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New Pension Scheme for Public Sector Banks and Private Banks in India-
Joining Bank on or after 01.04.2010
Salient features:
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 14% 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wealth and the remaining 60% can be withdrawn as a lump sum or in a phased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Minimum 10% of the pension wealth should be withdrawn every year.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ying to the credit at the age 70 should be compulsorily withdrawn in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The remaining 20% can be withdrawn as a lump sum.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