Pension Bulletin. Volume V Issue XI. Pension Fund Regulatory and Development Authority

Transcription

1 Pension Bulletin Volume V Issue XI Pension Fund Regulatory and Development Authority Chhatrapati Shivaji Bhawan, B-14/A,Qutab Institutional Area, Katwaria Sarai, New Delhi-1100

2 Table of Contents Page No. Section 1: Interview of Sh. Hemant G. Contractor, Chairman, PFRDA (Business Today)... 2 Section 2: NPS Statistics... 4 i. Sector wise growth... 4 ii. Overall Status of State Governments... 8 iii. UoS Sector (All citizens) in NPS iv. Total amount of subscribers contribution under UoS (Tier-I & Tier II): v. Total amount of AUM under UoS (Tier-I & Tier II) vi. Total number of corporate registrations in NPS: vii. Total number of subscriber, contribution & AUM registered in Corporate Sector: viii. Status of APY: ix. PFM wise Total Assets on NPS schemes x. PFM wise Return on NPS Schemes Section 3: Circulars/Notices/Guidelines Issued Section 4: Training/ Workshops /Conference conducted Section 5: Important News Section 6: Interoperability between CRAs Section 7: Macro-Economic Statistics

3 Section 1: Interview of Sh. Hemant G. Contractor, Chairman, PFRDA (Business Today) We are planning to reduce the 10-year period for partial withdrawals "NPS in Tier II, it is probably better than what mutual funds offer" Hemant G. Contractor, Chairman, Pension Fund Regulatory and Development Authority, talks with Teena Jain Kaushal about increasing the reach of the National Pension System and whether the introduction of an advisory fee will yield results You recently introduced an advisory fee of 0.02 per cent for retirement advisors. Will it be attractive enough for advisors? This 0.02 per cent is in addition to the Rs 120 that they get when they bring an account. So if they are able to convince a person about NPS, they will get Rs 120. This 0.02 per cent is the advisory fee that they will be able to charge. If the investor wants to know which fund to invest in, what kind of investment pattern to choose, an advisor can charge minimum of Rs 100 and maximum Rs 1000 for that kind of investment advice. We never wanted to compete with mutual funds because mutual fund charges are very high. We kept the charges reasonable so that people are also encouraged to go. If the feedback from the market requires it to be revised (increased), we will see. Also, we are not saying that the person should only become a retirement advisor; he/ she can do other things as well. Somebody who is already selling mutual funds or insurance can do NPS, too. So they will not be restricted to NPS, instead they will have multiple sources of income. How does one become a retirement advisor? There is a test we have prescribed. We have tied up with National Institute of Securities Market. The process has begun. Out of the 60 people who enrolled for the exam, 20 are able to pass. If they are exclusively engaged in NPS, then that's a problem. But many of them would be involved in several other things such as life insurance and mutual funds. I think it is not as bad as they make it out to be. If they are doing other things, they can suggest people to have NPS. They do not have to go out to sell NPS. It is a cross-selling product for them. They are already into other things, so NPS will be one more activity for them. What has been the response to the e-nps initiative? This year, almost the same number of accounts has been opened through e-nps as through the normal channel. It has caught up well. We got about 50,000 accounts through e-nps. We find a lot of 2

4 contributions coming through e-nps. In fact, more than the number of accounts, the contribution level has gone up. How do you plan to increase the reach of NPS? Earlier, because of paperwork, people were finding it cumbersome to join online NPS. If you have an Aadhar or Pan card you can open an account in 10 minutes. The process of joining has become very easy. Contributions can also be made online. We have made the process of exiting very simple. Online exit is compulsory from April 1. We are also planning to reduce the 10-year period for partial withdrawals, so more people can withdraw in case of emergency, like for building a house, marriage in a family, health reason or education of children. We will definitely bring it below ten years - probably five or three years. You can put an application for online withdrawal. Why has corporate NPS not picked up? It involves a change in the Act, and I believe the labour ministry is making changes in the EPFO Act. Right now, it is mandatory for those who fall under the EPFO scope to join EPFO. Also, the tax regime is to be considered; in EPFO there is a complete tax exemption. In our case, exemption is available only up to 40 per cent. So unless it is brought on par with EPFO, people will not come. No one will come from a tax-free system to one where tax is incurred. Not many know about the Tier II account of NPS... We are pushing it aggressively. The number has gone up this year. We have 47,000 accounts in Tier II - double that of last year. Returns are very good and the cost structure is very low in Tier II. Although it is taxable, people still find it attractive because the charges are the lowest in Tier II. If you look at the net return in Tier II, it is probably better than what mutual funds offer. The tax treatment of NPS Tier II is ambiguous. How are the withdrawals taxed? There is no tax exemption on Tier II. The entire amount is taxed depending on the tax status of the person. The full amount is taxable. There is no tax benefit on Tier II. Mutual funds have the benefit of indexation in debt funds, and equity funds if held for more than a year get capital gain. That is not available in NPS. We have written to CBDT requesting for exemption, and requesting it to be treated like a mutual fund till they clarify it as a taxable income. *** 3

