New Pension Scheme

Standard Operating Procedure (SOP)

Version 2.0

 TableofContents Page SerialNo. Contents A B C D E F G H I J K L M N O Preface No. 1 2 3 4 5 7 7 8 10 10 11 11 11 12 13 14

SalientfutureofNPS FormsandDocumentsrequiredtoopenNPSaccounts ServiceChargesandInitialContribution NPSTransactionsflow POPSP(PO)checklist IssuanceofreceiptbyPOPSPtoSubscriber BookingofNPStransactionsinPointofSaleModule SubmissionofApplicationForms&DocumentstoCRAFC IssuanceofPRANkit PRAN(PermanentRetirementAccountNumber AcceptanceofSubsequentContributionTransactions OtherServices.a.TierIIActivation BookingofNPSTierIIactivationinPointofSale Submissionofforms&DocumentstoNPSNodaloffice Contactdetails

Launching of NPS at India Post.

Preface The Government of India (GOI) has introduced a new Defined Contribution Pension System known as the New Pension System (NPS) replacing the existing system of Defined Benefit Pension System vide Government of India, Ministry of Finance, Department of Economic Affairs Notification, dated 22nd December 2003. The NPS came into operation with effect from 1st January 2004 and was made applicable to all new employees to Central Government service, except to Armed Forces, joining Government service on or after 1st January 2004. The GOI decided to roll out the Voluntary NPS for all citizens from 1st May, 2009. Hence, various facilities (like opening Permanent Retirement Account, contributing to NPS etc) will be required to be provided to all the citizens (known as Subscribers in the NPS architecture) at various locations across India. These processes shall be carried out through the entities known as Points of Presence (POPs) appointed by the PFRDA. POPs shall provide the services under NPS through their network of branches called POP Service Providers (POP-SP). The Department of Posts, would act as a POP for extending the new pension scheme on behalf of the Pension Fund Regulatory and Development Authority (PFRDA). PFRDA has appointed the Department of Posts as POP to operate the scheme through identified Post Offices (POP_SP). India Post is one of the POPs appointed by the PFRDA The scheme was being made available through Head post offices on an experimental basis in Southern Region of Karnataka and Coimbatore region of Tamil Nadu. In the first phase, 49 Head post offices in the Southern Region of Karnataka and Coimbatore region of Tamil Nadu will act as POP-SP( Point of Presence- Service Provider). Now the NPS scheme was extended to All 808 Head Post offices throughout the country from 01.05.2010. The department would operationalise the NPS in terms of subscriber registration for opening new pension account, acceptance of forms, verification, processing and forwarding the forms to Central Record Agency-Facilitation Centre, initial contribution processing, regular subscriber contribution upload through Meghdoot Software, subscriber servicing, grievance handling and MIS uploading. Any Indian citizen in the age group of 18 to 55 years could join and continue till 60years. Minimum contribution is Rs. 500 a month and Rs 6,000 per annum and there should be a minimum of four contributions. Account holders could decide on the frequency and extent of contribution across the year as per their grievance. Subscribers' contribution would be invested as per the scheme preference opted by the subscriber and options are low risk: low returns, moderate risk: moderate returns and high risk and high returns. The subscriber could opt for the options failing which the investment would be done in auto choice considering the age of the subscriber. The pension contribution would be invested in various schemes by any one of the seven pension fund managers appointed by PFRDA. The return on investments would be in the range of Ten to Twelve per cent.

