pension bulletin - pfrda

Pension Bulletin Volume VI

Issue II

Pension Fund Regulatory and

Development Authority

Chhatrapati Shivaji Bhawan, B-14/A,Qutab Institutional Area, Katwaria Sarai, New Delhi-110016

1

Table of Contents

Page No.

Section 1: Transfer of amount from recognized Provident Fund/Superannuation fund to

National Pension System...............................................................................................................2

Section 2: NPS Statistics ............................................................................................................... 7

i. Sector wise growth .................................................................................................................. 7

ii. Overall Status of State Governments ................................................................................... 13

iii. UoS Sector (All citizens) in NPS ......................................................................................... 15

iv. Total amount of subscribers’ contribution under UoS (Tier-I & Tier II): .......................... 15

v. Total amount of AUM under UoS (Tier-I & Tier II) ............................................................ 16

vi. Total number of corporate, subscriber, contribution & AUM registered in Corporate

Sector:....................................................................................................................................... 17

vii. Status of APY: ..................................................................................................................... 18

viii. PFM wise Total Assets on NPS schemes .......................................................................... 19

ix. PFM wise Return on NPS Schemes ................................................................................... 20

x. Performance of NPS Schemes of Central Government & State Government Employees . 21

xi. Performance of NPS schemes for Unorganized/Private Sector ......................................... 21

Section 3: Circulars/Notices/Guidelines Issued/Advisory ....................................................... 26

Section 4: Workshops /Press Release/Conference conducted ................................................... 31

Section 5: Macro-Economic Statistics........................................................................................ 36

2

Section 1: Transfer of amount from recognized Provident

Fund/Superannuation fund to National Pension System

Indian workforce employed in organized sector is covered under the following funded pension

arrangements.

i) mandatory pension scheme of Employees' Provident Fund Organization of India,

ii) Approved Superannuation Funds by the corporates,

iii) National Pension System.

i) Scheme by Employees’ Provident Fund Organisation: The Employees’ Provident Funds

and Miscellaneous Provisions Act, 1952 (EPF Act) is the major social security legislation in

India aimed at, inter alia, securing retirement benefits for employees. Currently, three

schemes operate under the EPF Act: Employees’ Provident Fund Scheme (EPFS),

Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme

(EDLIS). Broadly speaking, the EPF Act applies to the following entities:

• Every establishment which is a factory engaged in any industry specified by the

central government and in which 20 or more persons are employed;

• Any other establishment employing 20 or more persons which the central

government may, by notification, specify in this behalf. An employee whose salary is

greater than INR15,000 per month and who is not currently a member of the EPF

scheme may be excluded from the provisions of the EPF Act. This clause of salary-

based exclusion does not apply to International Workers and employees working in

newspaper establishments.

ii) Superannuation Funds Superannuation Fund (SAF) is an employer-sponsored voluntary

pension plan to facilitate pensions for employees when they retire/leave the organisation.

SAF can be either a defined contribution or a defined benefit scheme, depending upon the

option selected by the employer. An employer may create a SAF through a Trust, by

executing a Trust Deed and have the same approved by the income-tax authorities. The

Superannuation trust funds could be managed internally or through an insurance service

provider which is approved by the Insurance Regulatory and Development Authority. Data

on the number of SAFs in India is not consolidated; accordingly, the number of participants

and the total corpus is unavailable. Due to insufficient data, it is difficult to establish the

coverage and effectiveness of this pension instrument.

iii) National Pension System: The Government of India (GOI) rolled out the NPS initially for

government employees other than armed forces, joining service from 1st January 2004

which was later extended to all citizens of India from May 1, 2009 and Corporate sector

from December, 2011.

https://en.wikipedia.org/wiki/Employees%27_Provident_Fund_Organisation_of_India

3

Under NPS, two types of account are available to subscribers i.e. Tier I & Tier II; Tier I

account is a pension account - where subscribers contribute his / her savings (may include

employers contribution in case of Corporate sector) for retirement into a partially

withdrawable account, and a Tier II account - a voluntary savings account from which

subscribers are free to withdraw their savings whenever he wishes. The facility of Tier II

account was made available from December 01, 2009 to All Citizens of India including

Govt. employees and Corporate sector subscribers not mandatorily covered under NPS. An

active Tier I account is a pre requisite for opening of a Tier II.

A subscriber can open an NPS account through their DDA/PAO or through the online

platform eNPSor through with any one of POPs (Point Of Presence) and get a PRAN.

Subscribers can choose their own investment option and pension fund. Subscribers can

operate their account from anywhere in the country, even if they change the city, job or

their pension fund manager. NPS is regulated by PFRDA, with transparent investment

norms and regular monitoring and performance review of fund managers by NPS Trust.

A summarised comparison of NPS, approved Superannuation fund and Employees’ Provident has

been provided below.

Comparison between EPF, Superannuation Fund and NPS

Particulars

National Pension

System (NPS)

Approved

Superannuation Fund

(ASAF)

Employees Provident Fund

Limit of contribution

by Employee for

tax purpose

10% of Basic + DA

Subject to Maximum of

Rs. 1.50 Lacs

Additional tax deduction

available on contribution

upto Rs. 50000/-

(Exclusive for NPS)

Subject to Maximum of

Rs. 1.50 Lacs

Employee contribution is

eligible for deduction from

employees’ taxable income

up to INR 150,000*

Employer's

Contribution to the

Fund for tax

purpose

10% of Basic + DA

(No Monetary Limit)

Not Taxable up to Rs.

1,50,000 per annum

per employee.

Above Rs. 1.5 lac, it is

treated as perquisites

Employer contribution up to

12 per cent of defined salary

not included in employees’

taxable income.

4

in the hand of

employee and taxed

accordingly.

Amount to be

utilised for

purchase of Annuity

Minimum 40% of the

accumulated corpus.

However, subscriber can

utilise higher corpus also.

Limit on Lump sum

withdrawal. Rest to be

utilised for annuity

payment.

Monthly member pension

under EPS at retirement or

permanent disability.

Lump sum

Withdrawal

Maximum 60% of the

corpus

40% of the corpus is tax

exempt from F.Y. 2016-

17

1/3rd of the Corpus can

be withdrawn in lump

sum in case Gratuity is

paid

½ of the corpus can be

withdrawn in case

gratuity is not paid.

Lump sum withdrawal at

resignation, retirement or

death.

Requirement for

operationalization

of scheme by the

Corporates

Registration with CRA by

providing some basic

information.

Formation of an

Irrevocable Trust and

appointment of

Trustees

Opening of Trust

Account

Decision on the fund

management

technique, i.e., self-

managed or insurer

managed.

Registration of the

establishment with EPFO.

Income Tax

Approval

Not required Required from

concerned Income Tax

Authority

Not required

5

Investment

Subscribers may choose

their own investments

from three asset classes

i.e. corporate bonds,

government securities

and equity. The

investment in equity is

capped at 50 per cent.

One can also opt for life

cycle funds which have

pre-determined

investment pattern.

The trustees of SAF

invest the funds as per

the norms laid down by

Ministry of Finance,

Government of India.

The accumulations are

invested by the board of

trustees of EPF, as per the

norms laid down by Ministry

of Labour and Employment,

Government of India.

In the Union Budget 2016-17, one time portability without any tax implication has been allowed to the

subscriber for shifting from recognized provident funds and superannuation funds to National pension

System.

With the implementation of the above proposals from this Financial Year and the tax benefits available

under NPS, NPS has become very attractive to the subscribers. NPS now provides the seamless

facility to the subscribers of Superannuation Scheme and Provident Fund scheme to shift to NPS

without any tax implication.

In this context, PFRDA has come out with a circular on transfer of amount from recognized Provident

Fund/Superannuation fund to National Pension System (PFRDA/2017/11/PD/3 dated 6th March 2017).

