Over the years, National Pension System (NPS) has grown in reach by adding new sectors and features. Few of the marked milestones with respect to the services provided to subscriber under NPS are:
eNPS is the portal for online registration and contribution under NPS. Using the facilities available in the eNPS portal, a Subscriber can register under NPS, generate a Permanent Retirement Account Number (PRAN) under All Citizens of India sector and contribute to the Tier I as well as Tier II account. Further, the Subscribers already registered under NPS and having active PRAN can make contributions through eNPS.
Any individual who has a active Mobile number, email ID and an active Bank account with net Banking /Credit Card/Debit Card can open NPS through eNPS. They also should have an Aadhaar (with a mobile number registered with Aadhaar) or a PAN Card for KYC verification.
2) Online Withdrawal
Online Withdrawal under NPS:
As per circular has been issued by the Authority withdrawal process has been made mandatory online from 1st April, 2016. Only online withdrawal requested raised on online platform shall be accepted at CRA for processing.
How to raise online withdrawal claim under NPS:
The online withdrawal process can be initiated in either of the two ways:
- By subscriber using User ID & IPIN: The subscriber can directly initiate withdrawal application using his/her User ID & IPIN in the CRA system with in a period of 6 months before the age of superannuation/vesting date opted by subscriber. While initiating the request in the system, the subscriber needs to provide details such as lump sum % of withdrawal, annuity % share details, Annuity Service Provider details, Bank details, Nomination details etc.
- By Nodal Office/POP/Aggregator: In case subscriber is not able to initiate the request directly into the system, the withdrawal application can be initiated by the concerned Nodal Office/ POP or Aggregator in the CRA system using their respective logins. The subscriber is required to provide the physical withdrawal form along with the supporting documents such as Identity & Address Proof, Bank details etc. to the Nodal Office.
- The death claims shall directly be initiated by Nodal Office/POP/Aggregators through their respective logins in CRA system.
- The Nodal Office shall verify whether the Withdrawal Request Form has been properly filled and check whether all KYC documents have been submitted by the subscriber/claimant. The Nodal Office will initiate and authorise the request only after such verification is carried out.
- Post authorisation of the request in CRA system, the Nodal Office/POP/Aggregator shall forward the withdrawal application form and supporting documents received from subscriber to CRA.
The detailed procedure of generating of Claim ID and capturing the withdrawal request in CRA system is provided under Annexure I of the Circular. The Circular can be accessed at following web link.
Documents required along with Withdrawal form for Claim Settlement:
Following documents are required to be submitted by the subscriber/claimant along with the withdrawal forms in order to settle the claims:
- Attested copy of Proof of Identity (e. g. Passport, Aadhar Card, PAN Card, Valid Driving License, Voter ID Card etc.)
- Attested copy of Proof of Address (e. g. Passport, Aadhar Card, Valid Driving License, Voter ID Card etc.)
- Cancelled cheque (containing Subscriber Name, Bank Account Number and IFS Code) or Bank Certificate Containing Name, Bank Account Number and IFSC code, for direct credit or electronic transfer.
- In case of death claim, additional documents such as Original Death certificate, Legal Heir Certificate (if nomination not provided) etc., shall also be required.
Note: An illustrative list of documents acceptable as proof of identity and address can be seen at the instructions page of the respective withdrawal form.
Selection of Annuity Service Provider:
- At the time of exit from NPS, the subscriber is required to purchase the annuity as mandated under the PFRDA (Exits & Withdrawals) Regulations, 2015. The annuity shall provide the periodic income to the subscriber depending upon the type of annuity chosen. The subscriber can check the details of Annuity Service Providers, types of annuity available with them and indicative monthly rates available with different ASPs as provided under the link ‘Annuity Quotes’ available on the CRA website login page.
- After going through the above details, subscriber shall choose the Annuity Service Provider & type of Annuity and fill up the details of the same in the withdrawal form while capturing the request in the CRA system.
- CRA post execution of lump sum withdrawal request in the system shall share the contact details of subscriber to the Annuity Service Provider selected by him/her. The ASP shall contact the subscriber directly or through their local branch nearby the location of subscriber to fill up the proposal form to purchase the Annuity. The filled up form shall be sent to the ASP along with the supporting documents.
- Post receiving the proposal form, ASP shall inform CRA to release the Annuity purchase amount and Annuity contract shall be issued to subscriber by the ASP.
3) Central Grievance Management System (CGMS)
NPS, being the flagship pension scheme of Government of India, is expected have a robust grievance redressal mechanism as well. To cater this, a centralized grievance redressal mechanism is introduced, through which all the stakeholders are provided the option to receive, record and resolve different types of grievances from different entity/actors of the CRA system
CGMS is a platform to log/ register grievances for all entities in CRA system. The grievances are classified w.r.to the services provided under NPS by various intermediaries. Once a grievance is received the same is marked to the appropriate entity like the Central Recordkeeping Agency (CRA), Pay and Accounts Office (PAO), Point of Presence (POPs) etc.
As per the Pension Fund Regulatory and Development Authority (Redressal of Subscriber Grievance) Regulation, 2015, every grievance should be disposed off within a period of thirty days of its receipt. In case of unsatisfactory resolution /unresolved grievance, the subscriber can escalate the grievance to NPS Trust. Provision for escalation has also been incorporated in CGMS to enable hassle free resolution and escalation of grievances.
4) Audit of Scheme Accounts:
The annual financial accounts of Schemes of NPS managed by the Pension Fund Managers are audited in terms of the Guidelines issued by PFRDA vide PFRDA (Preparation of Financial Statements and Auditors Report of Schemes under National Pension System) Guideline - 2012. As per these guidelines the scheme auditors are appointed by NPS Trust & each PFM is submitting the Scheme accounts duly audited in the prescribed formats and approved by their Board of Directors to NPS Trust at the end of each Financial Year. Further to the same, the scheme financials and the Annual Report of NPS Trust are published.
5) Consolidation of Scheme Accounts
At the behest of the Board of Trustee of NPS Trust, the audited individual NPS Scheme financials of each Pension Fund have been consolidated into a single Balance Sheet and Revenue Account representing the summarized position of NPS Scheme Financial Accounts from the Financial Year 2015-16. The consolidation of Scheme Accounts provides the total representation of each scheme and the consolidation will enabled NPS Trust to find out missing links, if any, in the process.