National Pension Scheme | NPS Scheme

Proper retirement planning is a necessity. It is important to secure income sources after retirement. The National Pension Scheme is one such government scheme that helps people in securing their ‘after retirement life’. Anyone who is part of this scheme gets a pension and retirement securities after retirement. This scheme is contributing towards making people self-reliant after retirement and ensuring financial stability.

Today in this article, we will elaborate on this scheme and cover everything important related to it. If you are interested in getting details about the scheme’s aim, benefits, eligibility criteria, and the application process, read the full article carefully.

National Pension Scheme 2024

It is a government scheme which was first started back in the year 2004. At that time, only the Government employees were covered under the NPS scheme. But in the year 2009, some changes were made, and now anyone can take advantage of this pension scheme

Any person can open his/her pension account and contribute towards it during his working years to get a regular pension after retirement. The contribution is made by both the employee and the employer, and withdrawal can also be made out of the deposited amount even before retirement. At the time of retirement, beneficiaries can withdraw 60% of their deposited amount, and the rest amount is provided as regular pensions.

Depending on the financial status, the investors can invest, and there are two types of accounts that can be opened under the NPS scheme called Tier One and Tier Two. 

Online Registration Process for NPS Scheme

Recently after the new updates, the online facility is also available for registering with NPS. It is taken care of by the Pension Fund Regulatory and Development Authority. The NPS account can be opened, and also the contribution can be made online, and this process is called e-NPS, and CRA hosts this.

The employees working in the private sector can also do e-KYC through PAN card/Aadhar card/bank account. 

There are several benefits of online registration. 

  • First of all, it does not require expenditures for opening accounts as everything is done online.
  • It’s a paperless process and also makes the nodal officer’s task easier.
  • A large number of accounts can be opened in less amount of time.
  • Also, the online process reduces the chances of error as the employees themselves fill the form.

Below is the stepwise procedure for opening an NPS account online.

  1. Visit the official website, and on the homepage, you will get the link for Open Your NPS Account / Contribute Online.
  2. Then choose the National Pension System and then click on the Registration link.
  3. The registration form will be open on your screen. Fill it with all the correct details, and then under account type, select Tier One Only.
  4. Then hit the continue button, and then again, it will ask for some more information and documents that need to be uploaded online.
  5. After completing everything, hit the submit button.

Offline Registration Process for NPS Scheme

  1. For doing offline registration, visit any nearby point of presence-service provider (POP-SP) office.
  2. There, you have to collect and fill the registration form and submit it along with the required documents for KYC.
  3. After submitting the form, you will be given your reference number, which can be later used to track your application’s status and other purposes.
  4. Also, the first contribution has to be made at the time of applying for NPS.

Types of NPS Accounts

As already mentioned, there are two types of National Pension Scheme accounts.

Tier-1 Account

This is a pension account, and all the deposits made into this account can only be withdrawn on time, not before that. For opening this account, having an NPS Tier-2 account is not mandatory.

Tier-2 Account

It is an investment account where the deposits can even be withdrawn before time. For opening this account, having an NPS Tier-1 account is mandatory. But note that not everyone is required to open this account. 

Important Points – NPS Scheme

  • This scheme guarantees pensions to all those who make contributions towards NPS after retirement.
  • If anyone invests in purchasing an annuity, a full tax exemption can also be provided to him.
  • Rs 6000 is the minimum amount that can be invested under the NPS Scheme.
  • If someone fails to contribute the minimum limit, then his/her NPS account gets frozen, and a penalty of Rs 100 has to be paid to unfreeze it again.
  • Earlier, the contribution limit was 10% which the government has now increased to 14 percent.
  • If the account holder dies before the age of 60 years, the pension benefits are provided to the nominee.
  • Multiple NPS accounts cannot be opened.

Eligibility for National Pension Scheme

  • All the State Government employees, Central Government employees, private sector employees, or any other ordinary citizen can be a part of this scheme.
  • This scheme is only for the permanent residence of India 
  • The investor under NPS must be in the age bracket of 18 to 60 years.
  • Only after the complete KYC is done, the person can be a part of the scheme.

Documents Needed for National Pension Scheme

  • PAN card.
  • Aadhar card.
  • Address proof.
  • Birth certificate.
  • Subscriber registration form.
  • Bank details.
  • Photographs.

Contact Details

For more information or in case you face any problem with NPS, you can contact the helpline number provided below.

Helpline Number– 1800 110 069

You can also find the option called Contact Us on the homepage of the official website for the National Pension Scheme, where there are options to contact officials and seek required help.

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