A. SalientFuturesofNPS
1. TypesofNPSaccounts. TierIANonwithdrawableaccounttowhichtheSubscribershallcontributehis/hersavings forbuildingaretirementcorpus.Thisismandatory. TierIIAvoluntarysavingsfacilitywhichprovidesliquiditytosubscribers,i.esubscriberswillbe Freetowithdrawtheirsavingswhenevertheywish.Thisisoptional 2. Eligibility. a. AllCitizensofIndia(ResidentorNonResident) AgeLimitbetween18yearsto55years,AsondateofsubmissionofapplicationtoPO (Employeesappointedbefore01.01.2004canalsojointoNPS) b. WhocannotjointoNPS i. Insolventperson ii.Individualofunsoundmind iii.PreexistingaccountholdersunderNPS iv.Personunder18yearsofage(Minor). 3. TypesofTransactionsHandledbyPOP_SP(Pos) SubscriberRegistration(OpeningofAccount) InitialSubscriberContribution(FirstDeposit) SubsequentSubscriberContributions(SubsequentDeposits) HandlingServiceRequestsfromsubscribers(includingwithdrawalrequests) Grievancehandling. 4. TypesofNPSaccountsopenbySubscriber. TierI TierI&TierII(Both) TierIIactivationforTierIsubscribers Govtservantsappointedafter01Jan2004areeligibleonlyforTierIIactivation(sincetheyare alreadycoveredunderNPS,andhavingTierIaccount) Govtservantsappointedpriorto01Jan2004&othercitizenscanopenbothTierIandTierIINPS accounts. OnlyTierIIaccountcannotbeopenedwithoutTierIaccount.

5. AmountofContributioninNPS o Minimumamountpercontribution:Rs500 o Minimumcontributionperyear:Rs6000 o Minimumnumberofcontributionsperyear:4 o Nomaximumcontribution o Noperiodicityprescribed o Contributethroughcash,localchequeorDDcanbeaccepted,buttransactionbookedafter realizationofchequeorDD.Outstationchequesnotaccepted

B. FormsandDocumentsrequiredtoopenNPSaccounts.
(Allformsavailableanddownloadedfromourwebsite www.indiapost.gov.in Forms) a. Forms ApplicationformforSubscriberRegistration(UOSS1)ForTierI CompositeApplicationFormforSubscriberRegistration(UOSS1)forbothTierIand TierIINPSaccounts. ApplicationforAllotmentofPermanentRetirementAccountNumber(PRAN) (AnnexureS1) NPSContributionsInstructionSlip(NCIS)(AnnexureNCIS) b. Documents IdentityProof AddressProof DateofBirthProof TwoRecentcolourphotoswithsize3.5X2.5cm

C. ServiceChargesandInitialContribution
EveryNPSregistration(OpeningofAccount)involves,2TypesofTransactions a. Registration b. InitialContribution ServiceChargeforRegistration=Rs.20+3(ServiceTax) ServicechargeforInitialContribution=Rs.20+3(Servicetax) InitialContributionforTierI=MinimumRs.500/ InitialContributionforTierII=MinimumRs.1000/ Illustration:1

IfonlyTierIaccountopened,thenRegistrationservicecharge+InitialContributionService charge+initialcontributionamount(23+23+500=546)shouldbecollected. Illustration:2 IfbothTierIandTierIIaccountsopenedatatime,thenRegistrationservicecharge+Initial ContributionServicechargesforbothtiers+initialcontributionamountforbothtiers. i.e,(23+23+23+500+1000=1569)shouldbecollected

D. NPSTransactionsflow

PFRDA POP

Subscriber CRA-FC
Orientation Workshop for POP by CRA

Service Requests &Transaction Data

POP-SP CRA (NSDL)

