NATIONAL PENSION SYSTEM (NPS)

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Agenda •

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Contributory Age Group

NPS provides a platform for

saving to create corpus, to
enable subscriber for purchasing
Annuity post retirement

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Key Stakeholders - NPS Architecture

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Eligibility

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Tax Benefits on NPS

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Tax Benefits
Head Particulars Without NPS With NPS
Salary Basic (30% of Gross) 600,000 600,000
Bouquet of Benefits 1,299,140 1,239,140
Corporate Contribution – EPF 72,000 72,000
Corporate Contribution – Gratuity 28,860 28,860
Corporate Contribution - NPS - 60,000
Total Salary 2,000,000 2,000,000

Deductions 80CCE 150,000 150,000 Corporate

Corporate Contribution – EPF 72,000 72,000 Contribution
for NPS will be
Corporate Contribution – Gratuity 28,860 28,860 adjusted from
overall CTC
Corporate Contribution - NPS 80 CCD (2) - 60,000
and will be
Individual Contribution to NPS 80 CCD 1(B) - 50,000 invested as
Employer’s
Total Deductions 250,860 360,860 Contribution

Taxable Salary 1,749,140 1,639,140

Change in Taxable Salary 110,000

Tax Saved @ 30% 33,000

Confidential │ ©2018 VMware, Inc. * NPS will be part of the employee salary structure 7
Tax Benefits
Head Particulars Without NPS With NPS
Salary Basic (30% of Gross) 900,000 900,000
Bouquet of Benefits 1,948,710 1,858,710
Corporate Contribution - EPF 108,000 108,000
Corporate Contribution - Gratuity 43,290 43,290
Corporate Contribution - NPS - 90,000
Total Salary 3,000,000 3,000,000
Corporate
Contribution for
NPS will be
Deductions 80CCE 150,000 150,000
adjusted from
Corporate Contribution – EPF 108,000 108,000 overall CTC and
Corporate Contribution – Gratuity 43,290 43,290 will be invested
as Employer’s
Contribution
Corporate Contribution - NPS 80 CCD (2) - 90,000

Individual Contribution to NPS 80 CCD 1(B) - 50,000

Total Deductions 301,290 441,290

Taxable Salary 2,698,710 2,558,710

Change in Taxable Salary 140,000

Tax Saved @ 30% 42,000
* NPS will be part of the employee salary structure
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Key Elements of NPS Program

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A - Alternate •Commercial / Residential Mortgage based securities

Investment Fund •Investment
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Inc.5% of total Contribution 9
Investment Options: Life – Cycle Fund option (Auto Choice)
Subscribers also get an option to invest in Life – Cycle Fund under Auto Choice Investment Option where fraction of funds invested
across three asset classes is determined by a pre – defined portfolio which will be based on the age of the Subscribers.

Aggressive (LC 75) Moderate (LC 50) Conservative (LC 25)

Age E (%) C (%) G (%) Age E (%) C (%) G (%) Age E (%) C (%) G (%)
<=35 75 10 15 <=35 50 30 20 <=35 25 45 30
36 71 11 18 36 48 29 23 36 24 43 33
37 67 12 21 37 46 28 26 37 23 41 36
38 63 13 24 38 44 27 29 38 22 39 39
39 59 14 27 39 42 26 32 39 21 37 42
40 55 15 30 40 40 25 35 40 20 35 45
41 51 16 33 41 38 24 38 41 19 33 48
42 47 17 36 42 36 23 41 42 18 31 51
43 43 18 39 43 34 22 44 43 17 29 54
44 39 19 42 44 32 21 47 44 16 27 57
45 35 20 45 45 30 20 50 45 15 25 60
46 32 20 48 46 28 19 53 46 14 23 63
47 29 20 51 47 26 18 56 47 13 21 66
48 26 20 54 48 24 17 59 48 12 19 69
49 23 20 57 49 22 16 62 49 11 17 72
50 20 20 60 50 20 15 65 50 10 15 75
51 19 18 63 51 18 14 68 51 9 13 78
52 18 16 66 52 16 13 71 52 8 11 81
53 17 14 69 53 14 12 74 53 7 9 84
54 16 12 72 54 12 11 77 54 6 7 87
>=55 15 10 75 >=55 10 10 80 >=55 5 5 90

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Types of accounts

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Portability

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Partial Withdrawal
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Withdrawal
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Withdrawal Illustrations

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Charges Structure

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Types of Annuity Options
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NPS Fund Performance

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Enrollment Process

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PRAN - Permanent Retirement Account Number
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Thank You

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