NPS (Central Government) is available to all central government employees who joined service after 2014. The NPS money of each subscriber is equally split between SBI Pension Fund, LIC Pension Fund and UTI Retirement Solutions and hence the average return calculated in the table below approximately equal to the actual return that state government employees get. As you can see NPS returns have dropped steadily over the past 5, 3 and 1 year from 10.77% to just 2.39% in the past year. Equity allocation for NPS (Central Government) is capped at 15% which is partially responsible for the falling returns.
| Returns/Scheme | SBIPF | LICPF | UTIRSL | Average Return* |
| 1 Year | 2.35% | 2.26% | 2.56% | 2.39% |
| 3 Years | 8.45% | 8.42% | 8.69% | 8.52% |
| 5 Years | 10.72% | 10.79% | 10.80% | 10.77% |
| Since Inception | 9.80% | 9.52% | 9.51% | 9.61% |
*Average return reflects the return earned with equal allocation in SBIPF, LICPF and UTIRSL, as per the Central Government rules.
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NPS Tier 1 account can be opened under the NPS (Central Govt), NPS (State Govt), NPS (Corporate) and NPS (All Citizens Models). Different rules apply to each, but the general rules stated below apply to all types of NPS Tier 1 accounts. You need to deposit at least Rs 1,000 per annum to keep the account active. The NPS Tier 1 account matures at the age of 60 and you can extend it till the age of 70.
NPS Tier 1 is eligible for tax deduction on contributions up to Rs 1.5 lakh under Section 80 C and an additional Rs 50,000 under Section 80 CCD (1B) of the Income Tax Act, 1961. On withdrawal, 40% of the NPS Tier 1 account balance can be withdrawn tax-free. Another 40% must be compulsorily used to buy an annuity (monthly pension). The remaining 20% can either be used to buy an annuity or can be withdrawn after paying tax (at your slab rate).
Eligibility:
1.You have to be a citizen of India. NRIs can also open it as long as they are Indian citizens.
2.You have to be between 18 and 65 years of age. Special rules apply if you open an NPS Tier 1 account from the age of 60 – 65.
Minimum Investment: Rs 1,000 per annum
Maximum Investment: No upper limit
Lock-in: Till you attain the age of 60
Returns: Depend on the asset allocation and pension funds chosen by the Central Government.
NPS (Central Government) AUM and Portfolio
The value of total assets under management stands at Rs. 92,739 crore.
| Details/Scheme | SBIPF | LICPF | UTIRSL |
| Scheme Inception Date | April 1, 2008 | ||
| Asset Under Management (AUM) | Rs. 32,813 crore | Rs. 28,875 crore | Rs. 31,051 crore |
| Top 5 Holdings | 8.17 % Govt Sector 2044, 8.83% Goi 2041, 9.23% Govt sector 2043, 7.88 % Govt Sector 2030 | 8.17% Govt Sector 2044, 9.23% Govt Sector 2043, 7.88% Govt Sector 2030, 6.68% Govt Sector 2031, 7.73% Govt Sector 2034 | 6.68% Govt Sector 2031, 8.13% Govt Sector 2045,
8.17% Govt Sector 2044, 6.79% Govt Sector 2029, 6.84% Govt Sector 2022 |
| Weightage of Top 5 Holdings | 11.36% | 16.99% | 14.03% |
| Top 3 Sectors | Banking, Financial institutions, Government | Banking, Finance, Government | Banking, House credit granting institutions, Other credit granting institutions |
All the above mentioned details are as on September 26, 2018.
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