NPS: Sit back and relax! This scheme will give you money when you stop working; check benefits for you

NPS Scheme: With an aim to provide financial security to citizens at the time of retirement, the Government introduced the National Pension Scheme (NPS) system in 2004. Earlier, it was available for the salaried individuals only but later on it was made available to all types of investors. Though it's been more than 15 years since its inception, there are still some facts like nomination, joint account holder, etc. that people need to know before opening the NPS account.

Speaking on the joint holding and nomination rules in the NPS Scheme Mumbai-based tax and investment expert Balwant Jain said, "The NPS account can only be opened in a single name, however, the rules allow you to appoint a maximum of three nominees for your NPS account. The nominee can be appointed at the time of opening the NPS account. Since it is a prudent practice to have a nominee for all your investments, you should appoint a nominee for your NPS account as well." Jain said that the nominee can be a major or a minor but in case of minor being appointed as nominee, the NPS account holders need to furnish details of the guardian with date of birth of the minor.

"While nominating more than one nominee, you need to specify shares of each nominee in percentage terms. Please ensure that share is not mentioned in fraction and sum of all the nominees add to 100 per cent," said Jain.

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On being asked if one can have both Employees' Provident Fund (EPF) account and the NPS account, SEBI registered tax and investment expert Jitendra Solanki said, "Only a salaried employee can have an Employees' Provident Fund account initially though he can continue to retain it even after leaving the employment or after retirement, but NPS account can be opened by any one whether salaried or not. So is the case with PPF. In fact a salaried person can have all these accounts together at the same time."