National Pension System (NPS)

Customer Value Enhancement BU, SBI

Content

1) Why NPS

2) Benefits from NPS

3) Flexible Compensation

4) How does NPS work

5) Individual Subscriber Registration

6) Subscriber On-boarding under Corporate Sector

7) Processing Corporate Applications

8) Form Authorizing & Dispatch

9) Support/ Assistance Contacts & NPS Content

2
Why NPS?
 Do I have a plan for my Retirement……..

 In 20s: We think its too early

 In 30s: Setting up a family

 In 40s: Children education and housing takes the priority

 In 50s: There is a sense of urgency for retirement savings

 By 60: It’s too late

Can I Retire without a Pension

 POST RETIREMENT PENSION IN INDIA
• Like most other developing countries, India does not have a universal social security
system to protect the elderly against economic deprivation

• As a first step towards instituting pension reforms, Government of India moved from a
defined benefit pension to a defined contribution based pension system for it employees,
which provides investors an option to avail of reasonable market based returns over a long
run

• The Government has introduced the National Pension Scheme (NPS), and made relevant
income tax amendments to make it favorable for corporate sector to offer NPS to their
employees.

• A citizen of India including NRI between 18 – 65 years of age at the time of submission of
NPS application and complied with the KYC (as detailed in the NPS application form) can join
NPS

• NPS is based on a unique Permanent Retirement Account Number (PRAN) which is allotted
to each subscriber by NSDL. Individual who joins NPS is called Subscriber of NPS
NPS Benefits
5 MAJOR NPS BENEFITS SNAPSHOT

TAX BENEFIT

FLEXIBILITY OF INVESTMENTS

MARKET LINKED RETURNS

LOW COST STRUCTURE

PENSION & WITHDRAWAL BENEFITS

 NPS TAX BENEFITS
TAX BENEFIT:-
Employee/ Individual Contribution:- u/s 80 C – Upto 10% of Basic Salary (with a ceiling of
Rs.1.5 lacs) / 20% of gross total income
Employee Contribution:- Deduction up to Rs. 50,000 u/s 80 CCD(1B)
Employer: U/Sec 80 CCD (2)- Upto 10% of Basic Salary (7.5 lacs for RPF, NPS &
Superannuation Fund)
All of these contributions have mutually exclusive tax saving benefits
Employee Contribution:- u/s 80 C – Up to Voluntary Contribution: u/s 80 CCD(1B)
150000/-
- PF Contribution Deduction on investments up to Rs. 50,000
- Superannuation Contribution
- Life Insurance premium
- Mutual Fund subscription
- Etc……………………
+
- Employee contribution to NPS
_________________________________
= 150000/-

Employer Contribution: u/s 80 CCD (2)-

Any contribution made by the employer to the extent of 10% of Basic Salary and DA is
deductible from Taxable income over and above the limit under Sec 80C. This benefit is linked
to Tier I Account only.
 NPS INVESTMENT BENEFITS
FLEXIBILITY OF INVESTMENTS :-
1. Choice of Pension Fund Manager (PFM): 8 PFM shortlisted by PFRDA
2. Choice of Asset Allocation: Auto (Life Cycle Fund)/ Active Choice
Active Choice: Subscriber selects the percentage allocation of funds amongst 4
Asset Classes (i) E- Equity (max 75%), (ii) C-Corporate Bonds, (iii) G- G-Sec &
(iv) AIF-Alternative Investment Fund (max. 5%)

Auto Choice (Life Cycle Fund): 3 Pre-Defined portfolio as per varying risk profiles
(i) LC-25 or (ii) LC-50 or (iii) LC-75

LC 50 – Moderate Risk
Age (in Years) Asset Class E Asset Class C Asset Class G
Upto 35 50% 30% 20%
36 48% 29% 23%
37 46% 28% 26%
- - - -
55 and Above 10% 10% 80%