In case the subscriber is interested to get his recognized provident fund/superannuation fund

transferred to NPS, he may follow the below mentioned process:

The subscriber should have an active NPS Tier I account which can be opened either through

the employer (where NPS is implemented) by filling up the prescribed subscriber registration

form or through the Points of Presence (POPs) (Banks/non-banks entities registered as POPs

with PFRDA) or online through eNPS on the NPS Trust website.

The subscriber presently under Govt./Private sector employment is required to approach the

recognized provident fund/Superannuation Fund Trust through the current employer by giving

request for transfer of his recognized provident fund/ superannuation fund to his NPS account.

The recognized Provident Fund/Superannuation Fund Trust may initiate transfer of the Fund as

per the provisions of the TRUST Deed read with the provisions of the Income Tax Act, 1961.

The Recognised Provident Fund/Superannuation Fund may issue the cheque/draft in the name

of Nodal Office with employee name and PRAN FOR Govt. employees and in the name of

6

POP Collection Account-NPS Trust with the subscribers name and PRAN for the private sector

including All Citizen Model.

In case of Government employees, the employee should request the recognized provident

fund/Superannuation Fund to issue a letter to his present employer mentioning that the amount

is being transferred from the recognized provident fund/ superannuation fund to be credited in

the NPS Tier I account of the employee.

The present employer/POP i.e. nodal office shall while uploading the fund may mention the

transfer from recognized provident fund/superannuation fund in the remarks column while

uploading it through arrears mode. The upload may be made as per the request letter of the

ex-employer.

In case of private sector employee including subscriber covered under All Citizen Model, the

employee should request the recognized provident fund/superannuation fund to issue a letter

to his present employer/POP as the case may be mentioning that amount is being transferred

from the recognized provident fund/ superannuation fund to be credited in the NPS account of

the employee/individual Tier I account.

As per provisions of the Income Tax Act, 1961 the amount so transferred from the recognized

provident fund/ Superannuation fund to NPS is not treated as income of the current year and

hence not taxable. Further, the transferred recognized provident fund/superannuation fund will

not be treated as contribution of the current year by employee/employer and accordingly the

subscriber would not make IT claim of contribution for his transferred amount.

***

7

Section 2: NPS Statistics

i. Sector wise growth

a) The number of subscribers under NPS and APY increased from Rs. 145.42 lakhs as at the end of

January, 2017 to Rs. 148.60 lakhs as end of February, 2017 i.e. by 2.19 % growth supported by a

growth of 5.34 % in APY and 12.62 % in unorganized sector.

During the current financial year i.e. April - February 2017, the number of subscribers has increased

from 122.35 lakhs to 148.60 lakhs, registering a growth of 21.45 %. The maximum growth is witnessed

in APY, in which the number of subscriber increased from 24.85 lakhs as at the end of March 2016 to

44.16 lakhs as at the end of February 2017, registering a growth of 77.71 %. UoS/All citizen

subscribers have increased by 70.23% during the first 11 months of the current financial year and

Corporate Sector subscribers have increased by 20.04 % during the same period.

Table No: 1. Number of Subscriber (in lakhs)

Number of Subscribers (in lakhs) Year/Month

Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Jun-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

Schemes

A. CG 9.35 11.27 13.42 15.12 16.58 16.94 17.31 17.44 17.51 17.61 17.68 17.77

B. SG 11.56 16.41 20.07 26.30 29.24 30.29 31.36 31.70 31.97 32.31 32.60 32.90

Govt. sec Total (A+B) 20.91 27.67 33.49 41.42 45.82 47.23 48.67 49.14 49.49 49.92 50.28 50.67

Govt. sec % growth 32.33 21.03 23.67 10.63 10.74 12.06 12.30 12.21 12.38 12.18 11.63

C. Corporate Sector 0.17 1.43 2.62 3.73 4.74 4.95 5.21 5.32 5.39 5.51 5.57 5.69

D. All Citizen 0.57 0.70 0.79 0.87 2.15 2.37 2.61 2.69 2.75 2.93 3.25 3.66

(Corp+All Citizen) Sec Total (C+D) 0.74 2.14 3.41 4.60 6.89 7.33 7.82 8.01 8.14 8.44 8.82 9.35

(Corp+All Citizen) Sec % growth 188.52 59.65 34.87 49.77 49.64 49.54 49.24 49.07 50.45 51.55 50.68

E. NPS Lite/ Swavalamban 9.69 17.80 28.16 41.47 44.80 44.64 44.57 44.53 44.52 44.42 44.40 44.38

F. APY - - - - 24.85 29.81 34.43 36.56 37.24 39.11 41.92 44.16

Subtotal (NPS lite+APY) (E+F) 9.69 17.80 28.16 41.47 69.65 74.45 79.00 81.09 81.76 83.53 86.32 88.54

(NPS lite+APY) % growth 83.74 58.21 47.26 67.95 57.98 50.24 52.87 45.24 33.05 34.04 33.40

Grand Total (A+B+C+D+E+F) 31.33 47.61 65.06 87.49 122.35 129.01 135.49 138.24 139.38 141.89 145.42 148.60

8

Chart No: 1. Number of Subscriber (in lakh)

Of the total subscribers, government sector subscribers are 32 % of the total subscriber, each APY

and NPS – Lite constitute 30% of the subscriber and Corporate and All Citizen subscribers constitute 4

% and 2% respectively of the total subscriber.

Chart No: 2. % share of subscriber as on 25th Feb, 2017

31.33

47.61

65.06 87.49

122.35 129.01

135.49 138.24 139.38 141.89 145.42 148.60

51.95

36.66 34.47

39.84

36.26 33.83

35.31

31.68

25.77 26.41 25.97

0.00

10.00

20.00

30.00

40.00

50.00

60.00

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00


Y-o

-Y %

gro

wth

in la

kh

Number of subscriber (in lakhs)

CG SG Corporate Sector All Citizen

NPS Lite/ Swavalamban APY Total YoY % of Growth

CG 12%

SG 22%

Corporate Sector 4%

All Citizen 2%

NPA Lite 30%

APY 30%

9

b) The contribution under NPS has increased from Rs. 126730 crores as at the end of January, 2017

to Rs. 129971 crores as at the end of February, 2017 i.e. by 2.56 %.

During April - Feb 2017, the contributions received from subscribers have increased from Rs.95849

crores to Rs. 129971 crores, i.e. a growth of 35.60 %. The maximum growth in contribution has been

witnessed in APY (227.12 %), followed by All Citizen (107.76 %) and Corporate sector (44.80 %).

Table No: 2. Total Contribution (Rs. In crores)

Total Contribution (Rs. In crores )

Year/Month Mar-12 Mar-

14 Mar-

15 Mar-

16 Jun-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

Schemes

A. CG 9516 20029 27458 36329 38721 41996 43133 44123 45299 46248 47294

B. SG 3276 18364 29702 48007 52461 57474 59060 60361 61851 63431 64847

Govt. sec Total (A+B) 12792 38393 57160 84336 91182 99470 102193 104483 107150 109679 112142

Govt. sec % growth 61.39 48.88 47.54 42.99 38.81 38.78 38.15 37.73 37.51 36.95

C. Corporate Sector 122 2790 4801 8010 8827 9783 10172 10487 10889 11225 11599

D. All Citizen 130 348 497 1219 1441 1650 1743 1834 2000 2250 2533

(Corp+All Citizen) Sec Total (C+D)

252 3138 5298 9229 10267 11432 11915 12322 12889 13476 14131

(Corp+All Citizen) Sec % growth

95.01 68.82 74.20 62.30 60.56 60.00 59.79 59.58 59.96 59.71

E. NPS Lite/ Swavalamban

138 793 1380 1792 1900 2036 2046 2057 2068 2082 2092

F. APY - - - 491 743 1037 1149 1256 1386 1494 1606

Subtotal (NPS lite+APY) (E+F)

138 793 1380 2283 2643 3074 3196 3313 3454 3575 3698

(NPS lite+APY) % growth

94.71 73.93 65.45 69.91 80.94 82.54 83.16 75.11 74.29 71.64

Grand Total (A+B+C+D+E+F)

13181.95 42325 63838 95849 104092 113977 117304 120118 123492 126730 129971

10

Chart No: 3. Total Contribution (Rs. In crore)

Contribution by the government subscribers constitute 86 % of the total contribution in NPS followed

by contribution of 9 % of corporate subscribers and 2 % each by NPS-Lite and All Citizen subscribers.