NPS Trust Trustee Bank

NAV

PFMs

NPSCAN: NPS Contribution Accounting Network

Information Flow Funds Flow
17

 E. POPSP(PO)checklistforSubscriberRegistrationform:POPSPshouldrejecttheform ifthefollowingdetailsarenotpresentintheSubscriberRegistrationForm. Seewhether3PrescribedApplicationsfilledwithBoldletterandBlackInk SubscribersPhoto SubscribersSignature/Thumbimpressionwithintherectangularbox SubscribersPersonalDetails FirstName Gender FathersFirstname DateofBirth CompletePresentAddresswithPinCode Complete Permanent Address with Pin Code (if different from CorrespondenceAddress) 5. SubscriberSchemePreference PFMselection(onlyone) AssetAllocation(incaseofActiveChoice) i. Totalshouldequal100% ii. Equityshouldnotexceed50%) 6. Seewhetherallmandatory(*marked)datafieldscorrectlyfilledbytheapplicant; incompleteinformationtobepointedoutandcorrectedbeforeaccepting 7. KYCDocuments IdentityProof AddressProof DateofBirthProof 8. Collecttherequiredamount(Cash)fromthesubscriber. F. IssuanceofreceiptbyPOPSPtoSubscriber: Onsuccessfulverificationoftheformssubmitted,POPSPshallacceptthesameand shallgenerateanacknowledgementcontainingaReceiptNumber.POPSPshall handovertheacknowledgmentttotheSubscriberforthereceiptoftheapplication POPSPshallgenerate17digitreceiptnumberinPOSmodule,oneachreceiptprovided totheSubscribercontainingthebelowmentionedlogic: First2digits(fromleft)Typeofrequest(Startingwith11forSubscriberregistration) (Startingwith12forcontribution) Next7digitsRegistrationNumberofPOPSP Next8digitsRunningsequencenumber Ex:1160100010000000117DigitReceiptnumberforRegistration Theabove17digitreceiptnumbershouldbeenteredintheApplication(UOSS1),where spaceprovidedinfirstpageoftheapplication(ReceiptnumbertobeprovidedbyPOPSP) Ex:1260100010000000217DigitreceiptnumberforContribution Theabove17digitreceiptnumbershouldbeenteredintheNCISApplication(AnnexureNCIS), wherespaceprovided(ReceiptnumbertobeprovidedbyPOPSP) 1. 2. 3. 4.

 G. AcceptanceandBookingofNPStransactionsinPointofSaleModule. a. RegistrationTransaction. (GotoToolsmenu deselectclosescreenaftertransaction,ThenstartbookingofNPStxn) SelectFinancialsinmainmenu selectePayment selectNPStrust enterthedetails ForFreshregistrationtypesubscribername,thenselectservicetype RegistrationBothTiers orTierI.ClickPrintbutton,Receiptwillbegeneratedwith17digitnumber.(11601000100000001) (ThereceiptwillbeforRs.23/).ThisnumbershouldbeenteredinUOSSIapplicationform.

b. Contributiontransaction
AfterbookingofNPSRegistrationtransactionContributionacceptancescreenwillappear automatically,with17digitreceiptnumbergeneratedforregistrationinthefieldPRANnumber, Subscribername&servicetypeasContributionBothTiersorTierI,thenentertheamountin TierIandTier2fields,(IfRegistrationdoneforBothTier1andTier2thenContributionfortiers Tier1&Tier2isamust)collectedfromthesubscriber.Clickprintbutton.Again17Digitreceipt numbergenerated(12601000100000002).ThisnumbershouldbeenteredinNCISform

H. SubmissionofApplicationForms&DocumentstoCRAFC.
POPSPshallsubmittheNPSapplicationcollectedfromsubscribertoCRAFCalongwith covering letter as well as the list of receipt numbers in duplicate every day by hand or throughRegisteredPost.ThecoveringletterofPOPSPshallcontainthePOPandPOPSP registrationnumberandthetotalnumberofapplicationsattachedwiththecoveringletter. As a good practice, POPSP can have a running serial number for the covering letter for bettercontrol. POPSPshallsubmittheapplicationformstoCRAFCwithwhichitismapped.Thelistof suchmappingwillbeavailableatthewebsitewww.npscra.nsdl.co.in.Incaseoflocations where the CRAFCs are not located, POPSP shall forward the applications along with documentstothenearestCRAFC.ThePOPSPshouldmentionontheenvelopethesubject asSubscriberRegistrationForm(s). Onthereceiptoftheforms,CRAFCshallconductapreliminarylevelcheckoftheforms. On successful preliminary verification by CRAFC, POPSP shall receive a Provisional Receipt containing one15 digit Provisional Receipt Number (PRN) for each lot of fifty or less application forms. Provisional receipt issued by the CRAFC shall contain CRAFC stampandsignature. Incaseofdiscrepancyinpreliminaryverification,CRAFCshallrejecttheapplicationsand issuerejectionmemomentioningreasonforrejectionacrossthecounter.Incaseofrejection attheFCdigitisationcentre,therejectiondetailswillbesentbyemailtoPOPSP.Itmaybe mentionedthatinboththecases,therejectedapplicationformwillnotbereturnedtothe POPSP. It will be the responsibility of the POPSP to communicate to the subscriber about the rejectionoftheformandgetnewformfilled.

