The NPS Pri­vate Model

Consumer Voice - - Pension -

Un­der this model, sub­scribers can be from both or­ga­nized and un­or­ga­nized sec­tors (in­clud­ing self-em­ployed, traders and busi­ness own­ers). Even an NRI can sub­scribe to the NPS un­der this model. While the op­er­a­tional setup of the ac­count is as good as in the cor­po­rate model, the pri­vate model also pro­vides some ad­di­tional fa­cil­i­ties: (i) Choos­ing the an­nu­ity ser­vice provider (ASP): The sub­scriber can go to any of the seven ex­ist­ing

life in­sur­ance com­pa­nies to pur­chase the an­nu­ity at the time of ex­it­ing from the NPS. (ii) The sub­scriber can change their ex­ist­ing pen­sion funds (PFs), in­vest­ment choices (ac­tive or auto choice) as well as the al­lo­ca­tion ra­tio (al­lo­ca­tion amongst any of the three as­set classes) once in a fi­nan­cial year.

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