Chart No: 4. % share of contribution in NPS as on 25th Feb, 2017

13182

25806

42325

63838

95849 104092

113977 117304 120118 123492 126730 129971

95.77

64.01

50.83

50.14 45.28

41.63 41.62 41.07 40.58 40.44 39.93

0.00

20.00

40.00

60.00

80.00

100.00

120.00

0

20000

40000

60000

80000

100000

120000

140000


Y-o

-Y %

of

gro

wth

Rs

in c

rore

s


NPS Lite/ Swavalamban APY Total YoY % of Growth

CG 36%

SG 50%

Corporate Sector 9%

All Citizen 2%

NPS Lite 2%

APY 1%

11

c) The AUM under NPS have increased from Rs. 166,847crore as end of January, 2017 to Rs.

167,178 crore as at the end of February, 2017 i.e. by 0.20 % during the month of February 2017.

During April –Feb 2017 of the current Financial Year, the AUM under NPS & APY has increased from

Rs. 118,810 crores to Rs. 167,178 crore i.e. by 40.71 %. The year over year (Feb 2017 over Feb

2016) growth in AUM of NPS & APY combined has been 50.06%.

During the month of February 2017, the highest growth in AUM in percentage terms is witnessed in

unorganized sector which is 9.99 % followed by increase of 4.85% in APY. AUM under APY has more

than tripled during April - February 2017, from Rs. 506 crores as end of March 2016 to Rs. 1707

crores as end of February, 2017 i.e. by 237.35 %.

Table No: 3. AUM (Rs.in crores)

AUM (Rs. In crore )

Year/Month Mar-

12 Mar-

13 Mar-

14 Mar-

15 Mar-16 Jun-16

Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

Schemes

A. CG 11256 17317 24177 36737 48135 51885 58892 60353 63146 62896 64853 64797

B. SG 3506 10748 20095 36244 57498 63565 73264 75245 78894 78532 81351 81293

Govt. sec total (A+B)

14762 28065 44272 72981 105633 115450 132156 135598 142040 141428 146204 146090

Y-o-Y Govt. sec % growth

90.12 57.75 64.84 44.74 45.36 46.48 46.28 50.48 46.31 48.91 46.71

C. Corporate Sector

129 1120 2628 5675 9290 10390 12169 12604 13269 13379 13982 14147

D. All Citizen 132 231 365 594 1273 1526 1838 1916 2008 2119 2393 2632

(Corp+All Citizen) Sec Total (C+D)

261 1351 2993 6269 10563 11916 14007 14520 15277 15497 16375 16778

Y-o-Y (Corp+All Citizen) Sec % growth

417.76 121.56 109.45 68.5 72.16 76.74 75.01 79.38 74.37 78.99 77.79

E. NPS Lite/ Swavalamban

140 436 839 1606 2108 2257 2547 2562 2649 2592 2641 2604

F. APY - - - - 506 779 1140 1255 1405 1498 1628 1707

(NPS-Lite+APY) Sub total (E+F)

140 436 839 1606 2614 3036 3687 3817 4054 4090 4268 4310

Y-o-Y (NPS-Lite+ APY) % growth

210.41 92.47 91.31 62.79 71.64 86.625 87.83 94.63 81.78 84.75 80.01

Grand Total (A+B+C+D+E+F)

15163 29852 48105 80855 118810 130403 149850 153935 161370 161016 166847 167178

12

Chart No: 5. AUM (Assets under Management)

AUM of government sector constitutes 88 % of the total AUM under NPS followed by 8 % AUM of

Corporate sector, 2% AUM of All Citizen and 1% each of NPS Lite and APY.

Chart No: 6. % share of AUM in NPS as on 25th Feb, 2017

15163

29852

48105

80855

130403

149850 153935 161370 161016

166847 167178

96.87

61.14 68.08

48.00 49.67 49.41 53.70

49.36 52.17 50.06

0.00

20.00

40.00

60.00

80.00

100.00

120.00

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

Mar-12 Mar-13 Mar-14 Mar-15 Jun-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

Y-o

-Y %

of

gro

wth

Rs.

In c

rore

s

AUM (Rs.in crore)


NPS Lite/ Swavalamban APY Total Y-o-Y Total % of growth

Government Sector 39%

State Government 49%

Corporate sector 8%

All citizen model 2%

NPS Lite 1%

APY 1%

13

ii. Overall Status of State Governments

There are 29 states under NPS. Tamil Nadu has adopted pension scheme under National Pension

System (NPS), though it does not contribute towards the employees’ pension account under NPS. So,

PFRDA have to take them on board to make contribution. Besides, West Bengal and Tripura have not

adopted the NPS so far, and PFRDA is in discussion with both the states to take them on board, as

end of January 2017, Uttar Pradesh has the highest number of subscribers enrolled under NPS

followed by Madhya Pradesh, Rajasthan and Chhattisgarh.

In terms of contribution and assets under management (AUM), Rajasthan has the highest AUM of Rs.

9,556 crore followed by Maharashtra and Madhya Pradesh.

Chart No: 7. State government wise Number of subscribers in NPS (in lakh)

(As on 25th Feb, 2017)

*Executed agreement with CRA and NPS trust only for AIS officer ** Chandigarh and Puducherry status is included under the state government Status

4.0 3.6

2.7 2.7 2.4

1.8 1.7 1.4 1.3 1.3 1.2 1.2 1.2 1.1 1.0 0.9 0.7 0.7 0.6

0.3 0.3 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.00.51.01.52.02.53.03.54.04.5

Utt

ar P

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Total No. of Subscriber(in lakh)

Total No. of Subscriber(in lakh)

14

Chart No: 8. State government wise amount of contribution in NPS (Rs.in crore)

(As on 25th Feb, 2017)


Chart No: 9. State government wise Assets under Management in NPS (Rs.in crores)

As on 25th

Feb, 2017


7,582

5,668 5,098 4,998

4,315 4,104

3,563 3,315 3,084

2,946 2,942

2,517

2,423 2,163

2,037

1,908

1,776 1,440

649 457 448 415 330 216 137 122 112 74 2 0 0

1,0002,0003,0004,0005,0006,0007,0008,000

Raj

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an

Mah

aras

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a

Mad

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Contribution M&B (Rs.in crore)

Contribution M&B

9,556

6,500 6,438

6,130 5,481 5,264

4,402 4,270

3,913 3,869

3,737 3,278 2,973

2,739 2,731 2,514

2,203 1,774 742 547 524 510 419 265 148 144 124 85 2 0

0

2,000

4,000

6,000

8,000

10,000

12,000

Raj

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Mad

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AUM (Rs. in Cr)

AUM(Cr)

15

iii. UoS Sector (All citizens) in NPS

As end of February 2017, 76 PoPs with 65,540 service providers are registered with PFRDA to

provide NPS services to citizens. While the registration and contribution upload of Government and

Government bodies employees is done by their respective Pay & Account offices, the private and the

unorganized sector employees are serviced through the PoPs which are banks & non-banking finance

companies. As on 25th February 2017, the total number of active accounts of All Citizen subscribers

under Tier I is 365,771 against 325,253 in January 2017. As at the end of February, 2017, there are

73,277 subscribers having Tier II accounts under NPS against 61,568 accounts as end of January,

2017.

