1. SUBMITTED BY:
VINAYAK GUPTA
B.COM(HONS)

2. DIFFRENT TYPE OF
PENSION SCHEMES,
EMPLOYEES DEPOSIT
LINKED INSURANCE
SCHEME
&
PUBLIC PROVIDENT
FUND

3. A pension plan is a retirement plan that
requires an employer to make
contributions into a pool of funds set
aside for a worker's future benefit. The
pool of funds is invested on the
employee's behalf, and the earnings on
the investments generate income to the
worker upon retirement.
WHAT IS PENSION?

4. IMPORTANCE OF PENSION PLAN

5. PFRDA was established by Government of
India on 23rd August, 2003.
It acts as a regulator for the pension
sector.
PENSION FUND REGULATORY AND
DEVELOPMENT AUTHORITY

6. National
pension
system
Atal pension
scheme
UP
samajhwadi
pension
scheme
Indira Gandhi
National Old
Age Pension
Scheme

7. NATIONAL PENSION SYSTEM

8. The National Pension System (NPS) is a
voluntary defined contribution pension system
created by an Act of Parliament of India.
Administered and regulated by Pension Fund
Regulatory and Development Authority (PFRDA)
The National Pension System (NPS) was notified
by the Government of India on 22 December
2003,with effect from the 1st January 2004
The scheme was initially designed for
government employees only, it was opened up
for all citizens of India in 2009

9. WHO CAN JOIN NPS ?
A citizen of India, whether resident or non-resident
can join NPS, subject to the following conditions:
• The subscriber should have age between 18 – 60
years as on the date of submission of his/her
application to the Point of Presence / Point of
Presence–Service Provider -Authorized branches of
POP.
• The subscribers should comply with the Know Your
Customer norms as detailed in the Subscriber
Registration Form.
Un-discharged insolvent and individuals of
unsound mind cannot join NPS

10.  Under the NPS, an individual's savings is pooled in a
pension fund.
 These funds are invested by Pension Fund Regulatory
and Development Authority (PFRDA) in the diversified
portfolios comprising of government bonds, bills,
corporate debentures and shares.
 These contributions would grow and accumulate over
the years, depending on the returns earned on the
investment made.
 At the time of a normal exit from NPS, the subscribers
may use the accumulated pension wealth under the
scheme either to purchase a life annuity from a PFRDA
empanelled life insurance company or withdraw a part
of the accumulated pension wealth as lump-sum, if
they choose to do so.
HOW NPS WORKS?

11. As per the amendment made by Union Budget
2015 in tax provisions for FY 2015-16, if any
customer contributes voluntarily towards the
NPS scheme, then he would get an additional
benefit of ₹ 50,000 under section 80CD (1B)
which would be over and above the ceiling limit
of ₹ 1,50,000 as prescribed under section 80
CE.
TAX BENEFIT

12. 0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%

13. ATAL PENSION SCHEME

14. INTRODUCTION
The Government of India has announced a
new scheme called Atal Pension Yojana (APY).
APY is a guaranteed pension scheme and is
administered by the Pension Fund Regulatory
and Development Authority (PFRDA).
ICICI Bank is registered with PFRDA to
provide APY related services.

15. Features Guaranteed monthly pension for subscribers,
ranging from Rs. 1,000 to Rs. 5,000 per month.
Government of India will also co-contribute
50% of the subscriber’s contribution or Rs.
1,000 per annum, whichever is lower. The
Government co-contribution is available for
those who are not covered by any Statutory
Social Security Schemes and is not an Income
Tax payer
GoI will co-contribute to each eligible
subscriber, for a period of 5 years who joins the
scheme in the period June 1 to December 31,
2015. The benefit of five years of Government
co-contribution under APY would not exceed 5
years for all subscribers including migrated
Swavalamban beneficiaries.

