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The Pension Fund And Regulatory Development Authority of India (PFRDA) allows pension fund managers to appoint pension agents. However, just like insurance agents, pension funds agents can tie up with only one pension fund manager.
MFDs can receive commission on every account opened. Also, MFDs get compensation based on all subsequent transactions.
In most cases, your earnings are directly correlated with the number of PRANs (Permanent Retirement Account Number) you open and the contributions you facilitate. The higher the volume of PRANs you generate or the larger the contributions you bring in, the greater your income potential.
A presentation of HDFC Pension Fund shows that if you open up to 50 PRANs, you will get flat fee of Rs.240 per account. Similarly, if you open PRANs between 51 and 100, you are entitled to Rs.280 on per account. You will get Rs.320 on each account after 100 PRANs.
On contribution, many pension fund managers offer 0.30% of the contribution made by client. Also, a few pension fund managers offer an additional 0.10% if you open more than 100 PRANs on contribution as bonus.
Here is the table that gives more clarity on commission structure.
|
No. of New PRANs Opened in FY |
Income per new account (Rs.) |
|
Bonus commission |
|
Contribution Income per transaction on the Contribution value (%)* |
|||
|
Up to 50 |
240 |
0.3 |
|
|
51 – 100 |
280 |
0.3 |
0.05% |
|
>100 |
320 |
0.3 |
0.10% |
Source: HDFC Pension Fund
You can tie up with any pension fund manager by submitting PAN, proof of address, ARN and cancelled cheque.
Both ICICI Prudential Pension Fund and HDFC Pension Fund facilitate online onboarding of pension agents.