National Pension Scheme for the Corporate Sector.pdf

The NPS Corporate Model is a win-win for both employers and employees, offering a structured, tax-efficient, and flexible retirement savings solution. By adopting NPS, companies can promote a savings culture, ensure financial security for employees, and benefit from tax incentives.

For more info,
Visit- https://www.utipension.com/

1. National Pension Scheme for
the Corporate Sector

2. Introduction of NPS
The National Pension System (NPS) is a government-backed retirement
savings scheme that provides financial security in old age.
While it was initially designed for government employees, it has now been
extended to the corporate sector, offering companies and employees a
structured way to build a retirement corpus.

3. NPS for the corporate sector is a voluntary scheme where
employers can offer NPS as part of their employee benefits
package.
It allows employees to systematically save for their
retirement while also providing tax benefits to both
employers and employees.
What is NPS for the Corporate Sector?

4. Benefits of NPS for the
Corporate Sector

5. Enhanced Employee Benefits:
Helps in attracting and retaining talent by providing retirement benefits.
Tax Benefits:
Employers get a tax deduction on contributions made towards employees'
NPS accounts under Section 36(1)(iv)(a) of the Income Tax Act.
Corporate Social Responsibility (CSR) Compliance:
Encourages a retirement savings culture among employees.
FOR EMPLOYERS

6. FOR EMPLOYEES
Retirement Savings:
Ensures financial security post-retirement through a regulated pension scheme.
Tax Benefits:
Contributions up to 10% of salary (Basic + DA) by the employer are tax-exempt
under Section 80CCD(2).
Flexible Investments:
Employees can choose between equity, corporate bonds, and government securities
based on their risk appetite.
Portability:
Employees can continue their NPS account even if they switch jobs or move to a
different sector.

7. How Does NPS Work for Corporates?
Registration:
Employers register under NPS with a Point of Presence (PoP) or aggregator.
Employee Enrollment:
Employees opt-in and select their investment preferences.
Contributions:
Both employer and employee can contribute regularly.
Fund Growth:
Investments are managed by Pension Fund Managers (PFMs) for long-term growth.
Withdrawal:
On retirement, employees can withdraw 60% tax-free, while 40% is used for an annuity
(pension).

8. The NPS Corporate Model is a win-win for both employers and
employees, offering a structured, tax-efficient, and flexible
retirement savings solution. By adopting NPS, companies can
promote a savings culture, ensure financial security for employees,
and benefit from tax incentives.
The best time to begin planning for retirement is now.
Taking this step early could make your retirement years golden.
Start Your NPS Journey Today!

9. Do you have any question?
Contact - [email protected]
Visit - https://www.utipension.com/