Presentation on theme: "Presentation On for Subscribers"— Presentation transcript:
1 Presentation On for Subscribers Presenters are supposed to rehearse the presentation with animation and video, if required please make necessary changes to the animation as per your comfort.
2 PENSIONA pension provides people with a monthly income when they are no longer earning.The presenter may start with a story explaining the importance of savings and pension before coming to the point by point explanation (please make use of the animation GAP for the story)
3 THE INDIAN PENSION STORY NEED FOR PENSIONOne is not as productive in the old age as in the young age.The rise of nuclear family –Migration of younger earning members.Rise in cost of livingIncreasing longevityAssured monthly income ensures dignified life in old ageTHE INDIAN PENSION STORYPrior to 2004Only available to 12% of the population– mainly for government employeesBased on defined benefitsEligible for Pension
4 PFRDA has been established by the Government of India. After 2004PFRDA has been established by the Government of India.Paradigm shift fromDefined Benefit to Defined ContributionPFRDA has made available NPS option to all citizens of India to avail pension through NPS w.e.f 01st May, 2009Govt. of India’s Swavalamban Scheme:Special focus towards Economically Disadvantaged and Unorganized Sector
5 NPS - SWAVALAMBAN YOJANA Government to contribute Rs.1000 to each NPS account If :Subscriber is not covered under any other social security schemes like PF, Pension – only self declaration is requiredNPS -Swavalamban account opened in year , , will get the benefit for 5 yrs .NPS - Swavalamban account opened in 2013 –2014 and subsequent years till will get the benefit up toAnnual contribution to be the range of Rs.1000-Rs.12000Presenter to ensure the correct validity period of the Swavlamban YojnaPresenter to emphasize that “In the first six months more than 3 lakh people have received the ‘Swavalamban’ benefit”
6 NPS -SWAVALAMBAN YOJNA Catering to Unorganized SectorSpecial Focus on economically disadvantaged/marginal investorsEasy entry through aggregator for opening NPS-Swavalamban accountUltra low charge structureAccount Opening – Rs 35 (One Time).Annual Maintenance Charges (AMC)– Rs 70/Annum.12 Transactions free per annum.Instead of the Image the presenter could use the below informationNPS & Aggregators NameAggregators existing ProductsAggregators CustomersTarget NPS Lite SubscribersHow the aggregator can contribute to the benefits of the economically disadvantaged peoplePresenter must give a brief about an aggregator as and entity and what does it represent in the NPS lite architecture“The scheme works through ‘Aggregators’ - an agency which takes on the NPS related responsibility on behalf of its constituents like Self Help Groups and their federations, MFIs, NGOS, Nodal Offices of Govt. Sponsored schemes etc.”
7 AggregatorAggregators are entities registered by PFRDA to act as a link between the subscriber and National Pension System-Swavalamban.
8 ( Undertakings , Autonomous Bodies Banks etc) AGGREGATORS(As on 20/07/2012)51AggregatorsNon - Government(25)Government( Undertakings , Autonomous Bodies Banks etc)(26)Adhikar Micro Finance Private LimitedBandhan Financial Services Pvt. Ltd.Bandhan KonnagarESAF MicrofinanceFinancial Inclusion Network And Operations LtdBWDA Finance Ltd.M/S Cashpor Micro CreditSouth Indian Bank LimitedAlankit Assignments LtdIFMR Holdings Private LimitedSPANCO Ltd.Banaskantha Dist. Co-op. Milk Producers Union LimitedSREI Sahaj e-Village Limited (SSEL)Samhita Community Development ServicesSaptarishi Consultancy ServicesSEWA BankShree Kshethra Dharmasthala Rural Development ProjectAbhipra Capital LtdC DOTMargdarshak Financial ServicesIL$FS SecuritiesIndur IntimideepamIndia Infoline limitedAsomi finance Pvt. LimitedGrameen Financial ServicesA. P. Building & Other Construction WorkersAllahabad U.P. Gramin BankDepartment of PostDirectorate of Women and Child DevelopmentKarnataka State Un-organised Workers Social Security Board (KSUWSSB)LIC Housing Finance LtdLIC of IndiaM.P. State Electronic Development Corporation LimitedSociety for Elimination of Rural PovertyBuilding and Other Construction Workers Welfare Board (Rajasthan)Jharkhand Building & other construction workers welfare BoardCanara BankOriental bank of CommercePunjab National BankAllahabad BankBank of IndiaBank of BarodaIndian Overseas BankVijaya BankCorporation BankIndian BankSaptagiri Grameen bankKarnataka Gramin BankNorth Malabar Gramin BankKrishna Gramin BankNainital Almora Kshetriya Gramin Bank
9 FEATURES OF NPS -SWAVALAMBAN Individual accounts for every subscriberContribution as per convenience of the subscriberNo mandatory monthly deposit.Recommended minimum Rs. 1000/- per annum.Low charge structureSafety of InvestmentInvestment by professional fund managers overseen by NPS TrustAMC – Rs 225 Rs 70 / AnnumAccount Opening – Rs 50 Rs 35 (one time)Transaction – Rs 5 12 Free TransactionUp to 5% in Money Market and up to 15% in EquityUp to 55% in Government Securities and up to 40% Corporate BondsSafe InvestmentsPresenter to explain the ratio of investment (15% Equity and 85% debt), stressing on it being a safer optionPresenter to emphasize the role of PFRDA in monitoring of each entity in the NPS light architecture.NPS Trust
10 WHO CAN JOIN? Any Citizen of India, between 18-60 years of age Should comply with KYC (Know your customer norms)Presenter may touch upon the points of who can not join.