5 Section 2: NPS Statistics i. Sector wise growth a) The number of subscribers under NPS and APY increased from Rs lakh as at the end of November, 20 to Rs lakhs as end of December, 20 i.e. by 1.80 % growth supported by a growth of 5.02 % in APY and 6.55 % in unorganized sector. During the first three quarters of the current financial year i.e. April - December 20, the number of subscribers has increased from lakhs to lakhs, registering a growth of %. The maximum growth is witnessed in APY, in which the number of subscriber increased from lakhs as at the end of March 20 to lakhs as at the end of December 20, registering a growth of %. UoS/All citizen subscribers have increased by % during the first three quarters of the current financial year and Corporate Sector subscribers have increased by.24 % during the same period. Table No: 1. Number of Subscriber (in lakhs) Year/Month Mar-12 Mar-13 Mar-14 Mar-15 Mar- Jun- Sep- Oct- Nov- Dec- Schemes CG SG Govt. sec Total Govt. sec % of growth Corporate Sector All Citizen (Corp+All Citizen) Sec Total (Corp+All citizen) Sec % growth NPS Lite/ Swavalamban APY Subtotal (NPS lite+apy) NPS lite+apy) % growth Total YoY % of Growth

6 In lakh Y-o-Y % growth Chart No: 1. Number of Subscriber (in lakh) Mar-12 Mar-13 Mar-14 Mar-15 Mar- Jun- Sep- Oct- Nov- Dec- CG SG Corporate Sector UOS NPS Swavalamban APY Total YoY % of Growth 0.00 b) The contribution under NPS has increased from Rs crore as at the end of November, 20 to Rs crore as at the end of December, 20 i.e. by 2.81 %. During first three quarters of the current financial year 20-17, the contributions received from subscribers have increased from Rs crore to Rs crore, i.e. a growth of %. The maximum growth in contribution has been witnessed in APY ( %) followed by All Citizen (60.05 %) and Corporate sector (35.94 %). Table No: 2. Total Contribution (Rs. In crores) Year/Month Mar-12 Mar-13 Mar-14 Mar-15 Mar- Jun- Sep- Oct- Nov- Dec- Schemes CG SG Govt. Sec total Govt. Sec % growth Corporate Sector All Citizen (Corp+All Citizen) Sec Total (Corp+All Citizen) Sec % growth

7 Rs. In Crore Y-o-Y % of growth NPS Lite/ Swavalamban APY (NPS-Lite+APY) Sub total (NPS-Lite+ APY) % growth Total Y-o-Y % of growth Chart No: 2. Total Contribution (Rs. In crores) Mar-12 Mar-13 Mar-14 Mar-15 Mar- Jun- Sep- Oct- Nov- Dec CG SG Corporate Sector All Citizen NPS Lite/ Swavalamban APY Total Y-o-Y % of growth c) The AUM under NPS has decreased from Rs.1,370 crore as end of November, 20 to Rs. 1,0 crore as at the end of December, 20 i.e. by (-)0.22 % during the month of December, 20. The decline in AUM is witnessed mainly in Government Sector which has around 90 per cent of investment in government securities and corporate bonds. The spur in the portfolio post demonetization was neutralized during the month. During the first three quarters of the current Financial Year 20-17, the AUM under NPS & APY has increased from Rs. 118,810 to Rs. 1,0 crore i.e. by %. 6

8 Rs. In Crores Y-o-Y % growth Table No: 3. Asset under Management (Rs.in crore) Year/Month Mar-12 Mar-13 Mar-14 Mar-15 Mar- Jun- Sep- Oct- Nov- Dec- Schemes CG SG Govt. sec total Govt. sec % growth Corporate Sector All Citizen (Corp+All Citizen) Sec Total (Corp+All Citizen) Sec % growth NPS Lite/ Swavalamban APY (NPS-Lite+APY) Sub total (NPS-Lite+ APY) % growth Total Y-o-Y % of growth Chart No: 3. AUM (Assets under Management) Mar-12 Mar-13 Mar-14 Mar-15 Mar- Jun- Sep- Oct- Nov- Dec CG SG Corporate Sector All Citizen NPS Lite/ Swavalamban APY Total Y-o-Y % of growth 7

