NSDL
SBI PENSION FUND SCHEME - CENTRAL GOVT - 17.0211 as on 15-04-2014 || SBI PENSION FUND SCHEME - STATE GOVT - 14.5592 as on 15-04-2014 || SBI PENSION FUND SCHEME E - TIER I - 14.2403 as on 15-04-2014 || SBI PENSION FUND SCHEME C - TIER I - 16.4836 as on 15-04-2014 || SBI PENSION FUND SCHEME G - TIER I - 14.7015 as on 15-04-2014 || SBI PENSION FUND SCHEME E - TIER II - 13.1116 as on 15-04-2014 || SBI PENSION FUND SCHEME C - TIER II - 15.1262 as on 15-04-2014 || SBI PENSION FUND SCHEME G - TIER II - 14.0633 as on 15-04-2014 || NPS TRUST A/C-SBI PENSION FUNDS PRIVATE LIMITED- NPS LITE SCHEME - GOVT. PATTERN - 13.7675 as on 15-04-2014 || SBI PENSION FUNDS PVT. LTD. SCHEME - CORPORATE-CG - 10.7643 as on 15-04-2014 || UTI RETIREMENT SOLUTIONS PENSION FUND SCHEME- CENTRAL GOVT - 16.6068 as on 15-04-2014 || UTI RETIREMENT SOLUTIONS PENSION FUND SCHEME- STATE GOVT - 14.7807 as on 15-04-2014 || UTI RETIREMENT SOLUTIONS PENSION FUND SCHEME E - TIER I - 16.2386 as on 15-04-2014 || UTI RETIREMENT SOLUTIONS PENSION FUND SCHEME C - TIER I - 15.0288 as on 15-04-2014 || UTI RETIREMENT SOLUTIONS PENSION FUND SCHEME G - TIER I - 13.5264 as on 15-04-2014 || UTI RETIREMENT SOLUTIONS SCHEME E - TIER II - 13.1242 as on 15-04-2014 || UTI RETIREMENT SOLUTIONS SCHEME C - TIER II - 14.3979 as on 15-04-2014 || UTI RETIREMENT SOLUTIONS SCHEME G - TIER II - 13.7832 as on 15-04-2014 || NPS TRUST A/C-UTI RETIREMENT SOLUTIONS LIMITED- NPS LITE SCHEME - GOVT. PATTERN - 13.7513 as on 15-04-2014 || UTI RETIREMENT SOLUTIONS PENSION FUND SCHEME - CORPORATE-CG - 11.1460 as on 15-04-2014 || LIC PENSION FUND SCHEME - CENTRAL GOVT - 16.7595 as on 15-04-2014 || LIC PENSION FUND SCHEME - STATE GOVT - 14.9048 as on 15-04-2014 || NPS TRUST A/C-LIC PENSION FUND LIMITED- NPS LITE SCHEME - GOVT. PATTERN - 13.7159 as on 15-04-2014 || LIC PENSION FUND LIMITED SCHEME - CORPORATE-CG - 10.9490 as on 15-04-2014 || LIC PENSION FUND SCHEME E - TIER I - 11.3719 as on 15-04-2014 || LIC PENSION FUND SCHEME C - TIER I - 10.7135 as on 15-04-2014 || LIC PENSION FUND SCHEME G - TIER I - 10.4602 as on 15-04-2014 || LIC PENSION FUND SCHEME E - TIER II - 9.9791 as on 15-04-2014 || LIC PENSION FUND SCHEME C - TIER II - 10.4616 as on 15-04-2014 || LIC PENSION FUND SCHEME G - TIER II - 10.6362 as on 15-04-2014 || KOTAK PENSION FUND SCHEME E - TIER I - 15.3750 as on 15-04-2014 || KOTAK PENSION FUND SCHEME C - TIER I - 16.2925 as on 15-04-2014 || KOTAK PENSION FUND SCHEME G - TIER I - 13.6760 as on 15-04-2014 || KOTAK PENSION FUND SCHEME E - TIER II - 13.6406 as on 15-04-2014 || KOTAK PENSION FUND SCHEME C - TIER II - 