PFRDA’s New pension scheme comes into effect from 1st May 2009
The New Pension Scheme is a system which has defined contribution unlike assured benefits of old pension system.
The regulator has got the approval of the Election Commission to roll out the NPS.
NPS was originally scheduled for the beginning of this fiscal but was deferred due to the model code of conduct.
Only non-withdrawable portion of the pension system will be launched on May Day, while withrawable portion will be operational in about six months. NPS is mandatory for all Union Government employees, who have joined the service on January 1, 2004 or later.
Most of the state governments, except for Left-ruled ones and a few others have joined NPS for their employees.
Download following documents for full details
- List of Locations for opening NPS account
- Offer Document for New Pension System for all Citizens
- New Pension System (NPS) extended to all Citizens from 1st May 2009
- Detailed investment guidelines for all Citizens under the New Pension System
- Revised Subscriber Registration Form for opening NPS account and allotment of Permanent Retirement Account Number (PRAN)
- New Pension System for all Citizens_Welcome Kit
The offer document of NPS does not specify the tax benefits in elaborate manner. It specifies “Tax benefits would be applicable as per Income Tax Act, 1961 as amended from time to time.” As per current provisions, withdrawals under the NPS attract tax under the EET (exempt-exempt-taxable) system, which means that while contributions and returns to the NPS are exempt up to a limit, withdrawals would be taxed as normal income (EET).