Presented By
UTI Infrastructure Technology And Services Limited
(a Government of India Company)
ISO 9001: 2000 / 27001:2005 / 20000:2005 Certified
Plot No. 3, Sector 11, CBD Belapur
Navi Mumbai – 400614

Year 2012 Year 2042

Pension is a form of Social Security/
Insurance in the form of Monthly payments paid to the citizens on attaining the age of superannuation / retirement to take care of day to day living expenses.

 Fall of Joint Family System
 Increase in Life Expectancy
 Improvement in Standard of Living,
Hygiene and Medical Facilities
 Increase in Diseases
 Increase in Cost of Living Expenses
 Changing Life Styles
 Sustainable Income for 2 to 2 ½ decades

 Life expectancy has increased from
60 years to 80 years at present
 Live joyfully today as if your going to die today evening
 Plan for your future as if you are going to live for at least 100 years from now.

 Larger time horizon.
 Develop Savings habit
 You budget your current expenditures
 Try to enhance your income Levels
 Time & energy for Extra Working
 Exploring new opportunities for investments
 You have the risk taking capacity
 IDEAL AGE FOR START OF RETIREMENT
PLANNING IS 25-28 YEARS

 X starts Investing at the age of 28 yrs
 He Invests
`
1000 every month till the age of 58 yrs
 Total Investment:
`
3.60 Lacs
Early Investment, Always Pays
20.79
 Y starts Investing at the age of 38 yrs
 He Invests
`
1500 every month till the age of 58 yrs
 Total Investment:
`
3.60 Lacs
10.86
X Y
@10% assumed rate of growth
Assuming a growth of 10% CAGR in both the cases, X’s investment would appreciate to
`
20.79 Lacs and Y’s
Investment would appreciate to
`
10.86. That means X’s investment would appreciate to almost double that of Y’s

Education
1-20
Just
Employed
Marriage and house hold expenses
20-25 25-34
Children and education
Planning for
Retirement
Retired
Life
34-55 55-60 60 & Above
AGE

Current Per Person Per Meal requires
3 Meals a Day requires
For 2 Persons requirement is
Current Income Requirement for Per annum (for Food)
Additional Household Requirements / Annum (Rentals,
Electricity, Telephone / Mobile, Gas / Fuel, conveyance) etc.
Medical Expenses for a Retired Couple / Annum
Miscellaneous Expenses / Annum
Requirements for 2 Member family
Requirement Per Annum at the end of 20 Years
(10% inflation)
Requirement for 25 Years
:
`
50.00
:
`
50.00 x 3 =
`
150.00
:
`
300.00 Per day
:
`
`
109,500.00
60000.00
:
`
25000.00
:
`
5000.00
Total :
`
2,00,000.00
:
`
2.00 Lakhs P.A.
:
`
13.45 Lakhs P.A.
:
`
3.36 Crores

 Voluntary
 It is prudentially regulated by
Government,
 Simple and Easy to understand
 Low Cost
 Allotment of Unique PRAN Number
 Ensures Complete Portability
 Flexibility
 Transparency
 Simple and Web enabled/Online

Two types of accounts are available under the scheme:
 Tier I Account - A Non-Withdrawable account (Creating a retirement Corpus)
 Tier II Account - A voluntary savings
Account - Providing liquidity to park your short term spare funds.




ACTIVE CHOICE
 Equity (not more than 50% of total
Investment)
 Corporate Bonds (No Limit)
 Government Bonds (No Limit)

TABLE FOR AUTOCHOICE (LIFECYCLE FUND)
Age
Up to 35 yrs
36 yrs
37 yrs
38 yrs
39 yrs
40 yrs
41 yrs
42 yrs
43 yrs
Asset Class E Asset Class C Asset Class G
50%
48%
46%
44%
42%
40%
38%
36%
34%
30%
29%
28%
27%
26%
25%
24%
23%
22%
And so on……
20%
23%
26%
29%
32%
35%
38%
41%
44%

 NPS offers you a grant of
`
1,000/- per annum for investors investing less than
`
12000/- per annum (for the subscribers who do not come under the fold of any of the Provident Fund
Schemes of India), subject to Net minimum contribution of
`
6000/- in the current Financial Year.