9 d) AUM per subscriber: AUM per subscriber is maximum for Central Government Sector (Rs.3.57 lakh) followed by State Government ( Rs lakh) and Corporate Sector (Rs. 2.4 lakh) during the month of December, 20. Sectors who contribute voluntarily i.e. All citizen, NPS Lite and APY, have lower AUM per subscriber compared to mandatory subscribers. Table No: 4. AUM per subscriber (in lakh) Year/Month Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar- Jun- Sep- Oct- Nov- Dec- CG SG Corp UOS NPS lite APY ii. Overall Status of State Governments There are 29 states under NPS. Tamil Nadu has already notified but is yet to adopt NPS architecture. West Bengal and Tripura are yet to notify NPS. As end of December 20, Uttar Pradesh has the highest number of subscribers enrolled under NPS followed by Madhya Pradesh and Chhattisgarh. In terms of assets under management (AUM), Rajasthan has the highest AUM of Rs. 9, crores followed by Maharashtra and Madhya Pradesh. AUM per subscribers for State Government employees is Rs lakhs. Nagaland & Kerala have the highest number of AUM per subscriber. It is also high for West Bengal, which has adopted NPS only for AIS officials. They are followed by UTs i.e. Pondicherry and Chandigarh. Table No: 5. Position of NPS subscribers State Government wise 31 th December, 20 # State Govt. 1. Andhra Pradesh 2. Arunachal Pradesh 3. Assam 4. Bihar Date of Notification Total No. of Subscriber Contribution (Rs.in crore) AUM (Rs.in crore) AUM/Subsc riber (Rs.in lakh) ,457 4, , , ,757 2, , ,219 2, ,

10 5. Chandigarh** 11/6/2009 9, Chhattisgarh ,694 2, , Goa 5/8/ , Gujarat ,115 2, , Haryana ,769 3, , Himachal Pradesh ,176 2, , J & K ,510 1, , Jharkhand 9/12/ ,840 1, , Karnataka ,759 3, , Kerala 7/1/ , Madhya Pradesh ,080 4, , Maharashtra ,783 5, , Manipur , Meghalaya , Mizoram , Nagaland , Orissa ,059 1, , Puduchery** 7/3/ , Punjab 2/3/ ,360 3, , Rajasthan ,529 7, , Sikkim , Telangana ,377 2, , Utarakhand ,563 1, , Uttar Pradesh ,048 4, , Tamil Nadu 6/8/ Tripura* No West Bengal* No Total 29 3,230,635 61, , * Executed agreement with CRA and NPS trust only for AIS officer ** Chandigarh and Puducherry status is included under the state government Status *** IRA compliance in State Government is 97.89% 9

11 iii. UoS Sector (All citizens) in NPS As end of December 20, 76 PoPs with 57,489 service providers are registered with PFRDA to provide NPS services to citizens. While the registration and contribution upload of Government and Government bodies employees is done by their respective Pay & Account offices, the private and the unorganized sector employees are serviced through the PoPs which are banks & non-banking finance companies. As on 31 st December 20, the total number of active accounts of All Citizen subscribers under Tier I is 292,564 against 274,995 in November 20. There are 55,255 subscribers having Tier II accounts under NPS as end of December 20 against 51,761 accounts as end of November 20. Table No: 6. Total number of PoP & PoP-SP & subscribers in CRA Registered PoPs & PoP-SP in CRA Total number of registered PoPs in CRA Total number of registered PoP-SPs in CRA Tier I Total number of active account subscribers Tier II Total number of active account subscribers Mar- Jun- Sep- Oct- Nov- Dec ,580 56,065 56,959 56,977 57,063 57, , , , , , ,564 31,002 35,283 49,340 51,309 51,761 55,255 iv. Total amount of subscribers contribution under UoS (Tier-I & Tier II): The contribution from Tier-I has increased from Rs.1, 586 crores as on 26 th November, 20 to Rs 1,733 crores as on December 31 th, 20. The contribution received under Tier II as end of December, 20 is Rs. 266 crores against the contribution of Rs 249 crore as end of November, 20. During the first three quarter of 20-17, the contribution under All Citizen Tier I NPS has increased from Rs. 962 crores to 1,733 crores i.e. a growth of % and Contribution under Tier II NPS has increased from Rs. 1 crore as end of March 20 to Rs. 266 crore as at the end of December, 20 i.e. by %. Table No: 7. Contribution of individual subscriber (UoS) under NPS (Rs. In crore) Year/Month Mar- Jun- Sep- Oct- Nov- Dec- Total amount of subscribers contribution Total amount of subscribers contribution Tier I , , , , , Tier II

12 v. Total amount of AUM under UoS (Tier-I & Tier II) The AUM for UoS under Tier- I as end of December, 20 was Rs crore against the AUM of Rs crore as end of November 20. During April Dec 20, the AUM increased from Rs crore to Rs crore, i.e %. The AUM of Tier-II has increased from Rs.269 crore as end of Nov 20 to Rs. 280 crore in the month of December, 20. During first three quarter of current - April December 20, Tier II AUM increased from Rs. 6 crore to Rs. 280 crore, i.e %. Table No: 8. AUM of individual subscriber (UoS) under NPS (Rs. In crore) Tier I Mar- Jun- Sep- Oct- Nov- Dec- Total Asset Under Management ,333. 1, , , , Tier II Total Asset Under Management vi. Total number of corporate registrations in NPS: The total number of corporates registered under NPS has increased from 2,911 as on November to 2,991 as on December During the first three quarter of current 20-17, number of corporates registered under NPS has increased from 2,354 to 2,911. Table No: 9. Total number of corporate registrations in NPS Total Corporate registered Total number of corporate registered in NPS Mar- Jun- Sep- Oct- Nov- Dec- 2,354 2,554 2,808 2,873 2,911 2,991 vii. Total number of subscriber, contribution & AUM registered in Corporate Sector: The number of Corporate registered in NPS is 2,991 with 550,538 subscribers 31st December, 20. The contribution received from the corporate subscribers as on December 31, 20 was Rs.10,889 Crores against which the AUM was Rs. 13,379 Crores and AUM per subscriber for Corporate Sector is Rs.2.43 lakhs. 11

