Aditya Birla Sun Life Pension Management Ltd.

BOP - NATIONAL PENSION SYSTEM (NPS)

1
 About US
Aditya Birla Sun Life Pension Management Ltd
a wholly owned subsidiary of

Aditya Birla Sun Life

Insurance Co Ltd
Joint Venture between
Holding company for the financial services Aditya Birla Capital and
businesses of the Aditya Birla Group
Sun Life Insurance
Presence across Protecting, Investing Amongst the largest public companies in
and Financing solutions Canada with operations in key markets worldwide

Total AUM as on March 31st, 2022 is ₹ 3,706 Bn Experience of over 150 years in the
financial services

Lending book of over ₹ 672 Bn as on March 31st, 2022

Expertise in diverse range of protection & wealth
accumulation products, actuarial and underwriting
Active customer base of over 35 million
Total AUM as on Dec 31st, 2021 is US$ 1,127 Bn

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 About NPS

National Pension System (NPS) is a voluntary, There are two models under NPS
retirement savings scheme regulated by PFRDA

Individuals periodically contribute to their NPS “All Citizen Model” for “Corporate Model” for

Year 2011 – Corporate Model

account while working & accumulate corpus until Indian citizens where the corporate employees where

Launched for Companies

retirement to procure a pension subscriber himself the employer and the
contributes employee contributes
Entry age under NPS is 18-70 Years Indian Citizens, NRI & OCI are eligible for NPS

Year 2004 – New Central Govt. Year 2008 – New State Govt. Year 2010 – New PSU Bank
Year 2009 – All citizen Model
employees to compulsory enroll employees to compulsory enroll employees to compulsory enroll
Launched as voluntary Scheme
for NPS for NPS for NPS

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 Types of Accounts
NPS Accounts

Tier I NPS Account Tier I Tier II Tier II NPS Account

Pension Account - Mandatory Investment Account - Optional

Withdrawal on superannuation Withdrawal permitted anytime

Minimum Contribution Minimum Contribution

Per transaction - ₹ 500 On registration - ₹ 250
Per year - ₹ 1000
Maximum Contribution
Maximum Contribution No upper limit
No upper limit

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 Tax Benefit - NPS Tier I Account

AT THE TIME OF CONTRIBUTIONS

AT THE TIME OF
For corporate model WITHDRAWAL
Employer’s contribution up to AT MATURITY Corpus
10% of Basic salary + DA u/s 80CCD(2) at maturity,
is TAX EXEMPT

Additional Tax benefit

₹ 50,000 40% 60%
u/s 80 CCD (1B) To Annuity Service Provider Withdrawal

Max up to ₹ 1,50,000
NPS is “EEE”
u/s 80 CCD (1)
For salaried: 10% of Basic salary
For others: 20% of Gross Total Income

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 Investment Options
The subscriber has various investment and asset allocation options

Pension Fund Manager

01
& others

Asset Class
02 E - Equity Market Instruments G - Government Securities
C - Corporate Bonds A - Alternate Investment Fund

Asset Allocation (Can be changed four times every year)

03 Active – Subscriber decides %age of allocation among asset classes
Auto – Investments will be made in a life-cycle fund (Aggressive, Moderate, Conservative)

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 Exit & Withdrawals Options

Partial Withdrawal
Pre Mature Exit In Case of Death Exit on Retirement
While in Service
• Allowed after 5 years • Entire corpus is given to • Allowed after 3 years • Allowed at 60 for UOS
• Maximum 20% can be Nominee • 25% of subscriber’s subscribers and for
withdrawn in lumpsum & contribution corporates depends on the
Minimum 80% to purchase retirement age
• For specific reasons only
annuity • Maximum 60% can be
• Maximum 3 withdrawals withdrawn in lumpsum &
Minimum 40% to purchase
annuity
• The same can be extended
up to 75 years of age

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 Few facts around - The need for pension
Number as per 2021 Census, India
Covered under NPS
2%

41%
2021 - 2031
36%
2011 - 2021
2001 - 2011 36%

Elderly 60+ years

Need Pension Plan
98%

Total Population

20%
2031

2021 16%

Dependency Ratio
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Distribution of NPS through Strategic Partnerships
Understanding of Strategic Partnerships
Strategic Partner functions as Referral Partner, who is registered with POP to sell NPS

Who can be strategic partner

An individual Agent

Any Organization/entity

Process for partner onboarding

Agreement & KYC Agent using link to

Create unique link
doc garner business

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Distribution of NPS through Strategic Partnerships
Why offer NPS product?

Huge Customer base Digital Onboarding Promoted by Govt Tax Benefits:

Age – 18 -70yrs Boundryless & timeless Trusted by people High Need (Pull Product)

Customer retention
One stop solution

Low-Cost Product Easy Entry in market Flexible & Portable Retirement Planning
Min Investment ₹500 Target youth, women & Ease of accessibility Need of today
transgenders

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 Income Potential for Strategic Partnerships
Under NPS, the income is regulated by PFRDA. Partner’s Income is mentioned below:

Account Opening (one

time) : ₹200

Contribution Processing
(recurring) :
0.25%

*Maximum of ₹25000/-
*PFM to be ABSLPML

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 Support Provided By Aditya Birla Sun life Pension
System Support
• Dedicated link for registration and contribution
• SIP model available

Product & Marketing Support

• Product related trainings and workshops
• Marketing collaterals

Advisory Support
• Unique service offered to strategic partner to up scale the business
• Advising on market trends, business Planning & execution

Other Services
• Dedicated RM
• Dedicated Helpdesk
• Offline registration as per requirement

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 Onboarding a referral partner
Proprietor’s training team will
impart training

Pension DDM team will share

unique subscriber’s link

Advisor needs to fill and sign

it

Pension DDM team will share

Agreement & KYC form
For query resolution: Dedicated Central
helpdesk & SPOC will be available Share details with supporting

Collect required KYC doc

Share Proposal mail & BOP ppt with advisors

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 Thank you
[email protected]

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