List of Pension plans in India for NRI

In order to make NRIs feel at home and to appreciate their investment in Indian economy, Modi government has come out with new policies and schemes that recognize NRI’s contribution and make them feel full members of the Indian community.

NRIs have to plan their retirement policies in advance and for that they have to bear in mind the future value of money, calculate their approximate expenditure and plan their standard of living accordingly.

For transpiring this mission the Indian government has announced alluring pension plans for NRI. Here are few pension plans for NRI:

Pension plans provided by various companies have become great investment options to NRIs. With the use of internet today there are umpteen numbers of NRIs choosing these policies. It is better to compare the investment plan and opt for the one that best fits your needs. As features of these policies often change it is better to consult investment advisor before making investments.

National Pension Scheme	Provide access to age old income security	Investment is routed through normal banking channel and the subscription amount is to be paid by NRI either by inward remittance through normal banking channels or out of the funds held in their NRE/FCNR/NRO account
SBI pension plans – SBI start smart	Provides entire sum that is payable to the nominee of the policy on the death of the policy holder	One time premium payment plan Unit linked plan offering specified returns on annual basis Option of choosing multiple low cost pension plans at once
SBI – Life Long Pension Plans	One can opt for plan providing only pension and plan that provides extra cover along with plan	It promises certain amount of percentage of premium every year It also has option to choose other insurance covers i.e. covers against accident
Aviva pension schemes- Avivia secure pension	Provides certain amount of premium for the first few years of the plan	The minimum sum assured starts from Rs. 1 lakh and there is no maximum limit on the sum assured.
CITI bank retirement plans- 3g Manu life	Option for NRI to choose to hold the amount accrued for about 5 to 10 years after the premium payment term Also he has the option of to choose the annuity payback turn from wide range of options in the years	Provides few special features apart from the regular ones Coupon on annual basis after the 10th year policy Offers insurance covers like critical care, disability etc Loan facility for medical purposes and this loan is free from interest  rate
Life Insurance cooperation- Jeevan Nidhi	Popular for annuity options Guarantees sum of assured sum for first few years of premium payment and later on certain sum as bonus obtained by participation of premiums in company’s profit	Special features like joint life, a percentage hike of 3 % on annuity, grace period etc Other insurance covers available along with this plan but they are optional
LIC – Jeevan Akshay VI	Onetime payment annuity purchase policy NRI must pay lump sum at once and can opt to get annuities for rest of life anytime	Annuities are payable on monthly, quarterly, half yearly or even on annual basis

Simple investment benefits with opening your demat account

Dematerialized account (Demat) account is the account opened by the investor while registering with an investment broker or the sub broker. In simple words just as you deposit your money in your bank same why demat is to your shares. It is an account that holds all your shares in electronic or dematerialized form.

Just as bank account holds certificates of your financial instruments like shares, bonds, mutual funds, government securities and exchange traded funds and one cannot trade in stock market without the demat account.

How this account works:

1. Central depository: There are two depositories in India – CDSL and NSDL and both of them hold all the demat accounts. CDSL holds details of your share holding on your behalf as your bank.
2. Unique Number: Every demat account has unique number for identification purpose and this is the number that is needed to provide for transactions. The number aids the exchange and also the companies to recognize the investor and credit the shares in the investor’s account.
3. Depository participants: Access to central depository is provided by Depository participants or DPs. They act as intermediary between central depository and the investor. They could be banks, financial institutions or brokers as these are empowered to offer demat services.
4. Portfolio holding: This account holds all the securities. As and when the investor checks the account, complete details of the portfolio holdings and its details. These are updated automatically every time you conduct a transaction of buying and selling.

   Benefits of opening a demat account:

• Common Bank: Demat is not just for shares, but also for debt instruments like bonds and this helps you to hold all your investments in single account.
• Automatic update: Since it is common account one does not have to keep giving details like address every time you do transaction or every time you change the details. All these details are automatically available to companies with whom you conduct transaction.
• Odd- lot problem: Earlier shares were transacted in lots and a single or odd number of securities could not be transacted and now this issue is done away with.
• Delivery risks: Demat has also eliminated the risks of fake shares, thefts, deliveries that were wrong etc. As it is automated it has done away with lot of paper work. Also the time of delivery is minimized. Once your transaction is approved, the securities are automatically credited to your account.
• Cost reduction: Demat has drastically reduced the extra costs. Earlier when one transferred the securities, one has to incur the extra costs due to stamp duty and this is not a problem with demat form.
• Easy to hold: Paper certificates are prone to damage and tearing. Whereas in case of demat format no such problem is emerged. It is the most safe and convenient way to hold securities. You can have a nomination facility where as the investor can facilitate the transfer of shares in the event of death.
• There are no restrictions on transactions as with demat account one can sell or buy even a single share, which is not possible if the securities are in physical form as physical shares are stacked together collectively whereas demat shares are easily divisible electronically.
• Corporate benefits: The dividends, refunds or interests incase offered by the companies are automatically available to the Demat account holders. In addition corporate actions like bonus issues, right shares or stock spilt are automatically updated in Demat account of all the shareholders.
• Multiple accessing: This account is electronically operated and so it can be assessed using multiple modes. This account can be accessed through internet using a computer, mobile phones or any other smart device.
• Freezing: Here the demat holders can freeze their accounts for a certain period in case required. This option enables to prevent unexpected debit or credit in one’s demat account. This option is available for specific numbers of securities held in account.

