The New Pension Scheme (NPS), a social security scheme, was launched by the central government in 2014. The New Pension Scheme is a contribution based scheme which offers market-linked returns to pensioners. Initially aimed at central government employees only, NPS was subsequently extended by the Pension Fund Regulatory and Development Authority (PFRDA) to all citizens. Consequently, any employee belonging to private sector or self-employed can avail of the new pension scheme. Also, it is important to note that the new pension scheme offers portability across various locations and jobs.
All central government service employees (with the exception of Armed Forces) who joined services after January 2004 can open a new pension scheme account while there may be different dates for
State government employees. Also, any government employee may become a subscriber to the new pension scheme courtesy a Point of Presence - Service Provider (POP-SP).
Point of Presence -Service Provider (POP-SP)
A Point of Presence - Service Provider (POP-SP) is an interface for subscribers who are not government employees and want to open a permanent retirement account with the Central Record Keeping Agency (CRKA) and become a subscriber to the new pension scheme.
NPS Account opening
A new pension scheme account can be opened by any individual who is above 18 years but below 60 years. To open NPS account, a subscriber has to take the following measures:
- Get the Permanent Retirement Account Number (PRAN) application form
- Fill out and submit the PRAN form
- Receive the PRAN card
A subscriber has to get his or her Permanent Retirement Account Number (PRAN) application form, which can be procured from any Point of Presence - Service Providers (POP-SP). The subscriber has to fill out the PRAN application form which consists of various details such as signature and scheme preference among others. A subscriber has to submit KYC documents vis-a-vis proof of address and proof of identity.
After duly filling out the Permanent Retirement Account Number (PRAN) application form, a subscriber has to submit it to a Point Of Presence - Service Provider (POP-SP). A subscriber should, also submit KYC documents along with the PRAN application form, following which, CRA will send the PRAN card to the address of the subscriber. POP-SP will then provide the subscriber with a receipt number, which can be used to track the status of the PRAN application. PRAN card is generated and sent to the subscriber within 20 days from the receipt of the registration form at CRA centre.
The Permanent Retirement Account Number, can be used by a subscriber at any time to track his or her transactions online. A PRAN Kit consists of PRAN card, name of the subscriber, photograph, father's name, signature in addition to I-Pin and T-Pin. An individual can use only one PRAN which is portable. In case any subscriber has more than one PRAN, the nodal office will deactivate one PRAN.
A copy of the PRAN card is needed for activating tier-II account. Any employee who is a subscriber of the new pension scheme can open a tier II account by submitting the UOS-S10 form in addition to PRAN card and Rs.1000 to a POP-SP.