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Benefits of offering the National Pension System to your employees www.fundsindia.com National Pension System Created by Government of India. Managed by PFRDA (Pension Fund Regulatory development Authority). Benefits: Additional tax benefits for an employee upto 10% of Basic + DA over and above all the other tax savings options. Lowest cost pension plan in the world. Totally FREE for the employer. Portable across organizations. Investment choice with the employee – Auto choice & Active choice. Only instrument that can invest in capital markets and save on taxes under 80 (c) after Direct Tax Code. Retirement savings – in addition to EPF. Benefit Illustration Salary Head Basic Special allowance Existing (Rs.) After including NPS (Rs.) 2,40,000 2,40,000 96,000 72,000 NPS contribution (Through the employer) 24,000 Employer’s contribution to PF and Other allowances 4,64,000 4,64,000 CTC 8,00,000 8,00,000 Tax benefit under 80(c) 1,00,000 1,00,000 Taxable Salary 2,36,000 2,12,000 Tax Saving @ 30% in NPS 7,200 Unbeatable Tax Savings • Employee saves on taxes up to 10% of Basic in addition to 80 (c) tax savings • Employer can claim tax deductions for the NPS contribution. Fund Manager & Fund Description Subscriber can choose any one of the following six Pension Fund Managers: • ICICI Prudential Pension Fund Management Company Limited. • IDFC Pension Fund Management Company Limited. • Kotak Mahindra Pension Fund Limited. • Reliance Capital Pension Fund Limited. • SBI Pension Funds Limited. • UTI Retirement Solutions Limited. Allotment Table Instrument Minimum Maximum Equity (Index Funds) 0 50% Corporate Bonds 0 100% Government Bonds 0 100% Note: Allotment can be changed once a year Applicable Charges: Intermediary Charge Head Service Charge POP (Maximum permissible charge for each subscriber) Initial Subscriber registration and contribution upload Rs.100 Any subsequent transactions 25 bps (Rs.25 per Rs.10,000) CRA PRA Opening Charges Rs.50 Annual PRA Maintenance cost per account Rs.225 Charge per transaction Rs.5 Per transaction emanating from RBI location ZERO Per transaction emanating from a non - RBI location Rs.15 Custodian (on asset value in custody) Asset Servicing Charges .0075% p.a. for electronic segment and .05%p.a. for physical segment Pension Fund Management charge Investment Management Fee .0009% p.a. Trustee Bank Method of Deduction To be collected upfront Through cancellation of units Through NAV Deduction Fee Illustration NPS Annual Fee Illustration - Subscriber Per Annum NPS Contribution by Employee Rs.60,000 Comments Contribution of Rs.5000 per month POP fee Rs.150 25 bps CRA Maintenance charges Rs.225 Annual Charge CRA Transaction charge Rs.60 Transaction charge – 12 transactions Fund Management fee Rs.0.54 Total Annual Fee .0009% p.a. of Total amount Rs.435.54 One time charges: • Permanent Retirement Account Number (PRAN) registration fee: Rs.50/• Initial subscriber registration POP charges: Rs.100/- Withdrawal information Vesting Criteria On attaining the retirement age Benefit Max 60% of the pension wealth may be withdrawn in lump sum or in a phased manner, between retirement age to next 10 years Min 40% of the pension wealth to be kept invested in life annuity At any time before the defined age of retirement Max 20% of the pension wealth may be withdrawn At least 80% of the pension wealth to be kept invested and annuitized at retirement Death due to any cause Nominee receives 100% of the pension wealth If nominee wishes to continue he / she shall have to subscribe to NPS individually FundsIndia Advantage Who we are • Convenient online enrollment and account maintenance process for employees • Contributions fully managed online for employers • Payroll deduction & one-cheque from employer for all employee contributions • Statements and reports online for employee and employers – anytime access on web and mobile • Totally FREE for the employer Our clients And many more…. Thank you For more information please visit www.fundsindia.com/npsforcorporates [email protected] 044-43443100 www.fundsindia.com