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The Unified Pension Scheme (UPS) is introduced by the Central Government as an option under the National Pension System (NPS) for Central Government employees with effect from 1st April 2025. The UPS provides assured pay-out based on the prescribed conditions.

Yes, an existing Central Government employee in service as of 1 April 2025, who are covered under National Pension System (NPS) is eligible to opt for UPS.

Yes, a newly recruited Central Government employees joining service on or after 1 April 2025 is eligible to opt for UPS.

Yes, a Central Government employee who was covered under NPS retired on or before 31st March 2025 and who meets prescribed conditions i.e.

(i) Who has superannuated after minimum 10 years of qualifying service or

(ii) Has retired under Fundamental Rules 56(j) (which is not treated as penalty under Central Civil Services (Classification, Control and Appeal) Rules, 1965), on or before 31st March 2025, or

(iii) The legally wedded spouse as on date of superannuation/retirement of deceased subscriber eligible under UPS.

Name of Form	Eligibility to opt UPS
Form A1	Newly recruited Central Government employees joining service on or after 1st April 2025.
Form A2	Exercise of Option by an eligible Central Government employee presently subscribed to National Pension System (NPS) for being covered under Unified Pension Scheme (UPS).

The forms A1, A2, along with the instructions and list of documents to be attached can be downloaded from the website of the Protean CRA at, www.npscra.nsdl.co.in/ups.php

Option has to be exercised within three (03) months from 1st April 2025, or within such extended timelines if any, allowed by the Central Government.

Option has to be exercised within thirty (30) days from the date of joining Central Government services or within such extended timelines, if any, allowed by the Central Government.

No, once exercised, the option to choose UPS is final and irrevocable.

An eligible person, who does not exercise the UPS option under NPS within the timelines laid down shall be deemed to have opted to continue under NPS without UPS option.

PRAN is a Permanent Retirement Account Number allocated to subscriber opening/opting for UPS, and under which all the transactions are recorded by the CRA system.

Identity and address proof are the key KYC documents. Any one of the following to be submitted:

Passport	Driving License	Voter ID Card	CKYC Number
National Population Register		Proof of possession of Aadhaar

The form can be submitted online or physically to the Head of Office / DDO where the subscriber is employed. Subscribers are advised to retain the acknowledgement slip signed/stamped by the designated respective nodal office where they submit the application.

Yes, subscriber can submit their request for enrolment online by filing required forms through CRA website. Once it is submitted, the form goes to the DDO and then to PAO for verification.

Employment Details (At the time of exercise of UPS option)

i. Date of joining

ii. Date of Superannuation

iii. Date of commencement of qualifying service

iv. Employee Code/ID

v. Basic Pay

vi. Pay Scale (Optional)

vii. Name of the office viii. Department

ix. Ministry

x. DDO Registration Number

xi. PAO / CDDO / Pr.AO Registration Number.

Qualifying service shall be the completed months for which UPS subscriber has rendered regular services under the Central Government, determined by the Head of Office, in terms of Regulation 13 of the PFRDA (Operationalization of Unified Pension Scheme under National Pension System) Regulations, 2025.

Through the online system of the CRA.

The Subscriber can obtain the status of his/her application from CRA and respective Nodal Office.

Yes, subscribers of UPS can voluntarily maintain NPS Tier-I and Tier-II accounts under "All Citizen Model" along with UPS as a separate account within same PRAN number.

The monthly contribution of employee will be 10% of (basic pay + DA) along with matching contribution by employer, is to be credited to each employee’s PRAN through the concerned nodal office.

Further, an estimated 8.5%contribution towards Pool Corpus shall be paid by Central Government, on aggregate basis.

On migration from NPS to UPS, the corpus of the subscriber will get transferred to the PRAN tagged to UPS.

On migration from NPS to UPS, the subscriber shall be identified by the erstwhile PRAN tagged to UPS.

Individual Corpus means the value of corpus available in the PRAN of a subscriber under UPS.

Benchmark Corpus is a notional value computed by CRA for comparison with individual corpus. It is based on NAV of the default investment. (For more details, Regulation 12 and Illustrations in Schedules to the Regulations, may be referred).

Particulars	TATs
DDO shall deduct the contribution from the salary of the Central Government employee and send the bill to the PAO or Cheque Drawing and Disbursing Officer (CDDO) as the case maybe along with the details of contribution deducted in respect of each UPS Subscriber	on or before the twentieth (20th) day of each month.
The PAO or the CDDO as the case may be shall prepare and upload a Subscriber Contribution File (SCF) and generate transaction ID in the system of the CRA	on or before the twenty fifth (25th) day of each month.
The PAO or the CDDO as the case may be, shall remit the employee contribution and matching co-contribution by the Central Government to the trustee bank through the accredited bank	by the last working day of each month. for the month of March, shall be remitted on the first (1st) working day of the month of April.
First contribution of a newly recruited Central Government employee shall be credited to the individual PRAN	within twenty (20) days from the date of submission of application or by the last date of the month, in which the Central Government employee joined, whichever is later.

The government contributes an estimated 8.5% towards a Pool Corpus based on aggregate employee data. The Pool Corpus shall comprise of -

i. additional Central Government contribution at an estimated eight and half percent of Basic Pay (including non-practicing allowance, wherever applicable) plus Dearness Allowance, on aggregate basis of all employees who have chosen the UPS option;

ii. transfer of balance from the individual corpus of a subscriber as per regulation 19 (3); and

iii. any other contribution defined by the Central Government.

The Pool Corpus shall be allocated to such pension fund(s) as determined by the Central Government, who shall invest the funds in accordance with the investment pattern and related aspects thereto, as approved by the Central Government.

Yes, employees can choose from registered pension funds and investment patterns, including default patterns defined by PFRDA.

In such cases, the employee will be assigned the default pension fund and investment pattern defined by PFRDA.

i. Option to invest hundred percent of the funds in Government securities (Scheme G); or

ii. Option of any one of the following Life Cycle based schemes:

(a) Conservative Life Cycle Fund with maximum exposure to equity capped at twenty- five percent. LC-25; or

(b) Moderate Life Cycle Fund with maximum exposure to equity capped at fifty percent. LC-50.

UPS Subscriber shall have an option to change

the choice of pension fund once in a financial year and
investment choice twice in a financial year.

Benchmark corpus shall be computed in the following manner :

(i) Partial withdrawals made out of individual corpus and voluntary contributions made into the individual corpus shall not be considered in the computation.

(ii) For contributions received prior to 1st April, 2025: monthly contributions shall be considered as and when they have been received and be valued on default pattern.

(iii) For contributions received on or after 1st April, 2025:

monthly contributions which are to be received in that month, shall be considered as and when received during the month and valued on default pattern.
In the event of any missing contribution in any month, value shall be based on the weighted average NAV of default pattern as on the last working day of the month applied to monthly contributions of previous full month.

(iv) Contributions arising from arrears, such as arrears of Dearness Allowance shall be considered and valued on the default pattern as and when they are received.

Yes, CRA will provide details of the individual corpus and benchmark corpus in the PRAN account statement periodically.

• The rate of full assured payout will be @50% of 12 monthly average basic pay, immediately prior to superannuation, payable after a minimum 25 years of qualifying service.

• In case of lesser qualifying service period, proportionate payout would be admissible.

• A minimum guaranteed payout of Rs. 10,000 per month shall be assured in case superannuation is after 10 years or more of qualifying service subject to timely and regular credit of contributions and no withdrawals.

• In cases of voluntary retirement after a minimum 25 years of qualifying service, assured payout will commence from the date on which the employee would have superannuated if he had continued in service.

Assured Payout = (½ of P) × (Q/300)

• P = Average of Basic Pay for the last 12 months before retirement.

• Q = Number of qualifying service months.

If Q is:

• Less than 120 months → UPS benefits do not apply.

• More than 300 months → Q is capped at 300 months.

In cases of voluntary retirement after a minimum 25 years of qualifying service, assured payout will commence from the date on which the employee would have superannuated if he had continued in service.

A minimum guaranteed payout of Rs. 10,000 per month is guaranteed after completing 10 years of service.

Yes, in case of Qualifying service period of ten years or more, but less than twenty-five years, proportionate payout shall be payable.

Assured payout shall be proportionately reduced in any or both of the following cases –

a) Individual corpus is less than the benchmark corpus as on the date of superannuation or voluntary retirement or retirement under Fundamental Rules 56(j), as may be applicable; Page 8 of 14

b) Final withdrawal not exceeding sixty percent of the individual corpus, as opted by a subscriber. The assured payout so proportionately reduced shall be payable as admissible payout.

The assured payout so proportionately reduced shall be payable as admissible payout. The formula for calculating admissible payout is as under:

Admissible Payout = Assured Payout x IC/BC x (1-FW%), where, IC= value of Individual Corpus, BC= value of Benchmark Corpus, with condition of IC ≤ BC.

FW= Final withdrawal in percentage points (maximum upto sixty percent of IC or BC, whichever is lower).

Upon demise of a UPS Subscriber who was receiving admissible payout or top-up amount, as the case may be, the legally wedded spouse as on date of superannuation/retirement of such deceased subscriber shall receive for life, family pay out of sixty percent of the amount of the admissible payout or top-up amount drawn by the subscriber immediately prior to the demise.

Yes, the legally wedded spouse shall be eligible to receive the benefits payable to deceased subscriber till the date of his/her demise. Thereafter, the spouse shall be eligible for family pay out of sixty percent of the amount eligible to be received by such subscriber immediately prior to the demise.

Employee who complies with the requirements under regulation 4 and regulation 19 shall be eligible to receive the following benefits –

a) lumpsum payment;

b) monthly top-up amounts payable immediately after the date of superannuation or retirement;

c) applicable dearness relief; and

d) simple interest as per applicable Public Provident Fund rates on arrears with respect to above benefits for the past period from the month after superannuation up to the month preceding the submission of claim forms.

Further, no interest shall be payable for the period beyond the last date of submission of option or claim as per clause (ii) of regulation 3.

The benefits specified under sub-regulation (1) shall be in addition to the benefits availed or accrued to such employee under NPS including annuity, if any under NPS.

Such employees will receive monthly top-up amount, which will be calculated as follows: Monthly top-up = (Admissible Payout + Dearness Relief on Admissible Payout)- Representative Annuity amount.

Representative Annuity rates for the period from January 2014 to March 2025 are provided under Schedule VI of PFRDA (Operationalization of Unified Pension Scheme under National Pension System) Regulations, 2025.

Representative annuity amount= (IC) x (1-FW%) *(Representative Annuity Rate)/ (12*100). In case IC is greater than BC, IC shall be taken as equal to BC.

Table- 1 (UPS subscriber who superannuated/retired on or before 31/03/2025)

Table- 2 (UPS subscriber who superannuated/retired on or after 01/04/2025)

Assured Payout shall be available only in the following cases, namely: -

(a) In case of an employee superannuating after qualifying service of 10 years, from the date of superannuation;

(b) In case of the Government retiring an employee under the provisions of FR 56 (j) (which is not a penalty under Central Civil Services (Classification, Control and Appeal) Rules, 1965) from the date of such retirement; and

(c) In case of voluntary retirement after a minimum qualifying service period of 25 years, from the date such employee would have superannuated, if the service period had continued to superannuation.