14.1526 as on 15-04-2014 || KOTAK PENSION FUND SCHEME G - TIER II - 12.8309 as on 15-04-2014 || NPS TRUST A/C-KOTAK MAHINDRA PENSION FUND LIMITED- NPS LITE SCHEME - GOVT. PATTERN - 12.1006 as on 15-04-2014 || RELIANCE PENSION FUND SCHEME E - TIER I - 15.8276 as on 15-04-2014 || RELIANCE PENSION FUND SCHEME C - TIER I - 14.8068 as on 15-04-2014 || RELIANCE PENSION FUND SCHEME G - TIER I - 13.3115 as on 15-04-2014 || RELIANCE PENSION FUND SCHEME E - TIER II - 13.5117 as on 15-04-2014 || RELIANCE PENSION FUND SCHEME C - TIER II - 13.8362 as on 15-04-2014 || RELIANCE PENSION FUND SCHEME G - TIER II - 12.9235 as on 15-04-2014 || NPS TRUST A/C-RELIANCE CAPITAL PENSION FUND LIMITED- NPS LITE SCHEME - GOVT. PATTERN - 10.0000 as on 15-04-2014 || ICICI PRUDENTIAL PENSION FUND SCHEME E - TIER I - 16.7925 as on 15-04-2014 || ICICI PRUDENTIAL PENSION FUND SCHEME C - TIER I - 16.2411 as on 15-04-2014 || ICICI PRUDENTIAL PENSION FUND SCHEME G - TIER I - 13.7389 as on 15-04-2014 || ICICI PRUDENTIAL PENSION FUND SCHEME E - TIER II - 13.2328 as on 15-04-2014 || ICICI PRUDENTIAL PENSION FUND SCHEME C - TIER II - 15.1653 as on 15-04-2014 || ICICI PRUDENTIAL PENSION FUND SCHEME G - TIER II - 13.1680 as on 15-04-2014 || NPS TRUST A/C-ICICI PRUDENTIAL PENSION FUNDS MANAGEMENT COMPANY LIMITED- NPS LITE SCHEME - GOVT. PATTERN - 10.0000 as on 15-04-2014 || HDFC PENSION MANAGEMENT COMPANY LIMITED SCHEME E - TIER I - 12.0879 as on 15-04-2014 || HDFC PENSION MANAGEMENT COMPANY LIMITED SCHEME C - TIER I - 10.6643 as on 15-04-2014 || HDFC PENSION MANAGEMENT COMPANY LIMITED SCHEME G - TIER I - 10.2612 as on 15-04-2014 || HDFC PENSION MANAGEMENT COMPANY LIMITED SCHEME E - TIER II - 10.8493 as on 15-04-2014 || HDFC PENSION MANAGEMENT COMPANY LIMITED SCHEME C - TIER II - 10.6629 as on 15-04-2014 || HDFC PENSION MANAGEMENT COMPANY LIMITED SCHEME G - TIER II - 10.5297 as on 15-04-2014 || NPS TRUST A/C-HDFC PENSION MANAGEMENT COMPANY LIMITED SCHEME - NPS LITE SCHEME - GOVT. PATTERN - 10.0000 as on 15-04-2014 || DSP BLACKROCK PENSION FUND SCHEME E - TIER I - 10.8576 as on 15-04-2014 || DSP BLACKROCK PENSION FUND SCHEME C - TIER I - 10.5523 as on 15-04-2014 || DSP BLACKROCK PENSION FUND SCHEME G - TIER I - 10.4380 as on 15-04-2014 || DSP BLACKROCK PENSION FUND SCHEME E - TIER II - 10.4403 as on 15-04-2014 || DSP BLACKROCK PENSION FUND SCHEME C - TIER II - 10.3915 as on 15-04-2014 || DSP BLACKROCK PENSION FUND SCHEME G - TIER II - 10.3315 as on 15-04-2014 || NPS TRUST A/C-DSP BLACKROCK PENSION FUND MANAGERS PRIVATE LIMITED SCHEME - NPS LITE SCHEME - GOVT. PATTERN - 10.0000 as on 15-04-2014

