New Pension System

New Pension System (NPS) for all Citizens

NPS is regulated by PFRDA

Sustainable & Efficient voluntary defined contribution system in India

Objectives:

1. Provides old age income( post retirement)
2. Reasonable market based returns over the long term
3. Extends old age security coverage to all citizens (including NRIs)

Benefits:

1. Lowest cost as compared to any other investments
2. Very simple: open an account with any SBH PoP-SP and get PRAN
3. Subscriber can operate from anywhere in the country
4. Transparent Investment norms with regular monitoring by PFRDA
5. Nomination facility (max. of three nominees can be made)
6. Get tax benefits on investments upto `1lac (along with other prescribed Investments) under Section 80 (C) of I.T.Act as amended from time to time.(only for Tier I contribution)

Eligibility:

1. Any Indian Citizen in the age group of 18 to 60 years
2. NRIs are also eligible to open
3. Salaried/ business persons/ professionals/ factory workers/ small traders/ house wives etc,

What type of accounts?

1. Tier I- contribute your savings for post retirement life into this non- withdrawable Pension account (normally withdrawal is permitted only at 60 years)
2. Tier II- this is simply a voluntary savings facility. You will be free to withdraw your savings account from this account whenever you wish.

Contribution requirements: Tier I ( non-withdrawable pension account)

1. Min. contribution at the time of account opening: ` 500/-
2. Min. amount per subsequent contributions: ` 500/-
3. Minimum annual contribution: ` 6000/-
4. Minimum number of contributions in an year 1

Contribution requirements: Tier II

1. Min. contribution at the time of account opening: ` 1000/-
2. Min. amount per subsequent contributions: ` 250/-
3. Minimum annual contribution: ` 2000/-
4. Minimum number of contributions in an year 1

Requirements for joining the NPS:

1. Application form in duplicate
2. Color photograph-one
3. ID proof
4. Address proof
5. Proof of Date of Birth

Investment choices:

1. Investors can choose their fund managers out of six PFMs (SBI Pension Funds Private limited is one among them.(“Outperformed Competition by providing 16.37% return to the subscribers during the first year of operation)
2. Investment option: Active Choice & Auto Choice

Service Charge:

0.25% of amount contributed subject to a minimum of `20/- plus service tax per transaction

Call: 1800 425 4055

STATE BANK OF HYDERABAD

SSS CELL, HEAD OFFICE

Contact No.: 040-23315012 / 23387471

NPS List of Designated Branches with telephone numbers.