NPS Trust

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PFRDA has established the NPS Trust under Indian Trust Act, 1882 and appointed NPS Board of Trustees in whom the administration of the “New Pension System” vests under Indian Law. The Trust is responsible for taking care of the funds under the NPS. The Trust holds an account with the Bank of India and this bank is designated as the NPS Trustee Bank.

Functions of NPS Trust

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To call for any information, report etc. from PF(s), Trustee Bank and Custodian. To issue directions to PF(s) for protecting the interest of subscribers. To appoint a panel of independent auditors to undertake compliance audit. To verify that Trustee Bank is performing its functions as per the provisions of the Agreement with NPS Trust. To verify that PF(s) are strictly following the terms and condition of Investment Management Agreement (IMA) with NPS Trust.

Investment Options: NPS contributions are invested as per the investors choices. NPS offers six pension fund mangers and three investment options to choose from. In case an investor does not exercise a choice asregards the asset allocation, then the contributions are invested as per the “Auto Choice” option.In both the above choices, investor should necessarily choose any one of the PFM’s appointed by PFRDA.

For the NPS Architecture and details of NPS Trust please click here www.pfrda.org.in