Table No: 6. Total number of PoP & PoP-SP & subscribers in CRA

Registered PoPs & PoP-SP in CRA

Mar-16

Apr-16

May-16

Jun-16 Jul-16 Aug-

16 Sep-16

Oct-16 Nov-

17 Dec-17

Jan-17 Feb-17

Total number of registered PoPs

in CRA 70 72 72 71 73 74 75 76 76 76 76 76

Total number of registered PoP-

SP in CRA 55,580 55,644 55,647 56,065 56,893 56,908 56,959 56,977 57,063 57,489 58,214 65,540

Chart No: 10. Total number of active account subscriber in CRA under Tier-I & Tier-II

iv. Total amount of subscribers’ contribution under UoS (Tier-I & Tier II):

The contribution to Tier-I under UoS (All citizen) has increased from Rs. 1,966 crores as on 28th

January, 2017 to Rs 2,232 crores as on February, 2017. The contribution received under Tier II as end

204,536 225,605 231,056 237,471 245,384 253,532 260,769 268,543 274,995

292,564 325,253

365,771

31,002 33,091 34,450 35,283 42,739 46,062 49,340 51,309 51,761 55,255 61,568 73,277

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17Tota

l no

.of

acti

ve a

cco

un

t su

bsc

rib

er

in

Tie

r-I &

Tie

r-II

Tier I Tier II

16

of February, 2017 is Rs. 300 crores against the contribution of Rs. 285 crores as end of January,

2017.

During April - February 2017, the contributions under All Citizen Tier I NPS have increased from Rs.

962 crores to 2,232 crores i.e. a growth of 132.02 % and Contribution under Tier II NPS has increased

from Rs. 161 crores as end of March 2016 to Rs. 300crores as at the end of February, 2017 i.e. by

86.34 %.

Chart No: 11. Contribution of subscribers under (UoS) in NPS under Tier-I &Tier-II (Rs. in

crores)

v. Total amount of AUM under UoS (Tier-I & Tier II)

The AUM for UoS under Tier- I as end of February, 2017 was Rs. 2316 crores against the AUM of Rs.

2090 crores as end of January 2017. During April – Feb 2017, the AUM increased from Rs. 1103

crores to Rs. 2316 crores, i.e. 109.97%.

The AUM of Tier-II has increased from Rs.304 crores as end of January 2017 to Rs. 316 crores in the

month of February, 2017. During April – February 2017, Tier II AUM increased from Rs. 170 crores to

Rs. 316 crores, i.e. 85.74 %.

962 1170 1213 1257 1318 1372 1430 1507 1586

1733

1966

2232

161 172 178 184 193 205 220 236 249 266 285 300

0

500

1000

1500

2000

2500

Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

Rs.

in C

rore

Tier-I Tier-II

17

Chart No: 12. AUM of individual subscriber (UoS) in NPS under Tier-I &Tier-II (Rs. In crores)

vi. Total number of corporate, subscriber, contribution & AUM registered in

Corporate Sector:

The total number of corporates registered under NPS has increased from 3,064 as on January 2017 to

3,179 as on February 25th 2017. During the first 11 months of current FY 2016-17, number of

corporates registered under NPS has increased from 2,354 to 3,179.

Table No: 7. Total number of corporate registered in Corporate Sector:

Mar-16

Apr-16

May-16

Jun-16

Jul-16

Aug-16

Sep-16

Oct-16

Nov-16

Dec-16

Jan-17

Feb-17

2,354 2,426 2,474 2,554 2,652 2,728 2,808 2,873 2,911 2,991 3,064 3,179

1103 1226 1287 1333

1453 1513 1596 1659 1739

1838

2090

2316

170 179 187 193 210 224 242 256 269 280 304 316

0

500

1000

1500

2000

2500


Tier I Tier II

18

Chart No: 13. Total number of subscriber, contribution & AUM registered in Corporate

Sector

As on 25th February 2017, the number of Corporate registered under NPS is 3,179 with 569,374

subscribers. The contribution received from the corporate subscribers as on 25th February, 2017 was

Rs.11, 599 Crores and AUM was Rs. 14,147 Crores. As on 25th February 2017, AUM per subscriber

for Corporate Sector is Rs.2.48 lakhs.

vii. Status of APY:

The subscriber base of Atal Pension Yojana has reached 44.16 lakhs as on February 28th 2017 from

24.85 lakhs as end of March 2016. AUM under APY has increased from Rs.1628 crores as at the end

of January, 2017 to Rs. 1707 Crores as at the end of February 2017.

Table No. 8. Status of APY

Year/Month Mar-16 Jun-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

Subscribers 2484895 2981063 3443079 3655938 3723994 3911100 4192355 4416196

7873 8268 8540 8827 9168 9484 9783

10172 10487 10889 11225 11599

9124 9677 10048 10390

11206 11661

12169 12604

13269 13379 13982 14147

472076 479487 487431 495452 504019 513132 521083 532268 538759 550538 557450 569374

0

100000

200000

300000

400000

500000

600000

0

2000

4000

6000

8000

10000

12000

14000

16000


Sub

scri

be

r

AU

M &

CO

NTR

IBU

TIO

N (

Rs.

In T

ho

usa

nd

)

Contribution amount in corporate sector(Rs.in crore) Total AUM in corporate sector (Rs.in crore)Total number of subscriber registered in Corporate Sector

19

Chart No: 14. Total number of subscriber, contribution & AUM registered in APY

viii. PFM wise Total Assets on NPS schemes

Table No: 9. Pension Fund wise Assets under Management (Rs.in crores)

Year/Month Mar-16 Jun-16 Sep-16 Dec-16 Jan-17 Feb-17

PFs

SBI 45846.16 50373.85 57307.78 61125.39 63306.11 63498.10

UTI 35344.97 39571.91 45061.98 48417.98 50104.56 50215.07

LIC 35751.53 39491.36 44768.13 47689.28 49358.53 49553.03

KOTAK 172.69 197.87 232.24 254.55 276.08 286.48

RELIANCE 701.13 830.96 985.14 1109.88 1220.38 1299.26

ICICI 111.23 124.86 138.96 147.09 155.14 159.16

HDFC 376.24 483.13 622.26 773.5 878.41 972.43

Source: NPST. Website: www.npst.org.in

491 592 677

748 865

938 1042

1167 1256

1386 1494 1606

506 595

686 779

922 1014

1140 1255

1405 1498

1628 1707

2484895 2620143

2857868 2981063

3143750 3267259

3443079 3655938

3723994 3911100

4192355 4416196

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

5000000

0

200

400

600

800

1000

1200

1400

1600

1800


Nu

mb

er

of

sub

scri

be

r

Co

ntr

ibu

tio

n &

AU

M (

Rs.

in c

rore

s)

Contribution (Rs.in crore) AUM (Rs.in crore) Subscribers (in lakh)

20

Table No: 10. Scheme wise Assets under Management (Rs.in crores)

Pension Funds→ (SBI+LIC+KOTAK+HDFC+ICICI+RELIANCE+UTI) (Assets Rs in crores )

Total Assets (Rs. In crore)

Mar-11

Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Jun-16

Sep-16

Oct-16

Nov-16

Dec-16

Jan-17

Feb-17

Scheme↓

CG 726

6 1125

6 1731

3 2418

8 3673

6 4813

5 5239

8 5896

3 6035

4 6319

9 6289

6 6484

1 6495

4

SG 122

9 3555

10823

20211

36396

57693

64537

73799

75480

79295

78774

81671

81830

Corporate CG - - 693 1810 4105 6805 7692 8924 9189 9740 9782 1018

1 1026

1

TIER I

E 28 64 168 356 655 1181 1443 1676 1755 1744 1821 2050 2256

C 20 48 129 247 470 888 1008 1177 1229 1308 1349 1453 1523

G 29 78 245 409 771 1325 1521 1786 1856 2018 2023 2162 2235

NPS Swavalamban

3 141 436 844 1606 2108 2279 2547 2562 2647 2592 2638 2607

TIER II

E 4 7 14 26 44 60 72 87 91 91 96 107 116

C 3 8 16 24 38 55 61 76 80 85 88 94 96

G 4 7 13 20 35 54 63 81 86 95 96 103 105


ix. PFM wise Return on NPS Schemes Table No: 11. Returns since inception (in %) As on 28th Feb, 2017

