February 5, 2017

NATIONAL PENSION SYSTEM (NPS) HOW TO WORK??

NATIONAL PENSION SYSTEM (NPS) HOW TO WORK??


How NPS Works?
Under the NPS, an individual's savings is pooled in a pension fund.
These funds are invested by Pension Fund Regulatory and Development Authority (PFRDA) regulated professional fund managers as per the approved investment guidelines in the diversified portfolios comprising of government bonds, bills, corporate debentures and shares.
These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.
At the time of a normal exit from NPS, the subscribers may use the accumulated pension wealth under the scheme either to purchase a life annuity from a PFRDA empanelled life insurance company or withdraw a part of the accumulated pension wealth as lump-sum, if they choose to do so.
ICICI Bank has been appointed by PFRDA to act as one of the Point of Presence (POP) for the NPS. Presently, we has designated 262 branches to carry out the NPS activities as Point of Presence- Service Providers (POP-SP).



NATIONAL PENSION SYSTEM (NPS) HOW TO WORK??

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