National Pension Scheme:
1. Started on 2004 by govt if India after ,it was declared employee joining after 2004 would no longer receive any pension.
2.Around 16 percent would be contributed by government in this scheme by central government fir their employees pension.
3. In 2009 this scheme was open for general public any person individual or entrepreneur can now enroll.
4. Voluntary scheme which was started so people can accumulate saving for their retirement.
5. The structure of fund is managed by PFRA: Pension fund regulatory authority,to ensure funds safety and security
6. Pension fund managers like SBI, Lic, UTI, Reliance, Kotak, Hdfc and ICICI prudential maintain NPs .
7. Four asset classes investment are made:
Equity, Government bond corporate bond and other investments.
8. NPS has tax benefit. Investment under 150000 are eligible for tax benefits under section 80C and 50000 is further eligible under section 80 CCD.
60 percent is withdrawable after the age of 60 and remaining 40 percent has to be compulsorily invested in annuity plan which can generate monthly income.
9. Tier one is eligible for income tax benefits and Tier two there is no limit for investment.
10. Under NPS there are two ways to decide asset allocation Active choice and Auto choice.
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