NPS, regulated by PFRDA, is an important milestone in the development of a sustainable and efficient defined contribution pension system in India. It has the following broad objectives:

  • To provide old age income
  • Safe and reasonable market based returns over the long term
  • Extending old age security coverage to all citizens

Welcome to the National Pension System!

NPS offers following important features to help you save for retirement

  • You will be allotted a unique Permanent Retirement Account Number (PRAN). This being unique in nature, you will not be required to change the same or obtain the new one even if you shift your residence. Therefore, you will be able to use this account and this unique PRAN from any location in India.
  • PRAN will provide access to two personal accounts
    • Tier-I pension account: You will contribute your savings for retirement into this non withdrawal account.
    • Tier-II savings account: This is an ad-on account, which is simply a voluntary savings facility. You are free to withdraw your savings from this account whenever you wish.

Under NPS, how your money is invested will depend upon your own choice. NPS offers you a number of fund managers () and multiple investment options (three) to choose from. In case you do not want to exercise a choice, your money will be invested as per the "Auto Choice" option, where money will get invested in various type of schemes as per your age.

You can open an NPS account with authorized branches of service providers called 'Points of Presence' (POPs), appointed by PFRDA. You have the option to shift from one branch to another branch of a POP at your convenience.

The tax benefits under NPS will be as per the provisions of the Income Tax Act, 1961 as amended from time to time.

To get the most out of the NPS, you need to make several important decisions about your account. This booklet will help you get started.

Key stakeholders of the National Pension System

  • Point of Presence (POP)

    Points of Presence (POPs) are the first points of interaction of the NPS subscriber with the NPS architecture. The authorized branches of a POP, called Point of Presence Service Providers (POP-SPs), will act as collection points and extend a number of customer services to NPS subscribers.
  • Pension Fund Regulatory and Development Authority (PFRDA)

    An autonomous body set up by the Government of India to develop and regulate the pension market in India.
  • Central Recordkeeping Agency (CRA)

    The recordkeeping, administration and customer service functions for all subscribers of the NPS are being handled by NSDL e-Governance Infrastructure Limited, which is acting as the Central Record-keeper for the NPS.
  • Pension Funds (PFs)/Pension Fund Managers (PFMs)

    The Pension Funds (PFs) appointed by PFRDA would manage your retirement savings under the NPS.
  • Trustee Bank

    The Trustee Bank appointed under NPS shall facilitate fund transfers across various entities of the NPS system viz. PFMs, ASPs, Subscribers, etc. Axis Bank has been appointed as the Trustee Bank.
  • Annuity Service Providers (ASPs)

    ASPs would be responsible for delivering a regular monthly pension to you after your exit from the NPS.
  • NPS Trust

    The NPS trust has been set up and constituted for taking care of the assets and funds under the NPS in the interest of the beneficiaries (subscribers).

Getting Started

You can enroll in the NPS at any time if you are a citizen of India and at least 18 years of age; no entry is, however, allowed after 60 years of age. You should take advantage of compounding of your wealth by starting right away. The earlier you start, the greater will be opportunity for the growth of your pension wealth.

To enroll in the NPS, submit the Registration Form (UOS-S1) to the POP-SP of your choice. The form is available from POP-SPs or can be downloaded from NSDL website www.npscra.nsdl.co.in and PFRDA web site (www.pfrda.org.in). After your account is opened, CRA shall send you a "Welcome Kit" containing your Permanent Retirement Account Number (PRAN) and other details relating to your account. Your PRAN will be the primary means of identifying your account. You shall also separately receive a Telephone Password (TPIN) which you will need to access your account on the NPS toll free telephone number (1-800-222080). You will also be given an Internet Password (IPIN) for accessing your account on the CRA Website (www.cra-nsdl.com). In addition, CRA will send you free SMS as well as email after your account is opened as well as at each time your contribution gets invested.

