Clarification on modalities of transfer of NPS – DoPT Orders dt. 11.10.2018

Clarification on modalities of transfer of NPS – DoPT Orders dt. 11.10.2018

No.49014/2/2014-Estt.(C)-PT.I

 Government of India 

Ministry of Personnel, PG and Pensions 

Department of personnel & Training

North Block, New Delhi

 Dated: 11th October, 2018

OFFICE MEMORANDUM

Subject: Clarification on modalities of transfer of the NPS contribution to casual labourer with temporary status to their GPF accounts.

The undersigned is directed to refer to this Department’s 0M No.51016/2/90-Estt (C) dated the 10th September, 1993 vide which a scheme for grant of temporary status to the casual employees was framed. The scheme applied to those casual labourers who were in employment on the date of the issue of the 0M and had rendered one year of continuous service in Central Government offices, which meant that they must have been engaged for a period of at least 240 days (206 days in the of offices observing days week). The scheme did not apply to Departments of Telecom & posts and Ministry of Railways.

2. As the scheme, after rendering three years’ continuous service after conferment of tempeorary status, the casual labourers were to be treated at par with tempeorary Group ‘D’ employees for the purpose of contribution to the General Provident Fund. Further, after their regularisation, of the service rendered under tempeorary status was to counted for of retirement benefits.

3. As per para 8 of the scheme, two out of every three vacancies in Group ‘D’ in respective offices where the casual labourers had been working was to be filled up as per extant recruitment rules and in accordance with the instructions issued by Department of Personnel and Training from amongst casual workers with temporary status. However, regular Group ‘D’ staff rendered surplus for any reason would have prior claim for absorption against existing/future vacancies.

4. Vide the O.M. No.49014/1/2004 -Estt.(C) dated the 26th April, 2004, the above scheme was reviewed in light of introduction of New Pension Scheme in respect of appointed to the Central Government service on or after 1.1.2004. These casual labourers with temporary Status were now to be considered under the NPS and their underlying amount in GPI was credited to them.

5. The 0M dated 26th April, 2004 was quashed by various benches of CAT/High Courts who had decided that the scheme could not modified retrospectively.

6. The position was reviewed in the light of the Court judgements in consultation with the Department of Expenditute. It was then decided vide this Department’s O.M. No. 49014/2/2014- Estt(C) dated 26.02.2016 and 0M. No. dated 28.07.2016 that the casual labourers who had been granted temporary status under the scheme, and have completed 3 years of continuous service after that were entitled to contribute to the General Provident Fund. It was also decided that of the service rendered under temporary status would be counted for the purpose of retirement benefits in respect of those casual labourers who have been regularised in terms of para 8 of the 0M dated 10.09. 1993. This was applicable to all casual labourers covered under the scheme Of 1993 whether they were regularised before or after 31.12.2003.

7. It was emphasised that the benefit of temporary status is available only to those casual labourers who were in employment on the date of the issue of the 0M dated 10th Septetmber, 1993 and were otherwise eligible for it. No grant of temporary status is permissible after that date. The employees erroneously granted temproary status between 10.09.1993 and the date of Hon’ble Supreme Court judgernent in Union Of India And Anr vs Mohan Pal. 2002 (3) SCR 613, delivered on April, 2002, will however be deemed to have covered under the scheme of 10.09.93.

8. Subsequent to the issue of this Department’s O. M. 49014/2/2014-Esst(C) dated 26.02.2016 and O.M. No. 49014/2/2014-Estt(C) dated 28.07.2016 several Ministries/ Departments were seeking clarifications as regards to the modalities of transfer of the amount lying in the NPS account to the GPF account of these casual labourers. The matter has been examined in consultation with D/o Pensions & Pensioners’ Welfare, D/o Financial Services and D/o Expenditure.

9. D/o Pension and Pensioners’ Welfare have clarified/ stated that the employees’ share or the NPS subscription with interest should withdrawn and deposited in the GPE accounts if these CL-TS regularized after 31.12.2003 and the Government share with interest accrued under NPS should be deposited in Government’s account.