• Subscriber can select different PFM & Asset Allocation for his / her Tier I and Tier II A/Cs
• Subscriber gets the option to change PFM once in a FY & Asset Allocation Pattern twice in a
FY for both Tier I and Tier II accounts independently
 Asset allocations under Auto Choice
Conservative Life Cycle Fund (LC-
Aggressive Life Cycle Fund (LC-75) Moderate Life Cycle Fund (LC-50) 25)
Age
Asset Class (in %) Asset Class ( in %) Asset Class (in %)
E C G E C G E C G
Up to 35 75 10 15 50 30 20 25 45 30
years
36 years 71 11 18 48 29 23 24 43 33
37 years 67 12 21 46 28 26 23 41 36
38 years 63 13 24 44 27 29 22 39 39
39 years 59 14 27 42 26 32 21 37 42
40 years 55 15 30 40 25 35 20 35 45
41 years 51 16 33 38 24 38 19 33 48
42 years 47 17 36 36 23 41 18 31 51
43 years 43 18 39 34 22 44 17 29 54
44 years 39 19 42 32 21 47 16 27 57
45 years 35 20 45 30 20 50 15 25 60
46 years 32 20 48 28 19 53 14 23 63
47 years 29 20 51 26 18 56 13 21 66
48 years 26 20 54 24 17 59 12 19 69
49 years 23 20 57 22 16 62 11 17 72
50 years 20 20 60 20 15 65 10 15 75
51 years 19 18 63 18 14 68 9 13 78
52 years 18 16 66 16 13 71 8 11 81
53 years 17 14 69 14 12 74 7 9 84
54 years 16 12 72 12 11 77 6 7 87
55 years 15 10 75 10 10 80 5 5 90

BACK
 NPS INVESTMENT BENEFITS

MARKET LINKED RETURNS :-

Superior NAV based returns

Annualized returns over last 7 & 10 years as on May 20

Asset Class & Period SBI PFM Benchmark Industry Avg.

Equity      
7 yrs 7.66 7.91 7.40
10 yrs 7.52 7.14 7.69
Corporate Bonds      
7 yrs 9.21 9.08 9.16
10 yrs 10.42 9.37 10.22
G-Sec      
7 yrs 9.25 8.99 9.22
10 yrs 10.10 9.24 9.88
Source: NPS Trust
 NPS COST STRUCTURE BENEFITS
(exclusive of GST)

Sl. No Intermediary Particulars Mode of Tier I Tier II

Payment

1 POP Registration / Activation Charge Upfront 200 20

(one-time)

0.25% of contribution charge (min

2 POP Contribution Charge Upfront
Rs.20 & max. Rs.25,000)

3 POP Any other non-financial Upfront Rs.20

transaction
4 CRA Transaction Charges Rs. 3.75 Rs. 3.75

PRAN Issuance Charges (one

5 CRA time) NAV Rs. 40.00 NA
Cancellation
/
Account Maintenance Charges Unit
6 CRA (Annually) Redemption Rs. 95.00 Nil
7 Custodian Custodial charges 0.0032% p.a.
8 PFM Investment Management Fee 0.01% p.a.
9 Trust Administration Fee 0.005% p.a
 PENSION & WITHDRAWAL BENEFIT
PENSION & WITHDRAWAL BENEFITS:-
Minimum 40% of pension wealth to be used to buy annuity from IRDA approved Annuity
service provider who will provide monthly pension to employee based on the size of
corpus at the time of retirement

• ENTIRE 60% OF WITHDRAWAL PERMITTED IS TAX FREE

Flexible Compensation for Corporate
Subscribers
Restructuring of Salary CTC
Rs. In Lacs
Without NPS With NPS
Head Particulars
Deductions Deductions

CTC Basic 8.0 8.0

  HRA 4.0 4.0
  Allowances 8.0 7.2
  NPS Employer Contribution u/s 80 CCD (2)
(10% of Basic) -- 0.8
  Total Salary 20.0 20.0
Taxable Income after NPS Employer Contribution (i) 20 19.2
Deduction claimed u/s 80C (ii) 1.5 1.5
(i) PF/ ELSS/ Insurance/ Home Loan 1.5 0.7
repayment/ Tuition Fee/ etc.
(ii) NPS Employee Contribution (10% of Basic
-- 0.8
under overall ceiling of Rs.1.5 lacs)
Deduction towards NPS employee contribution u/s 80CCD (1B) (iii) -- 0.5
Total Taxable Income (iv) = (i) - (ii) - (iii) 18.5 17.2
Savings on Income Tax (@30%) 0.45 0.84
How does NPS work
 WITHDRAWAL SNAPSHOT
MATURITY WITHDRAWAL:-
Lump Sum:- 60% of total Corpus (tax free)
Annuity Pension :- 40% of the corpus will be
compulsorily used for Annuity purchase
Complete withdrawal, if corpus is below Rs 2.0/- lacs

