National Pension Scheme Swavalamban (NPS Lite)

NPS Swavalamban, also known as NPS Lite, is a pension product designed to provide a regular income after retirement. However, fresh registrations under this scheme were discontinued from April 1, 2015. Instead, subscribers of NPS Swavalamban or NPS Lite in the age group of 18-40 years were given the option to migrate to the new Atal Pension Yojana launched by the Indian Government in May 2015. Atal Pension Yojana provides a minimum guaranteed pension and is targeted towards underprivileged citizens.

Subscribers of NPS Swavalamban who are above 40 years of age and cannot migrate to Atal Pension Yojana can continue in the Swavalamban scheme until they reach 60 years of age. They can also choose to exit from the scheme if they wish.

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Eligibility:

This scheme is applicable to all Indian citizens between the ages of 18 and 60 in the unorganized sector. The unorganized sector includes individuals who are not regular employees of the Central or a state government or an autonomous body/public sector undertaking of the Central or state government having employer-assisted retirement benefit schemes. Additionally, individuals who are not covered by a social security scheme under any of the laws mentioned below are also eligible:

1. Employees' Provident Fund and Miscellaneous Provisions Act,1952
2. The Coal Mines Provident Fund and Miscellaneous Provisions Act,1948
3. The Seamen's Provident Fund Act, 1966
4. The Assam Tea Plantations Provident Fund and Pension Fund Scheme Act 1955
5. The Jammu and Kashmir Employees' Provident Fund Act, 1961

 

Contribution:

To become eligible for the Swavalamban benefit, a subscriber needs to contribute a minimum of Rs. 1,000 and a maximum of Rs. 12,000 per year to their NPS account.

Benefit:

The Central Government contribution benefit will only be available to those who contribute a minimum of Rs. 1,000 per year to their Tier I NPS account. This scheme is specifically designed for economically disadvantaged sections of society, and the Swavalamban benefit is only available to those who contribute within the specified limit of Rs. 1,000-12,000 per year to their NPS account. Subscribers who do not contribute within this limit will not be eligible for the Swavalamban benefit of Rs. 1,000.

 

Investment choices, withdrawal/exit, and charges for NPS Swavalamban are the same as those for NPS CRA Tier I scheme.

Disclaimer: The information provided here is based only on beliefs and facts. It is important to know that we does not endorse or verify any information. Before applying any information or belief, seek advice from a relevant expert.

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