Check New Pension scheme benefits and features

New pension scheme – New Pension Scheme is the voluntary contribution of retirement savings scheme. It has been framed to enable systematic savings during the subscriber working life.

This scheme is an attempt towards finding an apt solution to provide adequate retirement income to each and every citizen of India. NPS works in the following way:

1. Here individual savings is pooled in pension fund
2. All these funds are invested by Pension Fund regulatory and development authority that is managed by professional fund managers in sync with the approved guidelines of investment in varied portfolios that is of government bonds, bills, shares and corporate debentures.
3. All these contributions will grow and accumulate over the years based on returns earned on investment made.

It offers following benefits:

• This scheme offers spectrum of investment options and choice of pension fund managers for planning growth of investments in proper manner and witness the investment grow. Also individuals can switch from one investment option to another and from one fund manager to another and the returns are totally market related.
• Flexibility to select between active and auto choice for distribution: A subscriber can corner between active choice and auto choice for distribution of his contribution. In case active choice is selected the subscriber must indicate the percentage bifurcation between corporate and equity. The maximum investment allowed in equity is 50%.
• Simplicity: Opening this account with NPS provides Permanent Retirement Account Number which is unique number and it remains with the subscriber all through the lifetime. The scheme is divided into two tiers: Tier I – which is non withdrawal permanent retirement account in which accumulations are deposited and invested as per the option of the subscriber. Tier II –It is voluntary withdrawal account which is allowed only when there is active Tier I account in the name of subscriber. The withdrawals are permitted from this account as per the needs of subscriber.
• It is transparent and is cost effective system in which the pension contributions are invested in the pension fund schemes and the employees will be able to know the value of the investment on daily basis.
• It is easy and portable as each employee is identified by a unique number and has a separate PRAN will remain same even if the employee gets transferred to any other office.
• It is regulated by Pension Fund regulatory and development authority with transparent investment norms and regular monitoring and performance review of fund managers by NPS trust.

Benefits to corporate:

This scheme provides a platform to the corporate to co contribute for the Employees’s pension. Here the corporate can save expenses incurred on self administration of pension functions like setting up separate trust, record-keeping, fund management, providing annuity etc. Also they can exercise the choice of PFM along with investment pattern for its employees or leave the option to employee.

Benefits to subscribers:

NPS allows one to accumulate corpus from the age of 18 years for forty odd years irrespective of geographies and employers in one single PRAN account with minimal leakages in the form of withdrawals for competing consumption expenses, reap compounding effect of tax concessions and minimum fee, invest in corpus as per risk factor that is managed by professionally managed funds that generate optimum returns followed by smooth transfer of retirement wealth from accumulation phase as per the choice on reaching 60 years of age. The additional tax benefit of NPS as per the Income tax act 1961 is the best aspect of this scheme.

Salient features of NPS are:

Portable account: PRAN remains same irrespective of change in employment or geography
Online platform: Each subscriber gets log in ID and password of NSDL system
It offers option of service providers, funds, investment options, pension fund managers, annuity service providers and annuity plans
Subscribers can switch the service provider, fund, investment option and pension fund managers
Flexible contribution mechanism
Prudent regulation
Effective grievance management through CRA/PFRDA call centre etc.
Transparent investment norms
Very low operation cost

For more information:- Alankit Group

What are the Documents that need to be submitted along with the Withdrawal forms of NPS

NPS scheme offers two options to the investors – Tier I the investor cannot withdraw the amount of investment and this can be withdrawn on maturity i.e. 60 yrs. Tier II the investor can withdraw the amount any time by submitting certain documents.

The type and nature of documents to be submitted depends on the nature and the need of withdrawal. The withdrawals can be categorized in two broad categories:

1. NPS subscribers over 60 yrs of age and non government employee:

• PRAN card in original and in case the PRAN card is not available the subscriber needs to submit an Affidavit duly notified as the reasons why PRAN is not submitted.
• Evidence of birth date, age of evidence of the subscriber for purchase of annuity (Ex matriculation certificate or another educational qualification certificate clearly indicating date of birth.
• Identity proof and address to confirm with AML guidelines of the government
• Cancelled Cheque (containing the name of the subscriber, bank account number and IFSC code) or Bank certificate containing name, bank account number and IFSC code for direct credit or electronic transfer.
  2. NPS subscribers before attaining 60 yrs and other than government employees:
• Original copy of PRAN card and in case this is not available, the subscriber needs to submit an Affidavit duly notarized as to the reasons of non submission of the card.
• Cancelled Cheque (Containing subscriber name, Bank account number and IFSC code or Bank certificate containing name, bank account number and IFSC code for direct credit and electronic transfer.
• Proof of birth date or age of evidence of the subscriber for purchase of annuity i.e. tenth board exams certificate or any other board exam certificate stating the date of birth.
• Proof of identity and address to confirm with AML norms of the government.
  In case of death of subscriber additional document of death certificate in original and legal heir certificate or succession certificate issued by competent authority to be submitted.Withdrawal application forms for NPS:
• Government sector: Form 101, Form 102 and Form 103 and Form 401
• Subscriber under all citizen model: Form 301, Form 302 and Form 303
• Subscriber falling under Swavalamban scheme: Form 501 SS, Form 502 SP and Form 503 SD