Escolar Documentos
Profissional Documentos
Cultura Documentos
Pension Bulletin
Volume V
Issue
VI
Table of Contents
Page No.
Pension Fund Regulatory and Development Authority (PFRDA) have been established by the
Government of India for regulation and development of Pension Sector in order to protect the old age
income security of subscribers. PFRDA takes various initiatives from time to time in order to simplify
and improve the operational issues in National Pension System (NPS) like new functionality
development under NPS architecture, simplification of account opening, withdrawal, grievance
management etc. In this regard, recently many new functionalities have been released to provide the
ease of operation for the benefit of subscribers and nodal offices. These are detailed below:
Functionality released recently for the benefit of NPS subscribers:
S.
No.
Functionalities
Benefits Description
S.
No.
Functionalities
(For Subscribers)
Benefits Description
Modification of details of All oversight offices (PrAO/DTA/POP) can now modify the
associated uploading office / details of their underlying uploading office / interfacing office
interfacing office
(PAOs/DTOs/POP-SPs) online through their existing login.
This functionality will help oversight office to modify details
(For Nodal Offices)
such as Office Name, Ministry, address, Contact details etc.
S.
No.
Functionalities
Benefits Description
online. The two-stage process involves capturing of details
by a User and authorization of the same by another User
associated to the same office. The Oversight Office can now
also view the details of the DDOs under it.
Processing
of
Online
Withdrawal
Request
by
Drawing and Disbursement
Offices (DDOs)
7
Password based access to To facilitate easy access to the Corporates, password based
Corporates
login has been introduced for accessing CRA system. Now
the Corporate, in addition to confirm the details of the
(For Nodal Offices)
associated employees, can initiate Inter Sector Shifting
request and view the Transaction Statements of the
underlying Subscribers.
Alert for Uploading offices A feature has been developed in the CRA system for the
under Government sector
Uploading Offices, wherein an alert will be displayed post
login, if contributions for the previous month are not credited
(For Nodal Offices)
for at least 80% of the subscribers associated with that
uploading office. The message will be displayed from 10th
day of every month and will continue till 80% or more
subscribers have received the credit of end of month,
whichever is earlier.
Currently, NPS and APY together have 1.31 crore subscribers with total Asset under
Management (AUM) of 1.39 lakh crore.
PFRDA strives for promotion and development of an organized pension system to serve the old
age income needs of people on a sustainable basis and towards this aim, training programmes
have been initiated for the nodal offices across all the intermediaries under National Pension
System with the objective to increase awareness about the pension schemes, their features,
benefits and latest development.
PFRDA has appointed an agency for imparting training to 75000 nodal officers across the
country in 1670 sessions with about 45 participants in each session in the financial year 201617. Nominations have been received for the training under Atal Pension Yajana and NPS. As on
31st July, 2016, 157 training sessions have been conducted across the country and 6636
participants have been trained. For the months of June and July the sessions conducted were
as under:
Training calendar for the month of August and September 2016 has been uploaded on PFRDA
website for information. 241 programmes during August and 60 programmes during September
2016, covering about 112 districts across 22 States have been scheduled. DDOS/PoPs/APY
SPs in the identified districts/ States have been requested to nominate the persons attending to
subscribers interface for these training.
Tier 2 NPS Account can be looked at as a liquid version of the NPS account since there
is flexibility to withdraw. At the same time there is no limit on the number of times money
can be withdrawn from the NPS Tier II Account. Also, no exit fee is charged from the
subscriber in case he/she withdraws from the NPS Tier II account.
Opening the NPS Tier I account is a precondition for opening the Tier II NPS Account
which can be opened through the nodal offices/ PoPs or through online facility eNPS.
The fund managers for Tier II NPS account are ICICI Prudential Pension Fund
Management Co. Ltd, HDFC Pension Fund Management Co. Ltd, Kotak Mahindra
Pension Fund Ltd, Reliance Capital Pension Fund Ltd, SBI Pension Funds Pvt. Ltd, LIC
Pension Fund Ltd. and UTI Retirement Solutions Ltd.
