All about Citizens Pension Scheme

All that you wanted to know about CITIZENS PENSION SCHEME:

Features	Citizens Pension Scheme
Regulator	Pension Fund Regulatory and Development Authority (PFRDA)
Trust	New Pension Scheme Trust
Objective	Provide retirement income based on reasonable market returns on long term investment horizon.
Who can subscribe?	Any Indian Citizen between the age of 18 yrs to 50 yrs. (Also NRIs)
Account opening centers?	22 POPS (330 branches) who register, perform KYC, receive contribution, transmit funds and upload information.
Account opening requirements?	1.Duly filled Application form
	2.Color photograph-one
	3.ID proof
	4.Address proof
	5.Proof of Date of Birth
Duration to account opening?	15 days from the date of account opening form submission. Each subscriber receives a Permanent Retirement Account Number (PRAN ) number.
How many Pension Fund Managers (PFMs) to choose from?	There are 6 PFMs. SBI, UTI, ICICI, Kotak, IDFC and Reliance.
Schemes offered	There are 2 schemes. A) Non-withdraw-able (Tier 1) B) Withdraw-able (Tier 2)
Contributions to the respective schemes	For
	A) Non-withdraw-able : Min. contribution Rs. 6000 per annum. Min. initial contribution Rs. 500. Min. subsequent contribution Rs. 500. Min. 4 contribution per annum. (All four contributions can be made in one day)
	B) Withdraw-able : Min. contribution Rs. 2000 per annum. Min. initial contribution Rs. 1000. Min. subsequent contribution Rs. 250. Min. 4 contribution per annum.
	These can be made through cash, cheque or draft.
Charges	Account Opening Charges: Rs. 40 (includes KYC charges)
	Transaction Charges: Rs 20 per transaction
	PRAN card Charges: Rs. 50 per card.
	Annual Maintenance Fees : Rs. 350
	NSDL transaction fee: Rs. 10 per transaction
	Management Fees: 0.0009%
What are the investment choices?	One can choose between 3 asset class: Equity ( max. 50%), Corporate Bonds and Govt. Securities
How does one choose these asset classes?	Either a subscriber can choose to have an “Active choice” where he himself chooses his asset allocation or he can opt for an “Auto choice” where the allocation is made based on his age ( Life cycle fund)
How does one exit the fund?	One can exit the fund(Non-withdraw-able) only at the age of 60 years. He has to compulsorily annuitize min. 40% (max. 100%) and can withdraw the rest. You may choose to phase the rest of the amount till the age of 70 years (10% to be withdrawn every year)
	If one exits the fund before the age of 60 years he has to compulsorily annuitize 80% of his corpus.
What happens to the account if contribution is less than Rs. 6000?	A penalty of Rs. 100 is charged as default in payment every year and account is categorized as dormant. The dormant account is closed when the value falls to zero.
How does one re-activate the account?	One has to make minimum necessary contributions along with the penalty payments due.
What happens to the wealth of the deceased ?	The nominee receives the entire pension wealth. ( Max. 3 nominees can be nominated)