Corporate Policy

National Pension Scheme

©©
2019 YASH
2015
2016 Technologies
YASH | www.yash.com
Technologies | www.yash.com| |Confidential
Confidential
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 Table of Contents

1) Introduction 3
2) Features 4
3) Additional Tax Benefits Under the Corporate NPS Scheme 5
4) Conditions for Yash NPS Corporate Scheme 6-7
5) How to get PRAN 8-9

6) Registration of NPS 10-11

7) Verification of NPS 12-13

8) Investment Option 14
9) NPS Schemes 15-20

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 Introduction
• In Our Endeavour to bring the best Employee Benefit Schemes, we are launching the YASH
National Pension System (NPS) Corporate Scheme for all associates. A voluntary option it is
applicable on the basis of a few eligibility criteria.

• NPS is an investment plus retirement savings scheme promoted by the Government of India
and is being regulated by the pension Fund Regulatory Development authority (PFRDA). The
scheme aims to inculcate the habit of systematic savings during the working life of an associate
and provide social security during retired life by giving the option to purchase a
pension/annuity with the accumulated savings in the NPS account.

• NPS is an easily accessible, low cost, tax-efficient, flexible and portable retirement savings
account. Under the NPS, an individual contributes to their retirement account while their
employer to can co-contribute towards the social security / welfare of the individual. NPS is
designed on a defined contribution basis wherein the subscriber contributes to their account.

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 Features
Prudentially Regulated: NPS has Transparent investment norms, regular monitoring and performance review of
Fund Managers by NPS Trust.

Low Cost: NPS is perhaps the 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.

Complete Portability: The NPS account can be operated from anywhere in the country irrespective of employment
and geography and is fully portable across sectors and locations. Subscribers/Employees can shift from one sector
to another like Private to Government or vice versa or All Citizen Model to Corporate Model and vice versa as well. A
private citizen can also move to Central Government, State Government etc. all with the same account. A subscriber
can also shift within sectors like from one POP to another POP and from one POP-SP to another POP-SP. Likewise an
employee who leaves their employment to become self employed can continue with their individual contributions. If
they re-enter employment they may continue to contribute along with their employer.

Flexibility: Choice of investment mix and Pension Fund managers or select Auto Option (life cycle fund) to get
better returns, if the option is provided by your corporate.

Simple and Web Enabled/Online: All transactions can be tracked online through the CRA system. Employer and
employee can also check fund and contribution status through the CRA website.

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 Additional Tax Benefits Under the Corporate NPS Scheme

• Under the Corporate NPS, you can invest directly and at the same time you can route your contribution
through your employer. Both contributions are eligible for tax deduction as shown below:

• Note: Both tax benefits are mutually exclusive, over and above the 80C limit and can be availed at the same
time.

Direct Contribution by Employee Contribution routed through the

This contribution to the extent of Rs.50000
is eligible for tax deduction under section
80CCD(1B) of the Income Tax Act, 1961.
Yash Corporate NPS Scheme
This contribution is made up to the extent
of 10% of the basic salary with no upper
cap in terms of absolute value. This is
eligible for tax deduction under section
80CCD(2) of the Income Tax Act, 1961.

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 Conditions for Yash NPS Corporate Scheme

• Any active associate can enroll for the NPS Corporate Scheme.

• You need to enroll for this Benefit on Infogram under the Benefit Module

• Interested associates should be a holder of PRAN (Permanent Retirement Account Number), this means
that they have a Tier I Type NPS account.

• Any associate who has a CTC of more than 5 Lakhs is eligible to enroll for the NPS Corporate scheme.

• Once an associate has enrolled for the NPS Scheme, it will continue till the end of their tenure with the
company.

• Enrolling for NPS will reduce your Net Pay in hand as after enrollment the NPS Employer Contribution
component will be added in your CTC Structure. This amount will be deposited in your NPS account in the
following month.

