NPS, regulated by PFRDA, is an important milestone in the development of a sustainable and efficient voluntary defined contribution pension system in India. It has the following broad objectives:

To provide old age income Reasonable market based returns over the long term Extending old age security coverage to all citizens

Elite Wealth Advisors Ltd as a Point of Presence (POPs) for the National Pension System shall be the first point of interaction between the voluntary subscriber (Investor) and the NPS architecture.

About New Pension System (NPS):

Government of India has introduced New Pension System (NPS) with an aim to provide old-age security coverage and pension for all citizens of India. The scheme provides investors an option to avail reasonable market based returns over long term. Periodic contributions will get invested through Pension Fund Regulatory and Development Authority (PFRDA) appointed Pension Fund Managers (PFMs) in a combination of investment avenues as per the choice of investor.

Eligibility Criteria for Subscriber

A citizen of India, whether resident or non – resident can join NPS subject to the following conditions: Subscriber should be between 18-55 years of age as on the date of submission of his / her application. Subscriber should comply with the prescribed Know Your Customer (KYC) norms as detailed in the Subscriber Registration Form. Pre – existing account holders under NPS cannot join again as existing account is portable across geographies and employers. Entity may regulate within these norms but shall not breach these norms.

For further details regarding New Pension System, please write us at marcom@elitewealth.in or call at +91-11-40000919.

NPS, regulated by PFRDA, is an important milestone in the development of a sustainable and efficient voluntary defined contribution pension system in India. It has the following broad objectives:

Salient Features of NPS

It is prudentially regulated

Transparent investment norms, regular monitoring and performance review of Fund Managers by NPS Trust.

Low Cost

NPS is perhaps world’s lowest cost pension scheme. Other handling and administrative charges are also the lowest. The fund management fees will be as charged by the PFM.

Ensures Complete Portability

NPS account can be operated from anywhere in the country irrespective of employment and geography.

Flexibility

Choice of investment mix and Pension Fund Managers or Select Auto Option (life cycle fund) to get better returns, if option provided by the corporate.

Simple & Web Enabled/ Online

All transactions can be tracked online through CRA system. Employer and employee can check fund and contribution status through CRA website.

For further details regarding New Pension System, please write us at marcom@elitewealth.in or call at +91-11-40000919.

How does it work?

The NPS is based on a unique individual Permanent Retirement Account Number (PRAN) created for individual subscribers. The PRAN Number will remain the same for your lifetime irrespective of where you operate your NPS A/c from across the nation.

This system will initially be based on two types of sub accounts created for individual investors:

Tier 1: Employer / Employee can contribute for retirement into this non –withdrawal account. Income Tax benefits as per the Income Tax Act, 1961 are available for both employer and employee contributions. Tier I charges can be borne either by Corporate or Subscriber, at the discretion of Corporate. Tier 2: This is a voluntary savings facility, where the subscriber can avail Fund Management facility at very low costs. Subscriber will be free to withdraw savings from this account whenever they wish. However, the tax benefits are not applicable for Tier –II account.

Minimum Contribution (For Tier – I)

Minimum amount per contribution: Rs. 500. Minimum balance of Rs. 6000/- at the end of each financial year. Minimum number of contributions -01 per year.

Minimum Contribution (For Tier – II)

Minimum amount per contribution: Rs. 250. Minimum balance of Rs. 2000/- at the end of each financial year. Minimum number of contributions -01 per year.

Note

If the subscriber continues less than minimum contribution in a year, then he would have to bear a default penalty of Rs. 100 per year of default and the account would become dormant. In order to reactivate the account, the subscriber would have to pay the minimum contributions, along with penalty, due for the period of dormancy. A dormant account shall be closed when the account value falls to zero.

Investment of Your Periodic Contributions in NPS

Periodic contributions will get invested through PFRDA appointed Pension Fund Managers (PFMs) in a combination of investment avenues as per the choice of investor. NPS will give you fixed monthly (periodic) pension / annuity which a subscriber will get against the corpus invested and PFRDA has empanelled Annuity Service Provider (ASP) by which a subscriber will withdraw his / her invested amount.

PFRDA has introduced two models under the New Pension System:

All Citizens Model - Available to all citizens of India & NRIs can apply. NPS - Corporate Sector Model - Provide NPS benefits to the employees of corporate entities. The tax benefits under NPS will be as per the provisions of the Income Tax Act, 1961 as amended from time to time. For further details regarding New Pension System, please write us at marcom@elitewealth.in or call at +91-11-40000919.