Presentation
on
CAB Model
Under
New Pension System
Structure of the Presentation
1
2 NPS Architecture
3 Operating Process
4 Investment Options
Current Status
• Over 1.24 million subscribers registered NPS across Central
Government, State Government, UoS
• 27 State Governments/UTs has adopted NPS for their employees
• 4 Corporate already on board including National Aluminum
Corporation (NALCO), Agriculture Insurance Corporation (AIC)
• Many other corporate intends to join NPS. Coal India Limited, IBA,
General Insurance Companies are in the process of loging
• Launch of NPS Lite by Honorable Finance Minister in September
2010
• 39 entities including Public Sector & Private Sector Banks acting as
Point of Presence under NPS
Pr.AO
Intermediaries
Regulator
SBI/ UTI/ IDFC
/Kotak/Reliance/
ICICI Prudential
Pension Fund Manager
Bank of India
Stock Holding
Corp (SCHIL)
Trustee Bank
Custodian
NSDL
To be Appointed
CRA
Annuity Service Provider
To be Appointed
(SAB)
Nodal Offices
Process under NPS
• Registration of Entities
• Registration of Nodal Offices
• Registration of Subscribers
• Contribution Processing
• Preparation and Upload of SCF
• Transfer of Funds to Trustee Bank
• Matching & Booking Process
• Subscriber Maintenance
• Change in subscriber personal/employment details
• New Scheme Setup
• Re-printing of I-Pin, T-Pin or PRAN Card
• Grievance Management
• Logging of Grievances
• Grievance Redressal
Role of Nodal Offices
• Registration of the Nodal offices and Subscribers
• Uploading Subscriber’s monthly contribution (SCF) details to
CRA
• Transfer of subscriber contribution amount to Trustee Bank
• Subscriber Maintenance
• Grievance logging and resolution
Registration Hierarchy
Nodal offices centrally
registered with CRA
Subscribers will be mapped to DDOs, DDOs will be mapped to Pay
& Account Office (PAO) and PAOs will be mapped with Principal
Account Office (Pr. AO)
Nodal Office Registration
Registration Forms
available at
CRA Website
www.npscra.nsdl.co.in
Form N1
Form N2
Form N3
Forwarding Form N2
with covering
letter
Forwarding Form N3
with covering
letter-N4
Details to be submitted to CRA – Name of the Office, Address,
Email id, Authorised Signature & Stamp
C
R
A
Nodal Office Registration
• Pr. AO and PAO to be registered on the basis of physical
applications
• DDO can be registered on the basis of soft copy data on the
basis of the format provided by CRA or through Forms
• Consolidated data to be provided by a single office.
• Checks on uniqueness and duplicity of the DDO data provided
• Allotment of Unique Registration Number by CRA
• Intimation of registration number by CRA
• Issue of I-Pin & T-Pin for accessing NPSCAN/CRA and IVR
facility
• Standard Operating Procedures/Utility at CRA website for using
NPSCAN/CRA
Subscriber Registration Process
Model of Upload
1. Centralized Model : Centralized upload of data and
transfer of funds by Directorate
2. Decentralized Model: Decentralized upload of data by
and transfer of funds by DTO
3. Quasi Centralized Model: Decentralized upload of
data by DTO and Centralized fund transfer by
Directorate
Centralized Mode
Mode A (Centralized)- In this Mode, Directorate would prepare consolidated
subscriber contribution file based on contributions prepared at various DTO/
DDO and upload the same in the central NPSCAN system. Also this office
would make one consolidated payment to the bank.
Consolidated Contribution File
CRA System
Pr. AO
Consolidated Contribution Payment
PAO/ DDO
Trustee BANK
De-centralized Mode
Mode B (De-centralized) - In this Mode, the DTO on behalf of his/her
underlying subscriber will prepare and upload the subscriber contribution file
and thereafter will remit the contribution amount of subscriber to the trustee
bank.
Contribution File
Contribution Amount
Quasi - Centralized Mode
Mode C (Quasi-centralized) - In this Mode, each DTO would prepare
subscriber contribution file based on contributions received and upload into
NPSCAN system. However the Directorate would make one consolidated
payment against all the SCF uploaded by DTO to the trustee bank.
