PFRDA All Set To Launch Savings Scheme From Dec 1st 2009

01 Dec

The Pension Fund Regulatory and Development Authority(PFRDA) is in news again, and this time it is for the launch of the savings scheme which basically aims at giving better returns on the deposits and which the investors can withdraw fully. This PFRDA Savings scheme is also called as tier-II account and the returns generated from this will be higher as they follow market-linked investment patterns.

Liquidity which is a main issue with most of the investors in the current scenario is taken care of in the savings scheme by PFRDA. So investors with the savings schemes in PFRDA can withdraw his entire savings from the account in case of any emergency. Only clause being investors need to have a Tier -I account to open a Tier-II account. These two accounts will run independent of each other.

Tier-I account has become operational since May 01,2009 called the New Pension Scheme when PFRDA has announced various pensions plans. To recall a few basic points in NPS scheme, the investor can withdraw 20% of his investments before the age of 60 years and after attaining 60 years he/she can withdraw another 60% as lump sum. These withdrawals will be taxed as it comes under the exempt-exempt mode. In the exempt-exempt mode no tax is levied when money is being deposited and it generates interest. Tax is only levied at the time of withdrawal.

The registration for this savings scheme can only be done through POP-SP which are contact and collection points for the customers. There are 21 such collection points of NPS in the form of SBI, ICICI Bank, IDBI Bank, Axis Bank, UBI etc. Minimum deposit is set at Rs1000/- at the point of account opening. And minimum contribution being Rs 250 per contribution. And minimum balance is set at Rs 2,000 at the end of financial year.

If you want to analyze and get more information about the new savings scheme from PFRDA, check the link. Leave your valuable comments and queries here and get them answered.

Ranganna

December 2nd, 2009 at 4:38 pm
1

The mail on PFRDA sent on 2-12-2009 is ambiguous still. From the beginning, the deposit amount details only was announced but how much pension corresponding to the deposit and the duration after which they are payable are still kept in dark.

Even this lack of information has been highlighted by various medias and it creates suspicion in the minds of investors especially aged people to think that this is a planned trap by the Govt. to drag innocent and illiterate people fall into this scheme.

Kindly highlight the public on the above please.
Rajesh.M.Maralihalli.

April 1st, 2011 at 2:25 pm
2

Dear sir,
i want details of this pension plans.