Pension Funds→ SBI UTI LIC KOTAK RELIANCE ICICI HDFC

CG 10.43 10.03 10.11

SG 10.03 10.09 10.21

Corporate-CG 10.60 10.77

TIER I

E 9.22 11.35 13.27 10.34 10.47 11.54 15.91

C 11.22 9.84 11.79 11.16 9.72 11.20 11.82

G 10.09 8.75 12.51 8.97 8.65 9.04 11.19

TIER II

E 8.81 9.13 8.09 9.42 8.99 8.93 11.25

C 10.88 10.04 10.06 9.88 9.45 11.13 9.96

G 10.33 9.90 12.82 8.84 8.98 9.21 11.83

NPS Swavalamban 11.10 10.93 10.91 11.17


21

Central Government: 1-Apr-08 State Government: 25-Jun-09 Swavalamban: (SBI, LIC, UTI,): 4-Oct-10, (Kotak PF): 31-Jan-12 Corporate (Central Govt. Pattern): 5-Nov-12 Scheme – [E, C, G] (Tier-I) - (SBI, UTI, ICICI, RELIANCE, KOTAK): 1-May-09, (LIC): 23-Jul-13, (HDFC PF): 1-Aug-13 Scheme – [E, C, G] (Tier-II) - (SBI, UTI, ICICI, RELIANCE, KOTAK): 14-Dec-09, (LIC): 12-Aug-13, (HDFC PF): 1-Aug-13

x. Performance of NPS Schemes of Central Government & State Government

Employees

Table No: 12. Performance: Scheme CG (As on February 28th, 2017)

SCHEME CG

PFM Financial Year Return (%) Return (%)

FY

2009-10

FY 2010-

11

FY 2011-

12

FY 2012-

13

FY 2013-

14

FY 2014-

15

FY 2015-

16 1-Yr 2-Yr 3-Yr 5-Yr

LIC 12.27 8.3 5.8 12.06 5.93 18.96 5.99 15.57 8.63 12.86 10.6

SBI 8.88 8.05 5.81 12.75 3.92 19.38 6.47 15.44 8.81 13.05 10.51

UTI 9.27 8.45 5.52 12.26 5.04 18.58 6.24 15.76 8.86 12.85 10.52


Table No: 13. Performance: Scheme SG (As on February 28th, 2017)

Scheme SG

PFM

Financial Year return (%) Return (%)

FY 2010-

11

FY 2011-

12

FY 2012-

13

FY 2013-

14

FY 2014-

15

FY 2015-

16 1-Yr 2-Yr 3-Yr 5-Yr

LIC 10.77 6.68 12.8 5.87 19.4 5.97 15.58 8.64 13 10.83

SBI 9.88 6.8 13 3.83 19.8 6.62 15.62 8.92 13.28 10.75

UTI 11.34 6.04 13.2 4.7 18.8 6.3 15.7 8.87 12.91 10.67


22

xi. Performance of NPS schemes for Unorganized/Private Sector

Table No: 14. Performance: Scheme E- Tier I (As on February 28th, 2017)

Scheme E- Tier I

PFM

Financial Year Return % Return (%)

FY 2010-

11

FY 2011-

12

FY 2012-

13

FY 2013-

14

FY 2014-

15

FY 2015-

16 1-Yr 2-Yr 3-Yr 5-Yr

LIC 27.51 -7.91 31.18 2.39 13.63 -

SBI 8.05 -7.18 8.24 20.68 28.37 -7.16 31.54 2.45 14.4 12.64

UTI 8.35 -10.6 7.42 21.29 29.74 -6.72 32.19 3.53 15 13

ICICI 11.8 -7.75 9.05 21.18 28.65 -7.37 31.7 2.68 14.59 12.88

KOTAK 11.9 -10.2 11.52 19.48 28.41 -6.88 30.65 2.99 14.66 12.69

RELIANCE 10.8 -10.5 7.75 20.2 28.3 -7.26 28.66 1.99 14 12.04

HDFC - - - - 28.63 -7.47 32.53 2.85 14.69 -

IDFC 8.89 -9.32 - - - - - - - -


Table No: 15. Performance: Scheme E- Tier-II (As on February 28th, 2017)

Scheme E- Tier II

PFM


FY 2010-

11

FY 2011-

12

FY 2012-

13

FY 2013-

14

FY 2014-

15

FY 2015-

16 1-Yr 2-Yr 3-Yr 5-Yr

LIC 21.46 -7.29 31.03 3.14 10.37 -

SBI 7.86 -7.51 8.26 20.37 28.64 -7.13 31.3 2.38 14.45 12.59

UTI 10.16 -10.74 7.63 20.51 31.04 -6.54 30.6 3.08 15.27 12.92

ICICI 10.12 -10.41 9.79 21.14 28.66 -7.39 31.65 2.65 14.57 12.49

KOTAK 11.66 -9.8 11.33 19.5 28.12 -6.67 30.27 3 14.57 12.6

RELIANCE 5.37 -10.37 7.79 20.67 28.25 -7.22 28.71 1.96 14.12 12.11

HDFC - - - - 22.77 -7.17 32.82 3.29 11.59 -

IDFC 7.05 -9.46 - - - - - - - -


23

Table No: 16. Performance: Scheme C- Tier I (As on February 28th 2017)

Scheme C- Tier I

PFM


FY 2010-

11

FY 2011-

12

FY 2012-

13

FY 2013-

14

FY 2014-

15

FY 2015-

16 1-Yr 2-Yr 3-Yr 5-Yr

LIC 15.43 15.43 12.76 10.12 12.22 -

SBI 12.66 11.07 14.27 5.24 15.7 8.72 13.32 9.93 12.24 11.05

UTI 9.2 10.19 13.41 6.14 15.09 8.83 13.08 9.99 12.05 10.7

ICICI 9.41 11.43 14.22 6.22 15.72 9.77 13.76 10.89 12.76 11.4

KOTAK 10.86 10.19 15.01 5.77 15.22 9.46 13.94 10.59 12.55 11.34

RELIANCE 8.12 8.13 13.89 6.89 15.04 9.12 13.39 10.21 12.26 11.1

HDFC - - - - 15.2 15.2 13.33 10.29 12.25 -

IDFC 6.26 9.15 - - - - - - - -


Table No: 17.Performance: Scheme C- Tier II (As on February 28th 2017)

Scheme C- Tier II

PFM


FY 2010-11 FY

2011-12

FY 2012-

13

FY 2013-

14

FY 2014-

15

FY 2015-

16 1-Yr 2-Yr 3-Yr 5-Yr

LIC 12.37 8.26 13.08 11.18 10.79 -

SBI 14.46 10.7 12.69 4.15 15.62 8.6 13.05 9.91 12.08 10.38

UTI 7.62 11.4 12.95 5.75 15.3 8.57 12.89 9.77 11.98 10.48

ICICI 10.74 12.3 13.6 6.1 15.91 9.46 13.58 10.74 12.69 11.23

KOTAK 7.2 9.7 13.15 5.76 15.19 8.61 13.84 10.19 12.17 10.7

RELIANCE 7.28 7.86 12 6.04 14.97 8.8 12.75 9.92 11.98 10.48

HDFC - - - - 9.51 8.94 13.62 10.62 10.06 -

IDFC 6.02 10 - - - - - - -


24

Table No: 18. Performance Scheme G- Tier I (As on February 28th 2017)