Consolidated Contribution Payment
Contribution File Details
Uploaded on NPSCAN
Contribution File
Subscriber Contribution
Processing
1. Consolidation of
Subscription
Directorate/DTO
FPU
FVU
3. Validate
File
2. Digitization
4. File Upload
7. Submission of CSF
&
Transfer of funds
5. Generation & Printing of
CSF
CRA
8. Fund Receipt
Confirmation
Trustee Bank
6. Data Transfer
NPSCAN
Utilities
• What is a File Preparation Utility (FPU)?
o A utility provided by CRA that will assist in preparation of
SCF as per the file formats of CRA.
• What is a File Validation Utility (FVU)?
o A Utility provided by CRA that will verify whether the SCF
prepared is as per format of the CRA
How to acquire the FPU and
FVU?
The FPU/FVU will be made available for download at
www.npscra.nsdl.co.in.
The Path for downloading the FPU/FVU
-Downloads
--Software Downloads
---All citizens of India
----Utilities
-----Contribution Upload
FPU and Its Features
•
•
•
•
The FPU is a stand alone utility installed on a local machine.
Connection to Internet is not required for using the FPU.
FPU will generate the SCF as per the specified CRA file formats.
FPU is easy to use with excel-type features.
File Preparation Utility
File Preparation Utility
Creating SCF file
Creating SCF file
File Validation Utility
Upload to CRA
•
•
•
•
Logon to CRA at www.cra-nsdl.com
Requirement of DSC for SCF Upload
FVU validated SCF to be uploaded
Generation of File Reference Number (FRN)
Contribution Upload
Attaching a file
File Reference Number
File Status View
File Status View
Contribution Submission Form
Contribution Submission Form… Contd
Subscriber Maintenance
Change Details/
Transaction Request
Intimation
through
Email
Data upload
Acknowledgement
Number
on successful
transaction
Data upload
Grievance Management
Status through
website/email/IV
R/call centre
Getting Started
• Approach PFRDA for Joining NPS
• Issuance of Authorization Letter by PFRDA
• Appointment of Designated office as single point contact with
CRA
• Execution of Contract with CRA
• Decision on the model of interface with CRA
• Registration of Nodal Offices
• Registration of Subscribers
• Transfer of legacy data and funds
• Commencement of subscribers’ contribution upload
Contact:
Pension Fund Regulatory and Development Authority
Tel. No. + 91 - 11 - 26897937
Fax No. + 91 – 11 – 26897938
E-mail:
www.pfrda.org.in
Central Government – Investment
•
•
Scheme applicable for Central Government Employees
Investments across Government Fund Managers
o SBI Pension Funds Limited (33%)
o UTI Retirement Solutions Limited (32%)
o LIC Pension Fund Ltd (35%)
Above allocation is reviewed annually by PFRDA/NPS Trust based on
performance
o Investments norms In accordance with Ministry of Finance guidelines for Non
Govt. Provident funds and Superannuation funds
o Government securities Upto 55
o Debt securities Upto 40
o Money market instruments Upto 5
o Equity Upto 15
Charge Structure
Getting Money Out
Vesting Criteria
At any point in time before
60 years of Age
Benefit
The Subscriber would be required to invest at least 80% of the
pension wealth to purchase a life annuity from any IRDA –
regulated life insurance company, which is appointed by
PFRDA. Rest 20% of the pension wealth may be withdrawn as
lump sum.
On attaining the Age of 60 At exit the Subscriber would be required to invest minimum 40
years and upto 70 years of percent of his/her accumulated savings (pension wealth) to
age
purchase a life annuity from any IRDA-regulated life insurance
company, which is appointed by PFRDA..
The Subscriber may choose to purchase an annuity for an
amount greater than 40 percent. The remaining pension
wealth can either be withdrawn in a lump sum on attaining the
age of 60 or in a phased manner, between age 60 and 70, at
the option of the subscriber.
Death due to any cause
In such an unfortunate event, option will be available to the
nominee to receive 100% of the NPS pension wealth in lump
sum. However, if the nominee wishes to continue with the
NPS, he/she shall have to subscribe to NPS individually after
following due KYC procedure.