11 KYC Requirements for NPS -Swavalamban Proof of AddressElectricity billTelephone billDepository Account StatementCredit Card StatementEmployer CertificateBank Account Statement / PassbookRent ReceiptProperty Tax Assessment OrderRation CardPassportVoter’s Identity CardDriving LicenseCertificate of address signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted Officer.Proof of IdentitySchool Leaving CertificateMatriculation CertificateDegree of Recognized Educational InstitutionCredit CardWater BillPAN CardCertificate of identity signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted Officer.Note-Subscriber is required to bring original documents & two self-attested photocopies (Originals will be returned over-the-counter after verification)Proof of Address mentioned in Sr. No. 1 to 7 should not be more than six months old on the date of application.
12 HOW TO OPEN NPS - SWAVALAMBAN ACCOUNT? Contact the aggregator.Fill up a registration formProvide KYC DocumentsIdentity ProofAddress ProofMinimum Contribution of Rs 100 at the time of registration.Receive “Your” Permanent Retirement Account Number (PRAN) Card.Presenter must ensure that she/he carries a physical PRAN card with her/himPresenter to mention that at the time of enrollment Bank account is not a necessary requirement
13 Your PRAN Card will look like this Your NameYour Father’s NameDOBYour PRANYour SignaturePFRDA HologramYour Photograph
14 Exit / Withdrawal from NPS -Swavalamban Exit upon attainment of 60 years of ageSubscriber would be required to invest minimum 40% of accumulated savings (pension wealth) to purchase annuity.At the time of exit, the effort is to give a monthly pension of Rs.1000/-. If 40% of corpus is not sufficient to give pension of Rs.1000/- entire pension wealth would be subject to annuitisation.Exit due to death of subscriberEntire accumulated pension wealth would be payable to the nominee/legal heirs of the subscriber.Exit before attainment of 60 years of ageSubscriber would be required to invest minimum 80 % of accumulated savings (pension wealth) to purchase annuity.Subscriber can withdraw balance 20%.Instead of the Image the presenter could use the below informationNPS & Aggregators NameAggregators existing ProductsAggregators CustomersTarget NPS Lite SubscribersHow the aggregator can contribute to the benefits of the economically disadvantaged peoplePresenter must give a brief about an aggregator as and entity and what does it represent in the NPS lite architecture“The scheme works through ‘Aggregators’ - an agency which takes on the NPS related responsibility on behalf of its constituents like Self Help Groups and their federations, MFIs, NGOS, Nodal Offices of Govt. Sponsored schemes etc.”
15 HOW TO GET PENSION? Monthly pension payable to subscriber till death ASPs would be responsible for delivering a regular monthly pension to the subscriber for the rest of his/her life.ASP’s empaneled with PFRDALife Insurance Corporation of IndiaSBI Life Insurance Company LimitedStar Union Dai-ichi Life Insurance Company LimitedReliance Life Insurance Company LimitedBajaj Allianz Life Insurance Company LimitedICICI Prudential Life Insurance Company LimitedHOW TO GET PENSION?Monthly pension payable to subscriber till deathMonthly pension payable to subscriber till death and return of purchase price on death of subscriber to the nominee/Legal heirsJoint Life survivorJoint Life survivor – Return of corpusSubmit the withdrawal request form at the age of retirementChoose the Cash/Annuity ComponentChoose your Annuity Service ProviderChoose the type of pension required.Provide the Bank account details.Start Receiving Monthly Pension.Presenter must Discuss the picture, “ Now that corpus has been built, how to ripe the benefits?”Presenter to explain in detail the age criteriaPresenter to Explain the ASP’s and their Importance in receiving the pensionCash/ Annuity ratio and limits of withdrawal needs to be explainedPresenter should give few examples of Pension schemesEmphasize on the necessity of bank account
16 CONTRIBUTION TO PENSION SwavalambanContributionSubscriberJoining at ageBetween yearsPensionPresenter should Explain each step along with the animationCorpus Amount
17 Projected PensionMonthly Contribution till the age of 60 yearsRs 100Annual Swavalamban Contribution as per scheme assumed for 5 yearsRs 1000Assuming Annual Rate of Return of8%Current Age of SubscriberAssumed Corpus accumulated at 8% on cumulative basisLump sum withdrawable at ExitLikely Monthly Pension18512626307576164925286903158503100030187607592073512095994340762245944546198375Monthly pension shown here are indicative amounts for illustration purpose only, actual monthly pension may vary at the time of actual purchase and are not guaranteed.(Payable for life annuity for subscriber only option)Monthly pension shown above are indicative amounts for illustration purpose only. Actual monthly pension may vary depending on the rates of premium at the time of actual purchase and are not guaranteed. (Calculations are for life annuity for subscriber only option)
18 Rs 1000/- Contribution from Govt. BENEFITS OF NPS - SWAVALAMBANSwavalambanSafeInvestmentsRs 1000/- Contribution from Govt.Low Costs