NPS Assured Pension – Eligibility, Required Documents, How to apply?

The government plans to enhance benefits under the National Pension System (NPS), the proposed change would provide an assured pension of up to 50% of the last basic pay, moving away from the current market-based returns. 

NPS Assured Pension 

The proposed NPS changes the scheme guarantees a pension of 40% to 50% of the last pay, with the adjustments based on years of service and any withdrawals from the pension corpus. Shortfall in the pension required the assured pension amount would be covered by the central government’s budget. 

The implementation of the proposal to offer up to 50% of the last basic pay as pension under the NPS would enhance retirement security and boost savings, investments among the elderly population. 

This would contribute to the capital formation and economic growth, head of labour & employment practice at economic laws practice. India’s large young workforce made the NPS a sustainable solution for an adequate retirement income.

Who is eligible for NPS Assured Pension?

Some 8.7 million central and state government employees enrolled in the NPS since 2004 could get benefits, any person fulfilling the below eligibility criteria can join the NPS assured pension:

  • You should be an Indian citizen or a non- Resident Indian both are eligible for that. . 
  • Your age must be between 18 to 70 years. 
  • You should know your customer norms detailed in the application form. 
  • You should be legally competent to execute a contract as per the Indian Contract Act. 
  • NPS is an individual pension account so that you cannot be opened on behalf of a third person. 
  • Those who want to plan for their retirement early on and have a low risk appetite. 
  • Salaried people who want to make most of 80C deductions can also consider this scheme.

NPS Assured Pension

Documents Required for NPS Assured Pension

Individual residing in India need the following documents for NPS assured pension:

  • Your recent photograph 
  • Your PAN card
  • Proof of your address
  • Your bank account details
  • If you are non- resident so you must have an OCI card of their proof of address for the foreign country. 

How to apply for NPS Assured Pension?

To apply for the NPS Assured Pension you have to open your NPS account online by the e-NPS website or offline by visiting your nearest Point of Presence (PoP). There are steps to apply for an NPS Assured Pension:

  • First you have to visit the eNPS website.
  • Then open the registration now link. 
  • Then click on the individual pension.
  • Then enter your Permanent Account Number (PAN) and email ID for log in. 
  • Then you have to follow and complete the relevant instructions on the screen. 
  • If you already have an NPS account then enter your PRAN after finishing the formalities. 
  • Then enter your bank details. 
  • You can check your NPS account details by calling 921 299 3399 from your NPS registered mobile number. 

Benefits of NPS Assured Pension

There are benefits of NPS Assured Pension:

  • The proposed scheme would guarantee a pension up to 40% to 50% of the last pay, with the adjustment. 
  • Currently there is a cap in the range of 50% to 75% on equity exposure for the National Pension Scheme. 
  • For the government employees this is 50%, in the range prescribed the equity portion will reduce by 2.5% each year, beginning from the year in which the investors are 50 years of age. 
  • Employees are entitled to a particular level of benefit depending on their length of service and the level of their pension after retirement. 
  • For investors of the age 60 years and above the cap is fixed at 50%. 
  • The NPS subscription is flexible. 
  • The tax deduction of up to 10% of pay, subject to a maximum of Rs. 1,5 lakh. 
  • The tax deduction of up to Rs. 50,000 along with the overall limit of Rs. 1.5 lakh. 
  • Any shortfall in the pension required to the assured pension amount be covered by the central government’s budget. 
  • This could be around 1.8 million central and state government employees who have been enrolled in NPS since 2004. 
  • This scheme has been in effect for over a decade and so far has delivered 9% to 12% annualised returns. 
  • NPS would enhance retirement security, boost savings and the investments among the elderly population. 

Leave a Comment