national pension system (nps) - vmware · 2019-09-23 · confidential │©2018vmware, inc. 7 tax...
TRANSCRIPT
![Page 1: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/1.jpg)
1Confidential │ ©2018 VMware, Inc.
NATIONAL PENSION SYSTEM (NPS)
![Page 2: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/2.jpg)
Agenda
2Confidential │ ©2018 VMware, Inc.
•
•
•
•
•
•
•
•
•
![Page 3: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/3.jpg)
3Confidential │ ©2018 VMware, Inc.
•
•
•
•
•
Contributory Age Group
NPS provides a platform for saving to create corpus, to
enable subscriber for purchasing Annuity post retirement
![Page 4: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/4.jpg)
4Confidential │ ©2018 VMware, Inc.
Key Stakeholders - NPS Architecture
![Page 5: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/5.jpg)
5Confidential │ ©2018 VMware, Inc.
Eligibility
•
•
•
•
•
•
•
•
![Page 6: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/6.jpg)
6Confidential │ ©2018 VMware, Inc.
Tax Benefits on NPS
![Page 7: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/7.jpg)
7Confidential │ ©2018 VMware, Inc.
Tax Benefits
Head Particulars Without NPS With NPS
Salary Basic (30% of Gross) 600,000 600,000
Bouquet of Benefits 1,299,140 1,239,140
Corporate Contribution – EPF 72,000 72,000
Corporate Contribution – Gratuity 28,860 28,860
Corporate Contribution - NPS - 60,000
Total Salary 2,000,000 2,000,000
Deductions 80CCE 150,000 150,000
Corporate Contribution – EPF 72,000 72,000
Corporate Contribution – Gratuity 28,860 28,860
Corporate Contribution - NPS 80 CCD (2) - 60,000
Individual Contribution to NPS 80 CCD 1(B) - 50,000
Total Deductions 250,860 360,860
Taxable Salary 1,749,140 1,639,140
Change in Taxable Salary 110,000
Tax Saved @ 30% 33,000
* NPS will be part of the employee salary structure
Corporate
Contribution
for NPS will be
adjusted from
overall CTC
and will be
invested as
Employer’s
Contribution
![Page 8: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/8.jpg)
8Confidential │ ©2018 VMware, Inc.
Tax Benefits
Head Particulars Without NPS With NPS
Salary Basic (30% of Gross) 900,000 900,000
Bouquet of Benefits 1,948,710 1,858,710
Corporate Contribution - EPF 108,000 108,000
Corporate Contribution - Gratuity 43,290 43,290
Corporate Contribution - NPS - 90,000
Total Salary 3,000,000 3,000,000
Deductions 80CCE 150,000 150,000
Corporate Contribution – EPF 108,000 108,000
Corporate Contribution – Gratuity 43,290 43,290
Corporate Contribution - NPS 80 CCD (2) - 90,000
Individual Contribution to NPS 80 CCD 1(B) - 50,000
Total Deductions 301,290 441,290
Taxable Salary 2,698,710 2,558,710
Change in Taxable Salary 140,000
Tax Saved @ 30% 42,000
Corporate
Contribution for
NPS will be
adjusted from
overall CTC and
will be invested
as Employer’s
Contribution
* NPS will be part of the employee salary structure
![Page 9: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/9.jpg)
9Confidential │ ©2018 VMware, Inc.
Key Elements of NPS Program
➢
•
•
➢
•
o
o
A - Alternate
Investment Fund
•Commercial / Residential Mortgage based securities
•Investment Capped at 5% of total Contribution
![Page 10: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/10.jpg)
10Confidential │ ©2018 VMware, Inc.
Investment Options: Life – Cycle Fund option (Auto Choice) Subscribers also get an option to invest in Life – Cycle Fund under Auto Choice Investment Option where fraction of funds investedacross three asset classes is determined by a pre – defined portfolio which will be based on the age of the Subscribers.
Age E (%) C (%) G (%)
<=35 50 30 20
36 48 29 23
37 46 28 26
38 44 27 29
39 42 26 32
40 40 25 35
41 38 24 38
42 36 23 41
43 34 22 44
44 32 21 47
45 30 20 50
46 28 19 53
47 26 18 56
48 24 17 59
49 22 16 62
50 20 15 65
51 18 14 68
52 16 13 71
53 14 12 74
54 12 11 77
>=55 10 10 80
Moderate (LC 50)
Age E (%) C (%) G (%)
<=35 75 10 15
36 71 11 18
37 67 12 21
38 63 13 24
39 59 14 27
40 55 15 30
41 51 16 33
42 47 17 36
43 43 18 39
44 39 19 42
45 35 20 45
46 32 20 48
47 29 20 51
48 26 20 54
49 23 20 57
50 20 20 60
51 19 18 63
52 18 16 66
53 17 14 69
54 16 12 72
>=55 15 10 75
Age E (%) C (%) G (%)
<=35 25 45 30
36 24 43 33
37 23 41 36
38 22 39 39
39 21 37 42
40 20 35 45
41 19 33 48
42 18 31 51
43 17 29 54
44 16 27 57
45 15 25 60
46 14 23 63
47 13 21 66
48 12 19 69
49 11 17 72
50 10 15 75
51 9 13 78
52 8 11 81
53 7 9 84
54 6 7 87
>=55 5 5 90
Aggressive (LC 75) Conservative (LC 25)
![Page 11: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/11.jpg)
11Confidential │ ©2018 VMware, Inc.
Types of accounts
![Page 12: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/12.jpg)
12Confidential │ ©2018 VMware, Inc.
Portability
•
•
•
•
•
•
•
![Page 13: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/13.jpg)
13Confidential │ ©2018 VMware, Inc.
Partial Withdrawal
•
•
•
![Page 14: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/14.jpg)
14Confidential │ ©2018 VMware, Inc.
Withdrawalo
o
o
•
•
•
•
•
•
•
•
![Page 15: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/15.jpg)
15Confidential │ ©2018 VMware, Inc.
Withdrawal Illustrations
![Page 16: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/16.jpg)
16Confidential │ ©2018 VMware, Inc.
Charges Structure
o
o
![Page 17: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/17.jpg)
17Confidential │ ©2018 VMware, Inc.
Types of Annuity Options
•
•
•
![Page 18: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/18.jpg)
18Confidential │ ©2018 VMware, Inc.
NPS Fund Performance
![Page 19: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/19.jpg)
19Confidential │ ©2018 VMware, Inc.
Enrollment Process
•
•
•
•
•
•
•
•
o
o
o
•
•
•
![Page 20: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/20.jpg)
20Confidential │ ©2018 VMware, Inc.
PRAN - Permanent Retirement Account Number
•
o
•
o
o
•
o
o
o
![Page 21: NATIONAL PENSION SYSTEM (NPS) - VMware · 2019-09-23 · Confidential │©2018VMware, Inc. 7 Tax Benefits Head Particulars Without NPS With NPS Salary Basic (30% of Gross) 600,000](https://reader033.vdocuments.site/reader033/viewer/2022041810/5e5789ec350bb94320147ee9/html5/thumbnails/21.jpg)
21Confidential │ ©2018 VMware, Inc.
Thank You