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 or using the online NPS portal.
Pre-requisite
To open a Tier II account, it is mandatory to have a permanent retirement account number and an active Tier I NPS account.
Form
For submission, the subscriber can approach the POP-SP for Tier II activation form or download the same from the link: https://npscra.nsdl.co.in/download/government-sector/central-government/forms/C-023-15-NeGIL-CRA-NPS%20Form%20Annexure%201.pdf
Information
One needs the following:
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
Copy of PRAN card Cancelled cheque
Submission
The form should be signed and submitted to the POP-SP for processing and activation. An initial contribution of minimum ₹1,000 can be made by a cheque.
Online process
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.
Points to note
Tier II account is a 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.