Only the legally wedded spouse as on date of superannuation/retirement of the deceased UPS subscriber whose name appears as such in the service records as on the date of superannuation or voluntary retirement or retirement under Fundamental Rules 56(j), as may be applicable, and who is surviving the deceased subscriber is eligible for claiming family payout under UPS.

No, only the legally wedded spouse as on date of superannuation/retirement is eligible for family payout.

Yes, a lump-sum amount equivalent to one-tenth of the last drawn basic pay (plus NPA and DA) is paid for every completed 6-month period of qualifying service.

Lumpsum Payment = (E/10) x L, where; Emoluments (E) = {Basic Pay (including non-practicing allowance, if applicable) + DA} Length of service (L) = number of completed six months of qualifying service as certified by Head of Office.

Explanation: For the purpose of calculation of every completed six months of qualifying service, any period less than six months shall not be considered.

Yes, UPS Subscriber shall have an option of final withdrawal for an amount not exceeding sixty percent (60%) of the individual corpus or benchmark corpus, whichever is lower, available in the PRAN tagged to UPS as on the date of superannuation or voluntary retirement or retirement, subject to proportionate reduction in the assured payout payable to such UPS Subscriber.

UPS Subscriber shall also have an option to withdraw an amount not exceeding sixty percentage of the individual corpus or benchmark corpus, whichever is lower, available in the PRAN tagged to UPS as on the date of superannuation or voluntary retirement or retirement under Fundamental Rules 56(j), as may be applicable subject to proportionate reduction in the assured payout payable to such UPS Subscriber.

Final withdrawal of up to 60% of the individual corpus or benchmark corpus (whichever is lower) is allowed as on date of Superannuation or Voluntary retirement or retirement under 56(j).

Such final withdrawal shall be admissible on the date of superannuation or voluntary retirement or retirement under Fundamental Rules 56(j).

Dearness Relief as declared by the Central Government from time to time, will be applicable on admissible payout and family payout. Dearness Relief shall be payable only when admissible payout commences.

No, Assured Payout shall not be available in case of removal or dismissal from service or resignation of the employee. In such cases, the Unified Pension Scheme option shall not apply.

Yes, partial withdrawals up to 25% of self-contribution (excluding returns) are allowed after completion of lock-in period of three years from the date of enrolment under UPS or NPS whichever is earlier, for specified purposes.

Higher education of children, marriage of children, purchase/construction of residential house, medical emergencies, disability-related expenses, and skill development.

A maximum of three times, including withdrawals made under NPS before opting for UPS.

Yes, the subscriber has the option to replenish the partially withdrawn amount before retirement.

The subscriber or legally wedded spouse as on date of superannuation/retirement of the subscriber, as the case may be, must submit the relevant application forms to the Head of Office or DDO.

The UPS Payout order contains the details of the benefits payable to a UPS Subscriber.

The UPO shall be authorized by the respective PAO and sent to the National Pension System Trust through CRA.

A copy of such UPS Payout Order shall simultaneously be made available to the UPS Subscriber or the legally wedded spouse as on date of superannuation/retirement, as the case may be.

a) Upon receipt of UPS Payout Order by National Pension System Trust together with option of final withdrawal if any by the UPS subscriber, the National Pension System Trust shall authorize the release of UPS benefits as specified under these regulations and authorise the transfer of the balance in the individual corpus to pool corpus.

b) The National Pension System Trust shall ensure payment of monthly payout from the Pool Corpus to the bank account of the UPS subscriber and periodic release of applicable dearness relief. For this purpose, CRA shall intimate to the pension fund to effect redemption from the Pool Corpus for payment of such payout to the subscriber.

a) requisite details of UPS Subscriber including particulars of legally wedded spouse as on date of superannuation/retirement of such subscriber as appearing in the service records;

b) the period of qualifying service;

c) Details of joint bank account of the UPS Subscriber and legally wedded spouse as on date of superannuation/retirement;

d) Percentage of final withdrawal upto sixty percent of individual corpus or benchmark corpus, whichever is lower, as opted by UPS Subscriber;

e) Details of benefits applicable under UPS as specified under these regulations, such as:

i. lumpsum payment;

ii. excess, if any, of individual corpus vis-à-vis benchmark corpus

iii. assured payout;

iv. admissible payout;

v. Top-up amount (applicable for retirees on or after 31.03.2025)

vi. family payout;

vii. applicable dearness relief.

f) the date of commencement of admissible payout to subscriber.

NPS Trust shall authorize release of benefits upon receipt of UPS Payout Order. Further, the NPS Trust shall ensure payment of monthly payout from the Pool Corpus to the bank account of the UPS Subscriber and periodic release of applicable dearness relief.

a) The CRA shall make available the details of partial withdrawals made if any, by superannuated or retired employee, and value of individual corpus and benchmark corpus as on the date of superannuation or retirement to DDO and PAO in their CRA system login.

b) The DDO shall update the records in CRA system after obtaining necessary details, if required from Head of Office and forward the same to PAO for its authorization in such system.

c) Based on the verification of subscriber details by Head of Office, the PAO shall issue a UPS Payout order, as per Form B1, B3 or B5, as applicable, containing details as specified under regulation 20.

d) Upon receipt of UPS Payout Order by National Pension System Trust together with option of final withdrawal if any by the UPS subscriber, the National Pension System Trust shall authorise the release of UPS benefits as specified under these regulations and authorise the transfer of the balance in the individual corpus to pool corpus. The National Pension System Trust shall ensure payment of monthly payout from the Pool Corpus to the bank account of the UPS subscriber and periodic release of applicable dearness relief. For this purpose, CRA shall intimate to the pension fund to effect redemption from the Pool Corpus for payment of such payout to the subscriber.

“Retirement adviser” means any entity being a company, registered partnership firm, body corporate, sole proprietorship or any registered trust or society, who desires to engage in the activity of providing advice on National Pension System or other pension scheme regulated by Authority to prospects/subscribers or other persons or group of persons and is registered as such under these regulations.

Application shall be made through Online Registration module, link for which, is available on PFRDA website (online link: https://cra-nsdl.com/CRAOnline/RALandingPage.html)

Applicant has to submit the application online through Online Registration module available on PFRDA website (online link: https://cra-nsdl.com/CRAOnline/RALandingPage.html). Please refer the instructions published on the home page (of the given link) before initiating registration process.

Yes, applicant has to upload all the mandatory documents listed in the application form and details while making online application in ‘jpeg’, ‘jpg’ or ‘pdf’ format only. The additional enclosures listed in the application form are optional. Applicant should also ensure that all the required documents should be self-attested before uploading otherwise application shall be subject to rejection.

Yes, applicant has to take print of the following and submit to PFRDA duly self-attested:

Print of Online submitted application form,
Print of the confirmation of application fee payment and
Prints of all the self-attested documents uploaded while online submission

Proprietary concern, firm, limited liability partnerships, body corporate or a registered partnership firm or society or trust registered under applicable law is engaged or willing to engage in the business of providing Retirement advice on NPS to subscribers is required to make an application to get registration under of PFRDA (Retirement Adviser) Regulations, 2016 & its subsequent amendments, unless specifically exempted under the said Regulations.

The proprietor, partners, trustees, members of societies and representatives of a retirement adviser registered under these regulations, offering retirement advice shall possess the minimum qualifications of being a Graduate in any discipline and should possess a valid certification on retirement planning or retirement advisory services issued by National Institute of Securities Market (NISM). For more details on the certification, individual may visit NISM website website www.nism.ac.in.

If proprietor or partners of proprietorship firm, partnership firm or limited liability partnership are graduates, an experience of at least five years in activities relating to advice in financial products or retirement products or fund or asset or portfolio management is required. A graduate in any discipline with not less than five years experience in activities relating to advice in financial products or retirement products or fund or asset or portfolio management provided that requirement of experience shall not be applicable in case of an entity seeking registration having employee(s) who are certified Retirement Advisers. (provide self certified copies of supporting documents). Post qualification experience is not required , if proprietor or partners possess a professional qualification or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognized by the Central
Government or any State Government or a recognised foreign university or institution or association.

As per PFRDA (Retirement Adviser) Regulations, 2016 and PFRDA (Retirement Adviser) (Fifth Amendment) Regulations, 2019, the certification from NISM shall not be mandatory in the following cases:

An Investment Adviser (IA) registered with Securities and Exchange Board of India under its regulations.
Any other cases as specified by Authority.

This certificate is valid for three years from the date of issuance. As per requirement under regulations, fresh certification or renewal of the existing certificate through completing continuous professional education by the accredited institute must be obtained before expiry of the validity of the existing certificate to ensure continuity in compliance with certification requirements.

The fee structure and security deposit requirement for getting registered as a Retirement Adviser - Individual is as under:

1. Application Fee (Non-Refundable along with application): Rs.500/- (Fee shall be paid through NEFT only and the details of the transaction must be entered at the time of submitting application)

2. Registration Fee* (Non-refundable): Rs.1,000/- (Fee shall be paid through NEFT only and the details of the transaction must be entered in the online RA module post issuance of Letter of Acceptance by PFRDA)

*The Registration fee referred above shall be paid by the applicant within fifteen days from the date of receipt of intimation from the Authority by an online fund transfer from applicant’s Bank Account (through NEFT) in favour of 'PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY' or as specified by the Authority from time to time.

3. Security Deposit**: Rs.5,000/- (To be submitted post issuance of Certificate of Registration by PFRDA)

** Retirement Adviser_individual shall provide security deposit in the form of bank deposit OR performance guarantee of Rs. 5000/- (Rs. Ten Thousand) to the Authority before commencement of business, in favour of Pension Fund Regulatory and Development Authority. The deposit/ Guarantee shall be valid for three years and six months.

Note: The application fee, Registration fee & Security Deposit is subject to the revision by the Authority from time to times by issuance of circular/directions/guidelines.

The certificate of registration granted under regulation 9 shall be valid for a period of three years from the date of its issue.

No exemption for insurance agent or broker or mutual fund distributor.

For Investment adviser under SEBI, only exception is of not getting certification from NISM.

As per the regulations, retirement advisory services provided by exempted entities are incidental to their other services. Hence such entities cannot charge specifically any fee related to RA activities.

Retirement Adviser can charge three type of fees from the subscribers to whom he/she has given retirement advise as per regulations and these fees are:

On boarding charges* – Rs.200 /- (Max.) on completion of onboarding/registration of subscriber and generation of PRAN.
Subsequent transaction charges* – minimum Rs.20 per transaction andmax imum Rs.100/- per annum.
Advisory fee* - 0.02% of AUM subject to a minimum of Rs. 100/- and maximum Rs. 1000/- per annum, for providing advice to the subscribers.

The Charges/advisory fee may be revised by the Authority from time to time by issuance of circular / guidelines.

Yes, RA has to issue receipt for each type of fee separately. Format for the same shall be made available through circular/operational guidelines for RAs.

Yes, entities shall appoint a compliance officer who shall be responsible for monitoring the compliance by the Retirement Adviser in respect of the requirements of the Act, regulations, notifications, guidelines, instructions issued by the Authority.

Retirement Adviser (Other than individual) should submit Security Deposit/Bank Guarantee of Rs. 50,000/- within 15 days from the date of receipt of Certificate of Registration (CoR) and before commencement of activities as RA.

As per regulations, RAs have to maintain books of records & other mandatory documents. For compulsory yearly audit ,limit of income generated through RA activities shall be made available through circular / operational guidelines.