 Provide Services for Application Collection from
Subscribers, KYC Documentation and
Registration Formalities
 Contribution Collection and Uploading
 Withdrawals
 Other Subscriber Services
 Issue of PAN Card (Charges applicable)
 Grievance Resolution

Change of Particulars
Change of Nominee
Change of Composition of Asset Class
Change of Auto-Active Choice Option
Change of Pension Fund Managers
Withdrawals
Statement of Transactions

• Recordkeeping and Administration
• Issue of PRAN Number
• Maintenance of Databases
• Coordination between various
Intermediaries

 Government Sector: (All Three) (This model can be opted only by Corporates and not by Individual Subscribers)
LIC Pension Fund Limited
SBI Pension Funds Limited
UTI Retirement Solutions Limited
 Any one Pension Funds Managers under the Unorganized
Sector are :
ICICI Prudential Pension Funds Management Company Limited
IDFC Pension Fund Management Company Limited
Kotak Mahindra Pension Fund Limited
Reliance Capital Pension Fund Limited
SBI Pension Funds Limited
UTI Retirement Solutions Limited

 On attaining Normal Retirement Age (NRA) of 60
years – compulsory annuitizing of at least 40% of your pension wealth and the remaining 60% can be withdrawn as a lump sum or in a phased manner.
 Minimum 10% of the pension wealth should be withdrawn every year. Any amount lying to the credit at the age 70 should be compulsorily withdrawn in lumpsum.

 Life Insurance Corporation of India
 SBI Life Insurance Co. Ltd.
 ICICI Prudential Life Insurance Co. Ltd.
 Bajaj Allianz Life Insurance Co. Ltd.
 Star Union Dai-Ichi Life Insurance Co. Ltd.
 Reliance Life Insurance Co. Ltd.
 HDFC Standard Life Insurance Co. Ltd.

 Annuity Service Providers (ASPs) appointed by PFRDA shall provide
Pension in the form of Annuities to the individual subscribers from the age of 60 years till death.
 On death, the balance corpus will go to the Nominee.

 (a) Pension (Annuity) payable for life at a uniform rate to the annuitant only.
 (b) Pension (Annuity) payable for 5,10,15 or 20 years certain and thereafter as long as you are alive. In this type of Annuity, every
higher option of number of years of Pension chosen, will give you lesser amount of proportionate Pension.
 (c) Pension (Annuity) for life with return of purchase price on death of the annuitant (Policyholder).
 (d) Pension (Annuity) payable for life increasing at a simple rate of
3% p.a.
 (e) Pension (Annuity) for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant. (Ardhangi)
 (f) Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse during his/her life time on death of the annuitant. ((In this option (f) The amount of pension available to the Subscriber during lifetime will be less than that available under option e)).

 NPS Trust (overall Controlling Body)
 NPS Trustee Bank (Intermediary for
Fund collection from POPs and depositing in the PFMs and withdrawals)
 Custodian

BENEFITS TO SUBSCRIBER
 Cheapest investment product with better growth options through long term market-linked saving
 Choice of various funds
 Individual Retirement Account is portable
 Platform to monitor and manage investment to meet subscriber's diverse financial goals
 Employees contribution is eligible for tax exemption as per the Income Tax Act, 1961 as amended from time to time (Only in Tier I Account)

SERVICES TO SUBSCRIBERS
Offers Tier II account which is a voluntary savings facility with anytime liquidity/withdrawal option
Grievance management through CRA Website, Call
Center, Email or Postal Mail
Routine/quarterly disclosure of the funds
Auto Choice option
Release of daily NAV by PFMs
An option to remain invested even after your retirement.

ELIGIBILITY NORMS
A citizen of India, whether resident or non-resident can join NPS subject to the following conditions :
 Subscriber should be between 18-60 years of age as on the date of submission of his / her application.
 Subscriber should comply with the prescribed Know
Your Customer (KYC) norms as detailed in the
Subscriber Registration Form (CS-1 and CS-2).

