NPS : Amendment to Investment Guidelines other than Govt. Sector (CG & SG), Corporate CG, NPS Lite and APY -reg

NPS : Amendment to Investment Guidelines other than Govt. Sector (CG & SG), Corporate CG, NPS Lite and APY -reg

NPS : Amendment to Investment Guidelines other than Govt.
Sector (CG & SG), Corporate CG, NPS Lite and APY -reg

In partial modification of Circular No.PFRDA/2017/18/PF/2 dated
04.05.2017 pertaining to investment guidelines issued by the Authority for
NPS Schemes {Other than Govt. Sector (CG & SG), Corporate CG, NPS Lite
and APY}, PFRDA has decided to amend Clause 10 of the said Circular 


पेंशन निधि विनियामक और

विकास प्राधिकरण

बी—14/ए, छत्रपति शिवाजी भवन,

कुतुब संस्थागत क्षेत्र,
कटवारिया सराय,  नई दिल्ली—110016

PENSION FUND REGULATORY

AND DEVELOPMENT AUTHORITY

B-14/A, Chhatrapati Shivaji Bhawan,

Qutab Institutional Area,

Katwaria Sarai, New Delhi-110016.


CIRCULAR
 

PFRDA/2018/03/PF/03

Date: 22nd May, 2018

SUBJECT: Amendment to Investment Guidelines for NPS Schemes {Other than
Govt. Sector (CG & SG), Corporate CG, NPS Lite and APY} —reg.

1. In partial modification of Circular No.PFRDA/2017/18/PF/2 dated
04.05.2017 pertaining to investment guidelines issued by the Authority for
NPS Schemes {Other than Govt. Sector (CG & SG), Corporate CG, NPS Lite
and APY}, it has been decided to amend Clause 10 of the said Circular as
under:
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“10. In the interest of subscribers in the non-government sector,
the Central Recordkeeping Agency(s) (CRAs) would monitor ‘the
ceiling of exposure in Asset Class E (Equity) upto 75%, C
(Corporate Debt) upto 100%, G (Government Securities) upto 100% and
Asset Class A (for Tier I only) upto 5% respectively’, to ensure
that such limits are adhered to.”

2. The cap on equity investment has been increased to maximum limit of 75%
from current permissible limit of 50% in active choice for private sector
subscribers under NPS, with tapering off of the equity allocation after
attaining the age of 50 years by subscriber. Thus allocation in the Active
Choice has been revised as under: 
Age ( years) Cap on E Cap on C Cap on G Cap on A
Upto 50 75% 100% 100% 5%
51 72.5% 100% 100% 5%
52 70% 100% 100% 5%
53 67.5% 100% 100% 5%
54 65% 100% 100% 5%
55 62.5 100% 100% 5%
56 60 100% 100% 5%
57 57.5 100% 100% 5%
58 55 100% 100% 5%
59 52.5 100% 100% 5%
60 and above 50 100% 100% 5%
3. In case the investment by the subscriber in equity exceeds the cap in
particular age bucket due to tapering of the caps, the excess portion shall
be moved to G-Sec by default. However, the subscriber would continue to
have the choice to re-allocate the non-equity portion between asset classes
C, G & A unlike under the auto choice where tapered off portion moves
in a pre-fixed percentage of C & G. The subscriber will also continue
to enjoy the choice of allocation between E, C, 0 and A subject to limits
as given above. 
4. If a person subscribes to NPS beyond the age of 50 years and chooses
active choice, he shall get the maximum equity allocation in accordance
with the table. For e.g. if the person enters at the age of 56 years, he
can get maximum 60% of equity asset allocation in accordance with the
table. 
5. Further, if the person at an age lower than 50 years selects equity
allocation less than 75%, the tapering of equity allocation shall be in
accordance with the age/percentage of equity cap mentioned in the table.
For. e.g. if a person at the age of 45 years (say) chooses 65% as equity
allocation under active choice, the tapering off of the equity allocation
shall initiate from the age of 55 years. 
6. The above arrangement is applicable w.e.f. 15th June, 2018. All other
terms and conditions of the relevant investment guidelines shall stand
unaltered and all concerned intermediaries shall ensure compliance, in
terms thereof. 
7. This circular is issued in exercise of powers of the Authority under
sub-clause(b) of sub-section (2) of Section 14 read with Section 23 of the
PFRDA Act, 2013 and sub-regulation (1) of Regulation 14 of the PFRDA
(Pension Fund) Regulations, 2015.
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Sd/-

(Venkateswarlu Peri)

Chief General Manager

Source: PFRDA
[http://www.pfrda.org.in//MyAuth/Admin/showimg.cshtml?ID=1363]


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