National Pension System (NPS)

Policy notes | Guidelines

Capita plc www.capita.com

 National Pension System
Policy Note

Contents
1 Introduction: What is NPS? ............................................................................................................1

NPS Eligibility: ..........................................................................................................................1

NPS Attributes: .........................................................................................................................1

Types of Accounts ...................................................................................................................2

Types of Contributions ............................................................................................................2

2 Corporate NPS Model......................................................................................................................3

Enrolment Process: .................................................................................................................3

For Existing PRAN Holders .................................................................................................3

For New PRAN subscribers: ................................................................................................4

3 Process Flow Summary ..................................................................................................................5

4 Contributions:..................................................................................................................................6

5 Salary Impact: ..................................................................................................................................7

6 Communication: ..............................................................................................................................8

7 Version Control ...............................................................................................................................9

Capita plc
Commercial in Confidence Date
1 Introduction: What is NPS?
National Pension System (NPS) is a pension scheme initiated by Government of India to
provide old age security and pension of all citizens of India. The Scheme is regulated by
Pension Fund Regulatory and Development Authority (PFRDA)

NPS is a voluntary, defined contribution retirement savings scheme designed to instil the habit
of saving for retirement

NPS Eligibility:
Any Employee, whether Indian resident or non – resident can join the Scheme subject to
following conditions:

 Employee should be between 18 – 65 years of age as on the date of submission of her / his
application

 Employee should comply with the prescribed Know Your Customer (KYC) norms as detailed
in the Employee Registration Form for NPS

NPS Attributes:
Portability: The NPS a/c no. continues to exist even post leaving the org as individual may invest
in the account directly or via the corporate model

Accessibility: NPS account members will have 24 X 7 access to their retirement corpus. All non-
financial transaction (nominees update/address change etc.) is online

Customisation: Based on the employee’s risk appetite, s/he will be able to opt for the asset class
the retirement corpus is to be invested in (Equity, Corporate & Govt bonds)

Tax Benefit: Employees have multiple avenues for tax saving under NPS scheme (under section
80 CCE / 80CCD (1B) / (1A))

Low Cost and Power of Compounding: The NPS tool has the lowest expense ratio which makes
it the most economical investment option

Flexibility: The employee has the choice of her/his fund manager who would invest the money in
the market on their behalf

Classification: Confidential.
 Types of Accounts
There are 2 Types of accounts – Tier 1 and Tier 2 Accounts under NPS.

Category  / Tier → Tier 1 NPS Account Tier 2 NPS Account

Account Type Pension Account Investment Account

Mandatory / Optional Mandatory to Open to join NPS Optional, can be opened later
Withdrawal Withdrawal is restricted Withdrawal is permitted
Tax Benefit Yes No
Minimum Contribution Minimum annual contribution (in order Minimum annual contribution
to keep the account active) required for required for this account is
this account is Rs.1,000 Rs.250.

Types of Contributions
Contributions may be made in 2 capacities – contribution by Employee directly, or contribution
by employee through her / his company (in case a Corporate Scheme exists

Contribution by Employee Directly Contribution by Corporate

Contribution of up to Rs.50,000 is eligible for tax Contribution of up to 10% of Salary (Basic +

deduction u/s 80CCD (1B) DA), is eligible for tax deduction u/s 80CCD (2)

ACTION: Declare as investment. Submit proof in Action: Follow process mentioned in the note
time to avail of tax benefit below, will see salary adjustment and tax benefit
will reflect in the tax forecast

Both the tax benefits are mutually exclusive and can be availed of at the same time.

Employer's contribution exceeding ₹7.5 lakh in a year towards NPS, superannuation fund and
EPF will be taxable in the hands of the employee.

Classification: Confidential.
2 Corporate NPS Model
The Corporate Model was launched by the regulator to facilitate Employees working with
various organizations to onboard NPS through their Employer – Employee relationship. Under
this model Employee as well as Employer (on behalf of Employee) both can contribute towards
NPS account of Employee

Upon joining the Scheme, unique Permanent Retirement Account Number (PRAN) is allotted to
each Employee. Employee contributes towards NPS (directly or through the Employer) during
his / her working life. On retirement or exit from the scheme, the Corpus is made available to the
Employee with the mandate that some portion of the Corpus must be invested in Annuity to
provide a monthly pension post retirement or exit from the scheme.

In the corporate scheme, basis the selection of contribution % made by the employee, the
Employer makes the contribution toward NPS as part of the monthly payroll.

This is a voluntary scheme and can be opted in and out of at the time the Flexi-Pay window is
open in a year.

Capita in India has it’s Point of Presence (POP) as HDFC Pension and Central Record Keeping
Agency (CRA) as KFintech

To know more about NPS, please refer the slidedeck from our POP saved in the Policies
section [NPS Deck_Point of Presence (HDFC Pension)]

Enrolment Process:

For Existing PRAN Holders

These may include employees who have contributed to NPS individually, or who have
had corporate accounts in their previous organisations:

Every month, the enrolment window will be open from 1st until the 10th of the month for new
joiners similar to the Flexi Benefit Process (FBP) enrolment window (for new joiners). As
December 2020 / January 2021 will be the month of launch, as a first-time enrolment activity,
the window will be open for all of the organisation from the 1st to the 10th of December/January
2020/2021.