13 Table No: 10. Total number of subscriber, contribution & AUM registered in Corporate Sector: Total number of subscriber, contribution & AUM registered in Corporate Sector Year/Month Mar- Jun- Sep- Oct- Nov- Dec- Total number of subscriber registered in Corporate Sector 472, , , , , ,538 Contribution amount (Rs. In crore) Contribution amount in corporate sector 7, , , , , , Total Asset Under Management (Rs. In crore) Total AUM in corporate sector 9, , , , , , viii. Status of APY: The subscriber base of Atal Pension Yojana has reached lakhs as on December 31, 20 from lakhs as end of March 20. AUM under APY has increased to Rs.1498 crores as at the end of December, 20 from Rs.506 Crore as at the end of March 20. Table No. 11. Status of APY Status of APY Year/Month Mar- Jun- Sep- Oct- Nov- Dec- Total number of Banks registered under APY Banks Total number of subscribers registered Subscribers 2,484,895 2,981,063 3,443,079 3,655,938 3,723,994 3,911,100 Total Contribution amount (Rs. In crore) Contribution , , AUM under APY (Rs. In crore) AUM , ,

14 ix. PFM wise Total Assets on NPS schemes Table No: 13. Pension Funds (Assets Rs.in crores) Pension Funds (SBI+LIC+KOTAK+HDFC+ICICI+RELIANCE+UTI) (Assets Rs.in crores ) Total Assets (Rs. In crore) Mar- 11 Mar- 12 Mar- 13 Mar- 14 Mar- 15 Mar- Jun- Sep- Oct- Nov- Dec- CG SG Corporate CG TIER I E C G NPS Swavalamban TIER II E C G x. PFM wise Return on NPS Schemes Table No: 12. Returns since inception (in %) As on 31 th Dec, 20 Pension Funds SBI UTI LIC KOTAK RELIANCE ICICI HDFC CG SG Corporate-CG TIER I TIER II E C G E C G NPS Swavalamban Central Government: 1-Apr-08 State Government: 25-Jun-09 Swavalamban: (SBI, LIC, UTI,): 4-Oct-10, (Kotak PF): 31-Jan-12 Corporate (Central Govt. Pattern): 5-Nov-12 Scheme [E, C, G] (Tier-I) - (SBI, UTI, ICICI, RELIANCE, KOTAK): 1-May-09, (LIC): 23-Jul-13, (HDFC PF): 1-Aug-13 Scheme [E, C, G] (Tier-II) - (SBI, UTI, ICICI, RELIANCE, KOTAK): 14-Dec-09, (LIC): 12-Aug-13, (HDFC PF): 1-Aug-13 13

15 Table No: 14. Performance: Scheme CG (as on December 30 th, 20) SCHEME CG PFM Financial Year Return (%) Trailing Return (%) (As on 30th December,20) Yr 2-Yr 3-Yr 5-Yr LIC SBI UTI Table No: 15. Performance: Scheme SG (as on December 30 th, 20) PF M Financial Year return (%) Scheme SG Trailing Return (%) (As on 30th December,20) 6 1-Yr 2-Yr 3-Yr 5-Yr LIC SBI UTI Table No:. Performance: Scheme E- Tier I (as on December 30 th, 20) PFM Financial Year Return % Scheme E- Tier I Trailing Return (%) (As on 30th December,20) 6 1-Yr 2-Yr 3-Yr 5-Yr LIC SBI UTI ICICI KOTAK RELIANCE HDFC IDFC

16 Table No: 17. Performance: Scheme E- Tier-II (as on Dec 30 th, 20) PFM Financial Year Return % Scheme E- Tier II Trailing Return (%) (As on 30th December,20) 6 1-Yr 2-Yr 3-Yr 5-Yr LIC SBI UTI ICICI KOTAK RELIANCE HDFC IDFC Table No: 18. Performance: Scheme C- Tier I (as on December 30 th, 20) PFM Financial Year Return % Scheme C- Tier I Trailing Return (%) (As on 30th December,20) 6 1-Yr 2-Yr 3-Yr 5-Yr LIC SBI UTI ICICI KOTAK RELIANCE HDFC IDFC Table No: 19.Performance: Scheme C- Tier II (as on December 30 th, 20) PFM Financial Year Return % Scheme C- Tier II Trailing Return (%) (As on 30th December,20) 6 1-Yr 2-Yr 3-Yr 5-Yr LIC SBI UTI ICICI KOTAK RELIANCE HDFC IDFC

