National Pension System (NPS) subscribers will now have to pay for seeking the services of retirement advisers as pension regulator PFRDA has permitted them to charge a fee ranging between Rs 100 and Rs 1,000.
Currently, under the PFRDA (Retirement Adviser) norms, the on-boarding fee of Rs 120 and a fee of Rs 20 per transaction or a maximum of Rs 100 per annum, for subsequent services, have been stipulated.
It said: "Further to (those charges), it has been decided by the Authority that an advisory fee of 0.2 per cent may also be charged from any existing subscribers, on their assets under management...On the date of advice, subject to a minimum of Rs 100 and maximum of Rs 1,000 per annum, for providing advice to the subscribers."
The PFRDA circular said the scope of such advice being provided by the retirement advisers in any manner, either oral or in writing to the subscribers will be limited to asset allocation and choice of a Pension Fund Manager.
"The advisory fee can be charged by the retirement adviser only when subscriber has signed an agreement with the RA for providing advice...," said the Pension Fund Regulatory and Development Authority.
It further said Thad "no advisory fee" would be charged at the time of onboarding of the subscriber along with the onboarding fee of Rs 120.
The regulator is in process increasing the network of retirement advisers.
NPS is a voluntary, defined contribution retirement savings scheme. It is regulated and administered by PFRDA.
As on June 30, 2016, there were 12.9 million subscribers of NPS and Atal Pension Yojna with assets under management of Rs 1.32 lakh crore.
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