New Pension Scheme for Public Sector Banks and Private Banks in India-
Joining Bank on or after 01.04.2010

• There shall be no separate Provident Fund for employees joining the services of the bank on or after 01.04.2010.



• Employees joining on or after 01.04.2010 will be covered under "The Defined Contributory Pension Scheme" as governed by the provisions of New Pension Scheme [NPS] introduced for employees of Central Government w.e.f 01.01.2004, available under “All Citizens Model”and as modified from time to time.



• The new Pension Scheme will work on defined contribution basis and will have two Tiers i.e. Tier I & II



• The contribution to Tier I will be mandatory for all the members of the scheme whereas contribution to Tier II will be optional and at the discretion of the employee.



• The Employees shall contribute 10% of the Basic pay and Dearness Allowance towards the Defined Contributory Pension Scheme and the bank shall make a matching contribution in respect of these employees.



• The scheme shall be regulated and administered by Pension Fund Regulatory And Development Authority (PFRDA)



• Contribution in Tier I will be kept in non-withdrawable Pension Account. There will be a Central Record Keeping Agency.



• There will be three Pension Fund Managers namely : a) LIC Pension Fund Limited b) SBI Pension Fund Limited c) UTI Retirement Solutions Limited
• The deployment of Funds will be done by NPS Trustees among LIC Pension Fund Limited, SBI Pension Fund Limited and UTI Retirement Solutions Limited.
• Exit from NPS would be governed by employer –employee relation but within the overall rules prescribed for the individual subscribers under ALL CITIZENS MODEL i.e.
  • On attaining Normal Retirement Age (NRA) of 60 years:
  • Subscriber will be required to compulsorily annuitize atleast 40% of his pension wealth and the remaining 60% can be withdrawn as a lump sum or in a phased manner.
  • In case the subscriber opts for a phased withdrawal:
    a. Minimum 10% of the pension wealth should be withdrawn every year.
    b. Any amount l ying to the credit at the age 70 should be compulsorily withdrawn in lump sum.
  • Withdraw at any time before 60 years of age:
    In such case, subscriber will have to compulsorily annuitize 80% of his / her accumulated pension wealth.
    The remaining 20% can be withdrawn as a lump sum.
• Rules,regulations and provisions of the scheme is subject to change
• The details given are for personal use only.
  Before taking any commercial decision consult your bank.
• For more information on New Pension Scheme (NPS) visit the following websites:
  PFRDA-The Pension Fund Regulatory & Development Authority .
  NPS CRA-NSDL
  NATIONAL PENSION SCHEME BOOKLET