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NPS for Corporates
 

NPS for Corporates

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NPS for Corporates NPS for Corporates Presentation Transcript

  • National Pension System www.fundsindia.com | 1
  • National Pension System (NPS) Started in the year 2004 for all Central Government Employees(excepting the armed forces) This is effective for all who have joined service from 1/1/2004 More than 20 state governments have now joined this scheme Regulated by Pension Fund Regulatory & DevelopmentAuthority ( PFRDA) Paradigm shift from Defined Benefit to Defined Contribution www.fundsindia.com | 2
  • NPS For Corporates Launches in the Dec 2011. This model is titled “NPS – Corporate Sector Model”. Existing as well as prospective employees can be brought under NPS . NPS can be run parallel to Superannuation, Gratuity, PF, VPF and any other pension schemes offered to the employees of organized entities. Eligibility Age 18yrs to 60 yrs . With KYC & Exit norms . Minimum contribution of Rs.6000/- per annum www.fundsindia.com
  • Benefits To The Corporate Absolutely Free Corporate can be a facilitator for the employees to contribute to NPS. Saving on Self administration of pension function (viz; record keeping, investment, annuity etc.) Corporate may select Pension Fund Managers (PFMs) for its employees or leave the option to employees for selecting PFMs for themselves Corporate can also co-contribute for employees’ pension. Corporate can claim tax benefits for the amount contributed towards pension of employees.From 1st Apr, 2012 upto 10% of the salary (basic and dearness allowance) of employers Contribution can be deducted as ‘Business Expense’ from their Profit & Loss Account. www.fundsindia.com | 4
  • Benefits To The Employee Prudently Managed by PFRDA & Safe investment. Tax Benefits – over & above existing limits Lowest costing pension plan in the world Freedom to choose Pension Funds Mangers & Asset Class Auto choice option for those who do not have required knowledge to manage their investment Portable - Permanent Retirement Account Number (PRAN) Complete online tracking of their investment Option to remain invested even after retirement (phased withdrawal) Entirely voluntary participation www.fundsindia.com | 5
  • Tax Benefit For Employee Contribution in NPS Account Contribution made by the Employee Contribution made through the Employer Deductible from taxable income of Deductible from taxable income of the employee u/s 80CCD the employee u/s 80CCE Benefit of section 80CCE is allowed for employer’s contribution upto 10% of Basic Benefit of section 80CCE can be availed of over and above the benefits of section 80C (1 lakh limit) www.fundsindia.com | 6
  • Pension Fund Managers & Asset ClassesSubscriber can choose any one of the following six Pension Fund Managers(PFMs):• ICICI Prudential Pension Fund Management Company Limited.• IDFC Pension Fund Management Company Limited.• Kotak Mahindra Pension Fund Limited.• Reliance Capital Pension Fund Limited.• SBI Pension Funds Limited.• UTI Retirement Solutions Limited. Allotment TableInstrument (Asset Class) Minimum MaximumEquity (Index Funds) 0 50%Corporate Bonds 0 100%Government Bonds 0 100%Note: Allotment can be changed once a year www.fundsindia.com | 7
  • Choice Of Fund AllocationSubscriber is offered 2 options to exercise the Investment of his / her contribution1.Active Choice: Subscriber will select the allocation of his / her funds among 3 AssetClasses, with contribution in Asset Class E be restricted to 50% of total Contribution2.Auto Choice (Life Cycle Option): Fund investment among 3 Asset Classes will bedetermined by Pre-Defined portfolio mentioned below.Age (in Years) Asset Class E Asset Class C Asset Class G Age (in Years) Asset Class E Asset Class C Asset Class G Upto 35 50% 30% 20% 46 28% 19% 53% 36 48% 29% 23% 47 26% 18% 56% 37 46% 28% 26% 48 24% 17% 59% 38 44% 27% 29% 49 22% 16% 62% 39 42% 26% 32% 50 20% 15% 65% 40 40% 25% 35% 51 18% 14% 68% 41 38% 24% 38% 52 16% 13% 71% 42 36% 23% 41% 53 14% 12% 74% 43 34% 22% 44% 54 12% 11% 77% 44 32% 21% 47% 55 and Above 10% 10% 80% 45 30% 20% 50%Note: Allotment can be changed once a year www.fundsindia.com | 8
