NEW PENSION SCHEME NPS

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NEW PENSION SCHEME STRUCTURE

NNPS has unbundled Architecture, where each function is performed by different entities.

§  NPS is based on Personal retirement accounts (PRAs) created for individual members. NPS accumulates savings into subscriber's PRA while he is working and use the accumulations at retirement to procure a pension for the rest of his life.

§  PFRDA, a Prudent Regulator created by Government of India.

§  Central Record keeping lies with NSDL which is associated with various National level projects for recordkeeping functions.

§  Renowned Financial Institutions covering Public/Private Sector Banks, NBFC, Broking houses acting as POP.

§  Funds are managed by Fund Manager from Public & Private sector with proven track record.

§  Axis Bank, functions as Trustee Bank.

§  Stock Holding Corporation of India Ltd, functions as custodian for NPS.

§  NPS has an unbundled Architecture, where each function is performed by a different entity. NPS is a unique product which provides an opportunity for subscribers, to be serviced by the intermediaries which are renowned in their areas, that too at low cost, like:

o    At present, More than 50 POPs with over 14000 POP-SPs are registered for providing NPS services.

o    At present, 7 Annuity service providers have been selected to provide the Annuity.

o     Life insurance company is one of the approved Annuity Service Provider for NPS scheme.