Charges and incentive structure under NPS Lite w.e.f. 01.04.2017

Charges and incentive structure under NPS Lite w.e.f. 01.04.2017

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

CIRCULAR

CIR No: PFRDA/2017/5/SWM/1
To,
All Aggregators

Date: 20th February, 2017

Subject: Charges and incentive structure under NPS Lite w.e.f. 01.04.2017

1. As per the existing revenue structure for Aggregators under NPS-Lite/Swavalamban, till 2016-17 the Aggregators are paid Rs. 100/- for opening/servicing every persistent NPS-Lite/Swavalamban account, provided the contribution deposited by the subscriber is between Rs. 1000/- to Rs. 12000/-in a financial year. However, the incentive is applicable till 31.03.2017 only.

2. In order to continue the incentives for the Aggregators even after 31.03.2017 so that they continue to service the subscriber base of NPS Lite attached to them, the following charge and incentive structure has been approved by PFRDA and will be applicable w.e.f. 01.04.2017:

Charges under NPS-Lite/Swavalamban  w.e.f 01.04.2017*	Method of living charges
The charges for any subsequent transaction under NPS- Lite/Swavalamban @ 0.25 % of the total contribution deposited by the subscriber in NPS-Lite/Swavalamban in a financial year subject to a minimum of Rs. 20/-.	Through unit deduction by NSDL/CRA at the end of the Financial Year
Any other transaction not involving a contribution from subscriber @ Rs. 10/- per transaction

3. All the Aggregators are hereby advised to take note of the same and also disseminate information regarding the same to the associated nodal offices including facilitators.

4. It is further advised that an Aggregator is not permitted to collect any charge or fee upfront from subscriber. In case of any violation of these instructions, suitable action will be initiated as envisaged in the PFRDA (Aggregator) Regulations, 2015.

Ashish Kumar
General Manager

Signed copy

New Pension System : Status of subscribers of NPS as on 10th November, 2012

Implementation of NPS

The New Pension System (NPS) has been implemented for various sectors like Central Government, State Government, Private Sector and NPS-Life.  The status of NPS in these sectors as on 10th November, 2012 is as under:-

The number of subscribers is increasing every year in all the sectors.

Sector	No. of Subscribers (Figures in lakhs)	Assets under Management (Rs. In crores)
Central Government	10.62	14,846
State Government	14.67	7,445
Private Sector	1.64	835
NPS-Life	13.05	344
Total	39.98	23,470

There is no proposal to increase the monthly contribution of subscribers by the Government.  The Government provides matching contribution for the Central Government employees who are covered under the NPS scheme.  In case of NPS Swavalamban accounts, Rs. 1000/- per annum is being contributed by the Government.

NPS Trust consisting of professionals with expertise in the field of Investment and Asset Management has been constituted.  The NPS Trust regularly monitors the performance of the Pension Funder Managers (PFMs) appointed by Pension Fund Regulatory & Development Authority (PFRDA).  PFMs manage the investments of subscribers of NPS in conformity with the Investment Management guidelines prescribed by the NPS Trust.

This information was given by the Minister of State for Finance, Shri   Namo Narain   Meena in written reply to a question in Lok  Sabha today.

PIB