National Pension System- NPS FOR CORPORATES
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Benefits of offering the National Pension System to your employees www.fundsindia.c om
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This is a detailed presentation on NPS for corporates and also employees of private organisations. FundsIndia is a leading consultant for NPS. We help individuals and corporates open and manage their NPS accounts. Till date more than 4000 individuals and 15 corporates have opened NPS account leveraging our indepth knowledge in the field of National Pension System ( NPS ). Do mail us at [email protected] if you are interested in opening a National Pension System ( NPS ) either for your company or employees.
Transcript of National Pension System- NPS FOR CORPORATES
Benefits of offering the National Pension System
to your employees
www.fundsindia.com
Created by Government of India. Managed by PFRDA (Pension Fund Regulatory Development
Authority).
National Pension System
Additional tax benefits for an employee upto 10% of Basic + DA over and above all the other tax savings options.
Lowest cost pension plan in the world.
Portable across organizations.
Investment choice with the employee – Auto choice & Active choice.
Only instrument that can invest in capital markets and save on taxes under 80 (c) after Direct Tax Code.
Retirement savings – in addition to EPF.
Benefits:
Unbeatable Tax Savings • Employee saves on taxes up to 10% of Basic in addition to 80 (c)
tax savings• Employer can claim tax deductions for the NPS contribution.
Tax Benefit Illustration
Salary Head Existing (Rs.)
After including NPS (Rs.)
Basic 2,40,000 2,40,000
Special allowance 96,000 72,000
NPS contribution (Through the employer) 24,000
Employer’s contribution to PF and Other allowances 4,64,000 4,64,000
CTC 8,00,000 8,00,000
Tax benefit under 80(c) 1,00,000 1,00,000
Taxable Salary 2,36,000 2,12,000
Tax Saving @ 30% in NPS 7,200
Fund Manager & Fund Description Subscriber can choose any one of the following five Pension Fund Managers:• LIC Pension Fund Ltd.• ICICI Prudential Pension Fund Management Company Limited.• HDFC Pension Fund Management Company Limited.• DSP Blackrock Pension Fund Managers Private Limited.• Kotak Mahindra Pension Fund Limited.• Reliance Capital Pension Fund Limited.• SBI Pension Funds Limited.• UTI Retirement Solutions Limited.
Allotment Table Instrument Minimum Maximum
Equity (Index Funds) 0 50%
Corporate Bonds 0 100%
Government Bonds 0 100%
Note: Allotment can be changed once a year
Accumulation - Illustration
Age 8% 10% 12%
35 47,55,132 66,34,167 93,94,233
40 29,45,102 37,96,844 49,46,277
45 17,30,191 20,72,352 24,97,901
50 9,14,730 10,24,225 11,50,193
Assumed Return Rate During Accumulation Phase for a monthly contribution of Rs.5,000
Applicable Charges:
Intermediary Charge Head Charge Method of Deduction
POP (Maximum permissible
charge for each subscriber)
Initial Subscriber registration
and contribution upload
Rs.100 + Rs.20 (only for the first
contribution)
To be collected upfront
Any subsequent transactions
0.25% of the contribution amount subject to a minimum of Rs.20 and a maximum of Rs.25,000/-
CRA PRA Opening Charges Rs.50 Through cancellation of
unitsAnnual PRA Maintenance cost per account
Rs.225
Charge per transaction Rs.5
Trustee Bank Per transaction emanating from RBI location
ZERO Through NAV Deduction
Per transaction emanating from a non - RBI location
Rs.15
Custodian (on asset value in
custody)
Asset Servicing Charges 0.0075% p.a. for electronic segment and .05% p.a. for physical segment
Fund Management charge Investment Management Fee
0.25% p.a.
Fee Illustration
Per Annum Comments
NPS Contribution by Employee Rs.60,000 Contribution of Rs.5000 per month
POP fee Rs.240 Rs.20 per transaction for 12 transactions
CRA Maintenance charges Rs.225 Annual Charge
CRA Transaction charge Rs.60 Transaction charge @ Rs.5 for 12 transactions.
Fund Management fee Rs.150 0.25% p.a. of Total amount
Total Annual Fee Rs.675
NPS Annual Fee Illustration - Subscriber
One time charges: • Permanent Retirement Account Number (PRAN) registration fee: Rs.50/-• Initial subscriber registration POP charges: Rs.100/-• Initial contribution upload POP charges: Rs.20/-
Withdrawal information
Vesting Criteria Benefit
On 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 annuity
At any time before the defined age of retirement
Max 20% of the pension wealth may be withdrawn
At least 80% of the pension wealth to be kept invested and annuitized at retirement
Death 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
Who we are
• Online financial services platform for retail customers.
• We enable customers manage all their investments online in a single log-in.
• Provide investment options into Mutual Funds, Deposits, Equities, Gold, Insurance & Loans.
• Value adds like Mobile portfolio, advisor on call, call centre, live chat, smart solutions etc.
• We also provide consulting services for NPS.
• We provide services to 50000+ retail customers.
• We are professionally managed & venture capital backed.
Process
Given below are the details of our consulting services & process to enroll in NPS: PRE-REGISTRATION CONSULTING:
Corporate registration. Payroll restructuring advice. Employee engagement. Employee subscription. PRAN number (Permanent Retirement Account Number) allotment.
POST-REGISTRATION CONSULTING: Employee contribution:
• Monthly, quarterly, half-yearly or yearly).• Minimum contribution is Rs.6000 per year for every employee.
Contribution upload by corporate. NAV allotment. Portfolio advice. Grievance Handling.
Some of our clients
And Many more….
