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Entities in NPS

The entities involved in NPS are as follows

NPS Trust

The PFRDA regulates NPS. The Government of India implemented the Pension Fund Regulatory and Development Authority (PFRDA) through the PFRDA Act 2013 to encourage senior citizens financial security by setting up, controlling, and trying to develop retirement funds in order to protect the interests of subscribers to public pension schemes, as well as for matters related to or inadvertent to them.

The NPS Trust is the actual proprietor of most funds owned to benefit NPS subscribers under the NPS framework. Individual NPS subscribers remain beneficial owners of the securities, assets, and money, which Pension Funds buy on behalf of and in the name of the Board.

PFRDA

The Pension Fund Regulatory Authority (PFRDA) regulates pensions and strives to promote and enhance them. It is a centralized independent institution that functions as a quasi-government organization with all sorts of powers comparable to those held by other Indian financial sector regulators such as the Reserve Bank of India.

Then the Insurance Regulatory and Development Authority (IRDA),  Bankruptcy Board of India, Reserve Bank of India (RBI), Insolvency, and the Securities and Exchange Board of India (SEBI) and are just a few examples (IBBI). PFRDA is in charge of administering and regulating the National Pension System (NPS) and the Atal Pension Scheme.

Annuity Service Provider (ASP)

PFRDA will designate Annuity Service Providers (ASPs) to manage subscribers’ pension deposits through their different schemes. When members retire or quit, they will have the option of investing their money in a single annuity plan. ASPs will be in charge of providing the member with a lump sum (annuity) for the term of their life.

Pension Funds Manager

Pension fund managers manage the pension fund. Furthermore, they are in charge of allocating the resources gathered into asset classes in accordance with the Authority’s and Investment Policy’s investment objectives and standards. The investment managers also evaluate the financial assets regularly to verify that they are functioning correctly.

Trustee Bank

As an intermediary, Trustee Bank is responsible for the day-to-day flow of money and banking facilities in compliance with the Authority’s NPS rules and directives.

Point Of Presence

Regulation (xi) of PFRDA (NPS Trust) Regulations, 2015 permits NPS Trust to monitor and audit Points of Presence for the functional/operational activities undertaken under NPS. PFRDA (Point of Presence) Regulations, 2018 permits NPS Trust to inspect and audit Points of Presence for NPS’s functional/operational activities.

Also read:

• National Pension Scheme
• Online Exit Process for ENPS Subscribers
• NPS Tier II – Steps to Activate Tier II Account
• NPS – Features
• NPS portal Login, view statement
• National Pension Scheme – Open NPS