National Pension Scheme (NPS) Tier 2: Account, requirments, forms and process By CA Sayan Ghosh

Paper Work required for NPS Tier II Account

The National Pension Scheme offers two types of accounts. Tier I account is the pension account and Tier II is a voluntary savings account. NPS subscribers who hold Tier I account can open a Tier II account, at a later date, either offline or using the online NPS portal.

Pre- requisite requirements

  • To open a Tier II account, it is mandatory to have a permanent retirement account number ( PRAN) and an active Tier I NPS account.

Which Form required to be submitted

  • For submission, the subscriber can approach the POP-SP for Tier II activation form or download the same from hrere

What are information required to be provided

  • Bank Details: The subscriber can retain his existing Tier I bank information or link a new bank account. If a new bank account is linked, all details need to be provided.
  • Nomination Details: One can retain his nominee registered in Tier I or make a new nomination for Tier II account.
  • Scheme Preference: Subscriber needs to choose the fund manager, investment option and asset allocation if he has selected ' Active Choice' option.

Documents required

  • Copy of PRAN Card
  • Cancelled cheque

Where to Submit

  • The form should be signed and submitted to the POP-SP for processing and activation. An initial contribution of minimum Rs.1000/- can be made by a cheque.

Online Processing

  • The subscriber needs to login to the eNPS portal and click on the Tier II activation tab under subscriber services. A few details such as PRAN, date of birth, PAN must be entered and then the form can be submitted for activation.

Several Points to Remember

  • Tier II Account is not a retirement account and hence the subscriber cannot claim any tax benefits against contributions here.
  • There is no limit on the number of withdrawals.
  • Subscriber can determine allocation to different asset classes.

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