10. Controller General of Accounts (CGA) have furnished following clarifications vide letter No. dt 11.03.2016 on a similar matter which are as under:

(i)Adjustment of Employees contribution in Accounts:- Amount may be credited to individual GPF Account and the account may he recasred permitting up-to-dare interest (Authority-FR-16 & Rule / of GPF Rules)

(ii) Adjustment Of Government contribution under NPS in Accounts. TO be accounted for as (-) Dr. to object heads Recoveries under major Head 2071- Pension and Other Retirement benefit-Minor Head 911- Deduct Recoveries Of over payment (GAR 35 and para 3.10 of List of Major and Minor Heads of Accounts)

(iii) Adjustment of increased value of subscription on account of appreciation of investment- may be for crediting the amount Govt. account under Contribution towards pensions and other Retirement Benefit  SOO- Other Receipts (Note under the above Head in LMMHA).

11. The principle underlying the consideration of the case of CL(TS) is that Casual labourers Who were covered under the scheme Of 1993 and have been regularised in terms Of the above scheme were entitled to GPF and Old Pension scheme even if they were regularised after 31.12,2003.

12. Furthermore. as per Dio Expenditure/CGA, if the benefits under old pension scheme are to allowed to a retired employee, who had contributed towards NPS at any stage. the entire NPS accumulations i.e. employee’s contribution + Government’s matching contribution + appreciation thereon should be remitted into the accredited bank of the PAO concerned and the accounting procedure will be same in this case as prescribed at par 10 above.

13. All Ministries/Departments are requested to settle the matter explained.  If any further clarification is needed in the matter, they should approach CGA (Controller General of Accounts) directly, since CGA is the accounting agency and is competent to clarify the matter.

sd/- 

(N.Sriraman) 

Director (Establishment)

Source: https://dopt.gov.in/

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Appeal to NPS Pensioners – Confederation

Appeal to NPS Pensioners – Confederation 

NPS PENSIONERS – YOUR ATTENTION PLEASE

As you are aware Confederation of Central Govt Employees & Workers has been opposing and fighting against the Contributory Pension Scheme (known as NPS) from the very beginning.

At the time of introduction of NPS, it is only Confederation Confederation, All India State Govt Employees Federation and the Left parties which strongly opposed it. Now a situation has developed that more than 50% of the employees in Central Government & State Government services and also in Central / State Public Sectors are NPS employees and even those Federations / Unions / Associations in the Central / State Govt services who were either confused or kept quite or supported Govt decision to introduce NPS in the initial stage are compelled to change their original stand and started raising their voice against NPS.

Confederation of Central Govt Employees & Workers, as an organization spear heading this struggle, is making intensive campaign against NPS and trying to build up a broad united movement of all like-minded organizations, so that a wider and bigger movement is built up no sooner than later, with an ultimate aim of organizing a nationwide indefinite strike to “SCRAP NPS” in future, if Govt is not ready to change their stand.

For effective campaign and also to expose the hollowness of the claim of the Govt and supporters of NPS, the following details of those NPS employees who have already retired from service is required.

(1) Name in full and Designation at the time of retirement:

(2) Name of the office and Department from which retired.

(3) Date of entry in service.

(4) Date of retirement.

(5) Completed years of service.

(6) Basic pay at the time of retirement.

(7) Amount of Insurance Annuity Pension being received now per month.

The information should be authentic.

All are requested to cooperate and furnish the above information before 31-10-2018.

M.KRISHNAN 

Secretary

 General Confederation 

Mob & WhatsApp: 09447068125 

e-mail: mkrishnan6854@gmail.com

Source: Confederation

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Confederation One Day Strike on 15.11.2018 Postponed

Confederation One Day Strike on 15.11.2018 Postponed CONFEDERATION ONE DAY STRIKE ON 15-11-2018 POSTPONED TO 2019 JANUARY 8th & 9th.

TWO DAYS STRIKE JOINTLY WITH CENTRAL TRADE UNIONS AND ALL INDIA STATE GOVERNMENT EMPLOYEES FEDERATION (AISGEF).

NO CHANGE IN THE CHARTER OF DEMANDS

SCRAP NPS WILL BE THE NUMBER ONE DEMAND.

Dear Comrades,

As you are aware, in the National Convention of Workers held at Mavlankar Hall, New Delhi on 28th September 2018, all the Central Trade Unions (except BMS) and all other independent Federations have declared two days nationwide strike on 8th & 9th January 2019 against the anti-people and anti-labour policies of the NDA Government.

In the resolution adopted in the June 10th Hyderabad National Convention of Confederation and also in the National Secretariat meeting held thereafter, we have decided that the 2018 November 15th strike of Confederation will be changed, if the Central Trade Unions declare nationwide strike, so that the dates of both strikes will be synchronized to make it a joint strike.