Subscribers can choose between Equity Funds, Government Securities and Fixed
Income Instruments other than Government Securities for investment of Tier II
contribution. If no fund option is chosen by the subscriber it goes into the auto-mode
which invests in funds based on the age. Maximum 50% of the fund can be invested in
equity-fund. However, Subscriber can invest up to 100% in Corporate Bonds or
Government Securities Fund. The subscriber can switch between active and auto
choice or change the fund allocation under Active Choice once in a year.
Since, Tier II NPS Account does not have a locking period for funds invested in the
same, there is no tax rebate. Hence, money invested in NPS Tier II Account is not tax
deductible under Income Tax Act at the time of contribution.
Nomination facility is available with NPS Tier II account like Tier I account.
There is facility of one-way money transfer from NPS Tier II account to Tier I NPS
Account.
6
Any citizen of India, resident or non-resident can join the National Pension System and
can obtain the NPS Tier II Account
Individual needs to be 18-60 years of age on the date of submission of NPS form
Redemption amount may vary depending upon the applicable NAV at the time of
redemption
The number of subscribers under NPS and APY increased from 129.01 lakh as at the end of
June, 2016 to 131.38 lakh as on 30th July, 2016 i.e. by 1.84% increase during the month of July,
2016 supported by 5.46 % increase in APY sector and 3.33 % increase in unorganized sector.
The table depicting the same is as under:
Sector
Central Government
State Government
Number of
subscribers
as on
25.06.2016
1,694,113
Number of
subscribers
Absolute
increase over
the Month
%Growth over
the Month
as on 30.07.2016
1,711,727
17,614
1.04
3,029,340
3,072,872
43,532
1.44
495,452
504,019
8,567
1.73
7,913
3.33
Corporate
Uos ( All citizen
Model)
NPS Lite
4,463,887
4,461,053
-2,834
-0.06
2,981,063
3,143,750
162,687
5.46
Total
12,901,326
13,138,805
237,479
1.84
237,471
245,384
The AUM under NPS increased from Rs. 130,402 crore as end of June, 2016 to 138,935 crore
as at the end of July, 2016 i.e. by 6.54% increase during the month of July, 2016. The highest
growth in AUM is witnessed in Atal Pension Yojana which is 18.36% followed by corporate
sector by 7.85% and 8.98% increase in unorganized sector. The table depicting the same is as
under:
Sector
AUM (as on
25.06.2016)
(Rs. Cr.)
AUM (as on
30.07.2016) (Rs.
Cr.)
Absolute
increase over
the month (Rs.
Cr.)
% Growth Over
the month
Central Government
51,885
54,918
3,033
5.85
State Government
63,565
67,865
4,300
6.76
Corporate
UOS (all citizen
model)
10,390
11,206
816
7.85
1,526
1,663
137
8.98
2,257
2,361
104
4.61
NPS Lite*
Atal Pension Yojana
Total
779
922
143
18.36
130,402
138,935
8,533
6.54
As on 30 July, 2016
#
1.
2.
State
Andhra
Pradesh
Arunachal
Pradesh
Date of
Notification
Date of
Adoption
Total No. of
Subscriber
Contribution
(Rs. In crore)
22/09/2004
01/09/2004
159,906
3,662.68
17/11/2007
01/01/2008
11,116
98.05
AUM (Rs.
in crore)
4436.08
105.09
AUM/
Subscriber
(Rs. in
lakh)
2.77
0.95
3.
Assam
25/01/2005
01/02/2005
122,247
1,975.08
2425.49
1.98
4.
Bihar
31/08/2005
01/09/2005
127,566
2,474.10
3158.9
2.48
5.
Chandigarh
11/06/2009
01/01/2004
9,715
276.9
351.9
3.62
6.
Chhattisgarh
27/10/2004
01/11/2004
258,541
2,438.36
3240.46
1.25
7.
Goa
05/08/2005
05/08/2005
26,070
510.07
578.34
2.22
8.
Gujarat
18/03/2005
01/04/2005
128,821
2,590.91
3286.55
2.55
9.
Haryana
18/08/2008
01/01/2006
106,666
2,853.92
3676.87
3.45
10.
Himachal
Pradesh
17/08/2006
15/05/2003
69,509
1,866.74
2398.52
3.45
11.