You are required to make your first contribution alongwith the application form for opening the account to any POP - SP. You are required to make contributions subject to the following conditions

  • Minimum amount per contribution - Rs 500
  • Minimum contribution per year - Rs 6,000
  • Minimum number of contributions - One per year

Over and above the mandated limit of a minimum of 1 contribution, you may decide on the frequency of the contributions across the year as per your convenience.

Investing in the NPS

Power of Choice

The NPS offers you two approaches to invest in your account

  • Active choice - Individual Funds {Equity (E), Corporate bonds (C)and Government Securities (G) Asset classes}
  • Auto choice - Lifecycle Fund

NPS also allows you to choose from any one of the following entities to manage your pension fund

  • DSP Blackrock Pension Fund Managers Private Limited
  • HDFC Pension Management Company Limited
  • ICICI Prudential Pension Funds Management Company Limited
  • Kotak Mahindra Pension Fund Limited
  • LIC Pension Fund Limited
  • Reliance Capital Pension Fund Limited
  • SBI Pension Funds Private Limited
  • UTI Retirement Solutions Limited

Active choice - Individual Funds

You will have the option to actively decide as to how your NPS pension wealth is to be invested in the following three options

E - "High return, High risk" - investments in predominantly equity market instruments

C - "Medium return, Medium risk" - investments in predominantly fixed income bearing instruments

G - "Low return, Low risk" - investments in purely fixed income instruments.

You can choose to invest your entire pension wealth in C or G asset classes and up to a maximum of 50% in equity (Asset class E). You can also distribute your pension wealth across E, C and G asset classes, subject to such conditions as may be prescribed by PFRDA.

In case you decide to actively exercise your choice about investment options, you shall be required to mandatorily indicate your choice of Pension Fund from among the Pension Funds appointed by PFRDA.

While exercising an Active Choice, remember that your investment allocation is one of the most important factors affecting the growth of your pension wealth. If you prefer this "hands-on" approach, keep the following points in mind

  • Consider both risk and return. The E Asset class has higher potential returns than the G asset class, but it also carries the risk of investment losses. Investing entirely in the G asset class may not give you high returns but is a safer option.
  • You can reduce your overall risk by diversifying your account. The three individual asset classes offer a broad range of investment options, its good not to put "all your eggs in one basket."
  • The amount of risk you can sustain depends upon your investment time horizon. The more time you have before you need to withdraw from your account, the more is the risk you can take. (This is because early losses can be offset by later gains.)
  • Periodically review your investment choices. Check the distribution of your account balance among the funds to make sure that the mix you chose is still appropriate for your situation. If not, rebalance your account to get the allocation you want.

Net Asset Value (NAV) will be released on a regular basis so that investors may be able to take informed decisions.

Auto choice - Lifecycle Fund

NPS offers an easy option for those participants who do not have the required knowledge to manage their NPS investments. In case you are unable/unwilling to exercise any choice, your funds will be invested in accordance with the Auto Choice option. You will, however, be required to indicate your choice of PFM. In case you do not do so, your form shall not be accepted by the POP-SP.

In this option, the investments will be made in a life-cycle fund. Here, the percentage of funds invested across three asset classes will be determined by a pre-defined portfolio. At the lowest age of entry (18 years), the auto choice will entail investment of 50% of pension wealth in "E" Class, 30% in "C" Class and 20% in "G" Class. These ratios of investment will remain fixed for all contributions until the participant reaches the age of 36. From age 36 onwards, the weight in "E" and "C" asset class will decrease annually and the weight in "G" class will increase annually till it reaches 10% in "E", 10% in "C" and 80% in "G" class at age 55.