Accordingly, the National Secretariat of Confederation has decided to postpone the 15th November 2018 strike to 2019 JANUARY 8th & 9th. The strike will be for two days. There is no change in the Confederation charter of demands.

SCRAP NPS AND RESTORE OPS FOR ALL

will be the number one demand.

 All India State Government Employees Federation has also decided to postpone the strike to 2019 JANUARY 8th & 9th.

M.Krishnan 

Secretary 

General 

Confederation Mob. &

WhatsApp: 09447068125

Source: Confederation

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Tax Relaxation on NPS Maturity Value

Tax Relaxation on NPS Maturity Value

LOK SABHA UNSTARRED QUESTION No. 3975 TO BE ANSWERED ON FRIDAY, THE 10TH AUGUST, 2018

SHRI KONAKALLA NARAYANA RAO: (a) whether the Government is contemplating to give tax rebate on the maturity value of the amount deposited under National Pension Scheme (NPS) like Public Provident Fund and if so, the details thereof; (b) whether the Securities and Exchange Board of India has also recommended to this tax relaxation in the recently held Financial Stability and Development Council meeting and if so, the details thereof; and (c) the stand of the Government in this regard?

ANSWER 

MINISTER OF STATE IN THE MINISTRY OF FINANCE 

(SHRI SHIV PRATAP SHUKLA)

(a) No Madam. Currently, Government is not contemplating to give any tax rebate on the maturity value of the amount deposited under National Pension Scheme (NPS) like Public Provident Fund. In this context, it may be noted that under the existing provisions of the Income tax Act, 1961 the following payments from the National Pension System Trust are exempt: (i) up to 40% of the total amount payable to an assessee on closure of his account or on his opting out of a Pension Scheme; and (ii) partial withdrawal by an employee from NPS up to 25% of own contribution. (b) No. (c) Does not arise.

Authority: https://loksabha.nic.in/

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Defined Contribution Pension Scheme (NPS) – Salient Features)

Defined Contribution Pension Scheme (NPS) – Salient Features)

Defined Contribution Pension Scheme (National Pension System) (Salient Features)

• The National Pension System works on defined contribution basis and will have two tiers – Tier-I and II. Contribution to Tier-I is mandatory for all Government servants joining Government service on or after 1-1-2004 (except the armed forces in the first stage), whereas Tier-II will be optional and at the discretion of Government servants.
• In Tier-I, a Government servant will have to make a contribution of 10% of his basic pay plus DA, which will be deducted from his salary bill every month by the PAO concerned. The Government will make an equal matching contribution. However, there will be no contribution from the Government in respect of individuals who are not Government employees.
• Tier-I contributions (and the investment returns) will be kept in a limited partial with drawable Pension Tier-I Account. Tier-II contributions will be kept in a separate account that will be with drawable at the option of the Government servant. Government will not make any contribution to Tier-II account.
• The existing provisions of Defined Benefit Pension and GPF would not be available to the new recruits in the central Government service, i.e. to the Government servants joining Government service on or after 1-1-2004. However, retirement gratuity and death gratuity would be extended to the central government employees covered under NPS on the same terms and conditions as applicable under CCS (Pension) Rules, 1972.
• In order to implement the Scheme, there will be a Central Record Keeping Agency (CRA) and several Pension Fund Managers (PFM) to offer three categories of Schemes to Government servants, viz., options A,B and C based on the ratio of investment in fixed income instruments and equities. The participating entities (PFMs and CRA) would give out easily understable information about past performance, so that the individual would be able to make informed choices about which scheme to choose.
• An independent Pension Fund Regulatory and Development Authority (PFRDA) will regulate and develop the NPS.
• A Government servant can exit at or after the age of 60 years from the Tier-I of the Scheme. At exit, it would be mandatory for him to invest 40 per cent of pension wealth to purchase an annuity (from an IRDA-regulated Life Insurance Company) which will provide for annuity for the lifetime of the employee and his dependent parents/spouse. He would receive a lump-sum of the remaining pension wealth which he would be free to utilize in any manner. In the case of Government servants who leave the Scheme before attaining the age of 60, the mandatory annuitization would be 80% of the pension wealth.
• Provisionally, central government employees covered under NPS has option to choose benefits under old pension scheme or NPS in the event of their death or discharge from service on invalidation.