Scheme G- Tier I

PFM


FY 2010-

11

FY 2011-

12

FY 2012-

13

FY 2013-

14

FY 2014-

15

FY 2015-

16 1-Yr 2-Yr 3-Yr 5-Yr

LIC 20.93 6.5 15.96 9.42 13.87 -

SBI 12.25 5.46 13.48 0.23 20.73 7.16 14.56 8.87 13.43 10.07

UTI 12.52 3.75 13.57 0.93 20.18 7.16 13.32 8.59 12.99 9.92

ICICI 7.71 6.07 13.84 1.51 20.75 6.97 14.3 8.72 13.28 10.31

KOTAK 9.14 6.14 13.61 0.84 19.63 7.54 15.05 9.42 13.41 10

RELIANCE 7.65 5.63 13.74 0.89 20.24 7.22 14.86 9.01 13.31 10.15

HDFC - - - - 19.88 6.77 14.14 8.67 12.89 -

IDFC 6.97 5.9 - - - - - - - -


Table No: 19. Performance Scheme G- Tier II (As on February 28th 2017)

Scheme G- Tier II

PFM


FY 2010-11 FY

2011-12

FY 2012-

13

FY 2013-

14

FY 2014-

15

FY 2015-

16

1-Yr 2-Yr 3-Yr 5-Yr

LIC 19.94 6.75 15.27 9.21 13.38 -

SBI 11.82 5.31 13.47 0.39 20.57 7.28 14.57 8.97 13.47 10.08

UTI 16.44 3.81 13.52 0.51 20.27 7.28 13.68 8.72 13.16 9.88

ICICI 6.43 6.36 14.36 1.12 20.7 7.05 14.24 8.7 13.25 10.36

KOTAK 6.4 5.37 12.86 1.18 19.9 7.66 14.32 9.3 13.28 10.09

RELIANCE 4.68 5.76 13.68 0.87 20.44 7.37 14.59 9 13.34 10.15

HDFC - - - 19.45 6.83 13.96 8.62 12.73 -

IDFC 6 7.22 - - - -


Table No: 20. Performance: Scheme NPS -Lite (As on February 28th 2017)

Scheme NPS-Lite

PFM

FY Return % Return (%)

FY 2011-12

FY 2012-13

FY 2013-14

FY 2014-15

FY 2015-16

1-Yr 2-Yr 3-Yr 5-Yr

LIC 10.1 13.02 5.91 19.52 5.72 15.9 8.59 13.08 10.9

SBI 8.7 13.83 4.11 19.52 6.3 15.92 8.75 13.12 10.8

UTI 8.55 13.18 4.9 19.2 5.83 15.94 8.53 12.9 10.71

KOTAK 14.58 5.18 19.23 6.37 15.36 8.83 13.16 10.92


25

Table No: 21. Performance: Scheme Corporate- CG (As on February 28th 2017)

Scheme Corporate CG

PFM FY Return % Return (%)

FY 2013-14 FY 2014-15 FY 2015-16 1-Yr 2-Yr 3-Yr 5-Yr

LIC 5.63 19.53 5.72 16.25 8.57 13.15 -

SBI 3.31 19.99 6.54 15.86 8.91 13.37 -

*Source: NPST. Website: www.npst.org.in

26

Section 3: Circulars/Notices/Guidelines Issued/Advisory

CIRCULARS

i) Proper checks and controls in collection of NPS contributions (PFRDA/2017/2/PoP/1).

Dated 03rd Jan, 2017

Point of presence (PoP) is an important intermediary under the NPS architecture, which is entrusted

with the most important assignment of on boarding of subscribers under NPS and providing them

various services under it. In order to provide maximum convenience and to ensure ease of transaction

to the subscribers, the Point of presence (PoPs) are also providing new options to the subscribers for

remittance of NPS contributions to the collection account maintained at their end. The PoPs are now-a

-days collecting NPS contributions through various channels including online payment gateways,

keeping in view the thrust on digital modes of payment.

In this direction, it is also important that all the NPS contributions collected by a PoP through various

modes are accounted for and essential details of the NPS subscribers are captured properly. All the

PoPs must ensure that proper checks controls and mechanisms are in place so that no unaccounted

funds are collected without details of the corresponding PRANs. In case, details of the PRANs are not

captured at the time of collecting NPS contributions the same may result in building of a pool of

unreconciled amount, which is highly unwarranted and detrimental to the interest of the subscribers,

leading to high number of grievances. Besides, reconciliation of such amounts without details of

corresponding PRANs will be an uphill task in the future.

The PoPs also need to ensure that in case, they provide the facility to their NPS subscribers for

remittance of NPS contributions directly to the collection accounts of the PoPs, the NPS contributions

are not collected without capturing details of the PRAN in which the same have to be credited.

All the Point of Presence (PoPs) are advised to disseminate information regarding this to all the PoP-

SPs for ensuring compliance at their level.

ii) Circular on Reactivation of frozen PRANs where 20% of the accumulated pension

corpus has been withdrawn as lump sum but subscriber subsequently reemployed in

establishments covered under NPS (PFRDA/2017/3/CSG/1) Dated 01st Feb,2017.

1. The Pension Fund Regulatory and Development Authority has been receiving requests from

government employees subscribing to NPS who had on premature leaving/change of employment

discontinued their NPS account, and in some case, had also withdrawn the lump sum amount as

applicable under the Exit under NPS Regulations, to reactivate the PRAN account/open a new PRAN

on reemployment/ reinstalment in establishment which are covered under the NPS. In some cases

subscribers had withdrawn 20%lump sum amount in their PRANs which were later deactivated. Later

27

they got new PRANs generated due to fresh employment, which also got deactivated as these being

duplicate PRANs. Thus, in such a scenario the subscriber could not use either the previous PRAN or

the new PRAN.

2. In this context, it may be clarified that PRAN is unique and portable across locations and

employment. The same PRAN should continue throughout the working tenure of the

employee/subscriber. As currently applicable, the subscriber is required to intimate his previous PRAN

to the employer on joining new service. The basic purpose of NPS is to provide social security to the

subscribers during their old age. If subscribers withdraw, inspite of the fact that they can continue in

the system up to their superannuation from service or 60years of age. The very purpose of NPS is

defeated.

3. With a view to preserve the accumulation for pension and alleviate the hardship during old age, all

NPS subscribers are advised to continue in the system with the same/first PRAN till the subscriber

attains the age of superannuation or 60 years even if the subscriber has become jobless temporarily

and withdrawn 20% from his/her PRAN. The 20% withdrawn amount will be considered as a special

withdrawal and same PRAN would be activated on the employees joining a new employer and making

contribution to the NPS.

iii) Circular on Operationalization of M/s Karvy Computershare Private Limited as second

CRA under NPS (PFRDA/2017/5/CRA/2) Dated 09th Feb, 2017

Reference is drawn to our circular no. PFRDA/2017/1/CRA/1, dated January 03rd, 2017 on

operationalization of Karvy Computershare Private Limited as second Central Record Keeping Agency

(CRA) for NPS.

The Authority has decided to allow M/s Karvy Computershare Private Limited to start its operations for

servicing of accounts sourced through e-NPS module of NPS Trust wherein the subscriber would be

provided an option to choose between NSDL e-governance Ltd (1st CRA) and M/s Karvy

Computerized Pvt. Ltd (2nd CRA) with effect from February 15, 2017 and other distribution channels

thereafter. It has been decided that M/s Karvy Computershare would be allowed to service the new

accounts till March 31st 2017 and thereafter it would be allowed to function as a full-fledged CRA with

interoperability functionality providing for option to shift for existing subscribers of NPS from April 01st

2017 onwards.

Under sub regulation 4 of regulation 3 the CRA Regulations, the allocation of the subscribers between

the existing Central Record Keeping Agency and the other Central Record Keeping Agency or

agencies, if appointed shall be based on a transparent criteria and process as may be notified by the

Authority from time to time having regard to the subscribers’ interest. Accordingly, the criteria of

allocation of subscribers are mentioned as under:

28

In case where there are employee-employer relationship, including corporate, if the CRA charges are

being borne by the employer, the decision to select the CRA shall rest with the employer, unless they

specifically delegates the option to individual employees and in all other cases, the choice of selection

of CRA will rest with the employee/ subscriber under NPS. In case of voluntary subscribers (without

existence of any employer-employee relationship) the option to choose a CRA rests with the

subscriber in general. In case of subscribers registered under Atal Pension Yojana, the respective

Government will choose the CRA rendering the services. In case of NPS-Lite subscribers the

aggregators will have the option to choose the CRA.

