Operational Guidelines for National Pension Scheme Tier II- Tax Saver Scheme, 2020 (NPS-TTS)
PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area,
Katwaria Sarai, New Delhi-110016
Ph : 011-26517501, 26517503, 26133730
Fax : 011-26517507
Website : www.pfrda.org.in
Date: 17th August 2020
Subject: 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 (NPL-TTS).
|1||Eligibility||Any Central Government NPS subscriber|
|2||Lock-in period||03 years from the date of unitization of contributions by CRA|
|3||Account Types||Tier I – mandatory pension a/c
Tier II – optional a/c and freely withdrawable
Tier II (Tax Saver) – optional a/c with 80C benefit
|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-I
** Investment guidelines as applicable for G-II and C-II
|5||Choice of Pension Fund||Subscriber can choose any pension Fund
Subscriber will be allowed to have maximum 03 pension funds, separately for NPS-TTS.
PF change will be allowed after the lock-in period. Such re-investments will be treated as fresh investments and will be again locked-in for 03 years
|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However, in case of death of subscriber, the corpus can be withdrawn by the nominee/legal heir.
|7||Exit/Premature Closure||In case of closure of Tier-I account due to exit from NPS, contributions to NPS-TTS will not be allowed and NPS-TTS will be closed after completion of lock-in period.|
|8||Minimum/Maximum Contributions,charges, Operations, Others||Same as Tier-II – Optional a/c which is freely withdrawable and has no tax benefits|