POPSPshallensuremaintenance,reportingandretentionofrecordsofalltransactions (copy/counterfoilofform,rejectionmemo,etc)inaccordancewithprovisionsofPMLAct,2002 andRulesframedthereunder,asmaybeapplicablefromtimetotime. I.

IssuanceofPRANkit:

After acceptance of NPS Applications from POPSP, The CRAFC Digitalize the documents and sent to CRA for issue of PRAN. On receipt of Digitalised Applications from CRAFC , CRA will process the Registration. On successful registration of the Subscriber by the CRA , PRAN kit containing the PRAN card, Subscriber Master List, IPin/TPin to access CRA system/Interactive Voice Response system and information brochure will be dispatched to the Subscriber within 15 daysofreceiptoftheapplicationformbyCRAFCacceptancecentre/CRA.Subscriber/POPSPcan viewthestatusoftheapplicationformsubmittedtoCRAFC/CRAbyusingtheacknowledgement number/receiptnumberonCRAwebsitewww.npscra.nsdl.co.in.

J. PRAN(PermanentRetirementAccountNumber)
Permanent Retirement Account Number (PRAN) is a unique number allotted to every individualwhojoinstheNPS PRANisallottedbyCRA PRANiscommontobothTierI&TierII OneindividualiseligibleforonePRANonly.

K. AcceptanceofSubsequentContributionTransactions
ForacceptanceofSubsequentcontributionsPRANnumberismandatory. OnlyNCISfromshouldbecollected SameproceduretobefollowedforacceptanceofContributiontransaction explainedabove. IntheNPSbookingscreen,PRANnumberfiledPRANnumbermustbeentered. NCISformshouldbekeptinthepostoffice,neednottobesenttoanywhere

ServiceCharges&Contributionamountforsubsequenttransaction
SubsequentcontributionforTierIaccount=ContributionServicecharge+Minimum contributionamount(23+500=523)shouldbecollected.

L. OtherServices.a.TierIIActivation

Thisisavoluntarysavingsfacilityaccountwhichprovidesliquiditytosubscribers,i.e subscriberswillbefreetowithdrawtheirsavingswhenevertheywish.TheSubscriber whoisalreadyhavingTierINPSaccountcanactivatetheTierIIaccount.

EligibilityConditions.
AgeLimitbetween18yearsto55years,Asondateofsubmissionofapplication. TheSubscribermusthavingTierINPSaccount. SubscribermusthaveBankaccountnumberwithchequebookfacility. Govt.servantsappointedafter01Jan2004areeligibleforTierIIactivation. MinimumInitialcontributionamountisRs.1000/ MinimumSubsequentcontributionamountisRs.250/pertransaction.

Forms&Documents(ForTierIIactivation)
FormUOSS10SubscriberwhohasbeenregisteredforTierIandissuedaPRANcard: FormUOSS11SubscriberwhohasbeenregisteredforTierIandnotissuedaPRANcard AnnexureNCISNPSContributionInstructionslip.