Investment Period

Contribution Allowed beyond age

of 60 Years upto 70 years
Entry Eligibility 18-65 Years
Retirement Age
18 35 40 45 50 55 60 65 70

Balance 60% can be withdrawn

in phased manner or lumpsum
PREMATURE WITHDRAWAL:-
Tax free withdrawal, 25% of own 40% minimum purchase of annuity
contribution (excludes employer
contribution) after lock-in period of 3 years

Purposes for which partial withdrawal allowed

For the purpose of higher education of his/her children,
For marriage of his/her children,
For purchase or construction of residential house or flat
For treatment of specified illnesses.
 NPS Two Tier Structure
Particulars Tier I Tier II
Option of selection of A/C Mandatory - Pension A/C Optional – Investment A/C
Withdrawal Facility Conditional & Restricted Yes - Anytime
Withdrawal
Minimum Contribution at Rs. 500 Rs. 1000
the time of A/c opening
Minimum amount of Rs. 500 Rs. 250
subsequent contribution
Minimum Contribution Rs. 1000 -
Required per year
Minimum no. of One -
contribution per year
Frequency of contribution Unlimited Unlimited
permitted
Tax Benefit Available Yes No
 FAQ
Q. If employee already has NPS account, will he/ she need to open one more NPS account?
A. NPS account is unique. In case an employee is already having a NPS account under All
Citizen (Individual) sector, the same will have to be shifted under Corporate Sector by
filling Inter Sector Shifting (ISS) form. In case PRAN of the employee starts with 4 i.e.
subscriber is registered at Karvy, he/ she will have to addirionally submit duly filled Inter
CRA Shifting (ICSS) Form.
Q. If employee has a PRAN under Atal Pension Yojana/ NPS Lite scheme, will he/ she need
to open one more PRAN account under NPS?
B. Yes. PRAN account for NPS & APY/ NPS Lite are different.
Q. How can subscriber access account statement ?
C. Subscriber can log-in at NSDL portal or NPS App to access NPS account. Subscriber can
also self-service himself, using many options available at NSDL like download account
statement, change in mobile no., change investment options, etc.
Q. Where will the subscriber get PRAN Kit & I-Pin?
D. PRAN Kit will be dispatched to his/her correspondence address (PRAN Card to be kept
safe for future). To access NPS account on NSDL website, PRAN no. will be User ID and I-
Pin will be the password, which can be generated using OTP at NSDL portal.
Q. Can subscriber avail tax benefit for NPS under any one section say 80 CCD (2) but does
not exhaust benefit limit under 80C or 80CCD (1B)?
E. All 3 IT Sections for NPS are independent of each other. It is completely subscribers
discretion to avail tax benefit under any or all sections, fully or partially.
Individual Subscriber Registration
Login to CBS
Click on NPS (New Icon) under Apps section
Go to NPS Menu
Maker Entry – SWO/ Bank Staff
Maker Entry – Choice of CRA (as of now only NSDL)
Maker Entry – Tier 1 or Composite (Tier 1 & 2)
Maker Entry – Existing Customer or New (includes
existing customer with different address than in CBS)
Maker Entry – Subscriber Personal Details
Maker Entry – Subscriber Personal Details
Maker Entry – Address
Maker Entry – Address (Permanent Address same or
different)
Maker Entry – Contact & Other details
Maker Entry – Bank details
Maker Entry – Nominee details
Maker Entry – Investment details
Maker Entry – FATCA Declaration
Maker Entry – Payment Mode
Maker Entry – Contribution Details
Maker Entry – Contribution Details
Checker Authorization
Checker Authorization
Receipt Print
On-boarding under Corporate Model
 On-boarding of new subscribers
Go to www.onlinesbi.com > Click on NPS > Corporate Employee Registration
On-boarding of new subscribers 4 options on Landing Page:
(i) Registration
(ii) Completing partially filled form
(iii) Download filled-up form
(iv) Tracking NPS Application status
On-boarding of new subscribers
(i) Registration – Enter your company’s CHO CBO to proceed for registration
On-boarding of new subscribers
Confirm & proceed by entering the OTP
 On-boarding of new subscribers
(i) Registration – TPRN comes on SMS and also is visible on screen. Note TPRN for future
reference & check if your Company Name appears correct to proceed
(ii) With the TPRN and DoB, you can complete your partially filled form (provided
Personal Details section was filled completely and saved)
On-boarding of new subscribers
(i) Registration – Fill all sections (preferably in Capital letters) to complete form-filling
On-boarding of new subscribers
(i) Registration – Complete ‘Personal Details’ section
Complete partially filled form
After completing Personal details, is subscriber wants to complete form later (within
30days) or session gets timed out, he/ she can complete the form filling by clicking
on ‘Continue with partially filled’ and quoting earlier TPRN & DoB
Contact Details Section
(i) Fill-up ‘Contact Details’ section
(ii) Address must be same as appearing on the address proof else form will be
rejected. If two different addresses (Correspondence & Permanent) are submitted,
self-attested address proof must be submitted
Bank Details Section
(i) Fill-in ‘Bank Details’ section
(ii) Click on ‘Save and Continue’ to proceed
(iii) Cancelled cheque for the same Bank Account must be submitted
 Nomination Details Section
(i) Fill-in ‘Nomination Details’ section
(ii) Maximum of 3 nominees can be submitted. Annexure III will have to be printed (which
will be part of PDF form) and signature must also be provided on the Annexure
(iii) Click on ‘Save and Continue’ to proceed