Yes , Retirement Advisers which are banks, Non- Banking Finance Companies (NBFCs) and body corporate providing distribution or execution services to their prospects shall keep their retirement advisory services segregated from other activities and have to adhere to regulation 24.

As per point - 9 above, RAs have to ensure the continuity of the certification throughout the registration period for RA. If same is not fulfilled by RA , his/her user access as RA, provided by CRA for functioning of RA related activities, would be deactivated from the date of expiry of NISM certification till renewal NISM certification.

Yes, RAs shall have to discharge various activities with the stipulated timeframe as may be decided by the authority and same shall be made available through circular/ operational guidelines.

Three months before the expiry of the period of validity of the certificate, the retirement adviser may, if he so desires, has to make an application for grant of renewal of certificate of registration. The application for renewal shall be dealt with in the same manner as if it were an application made under sub-regulation (2) of regulation 3 for grant of certificate.

The Authority will also take into consideration, the performance of the retirement adviser during the original period of certification including the number of new accounts opened.

Yes, there is a provision levying penalty for late submission of renewal application and same shall be made available through circular/ operational guidelines.

Role & responsibilities and code of conduct of RAs have been detailed in the regulations and should be adhered by the RAs.

No, but this will facilitate smooth handling of NPS related activities like on boarding of subscribers and timely execution of various instructions of the subscribers.

RAs can have tie up with multiple PoPs. RAs have to inform about their tie-ups with the PoPs to the prospective subscribers. RAs may like to on board subscribers through their bankers for the convenience of the subscriber.

If RAs are not having tie up with PoPs , they have to guide subscribers for registration through eNPS in their individual capacities. RAs cannot open subscribers’ accounts through e-NPS by entering data /execution of payment etc. on behalf of subscribers.

No, it is not mandatory for the subscribers, as charges for subsequent services are different from on boarding charges.

RA has to make a written agreement with the subscriber before charging fee under advisory fee head as prescribed by PFRDA vide its circular/operational guidelines.

No, existing registered subscribers may also be serviced by the RAs on subscriber request.

If any entity engaging their own employees to work as RA, it has to ensure that all such employees should posses minimum qualification & valid certification of retirement planning as stated in the Regulations, while submitting applications entity has to submit details of all such employees.

“Retirement adviser” means any person being an individual who desires to engage in the activity of providing advice on National Pension System or other pension scheme regulated by Authority to prospects/subscribers or other persons or group of persons and is registered as such under these regulations.

Application shall be made through Online Registration module available. Link is available on PFRDA website (online link: https://cra-nsdl.com/CRAOnline/RALandingPage.html). Application is offline mode will not be entertained by the authority.

Yes, applicant has to take print of the following and submit to PFRDA duly self-attested:

Print of Online submitted application form,
Print of the confirmation of application fee payment and
Prints of all the self-attested documents uploaded while online submission

Any person, who for consideration, is engaged or willing to engage in the business of providing Retirement advice on NPS to subscribers is required to make an application to get registration under of PFRDA (Retirement Adviser) Regulations, 2016 & its subsequent amendments, unless specifically exempted under the said Regulations.

Applicant should be minimum graduate in any discipline and should possess a valid certification on retirement planning or retirement advisory services issued by National Institute of Securities Market (NISM). For more details on the certification, individual may visit NISM website www.nism.ac.in.

As per PFRDA (Retirement Adviser) Regulations, 2016 and PFRDA (Retirement Adviser) (Fifth Amendment) Regulations, 2019, the certification from NISM shall not be mandatory in the following cases:

An Investment Adviser (IA) registered with Securities and Exchange Board of India under its regulations.
Any other cases as specified by Authority.

Note: The application fee, Registration fee & Security Deposit is subject to the revision by the Authority from time to times by issuance of circular/directions/guidelines.

The certificate of registration granted under regulation 9 shall be valid for a period of three years from the date of its issue.

No exemption for insurance agent or broker or mutual fund distributor.

For Investment adviser under SEBI, only exception is of not getting certification from NISM.

Retirement Adviser can charge three type of fees from the subscribers to whom he/she has given retirement advise as per regulations and these fees are:

On boarding charges* – Rs.200 /- (Max.) on completion of onboarding/registration of subscriber and generation of PRAN.
Subsequent transaction charges* – minimum Rs.20 per transaction andmax imum Rs.100/- per annum.
Advisory fee* - 0.02% of AUM subject to a minimum of Rs. 100/- and maximum Rs. 1000/- per annum, for providing advice to the subscribers.

The Charges/advisory fee may be revised by the Authority from time to time by issuance of circular / guidelines.

Yes, RA has to issue receipt for each type of fee separately. Format for the same shall be made available through circular/operational guidelines for RAs.

Individual Retirement Adviser should submit Security Deposit/Bank Guarantee of Rs. 5,000/- within 15 days from the date of receipt of Certificate of Registration (CoR) and before commencement of activities as RA.

Yes, RAs shall have to discharge various activities with the stipulated timeframe as may be decided by the authority and same shall be made available through circular/ operational guidelines.

Three months before the expiry of the period of validity of the certificate, the retirement adviser may, if he so desires, has to make an application for grant of renewal of certificate of registration. The application for renewal shall be dealt with in the same manner as if it were an application made under sub-regulation (2) of regulation 3 for grant of certificate.

The Authority will also take into consideration, the performance of the retirement adviser
during the original period of certification including the number of new accounts opened.

Yes, there is a provision levying penalty for late submission of renewal application and same shall be made available through circular/ operational guidelines.

Role & responsibilities and code of conduct of RAs have been detailed in the regulations and should be adhered by the RAs.

No, but this will facilitate smooth handling of NPS related activities like on boarding of subscribers and timely execution of various instructions of the subscribers.

If RAs are not making tie up with PoPs, they have to guide subscribers for registration through e-NPS in their individual capacities. RAs cannot open subscriber’s accounts through e-NPS by entering data /execution of payment etc. on behalf of subscribers.

No, it is not mandatory for the subscribers, as charges for subsequent services are different from on boarding charges.

RA has to make a written agreement with the subscriber before charging fee under advisory fee head as prescribed by PFRDA vide its circular/operational guidelines.

Existing registered subscribers may also be serviced by the RAs on subscriber request.

These guidelines are designed to ensure compliance with Know Your Customer (KYC), AntiMoney Laundering (AML) and Combating the Financing of Terrorism (CFT) measures within the NPS. They outline procedures for identifying customers, monitoring transactions, and preventing unlawful financial activities. (Para 1)

Money laundering is the process by which illegally acquired funds are made to appear legally acquired within the financial system. The guidelines acknowledge that the Prevention of Money Laundering Act, 2002 (PML Act), and related rules apply to reporting entities (RE) within the NPS to prevent money laundering and terrorist financing activities. (Para 2.2)

Reporting entities (RE) within the NPS are required to follow Customer Identification Procedures (CIP) when establishing an account-based relationship or client-based relationship. These procedures are aimed at verifying the identity of customers and monitoring their transactions on an ongoing basis. (Para 2.3)

Reporting entities (RE) within the NPS have a responsibility to establish an anti-money laundering mechanism and implement a Client Due Diligence (CDD) Programme in accordance with the provisions of the Prevention of Money Laundering (Maintenance of records) Rules. REs must guard against the misuse of NPS and ensure it is not used for unlawful fund laundering or financing of terrorist acts. (Para 2.4)

A CDD Programme is a set of policies and procedures designed to identify, assess, and manage the risk of ML and TF. It is crucial for reporting entities to have an effective CDD Programme in place to prevent and impede ML and TF activities. (Para 4.1)

A KYC/AML/CFT program should include policies and procedures related to KYC (Know Your Customer), ML, and TF. It should reflect current statutory and regulatory requirements and be approved by the Board of Directors or equivalent authority. (Para 4.2.1 & 4.2.3)

Reporting entities should have a system in place to identify, monitor, and report suspected ML or TF transactions to the Financial Intelligence Unit – India (FIU-IND) and law enforcement authorities in accordance with government guidelines. (Para 4.2.6)

Reporting entities are responsible for establishing Standard Operating Procedures, monitoring and taking action against defaulting representatives, and scrutinizing the engagement process of individuals like business correspondents or agents who are facilitating the distribution of pension schemes.

Reporting entities are required to submit a Certificate of Compliance along with their Annual Compliance Certificate to demonstrate adherence to these guidelines. (Para 4.4 to 4.4.3 & 4.5)

"Designated Director" is responsible for ensuring overall compliance with the obligations under Chapter IV of the PML Act and the PML Rules within reporting entities. The Principal Officer is a senior management position responsible for ensuring compliance with the obligations under Chapter IV of the PML Act and the PML Rules. (Para 5.1 & 5.2).

Reporting entities must submit the contact details of these individuals within 30 days of the issuance of these guidelines, and any changes must be communicated within 30 days of taking effect. (Para 5.3).

The Director, FIU-IND, has the authority to take appropriate actions, including imposing monetary penalties on reporting entities, Designated Directors, or employees for failing to comply with their KYC/AML/CFT obligations. (Para 5.4)

Reporting entities should establish ongoing training programs tailored to different staff categories (frontline, compliance, etc.) to ensure they are well-versed in KYC/AML/CFT policies. (Para 6.1 & 6.2)

Internal audit/inspection departments or external auditors must periodically verify compliance with policies and controls related to money laundering activities and submit reports to the Audit Committee or the Board of Directors. These reports should assess the robustness of internal policies and processes and provide constructive suggestions for improvement. (Para 7)

KYC norms are established to ensure that reporting entities make their best efforts to determine the true identity of subscribers, thereby preventing money laundering (ML) and terrorist financing (TF) activities. Reporting entities are prohibited from allowing the opening of or maintaining anonymous or fictitious accounts. (Para 8.1.1 & 8.1.2)

An STR is a report filed by a reporting entity to the Financial Intelligence Unit (FIU) when it forms a suspicion of money laundering or terrorist financing. It is a critical tool for reporting suspicious activities to the authorities.