• Tax benefits on contribution deducted under Yash NPS corporate Scheme will be available in the following
month when deducted amount transfer by employer to employee NPS account. Ex: tax benefits on May
contribution deducted by the employer will be available in the month of June.

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• Once an associate enrolls for the NPS corporate scheme, by default their fund investment approach will be
Auto Choice with Moderate Life Cycle. In the moderate life cycle fund, for example, the default asset
allocation under auto choice is 50% to class E, 30% to class C and 20% to class G, till a person is 35 years
old. At the time of retirement, allocation to these three assets becomes 10%, 10% and 80% respectively, in a
staggered manner.

• The company will deduct the NPS contribution on a monthly basis

• The maximum rate of contribution is 10% Basic Pay however YASH is giving the following options:

o 5% of Basic Salary
o 8% of Basic Salary
o 10% of Basic Salary

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 How to get PRAN
• To enroll for Yash NPS Corporate Scheme you must have a Permanent Retirement Account Number (PRAN).
Below is the link to open your NPS account online

• https://enps.nsdl.com/eNPS/OnlineSubscriberRegistration.html?appType=main

1. Select New Registration >>> Corporate Subscriber >>>Citizen of India >>>Tier I Only
2. Select “YASH TECHNOLOGIES PRIVATE LIMITED” as Corporate Head Office & Corporate Branch
Office.

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• Any individual can open a pension account under NPS through eNPS using one of the following options :

Option 1 Option 2
Registration using Aadhaar Registration using PAN (KYC verification by
Bank)

• Once PRAN has been generated, the Subscriber/Employee will be able to see the following options :

Option 1 Option 2
eSign Print & Courier

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 Registration of NPS
Option 1: Registration Using Aadhaar

• You must have an ‘Aadhaar Number' that has a registered mobile number.

• Your KYC in NPS will be done using your Aadhaar number and through an One Time Password (OTP)
authentication.

• The OTP will be sent to your Aadhaar registered mobile number where your demographic details and
photo will be fetched from the Aadhaar database and populated on to the online form.

• You need to fill up all the mandatory details online and you will be required to upload your scanned
signature (in *.jpeg/*.jpg format having file size between 4kb - 12kb) as a part of the registration process.

• In case, you wish to replace the photo obtained from Aadhaar, you may upload a scanned photograph.

• You will be routed to a payment gateway to make the payment towards your NPS account from Debit/
Credit card or Internet Banking.

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 Option 2: Registration Using PAN (KYC verification by Bank)

• You must have a 'Permanent Account Number' (PAN).

• The bank you would like to empanel with for KYC verification should be an active account.

• Your KYC verification will be done by the Bank selected by you during the registration process. The name
and address provided during registration should match your bank records for KYC verification. If the details
do not match, the request is liable for rejection. In case of rejection of KYC by the selected Bank, an
applicant is requested to contact the Bank.

• You need to fill up all the mandatory details online.

• You need to upload your scanned photograph and signature in *.jpeg/*.jpg format (file size should e
between 4kb - 12kb)

• You will be routed to a payment gateway to make the payment towards your NPS account from Internet
Banking.

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 Verification of NPS
Option 1: Via eSign

• For Tier I PRANs generated through Aadhaar, you have the option to eSign the document by following the
steps mentioned below:

1. Select the 'eSign' option on the eSign / Print & Courier page
2. An OTP for authentication will be sent to your Aadhaar registered mobile number
3. After Authentication of Aadhaar, the registration form will be successfully electronically signed
4. Once a document is eSigned, you need not send the physical copy form to the CRA

Note: there is a charge of ₹ 5 plus service tax for eSign.

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 Verification of NPS
Option 1: Via Printer/Courier

1. Select the 'Print & Courier' option on the eSign / Print & Courier page
2. Take a printout of the form
3. Paste your photograph
• Do not sign across the photograph
• The photograph should not be stapled or clipped to the form
4. Sign on the block provided for your signature
5. Send the form to the address below, within 90 days from the date of allotment of PRAN, to the CRA
or the PRAN will be 'frozen' temporarily.