Particulars Tier I Tier II
Option of Selection of Account
Initial contribution at the time of account opening
Minimum amount per contribution
Minimum account balance at the end of Financial
Year
Minimum amount of contribution per annum
Minimum Number
Contributions/Annum
Frequency on Number of Installments and Cap on the Amount to be Invested of
Mandatory
Rs.500
Rs.1000
Rs.500
As applicable
Rs.6000
One
Optional
Rs.250
Rs.2000
1000
One
Unlimited
Installments and No cap on amount

 A low cost option for planning retirement and giving maximum returns to subscribers.
Inter medi ary
Charge Head Service
Charges
Method of
Deduction
CRA
PRAN Opening Charges
Annual PRAN Maintenance
Cost per account
Charge per transaction
Rs. 50
Rs.225
Rs. 6
Through cancellation of units
POP
Initial subscriber registration and contribution upload
Rs.100
Any subsequent transaction 2
0.25% of the
Contribution Amount subject to a Minimum of Rs.20/- per contribution
To be collected upfront

Intermediary
Trustee Bank
Custodian
PFM charges
Charge Head Service
Charges
Method of
Deduction
Per transaction emanating from a
RBI location
Per transaction emanating from a
Non-RBI location 4
Asset servicing charges
Zero
Rs.15
Investment
Management fee 3
Through NAV deduction
0.0075% p.a. for electronic segment
& 0.05% p.a. for physical segment
0.25% p.a. wef
01/11/2012
Through NAV deduction
Through NAV deduction

 UTI ITSL is a Government of India Co.
 UTI ITSL has 69 Branches across the
Country
 UTI ITSL has more than 300 AMFI qualified Staff giving Personalized
Service across the country
 All information about the NAV, MF
Schemes can be easily available.
 PAN Card Service can be made available(Charges applicable)
 High quality of Service Orientation

NPS can be run simultaneously with
Superannuation, PF, Gratuity etc.
Corporate acts only as a Support
System for extending the Retirement benefit to its employees, without any short/long term liability

CORPORATE CAN CHOOSE
 Extend this Benefit to a Select Group of Employees within the Company
 Fix the Contribution amount as a
Percentage of Basic Pay
 Fix the Frequency of Contributions
 Choose the Government Model or the
All Citizen’s Model

 Platform to co-contribute for employees’ pension
 Corporate may select choice of PFM for its employees or leave the option to employees for selecting PFMs for themselves.
 Can claim tax benefits for the amount contributed towards pension of employees from 1st Apr, 2012 upto 10% of the salary
(basic and dearness Allowance)Tax
Deductible allowance of employers
Contribution

Basic Pay
HRA(50%)
Professional Allowance
Contribution to PF (12%)
Contribution to Gratuity(4.81%)
Contribution to NPS
Gross Salary
Deductions
Section 80 C (includes
Employee Contribution to
Mediclaim
Section 80CCD(2)
Total
Total Income
Taxable Income
Tax Liability
Tax Savings
EXAMPLE 1
Without
NPS
Contribution
With NPS
Contribution
Annual Salary
10% Tax Bracket
350000 350000
175000 175000
80000
42000
45000
42000
16835
0
663835
16835
35000
663835
100000
15000
0
115000
605000
490000
29000
100000
15000
35000
115000
570000
455000
25500
3500
EXAMPLE 2
Without
NPS
Contribution
With NPS
Contribution
Annual Salary
20% Tax Bracket
600000 600000
300000 300000
140000
72000
80000
72000
28860
0
1140860
28860
60000
1140860
EXAMPLE 3
Without
NPS
Contribution
With NPS
Contribution
Annual Salary
30% Tax Bracket
1000000 1000000
500000 500000
250000
120000
150000
120000
48100
0
1918100
48100
100000
1918100
100000
15000
0
115000
1040000
925000
115000
100000
15000
60000
115000
980000
865000
103000
12000
100000
15000
0
115000
1750000
1635000
320500
100000
15000
100000
115000
1650000
1535000
290500
30000

Pension Fund

Presented By
UTI Infrastructure Technology And Services Ltd.
(a Government of India Company)
ISO 9001 : 2000 / 27001:2005 / 20000:2005 Certified
Plot No. 3, Sector 11, CBD Belapur
New Mumbai - 400614