Reporting entities should file an STR with the Financial Intelligence Unit-India (FIU-IND) when they are no longer satisfied about the true identity and transactions of a subscriber, provided the transaction meets specific criteria outlined in the rules and guidelines issued by FIU-IND or PFRDA. (Para 8.1.4)

Reporting entities can perform KYC processes using various methods, including Aadhaarbased KYC, digital KYC, Video-Based Customer Identification Process (VCIP), KYC identifier, Digilocker, certified copies of valid documents, PAN/Form 60, and other required documents. (Para 8.1.5.1 to 8.1.5.8)

For existing subscribers periodic updation of KYC of NPS account shall be done as follows:

In case of NPS Tier II accounts (excluding Tier II Tax Saver Scheme) - Every 3 years.
In case of Tier II account, where subscriber is Politically Exposed Person (PEP) – Every 2 years.
At the time of exit from NPS Tier I account.
Whenever there is upward revision in the risk profile of the subscriber.
As and when there are revision or changes in PML Act / PML Rules. (Para 8.2.2.1)

If a reporting entity forms a suspicion of money laundering or terrorist financing and reasonably believes that continuing the Client Due Diligence (CDD) process might alert the customer, they should refrain from CDD and promptly file an STR with Financial Intelligence Unit. (Para 8.2.2.3)

Payments upon superannuation or premature exit or death should not be made to third parties, except to nominee(s) or legal heir(s) in the case of death. Due diligence of the recipient(s) should be carried out before making payments or settling claims. (Para 8.2.3.2)

Factors considered for risk assessment include the nature of the account, source and mode of contribution, regularity in contributions, withdrawals, residence status, Politically Exposed Person (PEP) status, declared income, and more. Based on above, subscribers are categorized as low-risk, moderate-risk, or high-risk, depending on their profile and activity. (Para 9.1 & 9.2)

Low-risk subscribers may have basic KYC requirements, including verifying identity, current address, annual income, and the source of funds. Periodic reviews may be conducted if the subscriber's profile is inconsistent with their contributions. (Para 9.5.2)

High-risk subscribers, such as non-residents, high net worth individuals, and politically exposed persons (PEPs), require higher verification and counter checks to ensure compliance with KYC procedures. (Para 9.5.3)

SDD can be applied to APY accounts classified as Low Risk. However, it should not be used when there is suspicion of money laundering or terrorist financing or in specific high-risk scenarios as determined by the Risk Assessment/categorization policy of the reporting entities. (Para 10.1)

The list of documents required for SDD is specified in clause (d) of sub-rule (1) of Rule 2 of the PML Rules. These documents are designed to simplify the KYC process for low-risk accounts. (Para 10.2)

Reporting entities should conduct EDD for high-risk subscribers and in cases where there are unusual patterns of transactions with no apparent economic or lawful purpose. (Para 11.1 & 11.2)

Reporting entities can verify the identity of subscribers during EDD preferably using Aadhaar, subject to the subscriber's consent. Alternatively, they can use other methods of KYC as specified through circulars or guidelines issued by the Authority. (Para 11.3)

Under NPS architecture the Reporting entities registered under regulation 3(1)(i) and regulation 3(1)(ii) of PFRDA (Point of Presence) Regulations, 2018 should register with CKYCR. Entities already registered with CKYCR under another financial sector regulator are not required to register again. (Para 12.2)

Reporting entities can retrieve KYC records from CKYCR when a subscriber submits a "KYC identifier." This eliminates the need for the subscriber to submit KYC records again unless there is a change in the required information. (Para 12.3)

Reporting entities should upload an electronic copy of the subscriber's KYC records to CKYCR within 10 days of commencing the account-based relationship. They should follow guidelines and instructions provided by PFRDA for this purpose. (Para 12.6)

For online authentication, reporting entities should upload the redacted Aadhaar number (last four digits), demographic details, and the fact that authentication was done. For offline verification, KYC data and the redacted Aadhaar number (last four digits) should be uploaded. (Para 12.8.1 & 12.8.2)

Reporting entities should not use KYC records obtained from CKYCR for any purposes other than verifying the identity or address of the subscriber, unless authorized by the subscriber, PFRDA, or the Director (FIU-IND). (Para 12.10)

Reporting entities can rely on a KYC done by a third party, subject to the conditions specified under sub-rule (2) of rule (9) of the PML Rules. However, they are ultimately responsible for subscriber due diligence.
Reporting entities can utilize the SEBI KRA (KYC Registration Agency) for KYC reliance, as outlined in the PFRDA circular PFRDA/2019/16/PDES/2 dated 23rd September 2019. (Para 13.1 to 13.3)

Reporting entities should inform senior management of the business relationship involving a PEP and apply enhanced due diligence measures.
Reporting entities must take reasonable steps to determine the origin of wealth and funds for subscribers identified as PEPs. (Para 14.3 & 14.5)

Section 51A of the UAPA relates to the prevention of and coping with terrorist activities. It was introduced through the UAPA Amendment Act, 2008. The purpose of Section 51A is to empower the Central Government to freeze, seize, or attach funds and prevent entry into or transit through India of individuals or entities suspected to be engaged in terrorism. (Para 15.1 & 15.5)

No, reporting entities should not open pension accounts for individuals whose identity matches with any person on the UN sanction list or those reported to have links with terrorists or terrorist organizations.
Reporting entities should periodically check the Ministry of Home Affairs (MHA) website for updated lists of banned individuals and designated individuals. (Para 15.2 & 15.3)

Reporting entities can access the lists of individuals and entities subject to various sanction measures established pursuant to UNSC 1267 and UNSC 1988 from the United Nations' website at the provided URLs. (Para 15.4)

Reporting entities must conduct enhanced due diligence before establishing an account-based relationship with individuals residing in countries identified by FATF as having deficiencies in their AML/CFT regime. They should thoroughly examine the unusual contributions, the background and purpose of such transactions and maintain written findings. (Para 16.1 & 16.2)

The Central Recordkeeping Agency (CRA) is responsible for filing reports to the Director, FIUIND in accordance with PML Rules for NPS.

Reporting entities must furnish information referred to in Rule 3 of the PML Rules in terms of Rule 7 thereof. The Director, FIU-IND has the authority to issue guidelines for detecting transactions and specify the procedure and manner of furnishing information. (Para 17.1 & 17.2)

Reporting formats, a comprehensive reporting format guide, and electronic utilities for filing electronic Cash Transaction Reports (CTR) and Suspicious Transaction Reports (STR) can be found on the FIU-IND website. (Para 17.3)

Reporting entities should ensure that suspicious transactions are promptly reported to the Director, FIU-IND. They should also maintain confidentiality and not tip off the subscriber regarding the filing of STRs. (Para 17.5)

Reporting entities, including their designated directors, principal officers, and employees, must maintain records (electronic/physical form) of all transactions and subscriber identity verification for a period of five years. (Para 18.1 & 18.2)

Reporting entities should ensure that third-party service providers have the organizational capabilities, technology, and security measures in place to safeguard data privacy and prevent unauthorized access and disclosure. (Para 18.2)

Reporting entities should pay special attention to complex large transactions or patterns without apparent economic purpose. They should also establish internal threshold limits for subscriber accounts and examine transactions exceeding these limits. (Para 19.2)

National Pension System (NPS) is a defined contribution pension. NPS is voluntary for subscription by an individual to make contributions to his/her Individual Pension Account during the working life for creating a pension corpus from which regular income will be generated after retirement / working age.

NPS is mandatory for the Central Government recruits w.e.f. 1st Jan 2004 (except armed forces) which replaced the earlier defined benefit pension and has been subsequently adopted by almost all State Governments for their employees.

Regulated - NPS is regulated by PFRDA, which is established through an Act of Parliament. (PFRDA Act 2013)
Pension for All - can be voluntarily subscribed by any Indian Citizen (resident/nonresident/overseas citizen).
Low Cost – NPS is one of the lowest cost pension schemes in the world.
Flexible - Subscribers have choices of Point of Presence (PoP), Central Recordkeeping Agency (CRA), Pension Fund and Asset Allocation. The choices exercised can be changed subsequently.
Portable – NPS account can be transferred across employment, location/geography.
Tax efficient – Tax incentives are available to subscribers under the Income Tax Act 1961.
Optimum returns – Market linked returns based on investment choice made by the subscriber.
Transparent – Subscribers can access their NPS accounts online 24X7 and public disclosures mandated

Any Indian Citizen (resident or non-resident) and Overseas Citizen of India (OCI)
Aged between 18-70 years
Compliant to Know Your Customer (KYC) norms.

Hindu Undivided Families (HUFs) and Persons of Indian Origin (PIOs) are not eligible for subscribing to NPS.

NPS is an Individual Pension Account and cannot be opened on behalf of a third person. The applicant should be legally competent to execute a contract as per the Indian Contract Act.

Yes. NPS can be voluntarily subscribed alongwith any other pension scheme(s). However, an individual cannot have multiple NPS accounts.

The amount of pension will depend on the amount of contributions made, accrual/returns on the investments and the portion of corpus utilised by the subscriber for purchasing annuity plan from any of the Annuity Service Providers empanelled with PFRDA.

Under NPS, there is no implicit or explicit assurance of benefit and the investments are subject to market conditions.

NPS caters to the Central Government (CG) Sector, State Government (SG) Sector, Corporate Sector and All Citizen Sector.

Individuals subscribing to NPS voluntarily are classified / categorized under All Citizen Sector.

NPS has a unique unbundled architecture wherein each intermediary (PoP, Pension Fund, Central Recordkeeping Agency, Trustee Bank, Annuity Service Provider, Retirement Advisors, Custodian, NPS Trust) is assigned a specialized activity by the Regulator. This ensures economies of scale and operational/intermediation costs at bare minimum to subscribers.

This unique structure safeguards subscribers’ interest as the role of a particular intermediary is limited to the functions assigned to it and no single intermediary/entity has complete control over NPS as a System.

Each intermediary is entitled to recover the following prescribed charges from the subscriber towards the services rendered by them:

An NPS account can be opened through:

1. Points of Presence (PoP) registered with PFRDA in Online or Physical mode - https://www.pfrda.org.in/index1.cshtml?lsid=205

Point of Presence (PoPs) is the distribution channel and the first point of contact for applicants and subscribers. PoPs are mandated to provide services related to Subscriber Registration (Collection of forms and KYC verification), receiving /uploading contributions, processing subscriber requests for updation of account details, exercising choices, withdrawals, grievances resolution etc.

2. Online platform (eNPS) of NPS Trust – http://www.npstrust.org.in/content/open-your-nps-account-online

Under NPS account there are two types of accounts – Tier I & Tier II.

Tier-I is the Individual Pension Account, which is the default pension account having all the tax incentives under Income Tax Act.

Tier-II is an optional investment account available to a subscriber having an active Tier-I account. This account has no withdrawal restrictions and tax benefits. Tier-II is not a Pension Account.

Tier – I	Tier – II
Individual Pension Account	Optional Account – Require an active Tier-I
Withdrawal as per rules/regulations only	Unrestricted withdrawals
Min. Contribution ₹500	Min. Contribution to open ₹1000
Min. Contribution per year ₹1000	Min. Contribution ₹250
Tax benefits are available	No tax benefits on contribution/gains
Any Citizen aged between 18-70 is eligible	NRIs/OCIs are not eligible
Choose any Pension Fund / Investment Pattern	Choose any Pension Fund/ Investment Pattern *

*Subscriber can select different Pension Fund and Investment Option for his/her NPS Tier I and Tier II accounts

The applicant has to submit duly filled Subscriber Registration Form (CSRF/NRSF/Online data fields) along with the following documents to the Service Provider (PoP)/Online:

For resident Individuals:

One Recent Photograph
PAN Card
Proof of Address
Proof for the Bank Account

For NRIs and OCIs

Non-resident Individual (NRI)	Overseas Citizen of India (OCI)
One Recent Photograph	One Recent Photograph
PAN Card	PAN Card
Indian Passport	OCI Card
Proof of address - India	Proof of address - foreign country
Proof for the Bank Account (NRE/NRO)	Proof for the Bank Account (NRE/NRO)

Refer instructions in the subscriber registration form, for the list of acceptable proofs.

The following choices are to be exercised by the applicant:

Subscribers can subsequently request to change the choices exercised as under:

Choice	Frequency	Mode / method
Point of Presence	No restrictions, any time	Physical Application to target/new PoP
CRA	Twice in a year	Physical Application to target/new CRA
Pension Fund	Once in a Financial Year	i. Online – Login to your account or ii. Offline - Physical Application to PoP
Investment Choice	Four times in a Financial Year	i. Online – Login to your account or ii. Offline - Physical Application to PoP

On submission of duly filled application to service provider (PoP)/Online, Applicant will receive an Acknowledgement Number and the applicant can track the status of application online using the same.