Central Recordkeeping Agency (eNPS)

NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower, Kamala Mills Compound, SenapatiBapat Marg
Lower Parel, Mumbai - 400 013

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 Investment Option
NPS has the option to choose Investment Choice for Asset Allocation:
Table for Lifecycle Fund ( Auto Choice Fund
Allocation)

Asset Class Asset Class Asset Class

The corporate company as well as the subscriber have two choices for their asset
Age E C G
35 Yrs 50% 30% 20%
allocation where they can decide as to how the NPS wealth is to be invested : 36 Yrs 48% 29% 23%
37 Yrs 46% 28% 26%

1. Active Choice: asset class E (up to 50%), asset Class C, and asset Class G. 38 Yrs
39 Yrs
44%
42%
27%
26%
29%
32%
Or 40 Yrs 40% 25% 35%
2. Auto Choice: In this option, the investments will be made in a life-cycle 41 Yrs 38% 24% 38%

fund. Here, the fraction of funds invested across the three asset classes will 42 Yrs 36% 23% 41%

be determined by a pre-defined portfolio (this will change as per the age of

43 Yrs 34% 22% 44%
44 Yrs 32% 21% 47%
subscriber). 45 Yrs 30% 20% 50%
46 Yrs 28% 19% 53%

Once you enroll for the Yash NPS corporate scheme, by default your fund
47 Yrs 26% 18% 56%
48 Yrs 24% 17% 59%
investment approach will be Auto Choice with Moderate Life Cycle. In the 49 Yrs 22% 16% 62%

moderate life cycle fund, for example, the default asset allocation under auto 50 Yrs 20% 15% 65%

choice is 50% for class E, 30% for class C and 20% for class G, till a person is 35 51 Yrs
52 Yrs
18%
16%
14%
13%
68%
71%
years old. By the time of retirement, allocation to these three assets will become 53 Yrs 14% 12% 74%
10%, 10% and 80% respectively, in a staggered manner. 54 Yrs 12% 11% 77%
55 Yrs 10% 10% 80%

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 NPS Scheme: Account Option
Under NPS the following two types of accounts will be available:

Tier-I account:
• Employer / Employee can contribute towards retirement in this non-withdrawal account.
• Income Tax benefits as per the Income Tax Act, 1961 will be available for both the employer and employees’
contributions.
• Note: Tier-I charges can be borne by either Subscriber.

Tier-II account:
• This is a voluntary savings facility, where the subscriber can avail Fund Management facility at very low
costs.
• Here, the subscriber will be free to withdraw savings from this account whenever they wish. However, the
tax benefits are not applicable for Tier-II account.
• Tier-II account can be activated along with the Tier-I account or at a later date.
• The investment option for the Tier-II account can be exercised by the subscriber only, which can be
different from tier-I account.
• Tier II accumulations can be switched to Tier I account but not vice versa.

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 NPS Scheme : Pension Funds
The funds contributed by the Subscribers are invested by the PFRDA registered Pension Fund (PFs) as per the investment
guidelines provided by PFRDA. The investment guidelines are framed in such a manner that there is minimal impact on the
subscribers contributions even if there is a market downturn by a judicious mix of investment instruments like Government
securities, corporate bonds and Equities.

At present there are 8 Pension Funds (PFs) who manage the subscriber funds at the option of the subscriber. However In
Yash NPS corporate scheme by default the HDFC Pension Management Company Ltd will be appointed as Pension Fund
Manager.

At present, the Subscriber has the option to select any one of the following eight pension funds:
• ICICI Prudential Pension Fund
• LIC Pension Fund Ltd
• Kotak Mahindra Pension Fund
• Reliance Capital Pension Fund
• SBI Pension Fund
• UTI Retirement Solutions Pension Fund
• HDFC Pension Management Company Ltd
• Birla Sunlife Pension Management Ltd.