16. One of the greatest benefits of the scheme may
be enjoyed by the poorer sections of society. The
government of India has decided to contribute
50 per cent of the user’s contribution or INR
1,000 a year (whichever is lower) for a period of
five years. This contribution will, however, be
enjoyed only by those who are not income tax
payers and those who join the scheme before 31
December 2015.
BENEFITS OF ATAL PENSION YOJANA

17.  The Atal Pension
Yojana (APY) is open
to all Indians
between the age of
18 and 40. This
allows an individual
to contribute for at
least 20 years before
reaping the benefits
of the scheme. Any
bank account holder
who is not a member
of any statutory
social security
scheme can avail of
the scheme.
 All existing members
of the government’s
‘Swavalamban
Yojana NPS Lite’ will
automatically be
migrated to the Atal
Pension Yojana. It
will now replace the
Swavalamban
scheme, which did
not gain much
popularity across the
country.
WHO IS ELIGIBLE?

18. Under ordinary circumstances, an
account holder who has enrolled for the
Atal Pension Yojana will not be able to
exit the scheme before the age of 60.
Exiting the scheme is only possible in
special circumstance such as in the event
of the death of the beneficiary.
EXITING THE SCHEME

19.  Government will extend the benefit of the APY via Post
Offices all over the country.
 In March 2016, the government amended the scheme’s
provisions to give the subscriber’s spouse an option to
continue contributing to the account for the balance
period on premature death of the subscriber.
 The Government released Rs 100 crore towards its co-
contribution for Atal Pension Yojana (APY) in 2015-16
fiscal.
 Also, as per the circular released by the Income Tax
department, contributions to the Atal Pension Yojana
(APY) are now eligible for the same tax benefits as the
National Pension System (NPS). The tax benefits
include an additional deduction of Rs 50,000 under
section 80CCD(1) introduced in year 2015 Budget.
RECENT DEVELOPMENTS

20. UP SAMAJHWADI PENSION YOJNA

21. INTRODUCTION
Samajwadi Pension Yojana is one of the pension
schemes launched by the Government of Uttar
Pradesh . The scheme is also known as Uttar
Pradesh Samajwadi Pension Yojana which was
launched on 28th February, 2014. The new
pension scheme aims at providing financial
assistance to nearly 40 lakhs rural people. The
Samajwadi Pension Pension scheme is expected
to replace the existing pension scheme in Uttar
Pradesh namely Rani Laxmibai Pension Yojana..

22. Any family living below the poverty line
can apply for this scheme.
The family should be based in Uttar
Pradesh.
The main beneficiary should have a
bank account either with SBI or any
other nationalized banks.
THE ELIGIBILITY CRITERIA FOR
SAMAJWADI PENSION YOJONA

23.  Income taxpayers can’t apply for this scheme.
 Government employees are not eligible.
 Employees of private firms.
 Families whose members are enrolled for other
pension scheme such as Old Pension Scheme
or any other scheme.
 Families who own motor vehicle.
 Families who possess properties such as land
amounting to 0.5 hectare.
WHO CAN NOT APPLY FOR
SAMAJWADI PENSION YOJANA?

24.  The scheme provides a monthly pension of Rs. 500 each
rural family.
 The pension amount increases by Rs. 50 in the
subsequent financial years.
 The selection of the families would be done at the Gram
Panchayat level.
 The scheme is particularly designed for families living
below the poverty line in Uttar Pradesh.
 A bank account is mandatory to avail the benefits of this
scheme.
 The pension will be paid to the head of a family. It will
transferred electronically to bank accounts of concerned
individuals.
 The Samajwadi Pension Scheme is available online.
 All districts of Uttar Pradesh are covered under this
scheme.
KEY FEATURES AND BENEFITS OF
SAMAJWADI PENSION YOJANA

25. Any family who participates in the Samajwadi
Pension Yojana will receive a monthly pension of
Rs.500.The government will issue a Samajwadi
Pension Yojana Card which will act like a bank
passbook and contain all records of the scheme.
The scheme would select families at the gram
panchayat level.
HOW DOES SAMAJWADI PENSION
YOJANA FUNCTION?