Table for Lifecycle Fund

Age Asset Class E Asset Class C Asset Class G
Up to 35 years 50% 30% 20%
36 years 48% 29% 23%
37 years 46% 28% 26%
38 years 44% 27% 29%
39 years 42% 26% 32%
40 years 40% 25% 35%
41 years 38% 24% 38%
42 years 36% 23% 41%
43 years 34% 22% 44%
44 years 32% 21% 47%
45 years 30% 20% 50%
46 years 28% 19% 53%
47 years 26% 18% 56%
48 years 24% 17% 59%
49 years 22% 16% 62%
50 years 20% 15% 65%
51 years 18% 14% 68%
52 years 16% 13% 71%
53 years 14% 12% 74%
54 years 12% 11% 77%
55 years and above 10% 10% 80%

Neither the Active Choice nor the Auto Choice provides assured returns.

You can switch from one option (PFMs & Investment approach) to another, but such change can be made only once a year.

Tier II Account

Tier II account is a voluntary saving facility where in the withdrawal is as per subscriber's choice.

  • Key features of Tier-II account
    • No additional CRA charges for account opening and annual maintenance in respect of Tier II. A nominal charge will be taken separately for each transaction in Tier II.
    • Unlimited number of withdrawals, only criteria to maintain a minimum balance of Rs 2000 at the end of Financial Year i.e., as on March 31st.
    • Separate choice of scheme preference, PFMs and nomination in Tier II.
    • You can deposit your contributions to any POP/POP-SP as in case of Tier I account.
    • No separate KYC needs to be submitted by you for opening Tier II account, the only requirement is a pre-existing Tier I account.
    • Bank account details are mandatory for opening Tier II account.

  • How to Open Tier II account

    As NPS Subscriber, Tier II Activation can be done by submitting UOS-S10 application form to the Point of Presence Service Provider (POP-SP) along with the minimum contribution amount of Rs. 1000/-. i.e., Tier II account to be opened with a minimum contribution of Rs. 1000/-

    The subscribers of NPS - all citizens of India have to submit the form to the POP-SP with whom they have opened Tier I account. Other subscribers (Government/Autonomous Bodies) can submit to any of the POP-SP. The list of POP-SPs and their contact details are available in CRA website .

    For any new subscriber who wants to join NPS can open Tier I & II account simultaneously. He /she has to submit (UOS-S1) Composite application form (CAF).

    You can download these forms from our website


  • Contributing to Tier II account

    You have to make a minimum contribution of Rs. 250 and have to make minimum one contribution in a Financial Year. You can contribute to Tier II account till you have active Tier I account.

Getting Your Money Out

Vesting Criteria Benefit
At any point in time before 60 years of Age You would be required to invest at least 80% of the pension wealth to purchase a life annuity from any IRDA - regulated life insurance company. Rest 20% of the pension wealth may be withdrawn as lump sum.
On attaining the Age of 60 years and up to 70 years of age At exit you would be required to invest minimum 40 percent of your accumulated savings (pension wealth) to purchase a life annuity from any IRDA-regulated life insurance company.

You may choose to purchase an annuity for an amount greater than 40 percent. The remaining pension wealth can either be withdrawn in a lump sum on attaining the age of 60 or in a phased manner, between age 60 and 70, at the option of the subscriber.
Death due to any cause In such an unfortunate event, option will be available to the nominee to receive 100% of the NPS pension wealth in lump sum. However, if the nominee wishes to continue with the NPS, he/she shall have to subscribe to NPS individually after following due KYC procedure.

Tax benefits would be available as per the Income Tax Act 1961 as amended from time to time.