The charge structure for NPS regular and NPS Lite subscribers is provided hereunder the information

of all concerned:

S.N Service charge head

M/s NSDL e-governance Infrastructure Ltd (1st CRA)

M/s Karvy Computerised Pvt. Ltd (2nd CRA)

NPS Regular (Rs.)

NPS-Lite/APY (Rs.)

NPS Regular (Rs.)

NPS-Lite/APY (Rs.)

1 PRA opening charges

50 15 39.36 15

2 PRA Annual maintenance charges

190 40 57.63 14.4

3 Transaction charges

4 NIL 3.36 NIL

Further the charge structure with effect from 01st April, 2017 would be as under:

S.N Service charge head

M/s NSDL e-governance Infrastructure Ltd (1st CRA)

M/s Karvy Computerised Pvt. Ltd (2nd CRA)

NPS Regular (Rs.)

NPS-Lite/APY (Rs.)

NPS Regular (Rs.)

NPS-Lite/APY (Rs.)

1 PRA opening charges

40 15 39.36 15

2 PRA Annual maintenance charges

95 25 57.63 14.4

3 Transaction charges

3.75 NIL 3.36 NIL

This is issued for the information of all concerned.

29

iv) Circular on Charges and incentive structure under NPS w.e.f. 01/04/2017

(PFRDA/2017/5/SWM/1) Dated 20th Feb, 2017

1. As per the existing revenue structure for Aggregators under NPS-Lite/Swavlamban, till 2016-17 the

Aggregators are paid Rs. 100/- for opening/servicing every persistence NPS-Lite/Swavlamban

account, provided the contribution deposited by the subscriber is between Rs. 1000/- to Rs. 12000/- in

a financial year. However the incentive is applicable till 31.03.2017 only.

2. In order to continue the incentives for the Aggregators even after 31.03.2017 so that they continue

to service the subscriber base of NPS-Lite attached to them, the following charge and incentive

structure has been approved by PFRDA and will be applicable w.e.f. 01.04.2017:

Charges under NPS-Lite/Swavlamban w.e.f 01.04.2017* Method of leaving charges

The charges for any subsequent transaction under NPS-Lite/Swavlamban @0.25% of the total contribution deposited by the subscriber in NPS-Lite/Swavlamban in a financial year subject to a minimum of Rs. 20/-.

Through unit deduction by NSDL/CRA at the end of the financial year.

Any other transaction not involving a contribution from subscriber @ Rs. 10/- per transaction.

3. All the Aggregators are hereby advised to take note of the same and also disseminate information

regarding the same to the associated nodal offices including facilitators.

4. It is further advised that an Aggregator is not permitted to collect any charge or fee upfront from

subscriber. In case of any violation of these instructions suitable action will be initiated as envisaged in

the PFRDA (Aggregator) Regulations, 2015.

v) Constitution of Subscriber Education and Protection Fund (SEPF) Committee

(PFRDA/2016/27/HR/3) Dated 21st Feb, 2017

In partial modification of Circular No. PFRDAl2016/24/HR/2 dated 7th December, 2016, Sh. Rajesh

Kumar, Chief Controller of Accounts (Home), Ministry of Home Affairs has been nominated to the

Subscriber's Education and Protection Fund Committee in place of Sh. Bhupal Nanda.

The rest of the aforementioned circular dated 7th December, 2016 remains unchanged

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vi) Notice- Appointment Of Training Institute For Imparting Training On Pension Schemes

Regulated/Administered By Pension Fund Regulatory And Development Authority

(PFRDA) For North West Zone (21-02-2017)

PFRDA has appointed IL & FS Skill Development Corporation Ltd, 2 nd Floor, DND Flyway, Near Toll

Plaza,Noida-201301 as the training institute to create mass awareness and impart training on pension

schemes under National Pension System and Atal Pension Yojana to the employees of Points of

Presence (POPs) /POPService Providers /APY-Service Providers/Corporates/ Nodal officers of

Central & State Governments/ Nodal officers of Central and State Autonomous Bodies/ Retirement

advisors and other stakeholder registered with PFRDA, in the North West Zone of the country. The

zone comprises of the following States and UTs: Jammu and Kashmir, Himachal Pradesh, Uttar

Pradesh, Uttaranchal, Punjab, Haryana, Bihar, Jharkhand, Chandigarh, Delhi, Goa, Gujarat,

Maharashtra, Madhya Pradesh, Rajasthan, Chhattisgarh, Daman and Diu, Dadra and Nagar Haveli.

With a view to draw a detailed training schedule, all the intermediary offices have been requested to

furnish the list of nominees/persons to be trained to the appointed training agency to Ms Alfa Mary

+91-98336-83265 and Mr Avinash Goregaonkar +91-9022992993 at the following email id :

[email protected] under advice to PFRDA. It is intended to have at least 50-60 participants in

each session of 3-4 hours duration and conduct approximately 1610 training sessions and train 64500

participants in the NW zone over the next 12 months. On receipt of the nominations, the agency would

be establishing contact with the nominated nodal officials for further co-ordination and logistics.

vii) Advisory for all the Pension Fund and Custodian regarding investments in Mutual

Fund schemes (14-02-2017)

1. PFRDA has appointed SHCIL as custodian of Securities for custody of the securities pertaining to

the funds under management under all schemes of NPS/APY.

2. It is observed that some Pension Funds are not keeping some of the securities particularly mutual

fund units with the appointed custodian.

3. It is advised that all Pension Funds shall maintain the holding in mutual funds with the appointed

custodian.

4. Pension funds are further advised to convert the existing holdings of mutual funds units in de-mat

form in coordination with SHCIL under confirmation to the NPS Trust and the Authority.

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Section 4: Workshops /Press Release/Conference conducted /Awards

i) PFRDA conducts Strategy Meeting with Service Providers under APY / NPS at Bangalore

(22-Feb-2107)

The APY was launched by Honourable Prime Minister of India on 09th May, 2015 and became

operational from 1st June, 2015. APY is available for all citizens of India in the age group of 18-40

years. Under the APY, the subscribers would receive a minimum guaranteed pension of Rs. 1000 per

month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age

of 60 years, depending on their contributions, which itself would vary on the age of joining the APY.

There are more than 43 lacs subscribers registered in the scheme till date.

2. PFRDA had conducted review cum strategy meeting on 10.02.2017 at Bangalore & on 13.02.2017

at Chennai for Public Sector Banks, Private Sector Banks and Regional Rural Banks and POPs having

their head office in southern part of India.

3. Shri A G Das, Chief General Manager, PFRDA had addressed the meeting where Chairmen/Senior

officials of the Banks/RRBs were present. A review on the past and current performance of the banks

vis-a-vis their target for last and current financial year was conducted. The APY service providers-

Banks had shared their action cum strategy plan to meet stipulated target in last quarter of the FY

2016-17, this activity was performed to highlight the importance of Atal Pension Yojana (an old age

income security scheme of Govt. of India) and to address the issues in promoting the scheme to grass

root level.

32

4. PFRDA had awarded best performing branches/banks in the meeting for their outstanding

performance in various campaigns organised by DFS/PFRDA :

33

5. PFRDA had offered capacity building assistance for Staffs/BCs of the banks and other promotional

material assistance as well. PFRDA expects good number of enrolments in last quarter of FY 2016-17.

ii) Budget 2017- New Benefits announced for NPS Subscribers

In a bid to provide further impetus to the National Pension System (NPS), the following provisions

have been introduced in the Finance Bill 2017 laid down in the Parliament today.