17 Table No: 20. Performance Scheme G- Tier I (as on December 30 th, 20) PFM Financial Year Return % Scheme G- Tier I Trailing Return (%) (As on 30th December,20) 6 1-Yr 2-Yr 3-Yr 5-Yr LIC SBI UTI ICICI KOTAK RELIANCE HDFC IDFC Table No: 21. Performance Scheme G- Tier II (as on December 30 th, 20) PFM Financial Year Return % Scheme G- Tier II Trailing Return (%) (As on 30th December,20) Yr 2-Yr 3-Yr 5-Yr LIC SBI UTI ICICI KOTAK RELIANCE HDFC IDFC Table No: 22. Performance: Scheme NPS -Lite (as on December 30 th, 20) PFM Return % Scheme NPS-Lite Trailing Return (%) (As on 30th December,20) 6 1-Yr 2-Yr 3-Yr 5-Yr LIC SBI UTI KOTAK

18 Table No: 23. Performance: Scheme Corporate- CG (as on December 30, 20) PFM Return % Scheme NPS-Lite Trailing Return (%) (As on 30th December,20) 6 1-Yr 2-Yr 3-Yr 5-Yr LIC SBI UTI KOTAK

19 Section 3: Circulars/Notices/Guidelines Issued CIRCULARS i) Circular on dispensing with the requirement of submission of physical application form in case of NPS account being opened on Aadhaar verification followed by e-signature (PFRDA/20/25/PD/1)Dated 15th Dec, PFRDA vide circular no PFRDA/2013/18/PDEX/11 dated 24 th October 2013 has allowed acceptance of e-kyc as a valid process for KYC verification in addition to the other allowed valid documents of identity and address for KYC verification. 2. The Electronic Signature or Electronic Authentication Technique and Procedure Rules, 2015 has been notified on 27 th January, As per the rule the Electronic Signatures facilitated through esign-online Electronic Signature service is legally valid provided the esign signature framework is operated under the Provisions of Second Schedule of the Information Technology Act and Guidelines issued by the Controller of Certifying Authorities. E-authentication technique using Aadhhar e-kyc services is legally valid authentication. 3. It has now been decided by PFRDA that in case the PoPs integrate the esign- online electronic signature service, within their applications for online account opening for NPS, the requirement of sending the physical application form to the Central Recordkeeping Agency by the subscribers/ Points-of- Presence shall be dispensed with. 4. The Point-of Presence shall be allowed to charge a maximum of Rs. 5/- plus service tax and cess there on per application for the e-signature service being provided to the subscribers. 5. In case of account open through e-kyc, the Points-of Presence will send the soft copy of the application form (along with the supporting documents, if any) to the Central Recordkeeping Agency. 6. The Points-of Presence shall adhere to the requirement of submission of KYC details of the subscribers to CERSAI. 7. With the application of the esign facility, a large number of the subscribers having Aadhaar number will be able to open NPS account without any physical document requirement. 18

20 Section 4: Training/ Workshops /Conference conducted i) Conference of State Governments on National Pension System (Dated 19 th Dec 20) Central & State Government division organized the fourth edition of Conference of State Governments on National Pension System on at India Habitat Centre. The basic objective of the Conference was to apprise all the State Governments regarding their performance and to provide them an insight with respect to various parameters of NPS implementation. Another important objective was to sensitize the governments on operational aspects of withdrawal claims, pending grievances, sharing of best practices for further improvements and communication regarding new functionalities developed. Officials of all State Governments and seven large State Autonomous Bodies (SABs) from Chhattisgarh, Uttar Pradesh and Madhya Pradesh were invited in the conference and more than 100 participants attended the same. The participants were addressed by Sh. Hemant G. Contractor, Chairman, Sh. R.V.Verma, Member (Finance) and Dr. B.S.Bhandari, Member (Economics), PFRDA. Sh. Pravesh Kumar, DGM, State Government department made the presentation relating to performance of states with respect to NPS implementation. Besides performance, past trends and future challenges were also discussed in the presentation. This provided the state governments an insight into their performance on various important parameters of NPS and also applauded their efforts for effective implementation of NPS. PFRDA instituted awards in April 20 for the State Government sector in order to boost the best performers and also to encourage other states to improve their performance on the same lines. The following four awards have been instituted : Best State Maintenance of Subscriber records Best State Subscriber coverage 19

21 Best State - Performance of State Autonomous Bodies (SABs) Best State Usage of functionalities & technological advancements The states were divided in three categories: First category States having subscriber base of 1.5 lacs and above 7 states Second category States having subscriber base between 50,000- less than 1.5 lacs 11 states Third category States having subscriber base of less than 50, states Andhra Pradesh bagged three awards for Best State Maintenance of Subscriber records, Subscriber coverage and Performance of SABs. Details are given in the table at the bottom. Sh. Sumit Kumar, DGM made a presentation on behalf of NPS Trust. The presentation covered operational aspects of withdrawal claims, pending exit cases and pending grievances. He provided the relevant data and showed various statistics, in support of the same. He made a reference to the Regulations and urged the participants for early action on these issues. The conference was an opportunity for sharing the best practices being followed by various State Governments in the implementation of NPS. This enabled other state governments also to improve their processes. For this purpose, the presentations by following officials of three State Governments were made: Andhra Pradesh Odisha Sh. Achyut Ramaiyya, Assistant Director Sh. Siddharth Das, OSD, Treasury Computerization & NPS Madhya Pradesh Sh. Rajesh Singh, Joint Director 20

