This document provides an overview of the New Pension Scheme (NPS) in India. The NPS aims to provide retirement income, reasonable market returns over the long term, and pension coverage for all citizens. It allows all Indians aged 18-60 to contribute a minimum of Rs. 500 per year. Contributions can be invested through an Active Choice model with equity, fixed income and government funds, or an Auto Choice lifecycle fund that adjusts the asset mix based on the investor's age. The NPS provides tax benefits according to Indian tax law.

1. A SHORT PRESENTATION ON
NPS
(NEW PENSION SCHEME)
PRESENTED BY-KRUPA VORA

2. NEW PENSION SYSTEM
 NEW PENSION SYSTEM (Also referred as NPS) a efficient contribution
pension system in India.
 Broad objectives :
A) To Provide old age income.
B) Safe and reasonable market based returns over the
long term.
C) Extending old age security coverage to all citizens.

3. NEW PENSION SYSTEM
 All citizens of India are eligible for
investing in NPS.
 Typically the NPS is categorized into
Individuals and central, state government
&
corporate employees.

4. NEW PENSION SYSTEM
 Ideal age of an
individual interested to
invest in NPS should be
between 18 to 60 years.
 All the individuals who
invest in NPS are allotted
with PRAN (Permanent
Retirement Account
Number)

5. NEW PENSION SYSTEM
 Minimum amount per
contribution in NPS is
Rs.500
 Minimum contribution per
year is Rs.6000.

6. NEW PENSION SYSTEM
Investing in the NPS
NPS offers 2 approaches
to invest in your account
a) Active Choice
&&
b) Auto Choice-Lifecycle Fund

7. NEW PENSION SYSTEM
 Active Choice –Individual Funds
This choice comes with 3 options to choose from.
 E-option-”High return, High risk”, investments mainly in equity
market instruments.
 C-option-”Medium return, Medium risk”-investments mainly in fixed
income instruments.
 G-option-”Low return, Low risk”- investments completely in fixed
income instruments.

8. NEW PENSION SYSTEM
 Auto choice- Lifecycle Fund
 An easy option for managing
individual NPS investments.
 Based on the individual age, the
portfolio is pre-defined.
 Eg: At 18 years of age the auto
choice-portfolio comes with
“ E-class -- 50%”
“ C-class -- 30%”
“G-class -- 20%”

9. NEW PENSION SYSTEM
 Auto choice- Lifecycle Fund
 In the auto choice option ,the ratio of
investment will remain fixed for all
contribution till the individual reaches the age
of 36.
 Post age of 36, the weight in asset class in
“E” and “C” will decrease annually &weight of
“G” increases till the ratio turns to
E:C:G::10:10:80

10. NEW PENSION SYSTEM
Tax benefits under NPS
will be as per the
provisions of the
Income Tax Act,1961 as
amended from
time
to
time.
Taxation

11. Thank you