National Pension System (NPS) Rules And Facilities. Five Things To Know
1. Investment options: You can choose one of the two investment options: active choice and auto choice. In the active choice, the investor can decide the proportion of three asset classes: equity, corporate debt and government securities. As popularly known, equity is most unsafe, corporate debt is relatively safer, while the government securities are the safest investment options. At the same time, in the auto choice, the money is invested in three asset classes in the predefined proportions and it keeps changing with the age. The young the subscriber is, the more proportion is invested in the equity, and less in corporate debt, and the least in the government securities. The equation reverses as the subscriber's age advances.
2. Equity cap: Currently the government sector employees can invest upto 15% of their savings in the equity and the private sector employees are allowed to invest upto 50% of the equity. For instance, a 35-year old subscriber's 50% of the funds are invested into equity, 30% in the corporate debt and the remaining 20% in the government securities.
A year later, the proportion in equity falls to 48%, and in corporate debt to 29% while in the government securities, the proportion rises to 23%. Likewise, with every passing year, the proportion of funds invested in equity and corporate debtis slashed by 2% and 1%, respectively, and the 3% saved is put into the government bonds.
However, soon the NPS could offer upto 75% of corporate employees' money into equity.
4. Agencies That control The NPS: the The NPS is regulated by the PFRDA that has appointed NSDL e-governance infrastructure as the central recordkeeping agency (CRA). However, to open an NPS account, you don't need to go to any of these agencies since various banks and non-banking institutions have been appointed as point of presence. One can visit these POP-service providers and submit the common subscriber registration form.
4. How To Register A Grievance: In case you have a grievance, you can approach the redressal mechanism. One can register the complaint via CRA Helpline at the toll free number (1-800-222080) and register a grievance. On successful registration of your grievance, a token number is allotted by the customer care executive for any future reference. After the grievance is raised, an alert is sent to the concerned entity. Once resolution is provided by the entity, an email alert is sent to your registered email ID. One can also check the status of the grievance at the CRA website (www.cra-nsdl.com) or through the CRA helpline by mentioning the token number provided after successful grievance registration.
Web-based grievance: There is an option of web-based interface also. You can register the grievance against any interfacing entity by login to CRA website with your IPIN. On successful registration of the grievance, an unique token number will be displayed on the screen, which can be used for future reference. In case you are not satisfied with the resolution, the same may be escalated to NPS Trust online.
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