(i) Tax-exemption to partial withdrawal from National Pension System (NPS)

The existing provision of section 10(12A)of the Income Tax Act, 1961 provides that payment from

National Pension System (NPS) to a subscriber on closure of his account or opting out shall be

exempt up to 40% of total corpus at the time of withdrawal . The amount utilized for purchase of

annuity is also tax exempt. At the time of normal exit, 40% of the total corpus is mandatorily required

to be purchased for annuity. The subscriber has the option to use higher amount for purchase of

annuity.

In order to provide further relief to the subscriber of NPS, it has been proposed to insert a new

clause (12B) in the section 10 of Income Tax Act, 1961 to provide exemption on partial

withdrawal not exceeding 25% of the contribution made by an employee in accordance with the

terms and conditions specified under Pension Fund Regulatory and Development Authority

Act, 2013 and regulations made there under.

This benefit will be effective on partial withdrawal made by the subscriber after 1st April 2017.

(ii) Further, Contribution up to 20% of the Gross Income of the Self-employed individual

(Individual other than salaried class) will be deductible from the taxable income under Section

80CCD (1) of the Income Tax Act, 1961, as against 10% earlier.

This is with a view to provide parity between a salaried employee and a self-employed,

This benefit will be available on contribution made by the self-employed persons on or after 1st April

2017.

34

This increased limit for tax benefit will help the self-employed individuals, to save taxes on higher

contribution in NPS and thereby properly plan for their old age income security.

Additional tax deduction on investment upto Rs. 50000/- under Section 80CCD (1B) will continue to

remain the same for all NPS subscribers whether salaried or self-employed.

iii) NPS Awards to POPs for FY 2016-17 (22-Feb-2017)

Based on the performance of POPs in terms of subscribers registered and activated by POPs during

the FY 2016-17, PFRDA has decided to award the POPs. Following are the proposed awards and the

parameters based on which the awards would be given:

1 Best POP- All Citizen subscriber

registration (Open to all POPs)

1.(during the period 01-04-2016 to

31-03- 2017)

Maximum subscriber registration. Eligibility: Public

Sector Banks: Minimum 5,000 NPS accounts Private

Sector Banks: Minimum 4,000 NPS accounts Non-

Banks: Minimum 3,000 NPS accounts

2 Best POP- NPS Corporate-

Corporate Subscriber Registration


31-03- 2017)

Max. Number of corporate subscribers registered

(POPs own employees as subscribers will not be

taken into consideration for the count. Also,

Corporates under Direct Upload model will be

excluded in this) Eligibility: Public Sector Banks:

Minimum 5,000 NPS accounts Private Sector Banks:

Minimum 4,000 NPS accounts Non-Banks: Minimum

3,000 NPS accounts

3 Best POP- POP-SP Activation


31-03- 2017)

Max. number of POP-SPs activated (Absolute

number and not percentage activated. POPs under

the Centralized model would also be excluded from

this). (Definition of POP-SP Activation: Acquisition of

min. 1 or more PRAN during the period) Eligibility:

Public Sector Banks: Activation of minimum 20 POP-

SPs Private Sector Banks: Activation of minimum 15

POP-SPs Non-Banks: Activation of minimum 10

POP-SPs

4 Best POP – NPS Private Sector

(Open to all POPs) 1.(during the

period 01-04-2016 to 31-03- 2017)

Maximum score obtained by POP based on the

figures of All Citizen Subscriber, Corporates sourced,

Corporate subscribers registered and Number of

Corporates activated. The formula for deciding the

said award is at Table below.

35

Table - Best POP Private Sector NPS

Parameter Weightage Acquisition Numbers Formula

All Citizen subscriber

registration during

period

30 A

0XA+ 30XB+ 30XC+ 10XE

100 Where, A = All Citizen

subscriber registration

during period Corporate Subscriber

registration during

period#

30 B

Corporate

Registration during

period

30 C

B= Corporate Subscriber

registration during period C

= Corporate Registration

during period D = Corporate

Activation, and E* = _____

D______________ Total

Corporates Regd. till date)

Corporate Activation

Definition of

Corporate Activation:

Registration of min. 1

or more subscriber till

date

10 D*

*- Parameter D and E have been introduced to incentivize the POPs to not only source new corporates

but also to activate the already registered ones. Parameter takes into account the performance on

activation till date (data of previous years) and not confined to the present FY.

#- POPs own employees as subscribers will not be taken into consideration for the count. Also,

Corporates under Direct Upload model will be excluded in this.

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Section 5: Macro-Economic Statistics

Indicators Units As on 31st Jan,2017

As on 28th Feb,2017

Absolute Change

Percentage Change

1 2 3 4 5= Col 4-

Col 3 6= {Col 5/Col

3} *100

S&P BSE Sensex - 27,655.96 28,743.32 1,087.36 3.93

CNX Nifty - 8561.3 8879.6 318.3 3.72

Rs/$ - 67.81 66.74 -1.07 (-)1.58

Gold Rs/ 10 gm

28,825 29,595 770 2.67

Brent Crude $/barrel 55.7 55.59 -0.11 (-)0.20

Whole Price Index ON BASE 2004-05=100

- 184.6 185.5 0.9 6.55 (Y-o-Y)

Consumer Price Index ON BASE 2012=100

- 130.3 130.6 0.3 3.65 (Y-o-Y)

Index of Industrial Production ON BASE 2004-05=100

- 183.5 191.3 7.8 2.7 (Y-o-Y)

10 year G-Sec Yield % p.a 6.41 6.87 0.46 7.18

Foreign Exchange Reserve USD in bn

361.56 362.8 1.24 0.34

Net FPI/FII(Equity) (Rs. crores) Rs. Crores

(-)1176.6 9902.18 8725.58 741.59

Net FPI/FII (Debt) Rs. Crores

(-)2319.19 5960.25 3641.06 157.00

Net FII (Total) Rs. Crores

(-)3495.79 15862.43 12366.64 353.76

* Figures of January & February, 2017

Source: BSE, NSE, RBI, CSO, SEBI

India SENSEX increased 1087.36 points or 3.93% to 28,743.32 on 28th February 2017 from

27,655.96 as end of January 2017.

Nifty 50 closed at 8879.6 as on 28th February, 2017. Nifty increased 3.72% during the month of

February, 2017.

Gold Price increased from Rs 28,825 as end of January, 2017 to Rs. 29,595 as end of February,

2017.

Brent crude oil decreased -0.20 USD/BBL or -0.00 % to 55.59 on 28th February, 2017 from 55.7

in the previous month (January, 2017).

37

India's consumer price index was 3.65 percent higher in February, 2017 compared with February

2016.

The annual rate of inflation, based on monthly WPI, stood at 6.55% (provisional) for the month of

February, 2017 (over February, 2016) as compared to 5.25% (provisional) for the previous month

and -0.85% during the corresponding month of the previous year.

The General Index for the month of January 2017 stands at 191.3, which is 2.7 percent higher as

compared to the level in the month of January 2016. The cumulative growth for the period April-

January 2016-17 over the corresponding period of the previous year stands at 0.6 percent.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the

month of January 2017 stand at 146.1, 199.2 and 195.6 respectively, with the corresponding

growth rates of 5.3 percent, 2.3 percent and 3.9 percent as compared to January 2016. The

cumulative growth in these three sectors during April-January 2016-17 over the corresponding

period of 2015-16 has been 1.4 percent, (-) 0.2 percent and 5.0 percent respectively.

India Government Bond 10Y increased to 6.87 on 28th February, 2017 from 6.41 in the previous

month.

There was net inflow of Rs. 15862.43 crores foreign portfolio investments in India in the month of

February, 2017, against the outflow of Rs (–) 3495.79crores in the month of January, 2017.

Foreign Exchange Reserves in India increased 1.24 USD Billion or 0.34 % to 362.80 USD Billion

on 28th February, 2017 from 361.56 USD Billion in January 2017.

US Dollar to Indian Rupee Exchange Rate is at a current level of 66.74, low from 67.81, the

previous month.

**********

pension bulletin - pfrda

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