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Hemant
27-03-2010, 03:05 AM
What is TIER I & TIER II account New Pension System (NPS)? Private sector employee can open account which account?

Matrix
27-03-2010, 03:20 AM
Tier-I account-where you contribute your savings for retirement into a non-withdrawable account, and a Tier-II account a voluntary savings account form which you are free to withdraw your savings whenever you wish. Anyone can open an NPS account no restrictions.

Matrix
27-03-2010, 03:28 AM
Just to add - An active Tier I account will be a pre-requisite for opening of a Tier II account.

Hemant
27-03-2010, 03:33 AM
This is very quick reply Matrix. Is there any lock-in period in NPS? And where can I open Tier 1 and Tier 2 account?

Matrix
27-03-2010, 03:36 AM
This is very quick reply Matrix. Is there any lock-in period in NPS?

Individuals can normally exit at or after age 60 years from the pension system. At exit, the individual would be required to invest at least 40 percent of pension wealth to purchase an annuity. In case of Government employees, the annuity should provide for pension for the lifetime of the employee and his dependent parents and his spouse at the time of retirement. The individual would receive a lump-sum of the remaining pension wealth, which she would be free to utilize in any manner. Individuals would have the flexibility to leave the pension system prior to age 60. However, in this case, the mandatory annuitisation would be 80% of the pension wealth.
Source - pfrda.org.in


And where can I open Tier 1 and Tier 2 account?
http://pfrda.org.in/writereaddata/linkimages/POP%20SP%20Locations_12%20January%2020102891640756 .pdf

Kill_cat
27-03-2010, 08:36 PM
Key features of Tier-II account
No additional CRA charges will be levied for account opening and annual maintenance in
respect of Tier II. However, CRA will charge separately for each transaction in Tier II, the
charges being identical to the transaction charge structure in Tier I.
There will be no limits on number of withdrawals.
There will be facility for separate nomination and scheme preference in Tier II.
The subscriber would have the same choice of PFMs and schemes as in the case of Tier I
account in the unorganized sector.
Contributions can be made through any POP/POP-SP.
There will be facility of one-way transfer of savings form Tier II to Tier I.
Bank details will be mandatory for opening a Tier II account.
No separate KYC for Tier II account opening will be required; the only requirement is a preexisting
Tier I account.

Kill_cat
27-03-2010, 08:38 PM
Charge Structure for PoPs:
1. New account opening charges (Tier 1 & II both) - Rs. 40/-
2. Tier II activation for existing subscribers of Tier I - Rs. 20/-