Federal Bank New Pension Scheme

The Federal Bank National Pension System (NPS) is a voluntary pension scheme. The bank is enrolled under the Pension Fund and Regulatory and Development Authority(PFRDA) of India as a Point of Presence (POP) for the New Pension System (NPS).

The Federal Bank National Pension System (NPS) is a simple voluntary and defined contribution savings scheme for people after retirement. The NPS has a design that ensures systematic savings during the scheme owner’s working life. This was designed to provide a sustainable solution intended to part adequate retirement income to every citizen of India

NPS SignUp Form

How to Apply for the Federal Bank National Pension System

Simply follow the following steps for the same:

  • Download the Subscriber Application Form.
  • Submit the Subscriber Application Form with KYC documents as mentioned:
    1. Identity proof
    2. Address Proof
    3. 2 photographs (passport size)
  • You would also require to submit the NPS Contribution Instruction Slip (NCIS).
  • The most important thing being the minimum contribution amount will require being submitted.
  • The submissions have to be made in any of the authorised Federal Bank branches. The list is available on the Federal Bank portal for all the branches in and around your city. Use the Federal Bank NPS calculator to get an estimate of your schem amount.

Eligibility of Federal Bank National Pension System

The following are the eligibility criteria for Federal Bank National Pension Scheme:

  • Individual should be an Indian citizen or NRI.
  • Individual should be a minimum of 18 years and maximum of 60 years
  • He or she should have all the following documentation ready:
    • To open this account, the individual should be between the age of 18 to 60 years.
      • Photo Id proof
      • Date of birth proof
      • Address proof
      • Application form
  • In case of Tier I:
    • Minimum contribution for account opening is Rs.500
    • Minimum amount payable for every contribution is Rs. 500
    • Minimum Required Account Balance at the end of every financial year is Rs. 6,000
    • Minimum number of contributions per annum should be at least once.
  • In case of Tier II:
    • Minimum contribution for account opening is Rs. 1,000
    • Minimum amount payable for every contribution is Rs. 250
    • Minimum Required Account Balance at the end of every financial year is Rs. 2,000
    • Minimum number of contributions per annum should be at least once.
    • For a Tier II account opening, the individual has to first open an active Tier I account for activating the Tir II account.
    • Minimum contribution at the time of account opening is Rs. 1500 when a composite application is being made for Tier I and Tier II together.
    • Submission of a cancelled cheque is required for composite application or Tier II or Composite application with the application form.

Features of Federal Bank National Pension System

The main features of the Federal Bank National Pension system include:

  • There are 8 option of fund managers that can be chosen for in the Federal Bank Bank National Pension Scheme and can be switched to, at will:
    1. Federal Bank Prudential Pension Fund Management Co. Ltd.
    2. HDFC Pension Management Co. Ltd.
    3. Kotak Mahindra Pension Fund Ltd.
    4. LIC Pension Fund Ltd.
    5. Reliance Capital Pension Fund Ltd.
    6. SBI Pension Funds Pvt. Ltd
    7. UTI Retirement Solutions Ltd
    8. Pension Fund (PF) to be incorporated by Birla Sunlife Insurance Co. Ltd One Fund Manager must compulsorily be selected.
  • There is also the flexibility to choose between the Active and the Auto Choice for distribution options.
  • In case of active choice the subscriber has to indicate percentage distribution between corporate, gilt and equity.
  • The maximum investment in equity can be upto 50%.
  • The PRAN account number remains the same, throughout the individual’s life.
  • There are 2 types of accounts available based on withdrawal from Federal Bank:
  1. Tier I
    • This is a non-withdrawable account and unless the individual reaches the age of 60 years, they cannot withdraw the pension for the rest of the years.
    • The subscriber has to close the scheme he or she reaches 60 years of age.
    • However the individual can extend the scheme for 10 years, further under the condition that no new contributions can be made on the scheme. Also it is mandatory to annuitize 40% of the accumulated pension wealth. The option to annuitize 100% of the whole corpus is allowed as well.
  2. Tier II
    • A Tier-II account is an optional voluntary savings account, where the subscriber is free to withdraw from the accumulated scheme amount any time.
    • The facility is available to Indian citizens of India which includes Government employees who are mandatorily covered by NPS.
    • There are also no restrictions on the number of withdrawals that can be made in Tier II.
    • The individual can also separate nomination as well as scheme preference between Tier I and Tier II.
    • One-way transfer of savings between tiers is allowed.
    • There is no requirement for another KYC for Tier II account opening since a pre-existing Tier I IRA Compliant account would already to active.

There is portability for NPS across industries and locations allowing a hassle-free arrangement for individuals.

  • The whole scheme is regulated by the PFRDA, ensuring transparency in the investments, monitoring regularly and a performance review of all the fund managers by NPS Trust.

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