22 Sh. Sunil Samuel, AVP, NSDL,CRA presented the new developments in the last two years and way forward for better NPS implementation followed by Questions & Answers session. The Conference provided an opportunity to the stakeholders to raise their issues and get necessary guidance. Various actionable emerged from the Conference and were accordingly advised to the respective stakeholders for necessary action. Details of the awards: Awards S. No Award Category State Best State - Maintenance of Subscriber Records Category 1 Andhra Pradesh Best State - Maintenance of Subscriber Records Category 2 Odisha Best State - Maintenance of Subscriber Records Category 3 Mizoram 4 Best State - Subscriber coverage Category 1 Andhra Pradesh 5 Best State - Subscriber coverage Category 2 Haryana 6 Best State - Subscriber coverage Category 3 Sikkim 7 Best State - Performance of SABs Category 1 Andhra Pradesh 8 Best State - Performance of SABs Category 2 Bihar 9 Best State - Performance of SABs Category 3 Kerala Best State - Usage of functionalities & technological advancements Category 1 Rajasthan Best State - Usage of functionalities & technological advancements Category 2 Jharkhand Best State - Usage of functionalities & technological advancements Category 3 UT Chandigarh 21

23 ii) PFRDA conducts workshop on National Pension System (NPS) for Corporates in coordination with FICCI at Bhopal PFRDA in its endeavor to promote NPS among the corporates have embarked upon conducting NPS workshops at various locations across the countries. A Corporate meet was conducted at Bhopal on th December 20 in association with Federation of Madhya Pradesh Chambers of Commerce and Industries (FMPCCI), an associate member of FICCI. 2. Dr.R.S.Goswami, Joint President, FMPCCI, Bhopal in his welcome address, lauded the efforts of PFRDA for organizing such meetings across the country and creating awareness about NPS which can be effective platform for corporates to provide pension to their employees. He requested the participants to utilize this meet for better understanding of NPS and implementing the same in their respective organizations. Mr. Santosh Agrawal, Treasurer, FMPCCI also addressed the participants and requested members to consider implementation of NPS for their employees. 3. More than 50 participants attended the workshop. Madhya Pradesh based POPs were also present for the workshop. PFRDA official gave a presentation on NPS and informed the participants about the features, benefits and the process of joining NPS to the employees as well as to the employer. Presentation on operational aspect of NPS was given by the official of Central Record keeping Agency (NSDL e-governance Infrastructure Limited). Xeeva India Private Limited, a Bhopal based registered corporate informed the participants about their experience of facilitating NPS to their employees and the need and benefits of implementing NPS in the organization. 4. In Question and Answer session the queries regarding joining of NPS, tax benefits, POPs details, timelines etc were clarified by PFRDA officials. 22

24 5. The recent developments under NPS-Private Sector (All citizen and Corporate) are listed below: i. Introduction of Alternative Investment Fund-a separate class of Asset A ii. Introduction of two new life cycle funds (LC 75 and LC 25) iii. Option to change the investment choice or asset classes twice in a financial year iv. Under Tier-I account, minimum contribution requirement in a financial year is reduced from Rs 6,000/- to Rs 1,000/- v. Dispensing of requirement of submission of physical application form in case of subscriber opening account online and esigning the document. iii) PFRDA conducts workshop on National Pension System (NPS) for Corporates in coordination with FICCI at Surat PFRDA in its endeavor to promote NPS among the corporates have embarked upon conducting NPS workshops at various locations across the countries. A Corporate meet was conducted at Surat on 19th December 20 in association with Southern Gujarat Chambers of Commerce and Industries (SGCCI), an associate member of FICCI. 2. Shri B.S.Agarwal, President, SGCCI, Surat and Shri. Rajanikant Marfatia, National Executive Committee Member, FICCI addressed the participants and requested them to consider implementation of NPS for their employees. 3. More than 100 participants attended the workshop. Gujarat based POPs were also present for the workshop. PFRDA official gave a presentation on NPS and informed the participants about the features, benefits and the process of joining NPS to the employees as well as to the employer. Presentation on operational aspect of NPS was given by the official of Central Record keeping Agency (NSDL e- Governance Infrastructure Limited). Official of HDFC Pension Management Company Limited briefed the role of the Pension Fund under NPS architecture. Official of KPMG gave a presentation on Tax benefits of NPS as compared to other financial products. 23

