UTI Infrastructure Technology And Services Limited(a Government of India Company)

ISO 9001: 2000 / 27001:2005 / 20000:2005 Certified

www.utiitsl.com

PRESENTATION ON

NATIONAL PENSION SYSTEM (LITE)

SWAVALAMBAN

§ NPS LITE PRODUCT FEATURES

§ NPS LITE OPERATIONAL ACTIVITIES

§ NPS LITE -MARKETING STRATEGY

§ NPS Lite Background§ Features§ Eligibility§ Period§ Contribution§ Pension Fund Managers and Asset Allocation§ Benefits§ Swavalamban Procedure§ Withdrawal option

NPS LITE is an initiative of the Government ofIndia and PFRDA.NPS Swavalamban scheme was launched inrecognition of the need to provide old age incomesecurity to marginal income earners and toeconomically disadvantaged section of society.

NPS LITE Background

§ Individual accounts for every subscriber.§ Contribution as per convenience of the subscriber§ No mandatory monthly deposit.§ Recommended minimum Rs. 1000/- per annum.§ Low charge structure and Safety of Investment§ Investment managed by professional fund managers

overseen by NPS Trust.

Features of NPS-Swavalamban

§ Voluntary– Any amount can be deposited from Rs 1000/- to Rs 12000/-

§ Simple – Open an account with KYC norms and get PRAN card

§ Uniform - UTIITSL arranged uniform Investment Pattern similar toCentral Government Employees.

§ Portable – Can be operated from any where in India

§ Safe – Regulated by PFRDA with transparent investment norms and regularmonitoring of fund performance by PFRDA

§ Affordable– Available at ultra low cost(Minimum investment Rs1000) peryear

§ Regular- Regular small savings can lead to Large Pension Wealth (Corpus)

Benefits of the Scheme:

§ Individual in the Age group of 18 to 60

§ Non contributing member to any PF of India

§ Marginal income earners and economically disadvantaged section ofsociety working in unorganised sector

Who can Join the scheme

§ Pre existing account holder of NPS

§ Individual with Unsound Mind – Incapable of understanding and takingdecision.

Who CANNOT Join the scheme

Every individual subscriber is issued a Permanent Retirement Account Number(PRAN) card

Swavalamban Contributionv To avails Swavalamban benefit of Rs 1000/-, the subscriber has to

deposit a minimum of Rs 1000/- and maximum of Rs 12,000/-during each financial year.

v As of now, Swavalamban benefit is available upto the financial year2016- 2017.

v The Government may consider further benefits for next FiveYears.

v Dilli Swavalamban Yojana provides additional benefit of Rs.1000/- to thetargetted beneficiaries(delhi domicile) of unorganised sector consisting ofConstruction workers, Domestic workers, Anganwari workers,Ashaworkers & helpers, BPL Families, Rikshaw pullers, Hawkers, Rag pickers,Mid day mill workers and Auto/taxi drivers,etc.

§ There are 8 Pension Fund Managers as on date.

§ UTI ITSL has opted for Central Government Scheme

§ LIC Pension Fund Limited –(34%)

§ SBI Pension Fund Limited –(34%)

§ UTI Retirement Solutions Limited – (32%)

§ Appointed PMF’s would manage the retirement savings of the subscribersunder NPS Lite. The PFM’s are required to invest strictly in accordancewith guidelines issued by the PFRDA / Government.

PENSION FUNDS MANAGERS (PMFs)

§ Complete the requisite information in NPS LITESWAVALAMBAN FORM ONLY in black ink and inCAPITAL LETTERS.

(a) Affix colored photograph (3.5” x 2.5”cm) in the form.

(b) Signature below Photograph and on Page No.3.

(c) Provide photo-identity.

(d) Provide proof of residence.

(e) DSY beneficiaries must be delhi domicile at least fora period of three year at the time ofenrolment.(document required)

Procedure for applying – FOR SUBSCRIBER

§ On receipt of the applications, scrutiny will be carried out and rejectedapplications with the reasons will be forwarded through the controllingbranch for arranging requirement from the subscribers.

§ In case application forms are rejected by the Central RecordkeepingAgency (CRA) only email intimation will be given by the controlling branchof UTIITSL .

§ Processed applications PRAN cards will be received from CRA and thesame shall be forwarded to Controlling Branch for onward delivery to thesubscribers.

UTIITSL - Process

§ In case of survival at age 60

§ The subscriber can withdraw 60% as lump sum, and 40% will have to beannuitized to ensure a minimum pension of Rs. 1,000 per month.

§ In case 40% of the corpus is not sufficient to buy an annuity of Rs.1000/-per month, the commutation portion can be reduced to that extent.

Withdrawal option

§ In case of premature exit before age 60, only 20% of the Corpus can bewithdrawn, subject to the condition that:

§ 80% of the corpus will be annuitized to yield where a minimum annuity of Rs.1,000 can be earned. In the alternative, if the corpus is not sufficient, 100% ofthe corpus will be annuitized to provide for an annuity of Rs. 1,000 minimum.

PREMATURE Withdrawal option

§ In case of death of the subscriber the entire money can be withdrawnby his/her Nominee immediately, without annuitizing any portion of thecorpus.

§ Nominee also can continue to be an independent Subscriber byfollowing KYCNorms.

§ In case of Death of the subscriber after the age of 60 years, the SurvivalBenefits will depend upon the type of Annuity product opted by theSubscriber.

In case of death of the subscriber before the age of 60 years

§ Life Insurance Corporation of India.

§ SBI Life Insurance Co. Ltd.

§ ICICI Prudential Life Insurance Co. Ltd.

§ Bajaj Allianz Life Insurance Co. Ltd.

§ Star Union Dai-Ichi Life Insurance Co. Ltd.

§ Reliance Life Insurance Co. Ltd.

§ HDFC Standard Life Insurance Co. Ltd.

ANNUITY SERVICE PROVIDERS

§ Pension (Annuity) payable for life at a uniform rate to the annuitant only.§ Pension (Annuity) payable for 5,10,15 or 20 years certain and thereafter as long as you

are alive. In this type of Annuity, every higher option of number of years of Pensionchosen, will give you lesser amount of proportionate Pension.

§ Pension (Annuity) for life with return of purchase price on death of the annuitant(Policyholder).

§ Pension (Annuity) payable for life increasing at a simple rate of 3% p.a.§ Pension (Annuity) for life with a provision of 50% of the annuity payable to spouse during

his/her lifetime on death of the annuitant. (Ardhangi)§ Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse during

his/her life time on death of the annuitant. ((In this option (f) The amount of pensionavailable to the Subscriber during lifetime will be less than that available under option e)).

§ Annuity for Joint life and last survivor Annuity with 100% payable to spouse on death ofthe annuitant with return of purchase price.(A pension payable during the life time ofhusband and wife and continued thereafter during the life time of the survivor with return ofpurchase price on death of last survivor along with Group Terminal bonus if any)

Types of Annunities under NPS

OUR REACH

THANK YOU

Age at the time of Entry

Contribution for no. of years

Beneficiary total contribution

GOI Contributio

GNCTD Contribution upto 25 years

Total Contribution

Amt.payable at exit

Amt. to be kept for pension

Amt. of Monthly pension

18 42 42000 4000 25000 71000 411007 274004 1765

20 40 40000 4000 25000 69000 351259 234173 1508

25 35 35000 4000 25000 64000 236570 157713 1016

35 25 25000 4000 25000 54000 0 175651 1131

40 20 20000 4000 25000 44000 0 111240 716

45 15 15000 4000 25000 34000 0 67403 434