J&K
24/12/2009
01/01/2010
88,413
1,145.97
1423.04
1.61
12.
Jharkhand
09/12/2004
01/12/2004
87,785
1,588.30
2200.29
2.51
13.
Karnataka
31/03/2006
01/04/2006
164,657
3,607.54
4793.43
2.91
14.
Kerala
07/01/2013
01/04/2013
48,848
269.79
306.42
0.63
15.
Madhya
Pradesh
13/04/2005
01/01/2005
339,462
3,833.61
5024.19
1.48
16.
Maharashtra
31/10/2005
01/11/2005
229,034
4,899.76
5448.69
2.38
17.
Manipur
31/12/2004
01/01/2005
23,794
392.83
473.3
1.99
18.
Meghalaya
24/03/2010
01/04/2010
8,275
86.63
104.59
1.26
19.
Mizoram
17/06/2010
01/09/2010
3,718
57.68
65.39
1.76
20.
Nagaland
28/01/2010
01/01/2010
13,734
78.25
86.11
0.63
1781.66
1.55
464.74
4.54
2,987.23
3685.03
3.20
256,286
6,397.38
8060.5
3.15
01/04/2006
9,801
181.42
222.21
2.27
22/09/2004
01/09/2004
116,803
2,238.10
2878.89
2.46
Uttarakhand
25/10/2005
01/10/2005
64,041
1,641.27
2165.08
3.38
28.
Uttar Pradesh
28/03/2005
01/04/2005
357,574
4,086.67
5012.88
1.40
29.
Tamil Nadu
06/08/2003
01/04/2003
30.
Tripura*
No
No
34
1.43
1.5
4.41
31.
West Bengal*
No
No
153
6.62
8.79
5.75
Total
29
29
3,072,872
54,052.39
67,864.93
2.21
21.
Orissa
17/09/2005
01/01/2005
114,756
1,431.05
22.
Puducherry
07/03/2005
01/01/2004
10,233
374.05
23.
Punjab
02/03/2004
01/01/2004
115,314
24.
Rajasthan
28/01/2004
01/01/2004
25.
Sikkim
18/05/2006
26.
Terengganu
27.
th
As on 30 July, 2016
a)
b)
73
56,893
245,384
Tier I
c)
d)
e)
10
Tier II
f)
g)
h)
42,739
As on 30 July, 2016
a)
b)
c)
d)
2,652
504,019
Contribution amount
As on 30 July, 2016
a)
b)
c)
390
3,143,750
11
As on 29 July, 2016
Pension Funds
SBI
UTI
LIC
CG
10.67
10.22
10.32
SG
10.28
10.33
10.46
Corporate-CG
11.13
KOTAK
RELIANCE
ICICI
HDFC
Schemes
TIER I
TIER II
NPS Swavalamban
11.43
9.42
11.84
14.47
10.61
10.82
11.85
17.35
11.40
9.91
12.46
11.26
9.72
11.30
12.32
10.48
9.10
13.45
9.32
8.93
9.40
12.50
9.00
9.38
8.11
9.63
9.25
9.04
11.73
11.04
10.17
10.44
9.84
9.48
11.25
10.05
10.77
10.37
13.83
9.15
9.35
9.63
13.33
11.49
11.33
11.24
11.71
12
The Authority has notified the PFRDA I Exit and Withdrawals from National Pension System)
Regulations, 2015 on 11th May, 2015 and is in force. Reference is drawn to Regulation 4
pertaining to Exit from National Pension System by citizens, including corporate sector
subscribers and more particularly sub- regulation (a).
13
It has been brought to the notice of the Authority that the stakeholders including subscribers
require further clarity on the matters associated in order to actively utilize this opportunity to
continue to contribute to NPS. Thus for the convenience of the subscriber clarificatory
guidelines are issued. The Authority has examined the matter and Authority in exercise of its
powers under section 14 of the Pension Fund Regulatory and Development Authority Act, 2013
read with Regulation 39 of the PFRDA (Exits and Withdrawals from National Pension System)
Regulations, 2015 hereby issues the following clarifications.
Sl no
1
ISSUE RAISED
When should a subscriber inform
NPS Trust or CRA about his/her
intension to continue contribution
beyond the age of 60 years/
Superannuation age?