Documents
CopyofPRANcard OneCancelledchequeleaf

M. POPSP(PO)checklistforSubscriberRegistrationform:POPSPshouldrejecttheform ifthefollowingdetailsarenotpresentintheSubscriberRegistrationForm. SeewhetherPrescribedApplicationsfilledwithBoldletterandBlackInkonly. SubscribersSignature/Thumbimpressionwithintherectangularbox SubscriberSchemePreference o PFMselection(onlyone) o AssetAllocation(incaseofActiveChoice) Totalshouldequal100% Equityshouldnotexceed50%) See whether all mandatory( * marked) data fields correctly filled by the applicant; incompleteinformationtobepointedoutandcorrectedbeforeaccepting Collecttherequiredamount(Cash)fromthesubscriber.

ServiceCharges&ContributionamountforTier2Activationtransaction
ForTierIIaccountactivation=ActivationServicecharge+InitialContributionServiceCharge+ Minimumcontributionamount(23+23+1000=1046)shouldbecollected N. AcceptanceandBookingofNPStransactionsinPointofSaleModule. a. TierIIactivationTransaction.

SelectFinancialsinmainmenu selectePayment selectNPStrust enterthedetails PRAN number, subscriber name, then select service type Subscriber Tier2 Activate. ClickPrintbutton,Receiptwillbegeneratedwith17digitnumber.(21601000100000001) (ThereceiptwillbeforRs.23/).ThisnumbershouldbeenteredinUOSS10orUOSS11 applicationform.

b. AcceptanceofContributiontransactionforTier2activation.
AfterbookingofNPSTier2activationtransactionContributionacceptancescreenwillappear automatically,with12digitPRANnumber,Subscribername&servicetypetobeselectedas ContributionTier2,thenentertheamountcollectedfromthesubscriber.Clickprintoption. Again17Digitreceiptnumbergenerated(12601000100000002).Thisnumbershouldbeenteredin NCISform

O.

Submissionofforms&DocumentstoNPSNodaloffice

Theapplication(UOSS10)collectedfromsubscriberalongwithdocuments(copyofPRAN +CancelledChequeleaf)ShouldbesenttoNPSNodalOfficeMysore,forActivation throughRegisteredPost.AndalsosendscannedcopiesofFormsanddocumentstoNPS nodalofficeviaemail.

P. AlltheNPStransactionsaredonethroughePayment,Allotherprocessarethesameas inotherePaymenttransactions.Supervisor/SystemAdministratormustensureafterday endinthePointofSale(POS),whetherePaymentcommunicationisrunningandallthe filesweretransferredeveryday.

Q.

Contactdetails:
a. NPS,NodalofficePTC,Mysore: Phone&Fax:0821+2441010 email:nps@indiapost.gov.in
b.

CRA,Mumbai. National Securities Depository Limited 4th floor, 'A' Wing, Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. Tel: (022) 2499 4200 (60 lines), Fax: (022) 2495 2594/ 2499 4974 Toll free number: 1800222080

c. CRAwebsite:www.npscra.nsdl.co.in Note: a. AlltheformsrelatedtoNPStransactionsareavailableatourhomepagei.e,ourwebsite www.indiapost.gov.in.AllarerequestedtodownloadtheformsandkeptinPostofficecounters. b. ThisNPSSOPandNPSPPTwaskeptinourPTCftpsite.Pleaseissueinstructionstoalltodownload thesameandkeptitinoffice. c. TheFollowinginformationsareavailableinCRAwebsitewww.npscra.nsdl.co.in AllrequiredNPStransactionformsalsoavailableandcanbedownloaded. OfferdocumentsforNPSandSOPforNPSisalsoavailable. PostofficecantrackthestatusofthesubscriberRegistration&PRANgeneration,bygivingthe17 DigitreceiptnumberandPopSPregistrationnumber. LocationofnearestCRAFCcanbeidentified. POPandPOPSPregistrationnumbers. NAVofeachPFMisalsoavailable.