26.  The Samajwadi pension yojana suchi is
available on the official website of Samajwadi
Pension Yojana. The government of Uttar
Pradesh recently launched the official website
for Samajwadi Pension Yojana where along
with the online application form, the list
eligible pensioners or the suchi is also
available. The only thing you have to do is to
log-in to the website (sspy-up.gov.in) and get
the suchi. The list has been uploaded district
wise, block wise and village wise by by the Zila
Samaj Kalyan adhikari.
SAMAJWADI PENSION YOJANA SUCHI

27. INDIRA GANDHI NATIONAL OLD AGE
PENSION SCHEME

28. The Indira Gandhi National Old Age
Pension Scheme (IGNOAPS) is old age
non-contributory pensions scheme which
covers those Indians who are above 60
years of age and also who live below
poverty line. This pension scheme is
National Social Assistance Programme’s
(NSAP) part that the Ministry of Rural
Development launched in August, 1995.
INTRODUCTION

29. • All the individuals are
eligible who are above
59 years of age and
below poverty line to
apply for the IGNOAPS
Eligibility

30. All the beneficiaries of IGNOAPS of
60-79 years of age receive Rs. 200 as
monthly pension. Those who are
above the age of 80 years receive Rs.
500 as their monthly pension.
PENSION AMOUNT

31. NSAP has introduced social audit and annual
verification. by 30 September they should
complete their social audit each year. Under
NSAP, a checklist is provided for the scheme is
provided to National Level Monitors (NLMs) at
the time of their visits. Monthly meetings are
organised in Delhi of the Division Head with
each UT/State’s Nodal officers.
MONITORING OF THE SCHEME

32. EMPLOYEES DEPOSIT
LINKED INSURANCE
SCHEME

33. The EDLI scheme was launched in 1976, and
applies to all employers who provide Employee’s
Provident Fund (EPF) provisions to their
employees. The point of the scheme is to provide
life insurance coverage to all their employees.
INTRODUCTION
Subscription to EDLI:
The EDLI Scheme is clubbed and linked to the EPF
scheme and EPS scheme. All employees who subscribe
to the EPF scheme are automatically enrolled in the
EDLI scheme.

34.  Employee’s Provident Fund (EPF) contribution by
Employee: 12%.
 Employee’s Provident Fund (EPF) contribution by
Employer: 12% minus EPS contribution.
 Employee’s Pension Scheme (EPS) contribution by
Employee: none.
 Employee’s Pension Scheme (EPS) contribution by
Employer: 8.33% (subject to a maximum of Rs.1,250).
 EDLI contribution by Employee: none.
 EDLI contribution by Employer: 0.50% (subject to a
maximum of Rs.75)
CONTRIBUTIONS TO THE EDLI
SCHEME

35.  Employee Deposit linked insurance scheme is a
comprehensive group term insurance. It covers the
death of employee irrespective of the cause.
 Every employee who is the member of Provident fund
gets covered under EDLI.
 The coverage is for 24 hours. It is not related to the
working hours.
 The coverage is for the whole earth. Being at the
workplace is not necessary.
 The insurance coverage is linked to the pay of the
employee.
 The coverage and premium is similar to every
employee. Age or any individual factor does not make
any effect.
RULES OF EDLI

36. The claim amount of the EDLI is decided by the
last drawn salary of the employee. The claim
amount would be the 30 times of the salary.
Along with this, you would also get a bonus.
This bonus would be 50% of the balance in your
EPF account. The maximum bonus would be Rs
1.5 lakh. The maximum sum insured would be
Rs 6 lacs. For this calculation salary is ‘basic
pay plus DA’
THE INSURANCE CLAIM AMOUNT