Related Links (in this Portal) : 

1. Government of India Gazette Notification F. No. 5/7/2003-ECB&PR dated 22/12/2003

2. FAQs about the National Pension System

Authority: pensionersportal.gov.in

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NPS Subscribers: Submit FATCA Self-Certification through Online

NPS Subscribers: Submit FATCA Self-Certification through Online

Foreign Account Tax Compliance Act (FATCA) and Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI)

Ministry of Finance 

Pension Fund Regulatory and Development Authority prescribes New NPS Subscriber Registration Form – Additional Mandatory Requirements

Pension Fund Regulatory and Development Authority (PFRDA) has been established by the Government of India for regulation and development of Pension Sector in order to protect the old age income security of subscribers. PFRDA takes various initiatives from time to time in order to simplify and improve the operational issues in National Pension System (NPS) like new functionality development under NPS architecture, simplification of account opening, withdrawal, grievance management etc. In this regard, it has been decided by the Authority to make bank account details and mobile no. mandatory to provide ease of operation for the benefit of subscribers and make the process of Exit from NPS hassle free.

Further, in compliance with the Prevention of Money Laundering Act guidelines issued by the Government of India, Foreign Account Tax Compliance Act (FATCA) and Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI) have been made mandatory for new as well as existing subscribers. These have been made mandatory in the new Common Subscriber Registration Form (CSRF) forms that are required to be filled in by the new subscribers. The existing subscribers have been provided the facility to submit online FATCA Self-Certification in their login (www.cra-nsdl.com or https://enps.karvy.com/Login/Login ). The information regarding the said functionality is also made available on Central Record-keeping Agency (CRA) websites. The steps to be followed by the subscriber to submit online FATCA self-certification are also mentioned on the website.

It is to be ensured by the subscribers to fill the mandatory fields correctly and not leave them blank in order to avoid rejection of their forms.

How to know your FATCA Compliant Status – Click here

FATCA Self Declaration Format – Click here

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Minimum Guaranteed Pension under National Pension System (NPS) – BPMS

Minimum Guaranteed Pension under National Pension System (NPS) – BPMSREF: BPMS/17th TC/NPS/Cir/33

REF: BPMS/17th TC/NPS/Cir/33

Dated: 31.03.2018

To, 

The Office Bearers and CEC Members 

Bharatiya Pratiraksha Mazdoor Sangh 

& 

The President/ General Secretary 

Unions affiliated to the federation

Subject: One day Agitational Programme on 24.04.2018 on Minimum Guaranteed Pension under National Pension System (NPS).

Dear Brothers and Sisters, Sadar Namaskar

It is hoped that all of you are well and busy in accelerating trade union activities. As all of you know that the Central Executive Committee Meeting of this federation was held on 26, 27 and 28 March 2018 in Dehu Road, Pune where it was decided to hold one day agitational programme on 24.04.2018 on Minimum Guaranteed Pension under National Pension System (NPS).

A resolution to this effect was also passed in the CEC Meeting held at Hyderabad during September 2015 and subsequently several correspondence were made. However, in spite of lapse of such a large time, no tangible action has been seen from the Govt side on the issue.

Therefore, in absence of any concrete step from the Govt side on the issue it becomes necessary to register our displeasure over the lethargic attitude of the Government and register our protest to constrain the machinery to redress the Grievance.

Hence, you are requested to hold one day agitation programme on 24.04.2018 using all feasible and effective trade union instruments like Gate Meeting, Use of Black Badges, Slogan Shouting, publicizing of programme at humongous level through posters/ hoardings/ banners/ pamphlets/ social media so that the issue may be resolved at the earliest. Further, you are requested to submit a memorandum addressed to Prime Minister of India through proper channel on 24.04.2018.

With regards,

Brotherly yours

(M P SINGH) 

General Secretary

Source: BPMS

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Grant of Minimum Guaranteed Pension under NPS – BPMS

Grant of Minimum Guaranteed Pension under NPS – BPMS

Grant of Minimum Guaranteed Pension under NPS

The Central Government had introduced the National Pension System (NPS) with effect from 1 January, 2004 (except for armed forces). During the budget session of 2003-2004 the Government announced introduction of the “New Defined Contribution Pension Scheme” then known as the New Pension Scheme. It was formally notified vide Ministry of Finance, Department of Economic Affairs letter dated 22-12-2003. Later, it was adopted by various State Governments and Central and State Public Sector Corporations.