CLARIFICATION
Where a subscriber desires to continue to contribute
to NPS beyond the age of 60 years or
superannuation age, he or she shall have the option
to do so provided the subscriber intimates his or her
intension to do so in writing in the specified form at
least fifteen days before the attainment of 60 years
of age or the age of superannuation to the CRA.
14
15
16
Atal Pension Yojana (APY, a GOI scheme,) provides minimum guaranteed pension ranging
between Rs. 1000/- to Rs. 5000/- per month for the subscriber from the age of 60 years. The
Same amount of pension is paid to the spouse in case of subscribers demise. After the demise
of both i.e. Subscriber & Spouse, the nominee would be paid the pension corpus. Option for
Spouse to continue to contribute in APY account of subscriber for balance period on premature
death of subscriber before 60 years, so as to avail pension by Spouse. Tax benefits at entry,
accumulation and pension payment phases.
If the actual returns on the pension contributions during the accumulation phase are higher than
the assumed returns for the minimum guaranteed pension, such excess returns are passed on
to the subscriber, resulting in enhanced scheme benefits.
ii. PFRDA launches APY Pension Harmony Week from 25th to 29th JULY, 2016.
The APY was launched by Honorable Prime Minister of India on 09th May, 2015 and became
operational from 1st June, 2015. APY is available for all citizens of India in the age group of 1840 years. Under the APY, the subscribers would receive the fixed pension of Rs. 1000 per
month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at
the age of 60 years, depending on their contributions, which itself would vary on the age of
joining the APY.
There are more than 30 lacs subscribers registered in the scheme till date. PFRDA is constantly
carrying out various activities for promoting the schemes. Periodic advertisements and Capacity
building Programs are organized countrywide. As on 30thJune, 20 16 more than 1 Lac Bankers
and Post Office officials were trained for APY and this exercise of PFRDA is an on-going
activity.
17
To add a further fillip to the scheme, PFRDA plans a week long login drive namely as APY
Pension Harmony Week in the last week of July, 2016 starting from 25th July to 29th July,
2016. During this week all the Banks/Deptt. Of Post are advised to open 3-5 accounts per
branch. PFRDA expects high number of enrolments through this event.
Few new features have been introduced in the scheme recently:
i) Flexible modes of payment like quarterly and half yearly besides the monthly which makes the
scheme more attractive.
ii) In case of death of the subscriber before 60 years, option will be available to the spouse of
the subscriber to continue contribution in the APY account of the subscriber, which can be
maintained in the spouses name, for the remaining vesting period, till the original subscriber
would have attained the age of 60 years. The spouse of the subscriber shall be entitled to
receive the same pension amount as the subscriber until death of the spouse.
iii) Tax benefit under 80CCD (as applicable under NPS) on the self-contribution of the
subscriber.
iii) 100 crores released towards GoI co-contribution in Atal Pension Yojana
Atal Pension Yojana is being implemented through the APY Service Providers comprising of
Public Sector Banks, Private Sector Banks, Regional Rural Banks, Cooperative Banks and
Department of Post both in urban and rural areas across the country. The total number of
subscribers registered under APY as on 30th June 2016 has crossed 30 lakhs and every day
nearly 5000 new subscribers are added.
The scheme provides for a co-contribution from Government of India for those who have
registered before 31/3/2016 with an amount of 50% of the subscribers contribution up-to a
maximum of Rs. 1000/- and these subscribers will be eligible for co-contribution for a period 5
years from 2015-16 to 2019-20 only those subscribers who are not income tax payers and not
part of any other social security schemes are eligible for GoI co-contribution. Keeping in view
the above, GoI through PFRDA has released co-contribution for the FY 2015-16 for 16.96 lacs
eligible subscribers amounting to Rs. 99.57 crores. The Subscribers who have any pending
contributions in their APY account till March 2016 won't be paid with co-contribution. They have
been advised by PFRDA to regularize their APY account so as to get GoI co-contribution in the
month of September. GoI co-contribution is payable only when accounts are regular and the
admissible GoI co-contribution is paid into the Savings Bank account of the Subscribers.