However, this list may undergo changes if new pension fund managers are registered by PFRDA or existing players are de-
registered by PFRDA.

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 NPS Scheme : Withdrawal
As per PFRDA (Exits & Withdrawals under NPS) Regulations 2015, a subscriber can exit NPS under the following conditions:

• Superannuation: When a subscriber reaches the age of superannuation/attaining 60 years of age, they will have to use
at least 40% of the accumulated pension corpus to purchase an annuity that would provide a regular monthly pension.
The remaining funds can be withdrawn as a lump sum.

Note: If the total accumulated pension corpus is less than or equal to Rs. 2 lakh, the subscriber can opt for a100% lump
sum withdrawal.

• Pre-mature Exit: In case of pre-mature exit (exit before attaining the age of superannuation/attaining 60 years of age)
from NPS, at least 80% of the accumulated pension corpus of the Subscriber has to be utilized for purchase of an annuity
that would provide a regular/monthly pension. The remaining funds can be withdrawn as lump sum. However, a
subscriber can exit from NPS only after completion of 10 years.

Note: If the total corpus is less than or equal to Rs. 1 lakh, the subscriber can opt for a 100% lump sum withdrawal.

• Upon Death of Subscriber: The entire accumulated pension corpus (100%) will be paid to the nominee/legal heir of the
subscriber.

In the link below you may explore more about withdrawal from NPS scheme:
https://www.npscra.nsdl.co.in/all-faq-withdrawal.php

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 NPS Scheme: Partial Withdrawal
Under this, the NPS Subscriber can withdraw a certain amount out of his own contribution.

The following are the conditions of the Partial Withdrawal:

• Subscriber should be in NPS for at least 3 years

• The withdrawal amount should not exceed 25% of the contributions made by the Subscriber.
• Withdrawal is allowed only for a maximum of three times during the entire tenure of subscription.
• Withdrawal is allowed only against the specified reasons:
o Higher education of children
o Marriage of children
o For the purchase/construction of residential house (in specified conditions)
o For the treatment of a critical illnesses

In the link below you may explore more about withdrawal from NPS scheme:
https://www.npscra.nsdl.co.in/all-faq-withdrawal.php

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 NPS Mobile Application
• NPS subscribers can access their account through the NPS mobile application.

o This application provides various features and allows easy access to the subscriber’s retirement funds.

o Downloading the app

The application NPS by NSDL e-Gov can be downloaded from the App store/Play store on the subscribers mobile phone.
After downloading, the subscriber must key in the PRAN (Permanent Retirement Account Number) and PIN.

• Account Details
o Upon successful login, the total NPS holding value as on date will be displayed. It also shows the Tier I account and Tier II account
holdings of the subscriber, the last five transaction details, profile details such as registered mobile number, email id etc. (these
details can be changed using the application).
o Statement requests
The subscriber can request account statement and/or transaction statements on email for a particular period. The same will
be sent to the subscriber’s registered email id.

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 NPS Scheme: FAQ & Query
If you wish to subscribe to NPS or you are an existing subscriber and would like to seek general information
related to the services, features and facilities available in NPS, you may refer to the Knowledge Centre.

If you have a specific query related to features of NPS, services offered, processing of requests, then you may
refer to the following Frequently Asked Questions (FAQs) link (the FAQs cover every operational aspect of
NPS).
Subscriber FAQ

A subscriber can access the YouTube channel - NPS ki Pathshala - which provides information on various
services/benefits of NPS. The subscriber may also view the videos on the website https://npscra.nsdl.co.in/
at https://npscra.nsdl.co.in/video.php

We hope that the information available in the FAQ, Knowledge Centre etc. will help you.
You may select the option of 'Grievance' only if you have a complaint.

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 THANK YOU
Payroll Team

©©2019
2016YASH
YASHTechnologies
Technologies| |www.yash.com
www.yash.com || Confidential
Confidential
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