Subscriber will receive the Account Opening Kit (if opted for) containing the PRAN Card and the passwords for accessing the account within a fortnight from the date of receipt of application, at his/her correspondence address provided in the application form.

PRAN is a unique identification number allotted to a subscriber for his/her Individual Pension Account opened under NPS. The PRAN remains unchanged even though the subscriber shifts employment / sector /location.

Subscriber can access their Pension Account through

i. Physical mode – by visiting his/her service provider (PoP)

ii. Online - using login credentials provided by CRA in the Account Opening Kit

Web-based login
Mobile Application

iii. Telephone - using the T-Pin received in the Account Opening Kit.

Toll Free numbers - NSDL 1800 222 080 and Kfintech 1800 208 1516

A subscriber can make any number of contributions without any upper limit of amount through any of the following modes:

i. Physical mode – by visiting any of the registered service provider (PoP) and depositing cheque/cash alongwith the NPS contribution slip.

ii. Online mode -

a. Web-based

login to your Pension Account
online facility provided by PoPs
eNPS platform of NPS Trust]

b. NPS Mobile Application login

The contributions made by the subscriber will get invested as per the choices (Pension Fund and Asset allocation) exercised and recorded with CRA.

It normally takes three working days for the contributions to get reflected in your NPS account.

The process flow entails:

Receipt/realization of contribution in service provider’s (PoP) bank account
Upload of details by service provider (PoP) to CRA and fund remittance to Trustee Bank
Transfer of the funds by Trustee Bank to Pension Fund based on CRA instructions
Investment of the funds by Pension Fund and declaration of scheme NAV
Allocation of units by CRA for the contributed amount
Reflection of corresponding units in the subscriber’s NPS account.

Subscribers will receive SMS & Email confirmations for credit of units in account.

CRA is mandated to send a physical copy of the Statement of Transaction (SoT) of your Pension Account to the correspondence address as recorded with CRA, once in a year. SOT is also emailed to the registered email address of the subscriber on a periodic basis which can also be accessed online by login into your account.

The contributions are invested by Pension Funds according to the investment guidelines prescribed by PFRDA for each asset class.

Asset class E – Equity shares of companies traded in Futures and Options segment

Asset Class C – Corporate Bonds / Debentures which are listed and rated not below A

Asset Class G – Government securities and State Development Loans

Asset Class A – Alternate Assets

For detailed investment guidelines refer to the Circulars Section of PFRDA website.

If minimum contribution is not received, the account is categorized as ‘frozen’ and will get activated upon making a contribution to the account. The NPS account will be closed only when a subscriber submits a request (physical or online) for exit from NPS to a service provider (PoP).

For changing the account details as recorded with CRA, subscriber has to submit a request to the Service Provider (PoP):-

Parameter of Change	Mode / method to change	Remark
Name	Physical Application – Form S2	Proof to be submitted
Address	Physical Application – Form S2	Proof to be submitted
Contact Details	i. Online – Login to your account or ii. Offline - Physical Application – Form S2	-
Nomination	Physical Application – Form S2	-
Bank Details	Physical Application – Form S2	Proof to be submitted
Sector / Occupation	Physical Application – Form ISS	-

The performance of your NPS investments is available in the Statement of Transactions which can be accessed online through the subscriber web login or mobile app. Periodic statements are sent by the CRA to the registered email-id of the subscriber and a physical statement for the financial year is sent to the correspondence address of the subscriber.

The returns generated by the Pension Funds for each Asset Class is published on a weekly basis by NPS Trust and available at the following web link http://npstrust.org.in/return-of-nps-scheme

The portfolio of Asset Classes managed by each Pension Fund is periodically published by the Pension Funds on their websites. http://npstrust.org.in/content/scheme-portfolio

A subscriber can withdraw from NPS in the following circumstances/conditions:

i) Partial Withdrawal - after completion of 3 years subscriber can withdraw 25% of his/her own contributions for specific reasons viz illness, disability, education or marriage of children, purchasing property, starting a new venture. A subscriber can partially withdraw upto a maximum of 3 times during his/her entire tenure in NPS.

ii) Premature Withdrawal - after completion of 5 years or before completion of 03 years (if subscriber joined NPS after attaining 60 years of age), subscriber can withdraw maximum 20% of the corpus as lumpsum and minimum 80% of the corpus has to be utilized for purchasing an annuity plan for receiving the pension. If the accumulated corpus is less than ₹2.5 lakh, the entire corpus is paid as lumpsum to the subscriber.

iii)Normal Withdrawal – on completion of 60 years of age (if subscriber has joined NPS before 60 years of age) or after completion of 03 years (if subscriber has joined NPS after 60 years of age), subscriber can withdraw maximum 60% of the corpus as lumpsum and minimum 40% of the corpus has to be utilized for purchasing an annuity plan for receiving the pension. If the accumulated corpus is less than ₹5 lakhs, the entire corpus is paid as lumpsum to the subscriber.

Subscriber also has the option to:-

a. Continue in NPS till the age of 75 years or exit anytime after such continuance before 75 years.

b. While exiting from NPS, subscriber can;

defer receiving the lumpsum (60% corpus) till the age of 75 years or withdraw the same in installments till 75 years
defer Annuity purchase (40% corpus) till the age of 75 years.

In case of unfortunate event of death of a subscriber, the nominee/legal heir can withdraw the entire accumulated corpus. The nominee / family members of the deceased subscriber can also purchase annuity, if they so desire.

If an NPS All Citizen subscriber does not exit from NPS at 60 years of age, the account will automatically be continued up to 75 years of age. Subscriber can exercise the option of normal exit from NPS at any point of time he/she wishes after 60 years of age. At the age of 75 years, the account has to be closed mandatorily.

Partial withdrawals from your NPS account are allowed for dealing with contingency situations and following are the reasons/conditions for which partial withdrawal is allowed:

Higher education of his/her children
Marriage of his/her children
Purchase or construction of residential house or flat
Treatment of specified illnesses
Disability of more than 75%
Skill development/re-skilling or any other self-development activities
Establishment of own venture or any start-ups

Requests for withdrawals from NPS can be initiated by the subscriber by login to his/her Pension Account or by submitting a physical form to the service provider (PoP) directly alongwith the specified documents. For more details please refer https://www.pfrda.org.in/index1.cshtml?lsid=220

Presently the following (14) ASPs are empanelled with PFRDA for providing pension:

SBI Life Insurance Co. Ltd
Life Insurance Corporation of India
Star Union Dai-ichi Life Insurance Co. Ltd
ICICI Prudential Life Insurance Co. Ltd
HDFC Life Insurance Co Ltd.
IndiaFirst Life Insurance Co Ltd
Edelweiss Tokio Life Insurance Co. Ltd
Bajaj Allianz Life Insurance Co Ltd.
Canara HSBC Oriental bank of Commerce Life Insurance co Ltd.
Kotak Mahindra Life Insurance Co Ltd.
Tata AIA Life Insurance Company Limited
Max Life Insurance Company Limited
PNB Metlife India Insurance Company Limited
Aditya Birla SunLife Insurance Company Limited

The broad variants of annuity plans offered by the ASPs are as under:

Pension (Annuity) payable for life at a uniform rate to the annuitant only.
Pension (Annuity) payable for 5, 10, 15 or 20 years certain and thereafter till the annuitant is alive.
Pension (Annuity) payable for life increasing at a simple rate of 3% p.a.
Pension (Annuity) for life with a provision of 50% of the annuity payable to spouse for upon death of the annuitant.
Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse upon death of the annuitant.
Pension (Annuity) for life with return of purchase price on death of the annuitant.
Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse upon death of the annuitant and return of purchase price on death of the spouse.

The pension amount would vary based on the annuity plan and the ASP chosen by the subscriber. For a comparative analysis of the annuity plans and the ASPs, please visit https://cra-nsdl.com/CRAOnline/aspQuote.html

Withdrawal from NPS Tier-II account is permitted at any point of time, without any restrictions. You may also transfer the funds from your Tier-II account to Tier-I account (One-way Switch).

In case of closure of NPS Tier-I (pension account), balance outstanding in NPS Tier-II account will get withdrawn simultaneously and thereafter transferred to your Bank account.

For resolving subscriber grievances, the Authority has notified the PFRDA (Redressal of Subscriber Grievance) Regulations, 2015 and an online platform ‘Central Grievance Management System (CGMS)’ has been hosted for subscriber to lodge grievance online by logging to his/her NPS account. A complaint/grievance has to be resolved by the intermediary concerned as early as possible within a maximum period of 30 days of the receipt of the complaint. If a subscriber is not satisfied with the resolution provided, he/she can escalate his grievance to the next higher level for resolution and the escalation matrix is as under: -

Regulated - NPS is regulated by PFRDA, which is established through an Act of Parliament. (PFRDA Act 2013)
Pension for All - can be voluntarily subscribed by any Indian Citizen (resident/nonresident/overseas citizen).
Low Cost – NPS is one of the lowest cost pension schemes in the world.
Flexible - Subscribers have choices of Point of Presence (PoP), Central Recordkeeping Agency (CRA), Pension Fund and Asset Allocation. The choices exercised can be changed subsequently.
Portable – NPS account can be transferred across employment, location/geography.
Tax efficient – Tax incentives are available to subscribers under the Income Tax Act 1961.
Optimum returns – Market linked returns based on investment choice made by the subscriber.
Transparent – Subscribers can access their NPS accounts online 24X7 and public disclosures mandated.

NPS can be extended by an employer as a retirement benefit scheme to the employees and NPS Account having employer-employee relationship (non-government) are classified / categorized as Corporate Sector. An Employer can adopt NPS alongwith other retirement benefit schemes and contributions towards NPS in Corporate Sector can be either from employer/employee only or from both employer/employee in varied proportions.

NPS caters to the Central Government (CG) Sector, State Government (SG) Sector, Corporate Sector and All Citizen Sector.

For implementation of NPS for its employees, an employer has the following options:

i. Obtain registration from the Authority as a Point of Presence (PoP) under Regulation 3 of PFRDA (Points of Presence) Regulations, 2018 and thereafter undertake NPS related activities for their employees directly with NPS architecture (such as employee registration, contribution upload, facilitating withdrawals/exit, grievance resolution, change in personal data etc).

For eligibility to register as a PoP, please refer PFRDA (Points of Presence) Regulations, 2018.

ii. Register with Central Recordkeeping Agency (CRA) as employer/corporate under NPS Corporate Sector Model by submitting an application - CHO through a registered Point of Presence (PoP) and avail NPS services (such as employee registration, contribution upload, facilitating withdrawals/exit, grievance resolution, change in personal data etc) through the PoP by paying the prescribed fees/charges to PoP. In this model, the employer can avail services of any of the PoPs registered with PFRDA which can subsequently be changed, if need arises.