Additional nominees
can be opted
Total % share must be 100%
PFM & Investment Option Section
PFM option – Subscriber can choose any one PFM out of the 8 PFMs
PFM & Investment Option Section
PFM & Investment option – If chosen at Corporate Level, it will be auto-populated else
subscriber can choose their preference.
 Declaration Section
(i) Enter ‘Place’ and accept ‘Terms & Conditions’
(ii) Click on ‘Save and Continue’ to proceed
 FATCA Declaration Section
(i) Give FATCA Declaration
(ii) Can submit maximum 3 countries where subscriber has had any Tax Incidence
(iii) For INDIA, there is no validity data required as PAN does not have any expiry
(iv) Click on ‘Save and Continue’ to proceed
 Employment Details Section
(i) Employment Details - Date of Joining, Retirement and Employee ID has to be correctly
entered, which will be verified by HR team
(ii) Click on ‘Submit’ to submit the form

Note: Date of retirement is the last

date of the month in which the
employee turns 60 years of age
 Download PDF
(i) TPRN & Receipt Number may be noted for Tracking purpose
(ii) Download PDF for printing & save it for any future reference
 Print PDF & submit the complete form with supporting proofs
(i) The downloaded PDF also has the same receipt number on top.
(ii) Print the NPS registration form
a. Affix photograph
b. Signing on form & Nomination Annexure (if applicable)
(iii) Attach KYC proofs and cancelled cheque
(iv) Submit the form to your local HR person/ Nodal officer for onward processing

Note down your

17 -digit Receipt
Number
HR / Accounts team of Corporate to verify employment details

Fill-in this
section

• Corporate team to verify employment details filled by employee & submit form to
SBI branch with the registration charge
 FAQ
Q. Some information wrongly filled but filled form not submitted online? Can I change?
A. Yes, it can be changed

Q. Some information wrongly filled & filled form submitted online? Can I change?
B. You have to make fresh entry but as your employment details have been submitted
system will not allow you. You need to advise your local HR/ Nodal officer to intimate SBI
through your team at Head Office. Once the earlier record is rejected, fresh entry can be
made.

Q. I am getting an error while submitting the form. What should I do?

C. SBI Internet Banking website works best in Chrome or IE 11+ version. Pls check you are
using compatible browser. Alternatively, you can try from some other PC/ Laptop or
Handheld device to complete the form filling and submission thereof. You could also
share your TPRN and screenshot of the error with your local Nodal Officer to follow-up
with SBI.

