How to open an NPS Corporate Account?

A National Pension System (NPS) Corporate Account is a government-regulated retirement savings scheme that enables employers to provide financial security to their employees post-retirement. It is a tax-efficient investment tool offering flexibility, cost-effectiveness, and portability, making it a preferred choice for organisations. Employers can use Corporate NPS to build a robust retirement corpus for their workforce while enjoying tax benefits.

For employees seeking guaranteed returns alongside NPS, Bajaj Finance Fixed Deposits serve as an excellent complementary option. With assured payouts and interest rates up to 7.30% p.a., Bajaj Finance Fixed Deposits offer a reliable low-risk investment avenue to diversify retirement portfolios. Open FD. 

Corporate NPS is a retirement investment tool designed specifically for organisations to manage their employees’ post-retirement financial security. It allows employees to build a substantial corpus through market-linked investments while enabling employers to contribute towards their retirement savings.

This scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and offers features such as flexibility in investment options, portability across jobs, and cost-effective management. While NPS provides growth opportunities, pairing it with Bajaj Finance Fixed Deposits ensures steady returns, helping employees achieve financial stability. Check latest rates. 

Corporate NPS offers several advantages for both employers and employees, making it an ideal retirement planning tool.

Tax benefits

Corporate NPS provides tax benefits under Section 80CCD. Employers can claim deductions for contributions up to 10% of an employee’s salary, while employees can avail of additional tax benefits under Section 80CCD(1B). This reduces taxable income, creating significant savings for both parties.

Retirement security

NPS helps employees build a substantial post-retirement corpus that ensures financial safety during their retirement years. This long-term savings plan provides dual benefits of regular pension income and a lump-sum corpus fund.

Cost-effective

Compared to private retirement schemes, Corporate NPS is cost-efficient, with minimal operational expenses. This makes it a financially viable option for employers and employees alike.

Flexibility

NPS offers flexible investment options, allowing employees to allocate funds between equity and debt based on their risk tolerance. This ensures customisation and adaptability to individual financial goals.

Portability

One of the standout features of Corporate NPS is its portability. Employees can seamlessly transfer their NPS accounts across job changes, ensuring uninterrupted benefits and continuity in savings.

Employees seeking assured savings can diversify their portfolios with Bajaj Finance Fixed Deposits, known for predictable returns and financial security. Book an AAA-rated FD now. 

Opening an NPS Corporate Account involves a straightforward process. Here is a step-by-step guide:

Step 1: Corporate registration

Employers must register with the Central Recordkeeping Agency (CRA) or nodal offices. This involves creating a corporate account by providing relevant details and selecting an investment mode.

Step 2: Document submission

During registration, employers are required to submit essential documents, such as PAN cards, corporate employment details, and other supporting information.

Step 3: Corporate NPS agreement

Companies must sign a mandatory service agreement with PFRDA or CRA to activate their Corporate NPS account. This agreement outlines the terms and conditions of the scheme.

Step 4: Employee enrolment in NPS

Once the corporate account is activated, employees can enrol by submitting their KYC documents, such as Aadhaar or PAN cards. Employers can facilitate this process for seamless onboarding.

Contributing to Corporate NPS is simple and can be automated for convenience.

• Employers can deduct contributions directly from employee salaries.
• Contributions must adhere to government-prescribed limits to ensure compliance.
• Both employer and employee contributions qualify for tax exemptions, making it a cost-effective retirement savings tool.

After leveraging NPS tax-saving contributions, employees can optimise savings using Bajaj Finance Fixed Deposits for guaranteed returns of up to 7.30% p.a., start now, with as low as Rs. 15,000.

Corporate NPS is a highly beneficial retirement savings scheme for organisations and their employees. It offers tax-saving opportunities, flexibility in investment options, portability, and cost-effective management, ensuring financial security post-retirement. Employers can easily open a Corporate NPS account by following the step-by-step registration process and providing the required documents.

To further strengthen retirement planning, pairing NPS with Bajaj Finance Fixed Deposits can provide employees with guaranteed returns and predictable payouts. Start securing your financial future today by opening an NPS Corporate Account — and complement your portfolio with Bajaj Finance Fixed Deposits for reliable financial growth. Open FD.