Upto 28.02.2018, the total figure of subscribers of NPS working in Central Government Establishments/ Offices including Public Sector Undertaking has reached to 19,12,871 with a corpus of Rs 61,145.65 crore and in State Governments Establishments/ Offices including respective Public Sector Undertaking, it has reached to 38,21,266 with corpus of Rs. 86,897.31 crore.

The above mentioned Scheme was made operative since 01.01.2004 without any concrete instructions and with passage of time, Govt has been trying to develop a system regarding its functioning. But the future as well as retiremental security (Social Security) of the employees is at stake without guarantee of Minimum Pension under the Scheme.

This Federation has been consistently demanding that Government should frame a policy to ensure that irrespective of the financial/market conditions at the time of Retirement of the subscriber under NPS, he should get a guaranteed minimum pension equivalent to 50% of his last drawn Basic Pay plus Dearness Relief for neutralization of price rise.

A resolution to this effect was also passed in the CEC Meeting held at Hyderabad during September 2015 and subsequently several correspondence have also occurred. However, in spite of lapse of such a large time, no tangible action is seen from the Government side on the issue.

After having deliberated the issue in details, the Central Executive while recording its displeasure over the absence of action on the part of the Government on such an important issue, hereby calls upon the Government to immediately notify the subject issue.

This resolution is being passed in the Central Executive Committee held at Dehu Road (Pune) on 28/03/2018.

Source: PBMS

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Age Limit for NPS

Age Limit for NPS

Vide PFRDA (Exits and Withdrawals from National Pension System) Second Amendment Regulations, 2017, dated 6th October, 2017, the Pension Fund Regulatory and Development Authority (PFRDA) has permitted any Indian citizen who is in the age group of 18-65 years to join the National Pension System (NPS) on voluntary basis. As informed by PFRDA, a total of 1056 persons between the ages of 60-65 years have joined up to 31st January, 2018.

NPS is a contributory pension scheme available to the Indian citizens between the ages of 18-65 years on voluntary basis. There will be no financial burden on Government due to increase in the eligibility age of joining NPS from 60 to 65 years because Government doesn’t pay any contribution for private employees and also Government employees who join the NPS after the age of retirement at 60 years.

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Joint Campaign of Confederation and AISGEF Against NPS and Outsourcing

Joint Campaign of Confederation and AISGEF Against NPS and Outsourcing

JOINT CAMPAIGN OF CONFEDERATION & AISGEF AGAINST NPS AND OUTSOURCING – SIGNATURE CAMPAIGN FEBRUARY 10TH TO MARCH 10TH – COPY OF MEMORANDUM TO BE SUBMITTED TO PRIME MINISTER AFTER OBTAINING SIGNATURE

To

The Hon’ble Primie Minister of India

We, those who signed in this memorandum are state and central Government Employees of the country . We may submit the following burning issues of the state and central Government Employees for your kind consideration and disposal.

The system of pension as a social security benefit to the employees in Government sector in India has been existing since the early British days. After independence the pension system was further improved and family pension was also introduced . The Defined pension scheme for the government employees is a well-built scheme as the best of all social security benefits for the employees and they are not required to contribute anything for pension.

Government of India introduced contributory pension to employees those who entered in government service on or after 1.1.2004 .Majority of the state Government s also introduced the same for their employees. The Contributory Pension Scheme is totally depend on the profit and loss in the share market and Government have no control on the fund and it has nothing to do with the welfare of the employees or any individual or even Government finances.

The concept of pension as elaborated by the 4th Central Pay Commission, is ‘Pensions to the former members of armed forces and civilian employees of Central Government is not by way of charity on an ex-gratia payment, or a purely social welfare measure was totally changed by . It is in the nature of a “right” which is enforced by the law”. Later the concept was further strengthened by the Land mark Judgement delivered by the Supreme Court in 1982 in a Writ Petition filed by D.S.Nakara Vs the Union of India. Supreme court declared that the Pension is not only compensation for loyal service rendered in the past but has also a broader significance in that it is a measure of socio-economic justice which inheres economic security in the fall of life .The PFRDA Act is against the earlier ruling of the Supreme Court on the employees’ Right to Defined Benefit Pension as cited earlier.

There is no assurance, for getting pension ,except market based guarantee in NPS. The stock markets have never remained consistently strong over a long period of time. This volatility of stock market is a cause of serious concern about the sustainability of the National Pension Scheme itself.

The transition from this Defined Benefit Pension System to the Defined Contribution Pension System will make civil services more unattractive. Majority of State Governments are reluctant to remit the employer’s contribution to the pension fund. There is no assurance in getting the pension to the employees and workers.

