NPS 2022

NPS
National Pension System
Objective
To learn about
exits, withdrawal & Annuity in NPS
Withdrawal
Following are the conditions for Withdrawal:
• Subscriber should be in NPS atleast for 3 years.

• It should not exceed 25% of the contributions.
• max of three times during the entire tenure.
• Withdrawal is allowed only against the specified reasons,
for example;
– Higher education of children
– Marriage of children
– For the purchase/construction of residential house (in specified conditions)
– For treatment of Critical illnesses
Exit
Onboarded NPS 18-60 years
Category Limit for lump sum Conditions
Premature exit 2.5 lakhs If (< or = 2.5) – lump sum
If more than 2.5 lakhs

( 80% - annuity & 20% - lump sum)
Superannuation 5 lakhs If (< or = 5 lakhs) – lump sum
If more than 5 lakhs

( 40% - annuity & 60% - lump sum)
Death 5 lakhs If (< or = 5 lakhs) – lump sum

( 80% - annuity to dependent
20% - lump sum to legal heir/nominee)
If none of the dependent is not available
( 80% - corpus to surviving children/legal heirs to
20% - lump sum to legal heir/nominee)
Exit
Onboarded NPS beyond 60 years
Category Limit for lump sum Conditions
Premature exit (exit 2.5 lakhs If (< or = 2.5) – lump sum
before 3 years)
If more than 2.5 lakhs
( 80% - annuity
20% - lump sum)
Normal exit 5 lakhs If (< or = 5 lakhs) – lump sum

( 40% - annuity
60% - lump sum)
Death 5 lakhs Entire amount payable to

nominee/legal heirs
Annuity
• Annuity refers to the monthly sum received by the
Subscriber from the Annuity Service Provider (ASP).
• Annuity Service Providers (ASPs) are responsible for
providing a regular monthly pension to the Subscriber
after exit from the NPS.
• ASPs are basically Insurance companies which are
empanelled by PFRDA.
• Currently, 13 ASPs have been appointed.
Types of Annuity
1. Annuity for Life with ROP –
• Subscriber will get annuity for life time
• 100% of the purchase price will be returned to the nominee(s)
2. Joint Life Annuity with ROP –

• Subscriber & Spouse(after death of subs.) will get annuity for life time
• 100% of the purchase price will be returned to the nominee(s).
3. NPS- Family Income with ROP –

• Subscriber -> Spouse -> dependent mother -> dependent father
• On death of the last annuitant, payment of annuity ceases and 100% of
the purchase price will be returned to the surviving children of the
Subscriber / to legal heirs as applicable.
Types of Annuity
4. Annuity for Life without ROP –
• Subscriber will get annuity for life time
• on death of the Subscriber, payment of annuity ceases and no further
amount will be payable.
5. Joint Life Annuity without ROP –

• Subscriber will get annuity for life time and on death of the Subscriber,
annuity will be payable to Spouse for life time.
• On death of the Spouse, payment of annuity ceases and no further amount
will be payable.
Annuity Service
Provider Scheme Name
With Return of Purchase Price Without Return of Purchase Price
(With ROP) (Without ROP)
Annuity for Life Joint Life Annuity NPS - Family Annuity for Life Joint Life Annuity
Income
₹ ₹ ₹ ₹ ₹
Bajaj Allianz Life
Insurance Co. Ltd 27,723.35 (6.65%) Not Applicable 26,800.06 (6.43%) 33,385.68 (8.01%) Not Applicable
Canara HSBC Oriental

