RBE No. 82/2020: National Pension Scheme (NPS)
No.2016/F(E)III/1(1)/3, dated 21.09.2020
Sub: Operational guidelines for National Pension Scheme Tier II – Tax Saver Scheme, 2020 (NPS-TTS).
A copy of Pension Fund Regulatory and Development Authority (PFRDA)’s circular No.PFRDA/10/01/1/0003/2018-PDES, 17th August, 2020 providing operational guidelines for National Pension Scheme Tier-II – Tax Saver Scheme, 2020 (NPS-TTS) is enclosed for information and compliance. The instructions contained in this circular shall apply mutatis mutandis on Railways also.
Pension Fund Regulatory and Development Authority
File No.PFRDA/10/01/1/0003/2018-PDES, dated 17th August, 2020
Sub: Operational guidelines for National Pension Scheme Tier-II – Tax Saver Scheme, 2020 (NPS – TTS).
In terms of the Government of India Notification No.45/2020/F.No.370142/26/2019-TPL, dated 7th July, 2020, the following operational guidelines are being issued in respect of National Pension Scheme Tier-II – Tax Saver Scheme, 2020.
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Sl. |
Particulars |
Details |
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1 |
Eligibility |
Any Central Government NPS subscriber. |
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2 |
Lock-in period |
03 years from the date of utilization of contributions by CRA. |
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3 |
Account Types |
Tier-I – mandatory pension a/c Tier-II – optional a/c and freely withdrawable Tier-III (Tax Saver) – optional a/c with 80C benefit. |
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4 |
Investment choice & pattern |
No investment choice to the subscriber. It will be a composite scheme with the following investment limits for the Pension Funds:
* Investment guidelines as applicable for E-II ** investment guidelines as applicable for G-II and C-II |
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5 |
Choice of Pension Fund |
Subscriber can choose any Pension Fund. Subscriber will be allowed to have maximum 03 Pension Fund, separately for NPS-TTS. PF change will be allowed after the lock-in period. Such re-investment will be treated as fresh investments and will be again locked-in for 03 years. |
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6 |
Withdrawals |
No withdrawals will be allowed during the lock-in period. However, in case of death of subscriber, the corpus can be withdrawn by the nominee/ legal heir. |
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7 |
Exit/ Premature Closure |
In case of closure of Tier-I account due to exit from NPS, contribution to NPS – TTS will not be allowed and NPS – TTS will be closed after completion of lock-in period. |
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8 |
Minimum/ Maximum, Contributions, Charges, Operations, Others |
Same as Tier-II – optional a/c which is freely withdrawable and has no tax benefits. |
Download Railway Board Circular RBE No. 82/2020
Forward reference ⇒ RBE No. 93/2021