Clarification on Revision of Service Charges to POPs under NPS All Citizen and Corporate Model

Clarification on Revision of Service Charges to POPs under NPS All Citizen and Corporate Model

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

B-14/A, Chhatrapati Shivaji Bhawan,
Qutab Institutional Area,
Katwaria Sarai, New Delhi-110016.

PFRDA/2017/34/P&D/1
31st October 2017

To
All Stakeholders in the National Pension System

Subject: Clarification on Revision of Service Charges to POPs under NPS (All Citizen and Corporate Model)

This has reference to the circular PFRDA/2017/34/P&D/1 dated 27th October 2017 on revision of service charges to Points-of-Presence (POPs) under NPS (All Citizen and Corporate Model). In continuation of the same, the following points may be noted:

i. The revision of service charges to POPs on subscriber registration to POPs will be effective from 01st November 2017.

ii.The POPs will continue to have the option to negotiate the charges with the subscribers, but within the prescribed charge structure.

iii. The newly introduced persistency charge of Rs 50/- per financial year will be applicable on accounts under NPS- All Citizen Model associated with the POPs for more than 6 months in a financial year and wherein the subscriber contributes minimum contribution of Rs. 1000/- in Tier I account during the financial year. This charge will be payable annually to the associated POPs by deduction of the units in the CRA system after closure of the financial year.

iv. The service charges on subsequent transactions by the subscribers associated with the POPs through eNPS platform has been increased from the existing 0.05% of the contribution amount to 0.10% of the contribution amount subject to minimum of Rs.10/- and maximum of Rs.10000/-. The revision of this service charge will be effective from 15th November 2017.

All concerned are advised to take note of the same.

Yours faithfully
(Akhilesh Kumar)
Deputy General Manager

PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutab Institutional Area,
Katwaria Sarai, New Delhi-110016.

CIRCULAR

PFRDA/2017/34/P&D/1
27th October 2017

To

All Stakeholders in the National Pension System
Subject: Revision of Service Charges to POPs under NPS (All Citizen and Corporate)

1. With a view to incentivize the POPS to actively promote and distribute NPS, POPs are allowed to collect charges for the various services provided by them.

The existing charge structure for POPs under NPS (All Citizen and Corporate):

Intermediary	Service	Charge	Method of Deduction
POP	Initial Subscriber Registration	Rs. 125/-	To be collected upfront
	Initial Contribution	0.25% of the contribution Min: Rs.20/- & Max Rs.25,000/-
	All Subsequent Contribution
	All Non-Financial Transaction	Rs.20/-
	e-NPS (for subsequent contribution)	0.05% of the contribution Min Rs 5/- & Max Rs 5,000/- (Only for-NPS-All Citizen and Tier-II Accounts)	Upfront from subscriber

The revised charge structure for POPs under NPS (All Citizen and Corporate):

Intermediary	Service	Charge	Method of Deduction
POP	Initial Subscriber Registration	Rs. 200/-	To be collected upfront
	Initial Contribution	0.25% of the contribution Min: Rs.20/- & Max Rs.25,000/-
	All Subsequent Contribution
	All Non-Financial Transaction	Rs.20/-
	Persistency	Rs.50/- per annum (only for NPS-All Citizen)	Through cancellation of units
	e-NPS (for subsequent contribution)	0.05% of the contribution Min Rs 5/- & Max Rs 5,000/- (Only for-NPS-All Citizen and Tier-II Accounts)	Upfront from subscriber

Yours faithfully,
(K Mohan Gandhi)
Deputy General Manager

Source: PFRDA

PFRDA takes a new initiative to increase pension coverage by increasing the incentives payable to Points of Presence (POPs), the principal distributive points for NPS

PFRDA takes a new initiative to increase pension coverage by increasing the incentives payable to Points of Presence (POPs), the principal distributive points for NPS

Pension Fund Regulatory and Development Authority (PFRDA) has taken several initiatives in the past few years to increase pension coverage in the country, notably introducing e-NPS, reducing minimum contribution levels, new investment instruments, aggressive life cycle funds etc.

PFRDA has now taken a further step in this direction by increasing the incentives payable to Points of Presence (POPs), the principal distributive points for National Pension System (NPS).

The following Table gives the details of increase in incentives:

Principal Distribution Point	Services offered	Current Charge	New Charge
POP	Initial Subscriber Registration*	Rs. 125/-	Rs. 200/-
	Initial Contribution	0.25% of the contribution Min: Rs. 20/- & Max : Rs.25,000/-	0.25% of the contribution Min: Rs. 20/- & Max : Rs.25,000/-
	All Subsequent Contribution
	All Non-Financial Transaction	Rs. 20/-	Rs. 20/-
	Persistency*	-----	> Rs. 50/- per annum (only for NPS-All Citizen)
	e-NPS* (for subsequent contributions)	0.05% of the contribution Min Rs 5/- & Max Rs 5000/- (Only for NPS- All Citizen and Tier-II Accounts)	0.10% of the contribution Min Rs 10/- & Max Rs 10000/- (Only for NPS- All Citizen and Tier-II Accounts)

*Changes effected A new incentive towards increasing persistency has been introduced under which POPs will receive an incentive of Rs. 50/- per account per annum for every account which continues to contribute a minimum of Rs 1000/- in a financial year.

PFRDA believes that the renewed incentive will help in increasing the reach of pensions in India, through the efforts of Points of presence (POPs).

PIB