25 4. Question and Answer session was handled by PFRDA officials. They clarified the queries regarding joining of NPS, tax benefits, POPs details, timelines etc. 5. The recent developments under NPS-Private Sector (All citizen and Corporate) are listed below: i. Introduction of Alternative Investment Fund-a separate class of Asset A ii. Introduction of two new life cycle funds (LC 75 and LC 25) iii. Option to change the investment choice or asset classes twice in a financial year iv. Under Tier-I account, minimum contribution requirement in a financial year is reduced from Rs 6,000/- to Rs 1,000/- v. Dispensing of requirement of submission of physical application form in case of subscriber opening account online and e-signing the document. iv) PFRDA conducts workshop on National Pension System (NPS) for Corporates in coordination with FICCI at Chennai PFRDA in its endeavor to promote NPS among the corporates have embarked upon conducting NPS workshops at various locations across the country. A Corporate meet was conducted at Chennai on 23rd December 20 in association with FICCI, Tamil Nadu State Council (TNSC). 2. Shri P V Vasantha Kumar, Member, HR and IR Panel, FICCI Tamil Nadu State Council in his welcome address, pointed out that in the changing demographic status of the country; pension is one of the most important factor to be considered by everyone. National Pension System (NPS) promoted by Government provides the platform to every segment of the society for savings for retirement. Shri Ruban Hobday, Head, FICCI, TNSC lauded the efforts of PFRDA for organizing such meetings across the 24

26 country and creating awareness about NPS which can be effective platform for corporates to provide pension to their employees. Shri A. G. Das, Chief General Manager, PFRDA addressed the participants and briefed the contours of NPS for Old age income security. He requested the participants to utilize this meet for better understanding of NPS and implementing the same in their respective organizations. 3. More than 100 participants attended the workshop. Tamil Nadu based POPs were also present for the workshop. PFRDA official gave a detailed presentation on NPS and informed the participants about the features, benefits and the process of joining NPS to the employees as well as to the employer. Presentation on operational aspect of NPS was given by the official of Central Record keeping Agency (NSDL e-governance Infrastructure Limited). Official of HDFC Pension Management Company Limited briefed the role of the Pension Fund under NPS architecture. Official of B S R & Co LLP gave a presentation on Tax benefits of NPS as compared to other financial products. Saint Gobain India Private Limited, a Chennai based registered corporate informed the participants about their experience of facilitating NPS to their employees and the need and benefits of implementing NPS in the organization. 4. PFRDA officials clarified the queries regarding joining of NPS, tax benefits, POPs details, timelines, transfer of superannuation fund to NPS, annuity etc. to the participants. 6. As on 22nd December 20, more than 5.42 lacs employees of 2967 registered corporates have joined NPS under NPS Corporate Model and the Asset under Management (AUM) for this segment is more than Rs. 13,330 Crores. More than 2.80 lac subscribers have joined NPS under NPS-All Citizen Model and the AUM of this segment is more than Rs crores. As on 22nd December 20, the overall number of NPS and APY subscribers has crossed 1.39 Crores with Asset under Management (AUM) of Rs. 1, 60,717 Crores. PFRDA s endeavor is to significantly scale up these segments during the ongoing months. 25

27 Section 5: Important News i) PFRDA released Rs106 crore as GoI co-contribution under Atal Pension Yojana Atal Pension Yojana is being implemented through the APY Service Providers comprising of Public Sector Banks, Private Sector Banks, Regional Rural Banks, Cooperative Banks and Department of Post both in urban and rural areas across the country. The total number of subscribers registered under APY has crossed 37.3 lakhs and on average every day nearly 5000 new subscribers are added. The scheme provides for a co-contribution from Government of India for those who have registered before 31/3/20 with an amount of 50% of the subscribers contribution up-to a maximum of Rs. 1000/- and these subscribers will be eligible for co-contribution for the period of 5years from to only those subscribers who are not income tax payers and not part of any other social security schemes are eligible for GoI co-contribution. Govt. has already released 1st tranche of Rs 100 crore as GoI co-contribution for the 2015-, and now 2nd tranche of Rs 5.89 crore of GoI co-contribution for the is released to 92,403 subscribers during the month of November. The Subscribers who have any pending contributions in their APY account till March 20 won't be paid with co-contribution. They have been advised by PFRDA to regularize their APY account so as to get GoI co-contribution in coming months. GoI co-contribution is payable only when accounts are regular. The admissible GoI co-contribution is paid into the Savings Bank account of the Subscribers. Atal Pension Yojana provides minimum guaranteed pension ranging between Rs. 1000/- to Rs. 5000/- per month for the subscriber from the age of 60 years. The Same amount of pension is paid to the spouse in case of subscriber s demise. After the demise of both i.e. Subscriber & Spouse, the nominee would be paid the pension corpus. Option for Spouse to continue to contribute in APY account of subscriber for balance period on premature death of subscriber before 60 years, so as to avail pension by Spouse. Tax benefits at entry, accumulation and pension payment phases are available. If the actual returns on the pension contributions during the accumulation phase are higher than the assumed returns for the minimum guaranteed pension, such excess returns are passed on to the subscriber, resulting in enhanced scheme benefits. The GoI is guaranteeing returns under the scheme at 8%, however the scheme has generated a weighted average CAGR of 12.60%. ii) ATAL PENSION YOJANA- Campaign to mobilize APY PFRDA organizes various campaigns with Banks and Department of Post throughout the country on regular basis in order to bring maximum number of eligible population under Atal Pension Yojana. In line with this PFRDA launched a new campaign APY- Fortune 100 from 26th Dec to 31st Dec, 20. The campaign was observed by all the APY- Service Providers including (National BCs), all the branches of Banks and DOP. Branch wise target of 100 accounts for Banks and DOP, 1500 for National BCs is allotted. Under each category i.e. PSB, PVT, RRB, DCCB, DOP, BCs top 5 performer will be awarded. 26