The following entities are eligible to register as a corporate/employer under NPS Corporate Sector Model through a PoP:

i. Entities registered under the Companies Act, 2013 or a cooperative society registered under any law relating to Co-operative societies

ii. Bodies established or incorporated under any act of Parliament or any law enacted by a State legislature or under any order/notification issued by the Central / State Government

iii. Public Sector Enterprises or any Government company

iv. Registered Partnership Firms

v. Limited Liability Partnerships (LLPs) vi. Proprietary Concerns

vii. Trusts / Society

viii. Foreign companies having registration u/s 591-608 of Companies Act 1956 in respect of their eligible Indian employee(s)

ix. Foreign / diplomatic missions operating in India (Embassy/High Commission/Consulate etc.) in respect of their eligible Indian employee(s)

x. International Organizations operating in India (UN / WHO / World Bank / ADB / IMF etc.) in respect of their eligible Indian employee(s)

NPS is mandatory for the Central Government recruits w.e.f. 1st Jan 2004 (except armed forces) which replaced the earlier defined benefit pension and almost all State Governments have adopted NPS for their employees and is applicable as per the terms and date notified by the State Government in their respective gazette notifications.

NPS can be introduced by an employer / corporate (entity) for its employees (as a retirement benefit scheme) within the purview of their employer-employee relationship on a voluntary or a mandatory basis. In case the employer adopts NPS as a mandatory retirement benefit scheme for its employees, then all employees should join NPS from the date of adoption by the employer. In case of NPS being implemented on voluntary basis along with other retirement benefit schemes, choice of joining NPS would rest with the employee.

The facility to transfer Approved Superannuation Fund to NPS has been enabled in NPS architecture. The transfer of corpus can be made in bulk as is where is basis or on an individual case to case basis. The relevant Circulars issued on the regard may be access from the following links:

a) Circular dated 6th March 2017

b) Circular dated 1st June 2018

c) Circular dated 1st January 2019

Contributions to NPS are flexible and depending on the employer’s policy on compensation and retiral benefits extended to its employees. The NPS contribution can be either:-

equal contributions by both employer and employee (say 10% each) or
unequal by employer and employee (say 10% by employee and 14% by employer) or
contribution by only employer or only employee

There is no mandate for the employer to contribute to employees’ NPS account.

Pension Funds registered with PFRDA are responsible for managing pension corpus in accordance with PFRDA Act, rules, regulations and investment guidelines issued by the Authority, as amended from time to time.

Employer adopting NPS has the option of:-

Selecting any one Pension Fund (PF) out the PFs registered with PFRDA for managing the pension wealth of their employees and decide on the asset allocation (active or auto) based on which the NPS contributions will be invested by the Pension Fund.
Employer can also allow its employees to exercise these choices (PF & Asset Allocation) at individual/employee level, if found suitable.

If the Employer/Corporate exercises choice of Pension Fund and Asset Allocation on behalf of Employee/Subscriber, then such Employee/Subscriber will have the option to revise the choices after 1 (one) year (i.e. 365 days) or else will continue with the existing choices made by employer (applicable to corporates adopting NPS on or after 14th Nov 2018)

On adoption of NPS by an employer for its employees, the underlying activities get implemented through NPS architecture / platform which obviates the requirement for creation / maintenance of a Trust by the employer.

Charges related to NPS Tier-I account can be borne either by employer or employee, at the discretion of employer. Tier-II transaction charges are same as Tier-I and are borne by the subscriber.

Each intermediary is entitled to recover the following prescribed charges towards the services rendered:

Yes, the ‘employer contributions’ made in the NPS accounts of their employees (upto 10% of the salary) can be claimed for deduction as ‘Business Expense’ from Corporates Profit & Loss Account as per section 36(1)(iv)(a) of IT Act.

Employee of a corporate / entity which has implemented NPS
Indian Citizen (resident or non-resident) and Overseas Citizen of India (OCI)
Aged between 18-70 years
Compliant to Know Your Customer (KYC) norms.

Persons of Indian Origin (PIOs) are not eligible for subscribing to NPS. NPS is an Individual Pension Account and cannot be opened on behalf of a third person. The applicant should be legally competent to execute a contract as per the Indian Contract Act.

Yes. NPS can be voluntarily subscribed alongwith any other pension scheme(s). However, an individual cannot have multiple NPS accounts.

Employee may submit the duly filled application form to the employer for authorization and further submission to the PoP or CRA, as the case may be, for opening the individual pension account.

Under NPS, the Pension Account is a unique identification number (Permanent Retirement Account Number - PRAN) allotted by CRA to each individual subscriber and the Pension Account (PRAN) can be transferred across employment or employer, location/geography.

Employee already having an NPS Account can provide the PRAN to employer for tagging the existing PRAN to their employer.

Employee can also transfer the pension account to the new employer (of any sector), if NPS is implemented in the new organization or may continue the NPS account under All Citizen Model through any registered PoP.

Under NPS account there are two types of accounts – Tier I & Tier II.

Tier-I is the Individual Pension Account, which is the default pension account having all the tax incentives under Income Tax Act.

Tier-II is an optional investment account available to a subscriber having an active Tier-I account. This account has no withdrawal restrictions and tax benefits. Tier-II is not a Pension Account.

Tier – I	Tier – II
Individual Pension Account	Optional Account – Require an active Tier-I
Withdrawal / exit as per rules/regulations only	Unrestricted withdrawals
Min. Contribution Rs. 500	Min. Contribution to open Rs. 1000
Min. Contribution per year Rs. 1000	Min. Contribution Rs. 250
Tax benefits are available	No tax benefits on contribution/gains
Any Citizen aged between 18-70 is eligible	NRIs/OCIs are not eligible
Choose any Pension Fund / Investment Pattern	Choose any Pension Fund/ Investment Pattern *

*Subscriber can select different Pension Fund and Investment Option for his/her NPS Tier I and Tier II accounts

An employee can open the pension account through the employer by submitting the duly filled application form (CSRF/NSRF) to the employer or submit the data online alongwith the following documents:-

For resident Individuals:

One Recent Photograph
PAN Card
Proof of Address
Proof for the Bank Account

For NRIs and OCIs

Non-resident Individual (NRI)	Overseas Citizen of India (OCI)
One Recent Photograph	One Recent Photograph
PAN Card	PAN Card
Indian Passport	OCI Card
Proof of address - India	Proof of address - foreign country
Proof for the Bank Account (NRE/NRO)	Proof for the Bank Account (NRE/NRO)

Refer instructions in the subscriber registration form, for the list of acceptable proofs.

Subscribers can subsequently request to change the choices exercised as under:

Choice	Frequency	Mode / method
Pension Fund	Once in a Financial Year	i. Online – Login to your account or ii. Offline - Physical Application to PoP
Investment Choice	Four times in a Financial Year	i. Online – Login to your account or ii. Offline - Physical Application to PoP

If the Employer/Corporate exercises choice of Pension Fund and Asset Allocation on behalf of Employee/Subscriber, then such Employee/Subscriber will have the option to revise the choices after 1 (one) year (i.e 365 days) or else will continue with the existing choices made by employer (applicable to corporates adopting NPS on or after 14th Nov 2018)

Subscriber can access their Pension Account through

i. Physical mode – by visiting his/her service provider (Employer/PoP)

ii. Online - using login credentials provided by CRA in the Account Opening Kit

Web-based login
Mobile Application

iii. Telephone - using the T-Pin received in the Account Opening Kit.

Toll Free numbers - NSDL 1800 222 080 and Kfintech 1800 208 1516

The contributions deducted from the salary of the employee will get invested as per the choices (Pension Fund and Asset allocation) recorded with CRA. The Pension Funds invest the funds according to the investment guidelines prescribed by PFRDA for each asset class. For detailed investment guidelines refer to the Circulars Section of PFRDA website.

An employee can make additional contributions to his/her pension account on a voluntary basis apart from the salary deductions, without any restrictions on number of contributions and amount through any of the following modes:

i. Physical mode – by visiting any of the registered service provider (PoP) and depositing cheque/cash alongwith the NPS contribution slip.

ii. Online mode -

Web-based (i. login to your Pension Account ii. online facility provided by PoPs iii. eNPS platform of NPS Trust)
NPS Mobile Application login

It normally takes three working days for the contributions to get reflected in your NPS account.

The process flow entails:

Receipt/realization of contribution in service provider’s (PoP) bank account
Upload of details by service provider (PoP) to CRA and fund remittance to Trustee Bank
Transfer of the funds by Trustee Bank to Pension Fund based on CRA instructions
Investment of the funds by Pension Fund and declaration of scheme NAV
Allocation of units by CRA for the contributed amount
Reflection of corresponding units in the subscriber’s NPS account

Subscribers will receive SMS & Email confirmations for credit of units in account.

For changing the account details as recorded with CRA, subscriber has to submit the request to the Service Provider (PoP) or Employer, as the case may be:-

Parameter of Change	Mode / method to change	Remark
Name	Physical Application – Form S2	Proof to be submitted
Address	Physical Application – Form S2	Proof to be submitted
Contact Details	i. Online – Login to your account or ii. Offline - Physical Application – Form S2	-
Nomination	Physical Application – Form S2	-
Bank Details	Physical Application – Form S2	Proof to be submitted
Sector / Occupation	Physical Application – Form ISS	-

*For correction of Date of Birth, authentication by employer is mandatory

The returns generated by the Pension Funds for each Asset Class is published on a weekly basis by NPS Trust and available at the following web link http://npstrust.org.in/return-of-nps-scheme

The portfolio of Asset Classes managed by each Pension Fund is periodically published by the Pension Funds on their websites. http://npstrust.org.in/content/scheme-portfolio

The employer cannot forfeit pension corpus from NPS account, if employee resigns from the organization.

However, in case of employer being owned and controlled, either by the Central / State Government or a Government company, if so specifically provided in the service rules governing the terms of employment of the subscriber with it, the employer has the right to withhold its co-contributions including accruals thereon, for the purpose of recovery of the whole or part of any pecuniary loss caused, provided such loss is established, in any departmental or judicial proceedings, initiated against such subscriber by such employer./

A subscriber can withdraw from NPS in the following circumstances/conditions:

ii) Premature Withdrawal – Any time before attaining age of 60 years or superannuation or before completion of 03 years (if subscriber joined NPS after attaining 60 years of age), subscriber can withdraw maximum 20% of the corpus as lumpsum and minimum 80% of the corpus has to be utilized for purchasing an annuity plan for receiving the pension. If the accumulated corpus is less than Rs 2.5 lakh, the entire corpus is paid as lumpsum to the subscriber.

iii) Normal Withdrawal – on attaining age of 60 years or superannuates in accordance with the service rules applicable to such subscriber (if subscriber has joined NPS before 60 years of age) or after completion of 03 years (if subscriber has joined NPS after 60 years of age), subscriber can withdraw maximum 60% of the corpus as lumpsum and minimum 40% of the corpus has to be utilized for purchasing an annuity plan for receiving the pension. If the accumulated corpus is less than Rs 5 lakhs, the entire corpus is paid as lumpsum to the subscriber

Subscriber also has the option to:-

(i) Continue in NPS till the age of 75 years or exit anytime after such continuance before 75 years.

(ii) While exiting from NPS, subscriber can;

defer receiving the lumpsum (60% corpus) till the age of 75 years or withdraw the same in installments till 75 years
defer Annuity purchase (40% corpus) till the age of 75.

On attaining the age of 60 years or superannuation, the NPS account of a corporate subscriber will be autocontinued under All Citizen Model upto 75 years of age. Subscriber can exercise the option of normal exit from NPS at any point of time he/she wishes, after attaining the age of 60 years / superannuation. At the age of 75 years, the account has to be closed mandatorily.