For all these reasons, particularly the cut in salary and pension of the employees, absence of Government guarantee for retirement benefits in the National Pension Scheme and the distinct possibility of a sustainable Defined Benefit Pension System along with extension of social security system for the unorganised sector, we are not in a position to accept the National Pension Scheme. We strongly urge that a more in depth factual and analytical discussion is essential on National Pension System.

Contract Labour is one of the acute form of unorganized labour. Under the system of contract labour, workers are employed on the contract basis. The contract worker is a daily wager or the daily wages are accumulated and given at the end of the month. Contract workers are paid much lower wages than they would be entitled to under direct employment. This system led to whole-scale exploitation of labour, and a series of demands were made before tribunals for the abolition of contract labour system.

The system of employing contract labour is prevalent in civil service and in the services sector. The civil service has a major role in the smooth functioning of a Democratic Government. As part of overall development of the society and increase in population, the civil service also must be extended its wing. Education, Health, Public Transport, Communication, Welfare measure to women and children are all developed much. Numerous job opportunities have created round the world in Government Service. The regular appointment to government sector ceased. Instead contract employment started. As such it is seen that the number of regular employees in the civil service are decreasing day by day, whereas the number of daily waged/contract/outsourced employees are increasing . By this time all the centrally sponsored schemes also emphasis on contract appointment. All the flagship programmes of Government of India are implementing with Daily waged/Contract/Casual appointment.

Bypassing UPSC and State Public Service Commission and Employment Exchanges which are the main recruitment agencies for central and State Governments, Unemployment among the educated youth is the main reason for Contract Employment. On contract employment the appointment is for limited monthly income. This is a kind of exploitation of labour.

The Supreme Court of India in a Land mark Judgment ruled that temporary employees performing similar duties and functions as discharged by permanent employees are entitled to draw wages at par with similarly placed permanent employees. The principle must be applied in situations where the same work is being performed, irrespective of the class of employees. The constitutional principle of ‘equal pay for equal work’ has been upheld by the Supreme Court of India.

Hence we appeal to the Hon’ble Prime Minister of India to take urgent measures to repeal the National Pension system and ensure defined pension to all employees and to regularise all Contract / Casual Employees and ensure equal wages for equal work for all employees including contract and casual employees. We appeal the Government of India to heed the demands of the employees in the country and take appropriate action in this regard.

New Delhi

Source: Confederation Of Central Government Employees

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Guidelines on CGHS benefits to Central Govt. employees (service/retired) covered under NPS

Guidelines on CGHS benefits to Central Govt. employees (service/retired) covered under New Pension Scheme

S.11011/10/2012-CGHS(P)/EHS 

Government of India 

Ministry of Health and Family Welfare 

EHS Section

Nirman Bhawan, New Delhi 

Dated the 28 March, 2017

Office Memorandum

Sub: Guidelines on “CGHS benefits to Central Govt. employees (serving/retired) covered under New Pension Scheme”-reg

The undersigned is directed to say that the matter regarding extension of CGHS facilities to Central Govt. employees (serving/retired) covered under New Pension Scheme (NPS) was under examination in this Ministry.

2. The matter has been examined in this Ministry in consultation with Department of Expenditure and Department of Pension & Pensioner’s Welfare and the guidelines for NPS subscribers to be eligible for CG HS facilities are as follows:

(a) Minimum years of qualifying service for eligibility of CGHS membership after retirement- 10 years.

(b) No minimum qualifying years Of service for availing CGHS facilities in case of death/disability.

(c) In case of absorption into AB/SB’s, NPS subscribers can avail CGHS after their retirement only if the SB/AB where they were absorbed is covered for their retired employees, subject to condition (a) above.

(d) In case of deputation to AB/SB’s, no CGHS coverage till such period of deputation continues unless the entity to where the employee has been transferred is covered by CGHS.

(e) Status-quo to be maintained for‘serving NPS subscribers subject to conditions at (c) and (d) above.

(f) Other conditions such as definition of family, CGHS contributions, conditions of dependency etc will be applicable as per existing rules.