Avail Benefits At A Low Cost

NPS offers Indian citizens a low cost option for planning their retirement. A 0.0009%* fee (based on assets under management) for managing your wealth, makes pension funds under NPS perhaps the world's lowest cost money managers. Following are the charges under NPS:

Intermediary Charge Head Service charges* Method of Deduction
CRA PRA Opening charges Rs. 50 Through Cancellation of Units
Annual PRA Maintenance Cost Per Account Rs. 190
Charge per transaction Rs. 4
POP (Maximum Permissible Charge for each subscriber) Initial subscriber registration Rs 100 To be collected upfront
Initial contribution upload 0.25% of the initial contribution amount from subscriber subject to a minimum of Rs.20 and a maximum of Rs. 25,000
Any subsequent transaction involving contribution upload 0.25% of the amount subscribed by the NPS subscriber, subject to minimum of Rs.20 and a maximum of Rs. 25000
Any other transaction not involving a contribution from subscriber Rs 20
PFM charges Investment Management Fee3 Upto 0.25% p.a. Through NAV deduction
Trustee Bank Per transaction emanating from a RBI location Zero Through NAV deduction
  Per transaction emanating from a non-RBI location4 Rs. 15
Custodian5 (On asset value in custody) Asset Servicing charges 0.0075% p.a. for Electronic segment & 0.05% p.a. for Physical segment Through NAV deduction

*Service tax and other levies, as applicable, will be levied as per the existing tax laws.

1 These include

  • Change in subscriber details
  • Change of investment scheme/fund manager
  • Processing of withdrawal request
  • Processing of request for subscriber shifting
  • Issuance of printed Account statement,
  • Any other subscriber services as may be prescribed by PFRDA
  • The PoPs have the option to negotiate on the above charges with the subscribers, but within the prescribed charge structure. The above structure is applicable to both individuals and corporates in the Private (Non-Government) Sector

3 The Investment Management Fee is inclusive of all transaction related charges such as brokerage, transaction cost etc. except custodian charges. The Investment Management Fee is calculated on the average monthly assets managed by the pension fund.

4 Unlike all other charges, Trustee Bank charges are not charged to subscriber directly. Transaction refers to the entire chain of activities starting from receipt of electronic instructions/ receipt of physical instrument to transfer of funds to the designated PFMs. On the outflow side, it would include all activities leading to credit of beneficiary account.

5 Charges for Demat/Remat, Receipt of shares & SEBI charges are extra.

Grievance Redressal

NPS has a multi layered Grievance Redressal Mechanism which is easily accessible, simple, quick, fair, responsive and effective.

You have the option of registering grievance/complaint through the following alternatives:

  • Call Centre/Interactive Voice Response System (IVR)

    You can contact the CRA call centre at toll free telephone number 1-800-222080 and register the grievance. You will have to authenticate yourself through the use of T-pin allotted to you at the time of opening a Permanent Retirement Account under the NPS. On successful registration of your grievance, a token number will be allotted by the Customer Care representative for any future reference.

  • Web based interface

    You can register the grievance at the website www.npscra.nsdl.co.in with the use of the I-pin allotted to you at the time of opening a Permanent Retirement Account. On successful registration, a token number will be displayed on the screen for future reference.

  • Physical forms

    You can submit the grievance in a prescribed format to the POP - SP who would forward it to CRA Central Grievance Management System (CGMS). You will have to mention your PRAN as the means of authentication. Upon submission of form with the POP-SP, you will get an acknowledgement receipt. The token number would be emailed to you (if the email id is mentioned), otherwise the same will be emailed to the concerned POP-SP. You can get the token number from the POP-SP upon presentation of the acknowledgement receipt.

How to check the status of the Grievance?

You can check the status of the grievance at the CRA website www.npscra.nsdl.co.in or through the Call Centre by mentioning the token number. You can also raise a reminder through any one of the modes mentioned above by specifying the original token number issued.

If you do not receive any response within 30 days or are not satisfied with the resolution by CRA, you can apply to the Grievance Redressal Cell (GRC) of PFRDA.

Grievances received by the GRC directly from the subscribers only shall be entertained. GRC shall not entertain any complaints written on behalf of the subscribers by advocates, agents or third parties unless formally authorized by the subscriber.