What is NPS
According to the NPStrust website, “National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life. NPS seeks to inculcate the habit of saving for retirement amongst the citizens.”
To learn how to check NPS account balance online, follow these steps:
Step 1: Visit the NSDL portal.
Step 2: To log in, use your PRAN as a user ID and your account password.
Step 3: Enter Captcha code to proceed.
Step 4: Click on “Holding Statement” option under the “Transaction Statement” section.
The screen will display information about your total balance.
Step 5: If you want an NPS statement that includes details about your transactions and contributions, select the “Transaction Statement” option.
There will be different sections in your statement. According to the NSDL website, below are some specifics about your NPS statement for non-govt sector that you should be aware of.
Decoding the NPS transaction statement
You may find your personal information, contact information, nomination information, and nodal office information in this section. Additionally, the status of your account and the time during which the Statement was generated will be included in this part.
The “Investment Summary” Section shows your account’s total contributions, holdings value, and total notional gains and losses on investments. Along with the Return for the financial year, it also provides an overall Return on Your Investment.
Utilizing the XIRR method, return on investments provides the annualised effective compounded return rate in a PRAN account. The computation is completed taking into account all contributions and redemptions handled in the PRAN account since its creation as well as the most recent investment valuation. The NAV date determines the order of the transactions.
Returns for the Financial Year displays the effective return rate for the previous fiscal year using the formula XIRR while taking into account all contributions and redemptions processed in PRAN accounts from April 1, opening balance and closing balance, and the most recent investment valuation.
The aforementioned returns are based on scheme NAVs, and the securities held in the portfolio of the scheme are valued on a mark-to-market (MTM) basis, subject to change in response to changes in scheme NAV.
You may find information about Pension Fund Manager (PFM)-wise contributions, total unit credits, the most recent NAV, and most crucially, returns on your investment (XIRR) during the course of the time, in this section. The cost of the units now held in the PRAN account is indicated by the phrase “Total Contributions” in your account as of March 31, 2022.
Contribution details/Redemption details
This section includes information on funds that your office has uploaded along with the sort of transaction that was made (ie. Regular, Arrears etc). The split between your contribution and that of the employer is also available.
The redemption amount shows the cost of the units that were redeemed from the account, whereas the contribution amount shows the amount invested in the subscriber’s account. First-In-First-Out (FIFO) pricing is used to determine the cost of the units.
The amount of the contribution, the NAV, and the units allotted are listed in this section, by PFM. In this part, you may also get transaction specifics with dates. It also includes units that have had money deducted from them for redemption and rectification. The information is arranged according to the date the transaction was posted to the PRAN account, which may or may not correspond to the date the NAV was distributed.