. If the annuitized pension wealth does not yield an amount of Rs. 1,000 per month, the percentage of pension wealth to be annuitised would be increased so that the pension amount becomes Rs. 1,000 per month, failing which the entire pension wealth would be subject to annuitisation. This minimum pension ceiling may be revised from time to time
Various charges and their mode of realization are attached below and are subject to revision by PFRDA from time to time.
|| Method of Deduction
|Account Opening Charges
|Annaul PRA Maintenance cost per account
|Charge per transaction
|Rs. 35/- (Digitization will be carried out by CRA-FC)
|Rs. 35/- per annum,with 12 free subscriber contributions per financial year.
|Nil for first 12 transactions ..
||Through cancellation of units
|Custodian(On assest values in custody)
||Asset Servicing charges
||0.0075% p.a for electronic segment & 0.05% p.a. for Physical Segment(These charges are loaded on NAv,hence would be borne by individual subscriber)
||Through NAV deduction
||Investment Management Fee
FAQ’s : (Click to read )