Existing PRAN holders are of 2 kinds depending on their last CRA:

• PRAN holders with NSDL as their CRA:

o In this case, an employee needs to fill in an Inter CRA Subscriber Shifting (ICSS)
Form, in order to shift to KFIntech. This form needs to be signed and submitted.
The form can be found on the Intranet under Policies section (as under your
Entity).
o Once the CRA is shifted to KFintech, the employee will need to share inputs
(required under Inter Sector Shifting (ISS) Form) in regards to their scheme
details (e.g. PRAN, preferred Pension Fund Manager, Choice of Investment, etc.)
• PRAN holders with KFintech as their CRA:
o Employee will need to share inputs (that are part of the ISS form, i.e., Inter
Sector Shifting Form) in regards to their scheme details (e.g. PRAN, preferred
Pension Fund Manager, Choice of Investment, etc.)

Classification: Confidential.
ACTION: Details pertaining to the ICSS and ISS form is captured as a part of our internal process. The
ICSS form needs to be downloaded and filled in by the impacted individual. A Microsoft Office Form will
be trigged in the enrolment window which will capture all fields of the ISS form along with a section to
upload the ICSS form.

Note: In case of entity transfers, fresh set of ISS records are required to be submitted to the POP
authorities, therefore in case opted for, employees are required to submit these in the Form released for
the month

Following are the details that may be required for you while filling in the forms:

Name of the Company Capita India Private Limited Ventura (India) Private Limited

CBO No allotted by CRA 1691369 1691393

CHO no allotted by CRA 1691351 1691385

For New PRAN subscribers:

Follow the relevant link to create your corporate NPS account. A step-by-step process with screen shot
is also uploaded in the Policies section. Please refer to the same [New Entrants_ Screenshot wise User
Guide for Opening NPS Account]

Click on the following Link for the registration process:

Contribution by Employee Directly Tier 2 NPS Account

CAPITA INDIA PRIVATE LIMITED https://life99.in/register/86916bc649

VENTURA (INDIA) PRIVATE LIMITED https://life99.in/register/6438fd6f16

Before the registration, please keep the following documents ready:

• Colored Passport Size Photo(4KB – 50KB; Supported Format- .jpg, .png)

• Self-attested scan copy of PAN (Photo Id) (4KB – 1MB; Supported Format- .jpg, .png, .pdf, .tiff)

• Self-attested scan copy of Address Proof (4KB – 2MB; Supported Format- .jpg, .png, .pdf, .tiff)

• Scan Copy of Cancelled Cheque(4KB – 2MB; Supported Format- .jpg, .png, .pdf, .tiff)

• Scan copy of Employee Signature specimen (4KB – 50KB; Supported Format- .jpg, .png)

ACTION: Post successful creation of PRAN and e-signature only, please fill in the Microsoft form to
submit your details to the organisation in order to include you in the scheme. Once the PRAN is
generated, the employee will also be issued a PRAN kit by the authorities. Note: please use your okta
credentials to access the form.

IMPORTANT: Please make sure that e-sign action is completed before you submit your details in the
Form. Without eSign, the POP will not be able to accept your subscription details

Classification: Confidential.
3 Process Flow Summary

Classification: Confidential.
4 Contributions:
NPS is a contribution made as a percentage of your Basic Pay. Following 2 options can be
opted as contributions:

• 5% (of Basic Pay)

• 10% (of Basic Pay)

Employees are allowed to make changes to contribution %s only at the time the FBP window is
opened and not in the middle of the year.

Classification: Confidential.
5 Salary Impact:
There will be no change in Cost to Company (CTC) of an employee – therefore, opting in or out
of NPS does not lead to any change to the overall CTC of an employee.

In case one opts for NPS, commensurate value of contribution will be adjusted against
‘Personal Pay’ and the contribution will be made towards NPS (similar to the adjustments made
while opting for other flexi benefit plans)

Please click on the following link to submit your details for linking to Capita Corporate account.

Click here

Classification: Confidential.
6 Communication:
Employees can reach out to HDFC Pensions directly, should they have any queries. Internal
deductions’ related queries can be directed to the Payroll / Compensation Team

NPS Online Account Opening Support

Escalation TAT Name Email ID Contact Number

Level

Level 1 - Call Centre - 8916687777

Level 2 T Customer Support Customercare@life99.in -

Level 3 T+1 Praful Bhargava praful.b@hdfclife.com -

Level 4 T+2 Harshi Agarwal harshia@hdfclife.com -

POP Relationship Manager and point of Esclation

Name Email ID Mobile No

L1 Himanshu Kadoo himanshu.k53@hdfclife.com 9545777363

L2 Rachana Pratik Desai rachana.p03@hdfclife.com 9967543381

Classification: Confidential.
7 Version Control

Review Approval Publish

Author Approver Version Changes
Month Date Date
Nov 2020 4 Dec 8 Dec Avni Suyash
1.0 Document Creation
2020 2020 Moghe Deshpande

Issued to: All Capita India Staff

Issued by: Compensation and Payroll Team

Expiry: Valid until withdrawn

Classification: Confidential.