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New Pension System
ICICI Bank with 49 branches is a Point of Presence (POP) for the NEW PENSION SYSTEM launched on May 1, 2009 by the Government of India. The scheme, promoted by the PFRDA (Pension Fund Regulatory and Development Authority, Government of India), is a first of its kind in India and is being launched pan-India by 35 other POP's as well.
The purpose of this pension scheme is to promote security of income to its subscribers in their old age. The scheme will empower a subscriber to plan his own retirement and pension. It not only will help him save for life after retirement but also is a good investment tool as the returns are market-driven. For optimum returns, the Government has appointed six fund managers for subscribers to choose from.
The salient features of the New Pension System (NPS) are as follows :
- It is a pension system for the non-Government sector.
- It is open to anyone from 18 years to 60 years of age, including NRIs.
- The minimum contribution is Rs. 6,000 per year, at Rs. 500 per transaction.
- There should be a minimum of one transactions per year.
- There is no maximum contribution. The maximum contribution in cash (at ICICI Bank) is Rs. 25,000 per transaction.
- A subscriber must compulsorily select a pension fund manager (PFM).
- The following six fund managers have been appointed, for subscribers to choose from:
- ICICI Prudential Life Insurance Company Limited.
- IDFC Asset Management Asset Management Company Limited.
- Kotak Mahindra Asset Management Company Limited.
- Reliance Capital Asset Management Company Limited.
- SBI Pension Funds Limited.
- UTI Retirement Solutions Limited.
- A subscriber must choose between active choice and auto-choice for distribution of his contribution.
- If active choice is selected, the subscriber must indicate the percentage distribution between corporate, gilt and equity.
- The maximum investment allowed in equity is 50%.
- Market-driven returns.
- Contributions to be made till the age of 60 years.
- Pension to start at the age of 60 years.
To know more or to open an NPS account, please walk into any of the 49 ICICI Bank branches that comprise the POP. If you have any queries, please write to us at firstname.lastname@example.org or call at 022-28308110. You may also access the details of the scheme at pfrda.org.in.