Partial withdrawals from your NPS account are allowed for dealing with contingency situations and following are the reasons/conditions for which partial withdrawal is allowed:

Higher education of his/her children
Marriage of his/her children
Purchase or construction of residential house or flat
Treatment of specified illnesses
Disability of more than 75%
Skill development/re-skilling or any other self-development activities
Establishment of own venture or any start-ups

The broad variants of annuity plans offered by the ASPs are as under:

Pension (Annuity) payable for life at a uniform rate to the annuitant only.
Pension (Annuity) payable for 5, 10, 15 or 20 years certain and thereafter till the annuitant is alive.
Pension (Annuity) payable for life increasing at a simple rate of 3% p.a.
Pension (Annuity) for life with a provision of 50% of the annuity payable to spouse for upon death of the annuitant.
Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse upon death of the annuitant.
Pension (Annuity) for life with return of purchase price on death of the annuitant.
Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse upon death of the annuitant and return of purchase price on death of the spouse.

Subscriber will receive pension from the Annuity Service Provider (ASP) according to the Annuity Plan chosen and purchased by the subscriber from the ASP (Insurance Company) and the terms and conditions therein.

Withdrawal from NPS Tier-II account is permitted at any point of time, without any restrictions. You may also transfer the funds from your Tier-II account to Tier-I account (One-way Switch).

In case of closure of NPS Tier-I (pension account), balance outstanding in NPS Tier-II account will get withdrawn simultaneously and thereafter transferred to your Bank account.

A complaint/grievance has to be resolved by the intermediary concerned at the earliest and within a maximum period of 30 days of the receipt of the complaint.

If a subscriber is not satisfied with the resolution provided, he/she can escalate his grievance to the next higher level for resolution and the escalation matrix is as under:-

An exit is defined as the closure of the individual pension account of the subscriber under the National Pension System. In the following scenarios;

(i). Upon attaining the age of 60 years;

(ii). Before attaining the age of 60 years;

(iii). Any time after attaining the age of 60 years till 75 years;

(iv). Due to physical incapacitation or upon suffering bodily disability before the age of 60 years; and

(v). Due to death or subscriber being declared missing.

A subscriber shall submit the exit or withdrawal application for the purpose of withdrawing the benefits upon exit as provided in the regulations, on or before the expected date of exit from the National Pension System (NPS) to the associated point of presence. In case of death or subscriber being declared missing, the nominee(s), family member(s) as specified under the service rules or legal heir(s) shall submit the claim settlement application along with the required documents to the associated point of presence of the deceased subscriber.

Annuitization – Minimum of 40% of accumulated pension wealth will be utilized for monthly annuity or pension. However, subscriber has the option to utilise more than 40% of accumulated pension wealth for purchase of annuity.

Lumpsum – Remaining 60% of accumulated pension wealth shall be paid to the subscriber.

Yes, if your accumulated pension wealth is equal to or less than a sum of five lakh rupees.

No, the right of the subscriber to receive any pension or other amount under the NPS will extinguish.

You will continue to remain subscribed to the NPS upto the age of 75 (seventy-five) years.

Yes, the subscriber may exit at any point of time from NPS, by submitting a request to the associated point of presence or NPS Trust.

The entire accumulated pension wealth of the subscriber will be paid to the nominee(s) or legal heir(s) of the subscriber.

Yes, the nominee(s) or legal heir(s) of the subscriber have the option to purchase any of the annuities being offered upon exit.

Yes, you can defer the withdrawal of the lump sum amount. Such deferment can be upto the age of seventy-five years.

In case of death of subscriber during the period of deferment, such deferred amount of the subscriber will be paid to nominee(s) or legal heir(s).

Yes, you can defer the purchase of annuity. Such deferment can be upto the age of seventyfive years.

Yes, the subscriber has an option to purchase an annuity at any point of time during the deferment period by submitting a request to NPS Trust or any intermediary or entity authorized by the Authority for this purpose.

If death of the subscriber occurs before the due date of extended period of purchase of annuity, the entire accumulated pension wealth of the subscriber shall be paid to the nominee(s) or legal heir(s), of the subscriber.

Yes, both lump sum and purchase of annuity can be deferred but the subscriber agrees to bear the maintenance charges of the PRA, including the charges payable to the Central Recordkeeping Agency (CRA), Pension Fund (PF), Trustee Bank or any other intermediary, as may be applicable from time to time.

The subscriber shall submit his/her written request for deferment of the lump sum and/or purchase of annuity, fifteen days prior to attaining the age of 60 years, to any intermediary or NPS Trust.

Yes, the subscriber can exit from the NPS at any point of time during the deferment period.

No, upon exercising the option of continuation after attaining the age of 60 years, the options of deferment of benefits (lump sum and/or annuity) shall not be available.

No, the option of deferment of defer the lump sum withdrawal and/or purchase of annuity, shall not be available.

Yes, you are eligible for exit from NPS in case of physical incapacitation or suffering bodily disability leading to incapability to continue under NPS.

A disability certificate from a Government surgeon or doctor (treating such disability or invalidation of subscriber) stating the nature and extent of disability and also certifying that:

(a). the affected subscriber shall not be in a position to perform his regular duties and there is a real possibility of the affected subscriber, being not able to work for the remaining period of his life.; and

(b). Percentage of disability is more than seventy-five percent in the opinion of such Government surgeon or doctor (treating such disability or invalidation of subscriber).

Same as exiting from NPS upon attaining age of 60 years (refer Q3 to Q5).

You can voluntarily exit from NPS before attaining the age of 60 years if you are having subscribed to NPS for at least a minimum period of five years.

Annuitization – Minimum of 80% of accumulated pension wealth will be utilized for monthly annuity or pension.

Lumpsum – Remaining 20% of accumulated pension wealth will be paid to the subscriber.

Yes, if your accumulated pension wealth is equal to or less than a sum of two lakh fifty thousand rupees.

No, the right of the subscriber to receive any pension or other amount under the NPS will extinguish.

You will remain in NPS, until you attain the age of eligibility for purchase of any annuity. After attaining the minimum age required for purchasing any annuity, you can purchase the annuity as per your choice.

The entire accumulated pension wealth of the deceased subscriber shall be paid to the nominee(s) or legal heir(s).

Yes, the nominee(s) or legal heir(s) of the deceased subscriber has the option to purchase any of the annuities being offered upon exit.

The accumulated pension wealth shall be paid to the family members on the basis of the legal heir certificate issued by the competent authorities of the State concerned or the succession certificate issued by a court of competent jurisdiction.

You can exit at any point of time, before attaining age of seventy-five years. However, your benefits at exit may vary depending upon the subscribed period (before or after completing three years from the date of joining of NPS).

Annuitization – Minimum of 40% of accumulated pension wealth will be utilized for monthly annuity or pension.

However, subscriber has the option to utilise more than 40% of accumulated pension wealth for purchase of annuity.

Lumpsum – Remaining 60% of accumulated pension wealth shall be paid to the subscriber.

Yes, if your accumulated pension wealth is equal to or less than a sum of five lakh rupees.

No, the right of the subscriber to receive any pension or other amount under the NPS will extinguish.

Annuitization – Minimum of 80% of accumulated pension wealth will be utilized for monthly annuity or pension.

Lumpsum – Remaining 20% of accumulated pension wealth will be paid to the subscriber.

Yes, if your accumulated pension wealth is equal to or less than a sum of two lakh fifty thousand rupees.

No, the right of the subscriber to receive any pension or other amount under the NPS will extinguish.

The entire accumulated pension wealth of the deceased subscriber will be paid to the nominee(s) or legal heir(s).

Upon exit from tier-I of the NPS, the tier-II account of the subscriber will also be simultaneously and automatically closed, even if an application so specified for the purpose has not been received from the subscriber or nominees or legal heirs, and amounts under the said account will be paid to the subscriber or nominees or legal heirs.

Yes, you can continue with Tier - II account as per your requirement, till closure of Tier - I account.

You can withdraw any number of times from Tier – II account.

A subscriber can withdraw the accumulated wealth either in full or part, at any time.

There shall be no limit on such withdrawals till the account has a sufficient amount of accumulated pension wealth to take care of the applicable charges and the withdrawal amount.

Yes

Up to 25% of own contributions (without considering the appreciation / returns on the amount) as on the date of application of such withdrawal.

You are allowed to partially withdraw maximum of three times during the entire tenure of subscription under the NPS.

You can initiate first partial withdrawal after completing period of three years from the date of your joining the NPS.

No. However, you will receive 25% of own contribution made between two partial withdrawals.

Partial withdrawal is allowed for the following specific purposes only.

(a). for Higher education of his or her children including a legally adopted child;

(b). for the marriage of his or her children, including a legally adopted child;

(c). for the purchase or construction of a residential house or flat in his or her own name or in a joint name with his or her legally wedded spouse. In case, the subscriber already owns either individually or in the joint name a residential house or flat, other than ancestral property, no withdrawal under these regulations shall be permitted;

(d). for treatment of specified illnesses: if the subscriber, his legally wedded spouse, children, including a legally adopted child or dependent parents suffer from any specified illness, which shall comprise of hospitalization and treatment in respect of the following diseases:

(i). Cancer;

(ii). Kidney Failure (End Stage Renal Failure);

(iii). Primary Pulmonary Arterial Hypertension;

(iv). Multiple Sclerosis;

(v). Major Organ Transplant;

(vi). Coronary Artery Bypass Graft;

(vii). Aorta Graft Surgery;

(viii). Heart Valve Surgery;

(ix). Stroke;

(x). Myocardial Infarction;

(xi). Coma;

(xii). Total blindness;

(xiii). Paralysis;

(xiv). Accident of serious/ life threatening nature.

(xv). any other critical illness of a life-threatening nature as stipulated in the circulars, guidelines or notifications issued by the Authority from time to time.

(e). to meet medical and incidental expenses arising out of the disability or incapacitation suffered by the subscriber.

(f). Towards meeting the expenses by subscriber for skill development/re-skilling or for any other self-development activities, as may be permitted by the Authority by issuance of appropriate guidelines, in that behalf.

(g). Towards meeting the expenses by subscriber for establishment of own venture or any start-ups, as may be permitted by the Authority by issuance of appropriate guidelines, in that behalf.

The request for withdrawal may be submitted through any family member of such subscriber.

Yes

If a subscriber has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his/her family.

For the purposes of nomination wherever provided in the regulation;

(i). in relation to a male subscriber, shall mean his legally wedded wife, his children, whether married or unmarried, his dependent parents and his deceased son’s widow and children;

(ii). in relation to a female subscriber, shall mean her legally wedded husband, her children, whether married or unmarried, her dependent parents, her husband’s dependent parents and her deceased son’s widow and children;

(iii). in relation to any subscriber who does not identify themselves as male or female - their legally wedded spouse, their children, whether married or unmarried, their dependent parents and their deceased son’s widow and children;

Explanation – in any of above three, if the child of a subscriber or as the case may be, the child of a deceased son of the subscriber has been adopted by another person and if, under the personal law of the adopter, adoption is legally recognized, such a child shall be considered as excluded from the family of the subscriber.

Any such nomination made in favour of a person not belonging to your family shall be invalid and the you (subscriber) have to submit fresh nomination belonging to your family.

Such Nomination shall become void and the subscriber has to submit nomination again.

Yes, you can nominate more than one nominee and can assign percentage of accumulated pension wealth among them in a way that total of such assignments should be equal to 100%.

Yes, a fresh nomination is required to be made by the subscriber upon his/her marriage.