Atal Pension Yojana provides minimum guaranteed pension ranging between Rs. 1000/- to Rs.
5000/- per month for the subscriber from the age of 60 years. The Same amount of pension is
paid to the spouse in case of subscribers demise. After the demise of both i.e. Subscriber &
Spouse, the nominee would be paid the pension corpus. Option for Spouse to continue to
contribute in APY account of subscriber for balance period on premature death of subscriber
18
before 60 years, so as to avail pension by Spouse. Tax benefits at entry, accumulation and
pension payment phases.
If the actual returns on the pension contributions during the accumulation phase are higher than
the assumed returns for the minimum guaranteed pension, such excess returns are passed on
to the subscriber, resulting in enhanced scheme benefits.
iv) Atal Pension Yojana (APY) workshop for State Apex Cooperative Banks and District
Central Cooperative Banks of Uttrakhand
Atal Pension Yojana is implemented through the APY Service Providers comprising of Public
Sector Banks, Private Sector Banks, Regional Rural Banks, Cooperative Banks and Department
of Post both in Urban and rural areas across the country. The total number of subscribers
registered under APY as on 30th June 2016 is around 30 lakhs and average more than 5000
accounts are added on a daily basis.
With a view to promote and expand the coverage of subscribers under APY, PFRDA has
conducted State level workshops for Cooperative Banks in association with NABARD. For FY
2016-17, Atal Pension Yojana (APY) workshops for State Apex Cooperative Banks and District
Central Cooperative Banks have been conducted in Bihar, Haryana, Himachal Pradesh, Punjab,
Karnataka and Uttar Pradesh.
PFRDA has conducted a meeting on 08th July, 2016 in coordination with NABARD regional
office Dehradun for DCCBs & RRB of Uttarakhand for handholding of the SCB/DCCBs of the
Uttarakhand in Implementation of Atal Pension Yojana. There are 11 SCB/DCCBs in
Uttarakhand. The State has more than 20,000 subscribers under APY.
19
Uttarakahand has a population of 1.01 Crore out of which 38 lakhs citizens are in between the
age Bracket of 18-40 years. The literacy of the Uttrakhand is more than the average literacy of
the country. Hence the opportunity for educating and extending the reach of APY is more in
Uttarakhand.
Atal Pension Yojana (APY, a GOI scheme,) provides minimum guaranteed pension ranging
between Rs. 1000/- to Rs. 5000/- per month for the subscriber from the age of 60 years. The
Same amount of pension is paid to the spouse in case of subscribers demise. After the demise
of both i.e. Subscriber & Spouse, the nominee would be paid the pension corpus. Option for
Spouse to continue to contribute in APY account of subscriber for balance period on premature
death of subscriber before 60 years, so as to avail pension by Spouse. Tax benefits at entry,
accumulation and pension payment phases.
If the actual returns on the pension contributions during the accumulation phase are higher than
the assumed returns for the minimum guaranteed pension, such excess returns are passed on
to the subscriber, resulting in enhanced scheme benefits.
20
21
of the conference was to understand and address the concerns of the Central Autonomous
Bodies who have not yet registered for NPS.
Shri Hemant Contractor, Chairman, PFRDA in his key note address stressed on the need for a
regular and steady source of income for old age income security. He informed the participants
that it was mandatory for all CABs which had offered CPF to its employees earlier to switch to
NPS, but some CABs had not done so, and he urged them to adopt NPS without further delay,
in view of the benefits of doing so, apart from the mandatory requirement. He gave the example
of State Governments which had voluntarily adopted NPS in view of its merits. He further
mentioned that it was important for CABs to offer a pension benefit to their employees in view of
the many advantages, which could never be matched by lump sum payments such as CPF
payment. He urged the CABs to comply with the Government directives and join NPS at the
earliest so that the employees could get the benefit of pension under NPS for their old age
income security.
Dr. B. S. Bhandari, Whole Time Member (Economics), PFRDA, while speaking on the occasion
highlighted on the introduction of NPS for all Central Government Employees (except armed
forces) joining services on or after 01st January 2004 and also informed the participants about
the various notifications issued by Government for implementation of NPS in the Central
Autonomous Bodies. He also briefed about the basic operational aspects of the NPS,
investment pattern & NPS architecture. He also illustrated the benefit of higher return under
NPS and power of compounding on this higher return resulting to better yield in comparison to
other superannuation benefits.
