PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY 16TH January’ 2012 PRESS RELEASE Initiating the implementation of the recommendations of
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
16TH January’ 2012
Implementation of National Pension System (NPS) in the Private (Non-Government) Sector, Pension Fund Regulatory and Development Authority (PFRDA) has announced changes in the charge structure for the Points of Presence (POP) for Private Sector subscribers under National Pension System (NPS).
At present, the Points of Presence charge a flat rate of Rs. 20 for the initial subscriber registration and Rs. 20 per transaction for any contribution upload. The Bajpai Committee had observed that a flat rate structure amounts to the poor subsidizing the rich, and a more equitable structure would be charging of fees as an ad-valorem basis.
Based on these recommendations and the comments received from various stakeholders, PFRDA has now announced the following charge structure with immediate effect:
1. An Initial subscriber registration charge of Rs.100/- and an ad valorem transaction charge of 0.25% of the initial contribution amount from subscriber subject to a minimum of Rs.20 and a maximum of Rs. 25,000/-.
2. Any subsequent transaction involving contribution upload – 0.25% of the amount subscribed by the NPS subscriber, subject to minimum of Rs.20/- and a maximum of Rs. 25000/-.
3. Any other transaction not involving a contribution from subscriber – Rs 20/-
The above structure is applicable to both individuals and corporates in the Private (Non-Government) Sector, and is expected to sufficiently incentivise the PoPs to actively participate in the opening of NPS accounts and also provide improved services to account holders. The PoPs have the option to negotiate on the above charges with the subscribers, but within the prescribed charge structure.