Q. Where will I get PRAN Kit & I-Pin?

D. PRAN Kit will be dispatched to your correspondence address (pls keep it safe for future).
I-Pin is your CRA login password and your PRAN no. will be your User ID. I-Pin can be
generated using OTP at NSDL portal.
On-boarding of new subscribers
Registration
(i) After submitting the form, a PDF is generated of which print needs
to be taken
(ii) Photograph needs to be affixed (no staple or signing across
photograph)and signature needs to be provided in applicable
sections
(iii) Application form submission must be along with self attested KYC
docs (Adhaar, PAN, Identity & Address proofs) and cancelled
cheque. In case more than one nomination is submitted, Annexure
III may also be attached with signature. Other Annexes may be
ignored.
(iv) In case employee has an account with SBI, cancelled cheque is not
mandatory but employee must indicate on a separate page that he
is an existing Bank customer, having fully operative account.
(v) Form needs to be submitted to HR team for verifying employment
details – Employee code, Joining Date and Retirement Date
(vi) HR team after verifying Employment details need to submit he
form to SBI for onward processing of forms along with the
registration charge
Processing Corporate Applications
 Checklist for branches
• Branch has to verify all KYC documents of corporate subscriber affixed with the form
• Branch also needs to verify if Photo is affixed and Signatures have been provided at
prescribed boxes
• If the form is complete in all respects, the branch has to verify the entries that have
been made by employees themselves at INB. The data is pushed from INB to NPS
Application and shall be available to be authorized by branch under Corporate
Registration
Branch has to go to CBS > APPS > NPS
 INB Corporate Registration Menu to process Corporate
Registration Application

• Branch has to search for the Corporate by entering CHO & CBO of the company
• System will display all entries and Maker will have to select completed application received
by branch
• Action – Accept / On Hold / Reject needs to be submitted
 Maker Entry

• Registration charges are displayed

• Maker has to select the debit account and submit to generate a Ref No.
 Authorization by Checker

• Checker has to authorize the entry after which transaction posting needs to happen at
Screen 29061
 Receipt / Corporate Report Generation after successful transaction

• Receipt can be generated by visiting ‘Receipt Print’ menu

Form Authorizing & Dispatch
POP-SP Section in the form to be completely filled by Branch
- KYC Compliance should always be ticked as ‘Yes’
a. If name and address details match Bank records and customer is having
KYC complied account with Bank, branch (POP-SP) must certify
accordingly in the section ‘Existing Bank Customer’
ELSE
b. Branch may collect KYC proof from the subscriber along with NPS Form
- All KYC documents must be self-attested by subscriber
- Stamp by POP-SP (branch), sign & details of processing person
 Checklist for branches
• Self attested DOB & Identity Proof
• Self attested Proof of Address - in case Correspondence & Permanent addresses are
different, address proofs for both addresses to be obtained.
• Cancelled Bank Cheque having same account details submitted in registration form
• Photograph should be of same size as specified on form – No signing on stamping on
photograph
• Branch needs to fill-up POP-SP (Branch) section completely along
• CRA receipt (system generated) to be attached with the form and KYC documents
• All forms to be dispatched to NSDL at the address mentioned in Acknowledgement
receipt:
Central Recordkeeping Agency
NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower,
Kamala Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai - 400 013
• NPS Contribution Instruction Slip (NCIS) form to be obtained for first and subsequent
contributions – to be retained at branch for audit purpose
Support/ Assistance Contacts & NPS Content
 Nodal Branch, Support Team & NPS Content
Nodal Branch – Mumbai Main Branch for any operational issues
• Contact No.: 022-22663322
• Email: [email protected]
Support Team (TCS representatives) for any technical issues handholding
A ticket at Service Desk must be raised under NPS giving branch server credentials
• Contact No.: 022-20876073/ 6086
• Email: [email protected]
IT Team for any escalation for any unresolved technical issues:
• Shri. Neeraj Gupta (9833736202; [email protected])
• Shri. Rajesh Uttarwar (9784006030; [email protected])
CVE-BU Website hosted at SBI Times & NPS Dashboard
• NPS related content (Product related, Forms, User Manuals, etc.) placed at SBI Times
Dept 1 > Customer Value Enhancement
• NPS Business Dashboard https://npsdashboard.sbi
THANK YOU

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