3. This issues with the approval of the Competent Authority.

sd/- 

(Sunil Kumar Gupta) 

Under Secretary to the Government of India

Authority: www.cghs.gov.in Original 

Link: http://cghs.gov.in/showfile.php?lid=4919 

Download Link: Guidelines on CGHS Benefits to Central Government Employees covered under NPS

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New Pension System – Features Released Recently for NPS Subscribers

New Pension System – Features Released Recently for NPS Subscribers

New Pension System (NPS) and its-implementation

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

(RAILWAY BOARD)

RBA No. :54/2016

New Delhi, dated: . 16.08.2016

No.2016/AC-II/21/7

General Managers, FA&CAOS and CPOs,

All Indian Railways. and PUs

Sub: New Pension System (NPS) and its-implementation.

Please find enclosed PFRDA’S letter no. PFRDA/19/CG/1/39 dated 01.08.2016 on the above subject. In this regard, the “following has been desired:

i. Distribution of comprehensive brochure prepared by PFRDA for government Sector subscribers.

ii. Updation of contact details of all the underlying offices in the records of CRA for better communication flow.

iii Setting up of dedicated NPS Cell

iv. Displaying related information on the website of in the Ministry and incorporating the same link in the ‘Employee’s corner’.

As regards (iv.) above, all, the important instructions issued by Accounts Dte are available on the Indian Railway’s website as under:

www.indianrailways.gov.in

About Indian Railways

Railway Board Directorates

Accounts

Instructions on NPS

Kindly ensure circulation of these instructions so that the subscribers and nodal. offices are aware of initiatives taken for their benefit.

DA: As above

Sd/-

(Amitesh Kumar Sinha)

Director Finance/CCA

Railway Board

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

b-14/A, First Floor, Chhatrapati Shivaji Bhawan, 

Qutab Institutional Area, Katwaria Sarai, New Delhi-110016

R.V. Verma

Member

FILE NO. PFRDA/19/CG/1/39

01st August, 2016

Subject: National Pension System (NPS) and its implementation.

I am writing in the context of the National Pension System (NPS) and its implementation in theCentral Government sector – Ministries & departments including the Central Autonomous Bodies under their jurisdiction. I would like to highlight the important measures taken by PFRDA in strengthening the systems, in the interest of the ultimate beneficiary – the subscriber and other stakeholders.

2. After the passage of PFRDA Act, 2013, various regulations have been framed by PFRDA under the ambit of the Act. The basic purpose of framing regulations is to ensure protection of subscriber interest. Prominent ones among the regulations are PFRDA (Redressal of Subscriber Grievance) Regulations, 2015 and PFRDA (Exits Withdrawals under the NPS) Regulations, 2015. You will appreciate that PFRDA (Redressal of Subscriber Grievance) Regulations, 2015, had laid down clear guidelines with respect to redressal of subscriber grievances. Further, Exit Regulations of PFRDA

have specified the provisions and process relating to exit and withdrawal in detail.

3. It has been PFRDA’S endeavour to take various initiatives from time to time in order to simplify and improve the operational issues in National Pension System (NPS) for ease of transaction for subscribers. Towards this end, we have introduced a number of new functionalities under NPS architecture such as simplification of account opening, withdrawal, grievance management etc. In this regard, recently many new functionalities have been released by the Central Recordkeeping Agency (CRA) to ease operations for the benefit of subscribers and nodal offices. The details of the functionalities released recently for the nodal offices under Govt. Sector are enclosed as Annexure A.

4. As our main focus is on the subscriber, around whom the entire system revolves, we have also provided several facilities to them for easing the process and making them more user friendly. The following are the important initiatives taken in this direction:

(i) SMS and email alerts,

(ii) Centralized Grievance Management System (CGMS) with a pre-determined turnaround time for resolution of grievances related to different services.

(iii) Call Centre facility.

(iv) Periodic consolidated SoT (Statement of Transactions)

(v) Web based access to all subscribers to view SoTs and facility to modify certain data like mobile number & email id on their own.

(vi) Subscriber awareness programs at various locations and centers.

In addition to the above, several new functionalities have also been introduced in the CRA system for the benefit of the subscribers. The details of the same are enclosed as Annexure B.

5. We would very much appreciate if the Central Government ministries departments may undertake the following measures to enhance the effectiveness of the system:

(a) Distribution of comprehensive brochure prepared by PFRDA for government sector subscribers (copy enclosed).

(b) Updation of contact details of all the underlying offices in the records of CRA for better communication flow.

(c) Setting up of a dedicated NPS Cell

(d).Displaying NPS related information on the website of your Ministry and incorporating the same in link like ‘ Employee’s corner’.