28 Earlier PFRDA conducted a week-long APY campaign from 7 th Dec to 14 th Dec 20 on APY- Customer First to bring more and more existing customers of the Banks and Department of Post under the APY. Banks and Department of Post were advised by PFRDA to focus on their existing customers, which may include beneficiaries of various Social Security Schemes of Government of India like PMSBY, PMJJBY and various other flagship schemes like Mudra and Start up India. The week-long activity with national mission and zeal was conducted with active participation of Public Sector Banks, Private Sector Banks, Regional Rural Banks, Co-operative Banks, their Business Correspondents and Department of Post. Despite the banks being highly occupied with the demonetization activity they participated wholeheartedly in the campaign and have mobilized more than 56,000 accounts during the period. The branches of banks, Department of Post and Business Correspondence who have done exceptionally good during the campaign are listed in Annexure A. Atal Pension Yojana launched by Government of India to provide guaranteed minimum pension to the eligible persons focusing primarily on the unorganized workers of India. Launch of APY and various tax benefits announced by GOI to NPS have been instrumental in increasing the coverage of pension in the country and it has also increased India s ranking in Melbourne Mercer Global Pension Index 20 (MMGPI). MMGPI is a yardstick to assess the pension policies of a country. The index ranks the countries according to sustainability, pension adequacy and integrity of pension policies. 27

29 28

30 Section 6: Interoperability between CRAs i) Karvy Computershare Pvt. Ltd. has been selected as second Central Recordkeeping Agency for NPS. Karvy Computershare Pvt. Ltd. is currently at an advances stage of CRA system development and is expected to become operational in the near future. With regard to issues of interoperability between CRAs, the following have been decided by the Authority: S. No. Issue Approval of the Authority 1 Transition of Govt. sector The choice of CRA can be made by the employer between the existing CRA and the second CRA depending on the policy of the employer in case where there is employeremployee relationship. Thus, decision for shifting from one CRA to another in complete mode or in parts can be taken by Government itself. 2 Pendency of bills Settlement of 75% of bill amount and undertaking / letter to be made before shifting from one CRA to another. However, in case of any dispute in this regard, the decision of Authority shall be final. 3 POP registration with both the CRAs It was earlier decided that POP shall register with both CRAs. Official communication for registration of POP with both CRAs to be circulated by DRS POP Dept. 4 Registration of Retirement Advisors (RA) RAs shall be registered with both CRAs in line with POP registration with both CRAs 5 Frequency of Subscriber movement across CRA and the cooling off period. As function of CRA is core in nature thus for purpose of system stability, shifting from one CRA to another is allowed once in a financial year. However, keeping future requirement in view, Authority may examine the matter and issue necessary instructions from time to time. 6 Notification from Government, in case of shifting from one CRA to another Instead of issuing of notification, decision may be taken at senior level i.e. Financial Advisor (Central Govt.) or Principal Secretary Finance (State Govt.). Government after taking decision for shifting may inform both the CRAs with information to PFRDA. 29

31 7 New application form to be circulated Matter has been discussed with concerned department and it will be issued after approval of competent authority shortly. Individual CRA 8 Branding services and in other Both CRAs may seek approval of Authority on case to case basis from P&D Dept. related areas 9 No de-duplication process required for State and Central Govt. employees De-dupe exercise should be conducted within CRA and across CRAs for all sectors including Government sector at least once in a quarter. 10 Additional timeline for FRC upload by TB As funds needs to be invested on T + 1 basis, thus TB is to be advised to adjust time at their end and to ensure transfer funds to PFMs before cutoff timelines for investment on T+1 basis. 11 Extra Time required by PFM to upload NAV Half an hour extra time to upload pay out and time is revised to 8.45 pm for initial three months. Information is shared with NPS Trust. 12 Pool Reconciliation As NCRA is engaged in pool activities since inception and also raised bills for that duration, thus responsibility for pool reconciliation lies with NCRA. However, in case any subscriber/nodal office has shifted to KCRA then KCRA shall co-ordinate and co-operate with NCRA in the matter. 13 Settlement Operational feasibility of transition was discussed by both CRAs and other Intermediaries and timeline of T+2 was agreed between both CRAs and which seems acceptable. 30