37.  Mr. Ram was employed and was actively
contributing the EPF, EPS and EDLI schemes.
He drew a monthly salary of Rs.15,000. Upon
his death, his nominee claimed the EDLI
insurance benefit which was equal to (30 x
Rs.15,000) + (Rs.1,50,000) = Rs.6,00,000
EXAMPLE

38. PUBLIC PROVIDENT
FUND

39. WHAT IS THE PUBLIC PROVIDENT
FUND (PPF) SCHEME?
• The Public Provident Fund (PPF) Scheme, 1968 is a
tax-free savings avenue that was introduced by the
Ministry of Finance in India in the year 1968.
• Interest earned on deposits in the PPF account are
not taxable. Deposits made towards PPF accounts can
be claimed as tax deductions.
• It was launched to encourage savings among Indians
in general, especially to encourage them to create a
retirement corpus.

40.  Interest rates:
Interest rates are announced by the central
government periodically, usually annually.
Interest earned is compounded yearly. (The
current rate of interest on a PPF account is
fixed at 8.1% p.a.)
 Tenure:
15 years; account continuance is allowed
beyond maturity for 5 years at every renewal,
with or without making additional deposits.
KEY FEATURES OF THE PPF SCHEME

41.  Initial investment:
Rs.100 to open the account
 Annual Deposit amount:
Rs.500 - Rs.1.5 lakhs per year (can be revised as
per government directive) Failure to make an annual
deposit, in any year, will lead to inactivation of the
account.
 Deposit frequency:
A deposit has to be made every year, for 15 years, to
keep the account active. Failure to make the
minimum annual investment will render the account
inactive.
DEPOSIT

42.  Withdrawals:
Partial premature withdrawals can be made
every year from year 7; withdrawals are subject
to conditions. Complete withdrawal of funds can
be made only at maturity.
 Tax advantages:
Interests are tax-free and deposited amounts are
tax deductible U/S 80C of the Income Tax Act.
Withdrawals are exempt from wealth tax.
 Nomination:
Allowed; on opening the account or after.
WITHDRAWAL & TAX
ADVANTAGES

43.  Fund transfer:
Funds/accounts cannot be transferred between
people but can be easily transferred between
bank branches or post offices for free.
 Loan facility:
Loans can be availed against funds held in the
PPF account from year 3 to year 6.
 Renewal:
Renewal or extension of the scheme is allowed,
for an extra 5 years at a time.
 Joint accounts:
Not allowed.
OTHER FEATURES

44. BENEFITS
Attractive
long-term
investments
Easily
accessible
Low-risk
Tax-free
returns
Useful for
retirement
planning

45.  Form A - To open a Public Provident Fund
Account
 Form B - To make deposits into / repay loans
taken against a PPF account.
 Form C - To make partial withdrawals from a
PPF account.
 Form D - To request a loan against a PPF
account.
 Form E - To add a nominee to a PPF account.
 Form F - To make changes to PPF account
nomination information.
PPF FORMS

46. KYC documents such as identity proof, address proof
and signature proof. These commonly include the latest
version of a person’s.
Photographs, Passport, PAN Card, Aadhar Card, Driving
License, Voter’s ID, Employer’s letter, Utility Bill,
Rental/Lease Agreement, Bank Account Statements,
Ration Cards, Signed Cheque.
The account opening form, along with nomination form if
nominees are being named.
In case of minors, age proof will be required i.e. the
minor’s birth certificate or school certificate.
DOCUMENTS NEEDED TO OPEN A
PUBLIC PROVIDENT FUND ACCOUNT

47.  2016 – 2017 8.1%
 2015 – 2016 8.7%
 2014 - 2015 8.7%
 2013 - 2014 8.7%
 2012 - 2013 8.8%
 2011 - 2012 8.6%
 2010 - 2004 8.0%
 2002 - 2003 9.0%
 2001 - 2002 9.5%
 2000 - 2001 11.0%
INTEREST RATES FOR PPF
ACCOUNTS