Bank of Commerce 24,632 (5.91%) Not Applicable 24,632 (5.91%) 33,055 (7.93%) Not Applicable
Life Insurance Co. Ltd
Edelweiss Tokio Life 24,088 (5.78%) Not Applicable 24,088 (5.78%) 31,947 (7.67%) Not Applicable
Insurance Co. Ltd
HDFC Life Insurance 28,080 (6.74%) Not Applicable 24,254 (5.82%) 35,720 (8.57%) Not Applicable
Co. Ltd
ICICI Prudential Life
Insurance Co. Ltd 27,520 (6.60%) Not Applicable 24,815 (5.96%) 30,934 (7.42%) Not Applicable
IndiaFirst Life
Insurance Co. Ltd 25,462.0 (6.11%) Not Applicable 25,462.0 (6.11%) 32,827.0 (7.88%) Not Applicable
Kotak Mahindra Life

Insurance Co. Ltd In,va,lid request In,va,lid request Not Applicable In,va,lid request In,va,lid request
MAX Life Insurance

Co. Ltd 28,052 (6.73%) Not Applicable 28,052 (6.73%) 36,040 (8.65%) Not Applicable
SBI Life Insurance Co.

25,411.0 (6.1%) 407 (0.1%) 25,411.0 (6.1%) 31,534.0 (7.57%) 407 (0.1%)
Ltd
TATA AIA Insurance
26,898 (6.46%) Not Applicable Not Applicable 30,580 (7.34%) Not Applicable
Co. Ltd
Asset classes
Following are the assets classes are available for investment under NPS:
1) Equity or E- A 'high return-high risk' fund that invests predominantly in

equity market instruments
2) Corporate Debt or C - A 'medium return-medium risk' fund that invests

predominantly in fixed income bearing instruments
3) Government Securities or G - A 'low return-low risk' fund that invests

purely in Government Securities
4) Alternative Investment Funds or A –In this asset class, investments are

being made in instruments like CMBS, MBS, REITS, etc.
Auto choice
(i) LC75 – Aggressive Life Cycle Fund: In this Life Cycle Fund, the exposure in
Equity Investments starts with 75% till age 35 and gradually reduces as per
the age of the subscriber.
(ii) LC50- Moderate Life Cycle Fund : In this Life Cycle Fund, the exposure in
Equity Investments starts with 50% till age 35 and gradually reduces as per
the age of the subscriber.
(iii) LC 25- Conservative life cycle fund : In this Life Cycle Fund, the exposure
in Equity Investments starts with 25% till age 35 and gradually reduces as
per the age of the subscriber.
The default auto choice if the subscriber is not choosing any of the above
option is Moderate life Cycle Fund.
Pension Fund Manager
1) SBI Pension Funds Pvt. Ltd.
2) LIC Pension Fund Ltd.
3) UTI Retirement Solutions Ltd.
4) HDFC Pension Management Co. Ltd.
5) ICICI Prudential Pension Fund Management Co. Ltd.
6) Kotak Mahindra Pension Fund Ltd.
7) Aditya Birla Sunlife Pension Management Ltd

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NPS

National Pension System

• Subscriber should be in NPS atleast for 3 years.

Premature exit 2.5 lakhs If (< or = 2.5) – lump sum

If more than 2.5 lakhs

Superannuation 5 lakhs If (< or = 5 lakhs) – lump sum

If more than 5 lakhs

Death 5 lakhs If (< or = 5 lakhs) – lump sum

If more than 5 lakhs

Death 5 lakhs Entire amount payable to

2. Joint Life Annuity with ROP –

3. NPS- Family Income with ROP –

5. Joint Life Annuity without ROP –

Canara HSBC Oriental

Kotak Mahindra Life

MAX Life Insurance

SBI Life Insurance Co.

1) Equity or E- A 'high return-high risk' fund that invests predominantly in

2) Corporate Debt or C - A 'medium return-medium risk' fund that invests

3) Government Securities or G - A 'low return-low risk' fund that invests

4) Alternative Investment Funds or A –In this asset class, investments are

2) LIC Pension Fund Ltd.

3) UTI Retirement Solutions Ltd.

4) HDFC Pension Management Co. Ltd.

5) ICICI Prudential Pension Fund Management Co. Ltd.

6) Kotak Mahindra Pension Fund Ltd.

7) Aditya Birla Sunlife Pension Management Ltd

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