Employees of private sector can also invest in PFRDA?

[Dhruv]

Hi, I would like to know - whether employees of private sector can also invest in PFRDA? Also please explain - how it (PFRDA) works and how much minimum & maximum one can invest?

Thanks,
Dhruv

[v.r.s.nathan]

The new pension scheme is basically a system of fund management for retirement like the EPF, GPF and PPF. Anyone in the age group of 18 to 55 years irrespective of the sector in which he /she works (govt as well as private sector) can apply for the new pension scheme India and get its benefits.

Once you join the new pension scheme, you would be given a Permanent Retirement Account Number (PRAN). It is something like a account number which will help you to check your funds online or at the point of presence (Pops).

The minimum annual contribution to the new pension scheme has been fixed at Rs 6,000 in minimum 4 yearly installments. You can make any number of installations and any amount in the new pension scheme.

A default charge of Rs 100/- year would be charged if you are unable to pay the installments and the minimum amount of Rs 6000/year. The account will then become dormant and can be renewed on request after paying the charges and the contribution of Rs 6000.