Shri R V Verma, Whole Time Member (Finance) PFRDA, also urged to all the CABs present in
the conference to be part of NPS and said that there is no reason why CABs have not
implemented despite all the benefits in NPS. He informed that though the scheme is mandatory
for all Central Autonomous Bodies having contributory Provident fund, many of the CABs are
yet to join NPS. He expressed PFRDA is confident that this conference will help the participating
CABs to understand NPS in a better way and will help them to join NPS at the earliest without
further delay.
Currently, NPS has more than 1.30 crore subscribers with total Asset under Management
(AUM) of more than Rs.1.37 lakh crores.
22
26,999.72
28,051.86
Absolute
Change
5= Col 4Col 3
1,052.14
8287.75
8638.50
350.75
4.23
67.62
67.03
-0.59
-0.87
31,215
31,259
44.00
0.14
49.68
42.46
-7.22
-14.53
182.0
183.9
3.55 (y-o-y)
128.3
131.1
6.07 (y-o-y)
181.8
183.0
1.2 (y-o-y)
% p.a
7.45
7.16
-0.29
-3.89
360.80
362.69
1.892
0.52
3712.88
12611.82
8898.94
239.68
-6220.24
6845.44
13065.68
-210.05
-2507.36
19457.26
21964.62
-876.01
Indicators
Units
1
CNX Nifty
Rs/$
Gold
Rs/
gm
Brent Crude
$/barrel
USD
bn
Rs.
Crore
Rs.
Crore
Rs.
Crore
10
in
As on 30th
June 2016
As on 29
July 2016
Percentage
Change
6= {Col 5/Col 3}
*100
3.90
India BSE SENSEX Index increased 1,052.14 points or 3.90% to 28,051.86 on 29th July, 2016
from 26,999.72in the 30th June, 2016. Nifty 50 closed at 8638.50 as on 29th July 2016.
US Dollar to Indian Rupee Exchange Rate is at a current level of 67.03, down from 67.62 the
previous market month and up from 64.09 one year ago. This is a change of -0.87% from the
previous market month and 4.18% from one year ago.
Brent crude oil decreased -7.22 USD/BBL or -14.53% to 42.46 on July 29th 2016 from 49.68 in
the previous month. Brent crude oil changed -14.53% during the last month and -11.37% during
the last year. Historically, Brent crude oil reached an all-time high of 145.61 in July of 2008 and
a record low of 2.23 in May of 1970.
23
The Wholesale Price Index for All Commodities (Base: 2004-05=100) for the month of July,
2016 rose by 1.0 percent to 183.9 (provisional) from 182.0 (provisional) for the previous month.
The inflation for July 2016 over the corresponding period of the previous year stands at 6.07
percent.
The annual rate of inflation, based on monthly WPI, stood at 3.55% (provisional) for the month
of July, 2016 (over July, 2015) as compared to 1.62% (provisional) for the previous month and 4.00% during the corresponding month of the previous year.
The General Index for the month of June 2016 stands at 183.0, which is 2.1 percent higher as
compared to the level in the month of June 2015. The index for May 2016 over the
corresponding period of the previous year stands at 1.2 percent.
India Government Bond 10Y decreased to 7.16 on 29th July, 2016 from 7.45 in the previous
month. India Government Bond 10Y changed -3.89% during the last month and -6.86% during
the last year.
Foreign Exchange Reserves in India increased to 362.69 USD Billion on 29th July, 2016 from
360.80 USD Billion in the previous month (June).
There was net inflow of Rs. 19457.26crore foreign portfolio investment from India in the month
of July 2016, against the inflow of Rs. 6845.44crore in the month of June, 2016.
Foreign Exchange Reserves in India averaged 195782.65 USD Million from 1998 until 2016,
reaching an all-time high of 383643 USD Million in December of 2009 and a record low of 29048
USD Million in September of 1998. Foreign Exchange Reserves in India is reported by the
Reserve Bank of India.
*****
24
25