The nomination made before marriage becomes invalid and you have to submit nomination again.

If you have no family at the time of making a nomination, the nomination may be in favour of any person or persons but if you subsequently acquire a family, such nomination shall forthwith be deemed to be invalid and you shall make a fresh nomination in favour of one or more persons belonging to your family.

Yes - the nomination can be wholly or partly in favour of a minor. Further, the subscriber may appoint a major person of his family, to be the guardian of the minor nominee in the event of the subscriber predeceasing the nominee and the guardian.

Yes – if there is no major person in the family.

You can change the nomination any number of times.

Annuity means series of payments/benefits to the subscriber at specified intervals as per the choice of subscriber paid by annuity service provider (ASP). The main objective of an annuity is to give regular income to the subscriber even after retirement/working age.

Yes, except there are some scenarios where the subscriber/nominees/legal heirs can withdraw the whole accumulated pension wealth as mentioned above.

Annuity shall be purchased from Annuity Service Providers (ASPs) empaneled with the PFRDA. The list of 14 ASPs empaneled is as under:

(i). Aditya Birla Sun Life Insurance Company Limited

(ii). Bajaj Allianz Life Insurance Company Limited

(iii). Canara HSBC Life Insurance Company Limited

(iv). Edelweiss Tokio Life Insurance Company Limited

(v). HDFC Life Insurance Company Limited

(vi). ICICI Prudential Life Insurance Company Limited

(vii). IndiaFirst Life Insurance Company Limited

(viii). Kotak Mahindra Life Insurance Company Limited

(ix). Life Insurance Corporation of India

(x). Max Life Insurance Company Limited

(xi). PNB MetLife India Insurance Company Limited

(xii). SBI Life Insurance Company Limited

(xiii). Star Union Dai-ichi Life Insurance Company Limited

(xiv). Tata AIA Life Insurance Company Limited

* For any update in empaneled Annuity Service Providers (ASPs), you are requested to refer PFRDA’s website.

Annuity starts immediately after the minimum age as required for purchasing any annuity (depending upon choice of ASP and Annuity scheme for e.g. 30, 35, 38) from any of the empaneled annuity service providers. Subscriber/nominees/legal heirs need not wait till the age of 60 years.

The following are the most common variants that are available:

(a). Annuity for life with return of purchase price (amount given to annuity service provider) on death- Subscriber will receive payment of annuity till he/she is alive and payment stops after the death of subscriber. However, purchase price will be returned to nominees / legal heirs.

(b). Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter -

On death during the guarantee period – Subscriber will receive payment of annuity till he/she is alive and thereafter during the remaining guaranteed period, annuity will be paid to the nominee till the end of the guaranteed period after which the same ceases/stops. However, return of purchase price will not be returned to nominees / legal heirs.

On death after the guarantee period – Subscriber will receive payment of annuity till he/she is alive even after the guaranteed period is over. Payment of annuity stops after the death of the subscriber. However, return of purchase price will not be returned to nominees / legal heirs.

(c). Annuity payable for life - Subscriber will receive payment of annuity till he/she is alive and payment stops after the death of the subscriber. However, return of purchase price will not be returned to nominees / legal heirs.

(d). Annuity for life increasing at simple rate of 3% p.a. – Subscriber will receive payment of annuity till he/she is alive increasing at simple rate of 3% p.a. and payment stops after the death of the subscriber. However, return of purchase price will not be returned to nominees / legal heirs.

It may be noted that this annuity variant may be taken with or without return of purchase price.

(f). Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant/subscriber – Subscriber will receive payment of annuity till he/she is alive and thereafter spouse will receive payment of annuity till he/she is alive. Payment of annuity stops after the death of spouse.

If the spouse predeceases the subscriber, the annuity ceases after death of the annuitant.

It can be with or without return of purchase price.

It may be noted that this annuity variant may be taken with or without return of purchase price.

*Subscriber can also add spouse in any of the variants above.

**All ASPs may not provide all the variants. It may vary from ASP to ASP.

***Pricing of annuity also varies from ASP to ASP.

Only in annuity types where there is a provision of return of purchase price.

Details of annuity rates and other details may be checked on CRAs’ website [Computer Age Management Services Limited, KFin Technologies Limited and Protean eGov Technologies Limited] and website of respective empaneled ASPs.

Once an annuity is purchased, the option of cancellation or reinvestment with another Annuity Service Provider or in other annuity scheme shall not be allowed unless the same is within the time limit specified by the Annuity Service Provider, for the free look period as provided in the terms of the annuity contract or specifically provided by the Insurance Regulatory and Development Authority.

Tier – I

Lump sum Withdrawal - In case of exit upon attaining the age of 60 years lump sum withdrawal i.e. 60% of the total accumulated pension wealth is tax exempted.

Annuity - The amount utilized for purchase of annuity at exit upon attaining the age of 60 years is tax exempted. However, the annuity income (pension) received will be taxed in the year of receipt as per the applicable tax slab of the subscriber.

Partial Withdrawal – The amount received by employee under the NPS is tax exempted.

Tier – II – No tax benefit

An exit is defined as the closure of the individual pension account of the subscriber under the National Pension System. In the following scenarios;

(i). Upon attaining the age of 60 years or superannuation;

(ii). Before attaining the age of 60 years of superannuation;

(iii). Any time after attaining the age of 60 years till 75 years;

(iv). Due to physical incapacitation or upon suffering bodily disability before the age of 60 years or superannuation; and

(v). Due to death or subscriber being declared missing

In case of death or subscriber being declared missing, the nominee(s), family member(s) as specified under the service rules or legal heir(s) shall submit the claim settlement application along with the required documents to the associated point of presence through corporate, of the deceased subscriber.

Lumpsum – Remaining 60% of accumulated pension wealth shall be paid to the subscriber.

Yes, if your accumulated pension wealth is equal to or less than a sum of five lakh rupees.

No, the right of the subscriber to receive any pension or other amount under the NPS will extinguish.

You will continue to remain subscribed to the NPS upto the age of 75 (seventy-five) years and PRA will be shifted from the employer to all citizens model.

Yes, the subscriber may exit at any point of time from NPS, by submitting a request to the associated point of presence or NPS Trust.

The entire accumulated pension wealth of the subscriber will be paid to the nominee(s) or legal heir(s) of the subscriber.

Yes, the nominee(s) or legal heir(s) of the subscriber have the option to purchase any of the annuities being offered upon exit.

Yes, you can defer the withdrawal of the lump sum amount. Such deferment can be upto the age of seventy-five years.

In case of death of subscriber during the period of deferment, such deferred lump sum amount of the subscriber will be paid to nominee(s) or legal heir(s).

Yes, you can defer the purchase of annuity. Such deferment can be upto the age of seventyfive years

The subscriber shall submit his/her written request for deferment of the lump sum and/or purchase of annuity, fifteen days prior to attaining the age of 60 years or superannuation, to any intermediary or NPS Trust.

Yes, the subscriber can exit from the NPS at any point of time during the deferment period.

No, upon exercising the option of continuation after attaining the age of 60 years or superannuation, the options of deferment of benefits (lump sum and/or annuity) shall not be available.

No, the option of deferment of defer the lump sum withdrawal and/or purchase of annuity, the options of deferment of benefits (lump sum and/or annuity) shall not be available.

Yes, you are eligible for exit from NPS in case of physical incapacitation or suffering bodily disability leading to incapability to continue under NPS.

A disability certificate from a Government surgeon or doctor (treating such disability or invalidation of subscriber) stating the nature and extent of disability and also certifying that:

(b). Percentage of disability is more than seventy-five percent in the opinion of such Government surgeon or doctor (treating such disability or invalidation of subscriber).

Same as exiting from NPS upon attaining age of 60 years or superannuation (refer Q3 to Q5).

If employer provides pensionary relief in case of invalidation or disability during service, the employer shall have the right to adjust or seek to transfer the part or full accumulated pension corpus of the subscriber to itself as per the applicable service rules. The remaining accumulated pension corpus, if any, shall be paid in lump sum to the subscriber.

You can voluntarily exit from NPS before attaining the age of 60 years or superannuation.

Annuitization – Minimum of 80% of accumulated pension wealth will be utilized for monthly annuity or pension.

Lumpsum – Remaining 20% of accumulated pension wealth will be paid to the subscriber.

Yes, if your accumulated pension wealth is equal to or less than a sum of two lakh fifty thousand rupees.

No, the right of the subscriber to receive any pension or other amount under the NPS will extinguish.

The entire accumulated pension wealth of the deceased subscriber shall be paid to the nominee(s) or legal heir(s).

Yes, the nominee(s) or legal heir(s) of the deceased subscriber has the option to purchase any of the annuities being offered upon exit.

Where no valid nomination exists in accordance with these regulations, at the time of exit on account of death of subscriber, the nomination, if any, existing in the records of his or her employer for the purpose of receiving other admissible terminal benefits shall be treated as nomination for exit under the NPS.

The employer shall send a confirmation of such nomination in its records, to the NPS Trust or the CRA, while forwarding the claim for processing.

However, if valid nomination cannot be established even after referring the employer’s record as mentioned above, such case shall be settled to legal heirs.

If employer provides pensionary relief to the family members as specified under the service rules or on the basis of the legal heir certificate of the deceased subscriber, the employer shall have the right to adjust or seek to transfer the part or full accumulated pension corpus of the subscriber to itself as per the applicable service rules.

The remaining accumulated pension corpus, if any, shall be paid in lump sum to the nominees (s) or the legal heir(s).

Twenty percent of the accumulated pension wealth shall be paid as an interim relief in lump sum to the nominee(s) or legal heir(s) of the subscriber and after determination of subscriber as missing and presumed dead as per the provisions of the Indian Evidence Act 1872 and amendments thereto, the remaining eighty percent out of the accumulated pension wealth of the subscriber shall be paid to the nominee(s) or legal heir(s) of the subscriber.

Yes, the President of India or the Governor of a State, or the head of the organisation, in respect of a body corporate or other entity under the ownership and control, either of the central government or any state government or a government company, as the case may be, if so specifically provided in the service rules, governing the terms of employment of the subscriber with it, reserves the right of withholding the part of pension wealth, accumulated through co-contributions made by the employer to the Tier-I account of the subscriber and the investment income accruing thereon, for the purpose of recovery of the whole or part of any pecuniary loss caused, provided such loss is established, in any departmental or judicial proceedings, initiated against such subscriber by the employer concerned.

Right of withholding has to be exercised by the employer prior to the date of superannuation of the subscriber, pursuant to a notice to be given to the NPS Trust, and seeking to withhold the said pension wealth of such subscriber.

The amount withheld which is payable under the NPS will not be paid to the subscriber until the conclusion of the departmental or judicial proceedings, and subject to the final orders, passed in such proceedings.

The amount withheld by the employer will remain subscribed to the scheme in the mode and manner in which it was held prior to resorting to such action by the employer specified.

The amount withheld becomes payable to the subscriber on the final settlement, as certified by the employer specified, which has sought withholding of such benefits, and will be paid to the subscriber as per applicable regulation while executing exit as soon as possible and in no case beyond ninety days of receipt of the final order by the NPS Trust.

Provided that, in case the amount withheld becomes payable after the death of subscriber, on the final settlement, the benefits, will be paid to the nominee(s) or legal heir(s) of such subscriber as per the applicable regulations.