  • Lowest Costing Pension Intermediary Charge Head Service Charge Method of DeductionPOP (Maximum permissible Initial Subscriber registration Rs.100 To be collected upfront charge for each and contribution upload subscriber) Any subsequent transactions 25 bps (Rs.25 per Rs.10,000)CRA PRA Opening Charges Rs.50 Through cancellation of units Annual PRA Maintenance cost Rs.225 per account Charge per transaction Rs.5Trustee Bank Per transaction emanating ZERO Through NAV Deduction from RBI location Per transaction emanating Rs.15 from a non - RBI locationCustodian (on asset value in Asset Servicing Charges .0075% p.a. for electronic custody) segment and .05%p.a. for physical segmentPension Fund Management Investment Management Fee .0009% p.a. charge* Charges as on 1st Aug 2012 www.fundsindia.com | 9
  • NPS Annual Fee Illustration - Subscriber Per Annum CommentsNPS Contribution by Employee Rs.60,000 Contribution of Rs.5000 per monthPOP fee Rs.150 25 bpsCRA Maintenance charges Rs.225 Annual ChargeCRA Transaction charge Rs.60 Transaction charge – 12 transactionsFund Management fee Rs.0.54 .0009% p.a.(Maximum)Total Annual Fee Rs.435.54One time charges:• Permanent Retirement Account Number (PRAN) registration fee: Rs.50/-• Initial subscriber registration POP charges: Rs.100/- www.fundsindia.com | 10
  • Withdrawal Information Withdrawal information Vesting Criteria BenefitOn attaining the retirement age Max 60% of the pension wealth may be withdrawn in lump sum or in a phased manner, between retirement age to next 10 years Min 40% of the pension wealth to be kept invested in life annuityAt any time before the defined age of Max 20% of the pension wealth may be retirement withdrawn At least 80% of the pension wealth to be kept invested and annuitized at retirementDeath due to any cause Nominee receives 100% of the pension wealth If nominee wishes to continue he / she shall have to subscribe to NPS individually www.fundsindia.com | 11
  • Annuity Service Providers (ASP)Subscriber can choose anyone of the ASPs• LIC Of India• ICICI Prudential life insurance• SBI Life Insurance• Bajaj Allianz Life Insurance• Star Union Dai - Ichi• Reliance Life InsuranceFollowing are types of annuities a subscriber can choose from• Pension (Annuity) payable for life at a uniform rate to the annuitant only• Pension (Annuity) payable for 5,10,15 or 20 years certain and thereafter as long as you are alive• Pension (Annuity) for life with return of purchase price on death of theannuitant (Policyholder)• Pension (Annuity) payable for life increasing at a simple rate of 3% Per Annum• Pension (Annuity) for life with a provision of 50% or 100 % of the annuitypayable to the spouse during his/her lifetime on death of the annuitant. www.fundsindia.com | 12
  • NPS - FundsIndia Advantage www.fundsindia.com | 13
  • Our Platform & Services www.fundsindia.com | 14
  • Employer Support Payroll Payroll Step 6 Integratio Integration n Contribution Step 5 Communication Step 4 Step 3 Employee Registration Step 2 Employee EngagementStep 1 Corporate Registration www.fundsindia.com | 15
  • Employee SupportEmpowerment Education- Monitor - Employee Awareness investment Program performance - Webinars- Overall fund - Email performance - Online Surveys Enablement Enrollment - Dedicated Customer Support - Registration with PFRDA Help desk - Integration with the - Chat & Mail support organisation www.fundsindia.com | 16
  • Employee Engagement Program Management Employee Awareness Employee EnrollmentEmail Campaign Online Survey Employee Presentation Webinars www.fundsindia.com | 17
  • www.fundsindia.com Every corporate NPS program administrator and every subscribing employee would receive www.fundsindia.com login id & password . www.fundsindia.com | 18
  • Employers Login www.fundsindia.com | 19
  • Employee’s Login www.fundsindia.com | 20
  • Benefits of FundsIndia• Convenient online enrollment and account maintenance process for employees• Contributions fully managed online for employers• Payroll deduction & one-cheque from employer for all employee contributions• Statements and reports online for employee and employers – anytime access on web and mobile• Establishment Of Tier II NPS Account• Individual Contribution to NPS• All services of FundsIndia are FREE www.fundsindia.com | 21
  • Thank you For more information please visit www.fundsindia.com/npsforcorporatesnps@fundsindia.com 044-43443100 www.fundsindia.com | 22