6. We feel that there is urgent need to disseminate more information among the dealing officials -Pay & Accounts Offices(PAOs) Drawing & Disbursing officers (DDOs) of the CG Ministries & Departments for resolving the concerns and covering the gaps. We have recently engaged Crux Management Services Pvt. Ltd. as a training agency for imparting training to the nodal officers of CG Ministries/ Departments. We request you to nominate maximum number of DDOs from your Ministry to the training programmes which PFRDA is coordinating. Besides, workshops may be organized by CG Ministries & Department for their respective nodal offices also in order to increase

subscriber awareness and for imparting operational knowledge to PrAOs/PAOs/DDOs, wherein PF RDA and CRA officials may also participate.

We are confident that the implementation of NPS and streamlining .of the process is receiving your due attention. You may like to convene regular meetings to review the implementation of NPS and the new fun’ctionalities which wrll go a long way in ensuring smooth implementation of NPS. PFRDA will be glad to provide all necessary support and cooperation. Should your office need further clarifications, they are welcome to contact Sh. Ashish Kumar, General Manager at ashish.kumar@pfrda org.in.

With Regards,

Yours sincerely

Sd/-

(R.V.Verma)

Mr. S. Mookerjee,

Financial Commissioner

Ministry of Railways,

Room No.232, Rail Bhavan,

New Delhi – 110001.

Source:www.indianrailways.gov.in

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NPS Employees Eligible for Retirement Gratuity and Death Gratuity - DoPT Order on 26/08/2016

No.7/5/2012-P&PW(F)/B

Ministry of Personnel, Public Grievances and Pensions

Department of Pension and Pensioners Welfare

Lok Nayak Bhavan, Khan Market,

New De1hi-110 003, Dated the 26 August, 2016.

OFFICE MEMORANDUM

Subject : Extension of benefits of ‘Retirement Gratuity and Death Gratuity’ to the Central Government employees covered by new Defined Contribution Pension System (National Pension System) — regarding.

The undersigned is directed to say that the pension of the Government servants appointed on or after 1.1.2004 is regulated by the new Defined Contribution Pension System (known as National Pension System), notified by the Ministry of Finance (Department of Economic Affairs) vide their OM No.5/7/2003-ECB & PR dated 22.12.2003. Orders were issued for payment of gratuity on provisional basis in respect of employees covered under National Pension System on their retirement from Government service on invalidation or death in service, vide this Department’s OM No.38/41/2006-P&PW(A) dated 5.5.2009.

2. The issue of grant of gratuity in respect government employees covered by the National Pension System has been under consideration of the Government. It has been decided that the government employees covered by National Pension System shall eligible for benefit of ‘Retirement gratuity and Death gratuity’ on the same terms and conditions, as are applicable to employees covered by Central Civil Service (Pension) Rule,1972.

3. These orders issue with the concurrence of Ministry of Finance, Department of Expenditure, vide their I.D. Note No.1(4)/EV/2006-II dated 29.07.2016.

4. In their application to the persons belonging to the Indian Audit and Accounts Department, these orders issue after consultation with Comptroller and Auditor General of India.

5. These orders will be applicable to those Central Civil Government employees who joined Government service on or after 1.1.2004 and are covered by National Pension System and will take effect from the same date i.e. 1.1_2004.

Sd/-

(Harjit Singh)

Director (Pension Policy)

Source:http://ccis.nic.in/WriteReadData/CircularPortal/D3/D03ppw/ppwf_26082016.pdf

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New Features Released For NPS Subscribers

Press Information Bureau 

Government of India

Ministry of Finance

New Features Released For NPS Subscribers 

Pension Fund Regulatory and Development Authority (PFRDA) takes various initiatives from time to time in order to simplify and improve the operational issues in National Pension System (NPS) like new functionality development under NPS architecture, simplification of account opening, withdrawal, grievance management etc. In this regard, recently many new functionalities have been released to provide the ease of operation for the benefit of subscribers and nodal offices. These are detailed below:

Functionality released recently for the benefit of NPS subscribers:

S. No	Functionalities	Benefits Description
1	Mobile Application Mobile Application for NPS is now available to the Subscriber’s in ‘Google Play Store’ as ‘NPS by NSDL e-Gov’ for installation and use.	In Mobile App, the Subscriber will be able to raise the request for Transaction Statement for a particular financial year which will be sent to his registered mail ID at end of the day, can view his/her NPS account, latest details of scheme wise units along with latest NAV and the total value of the schemes, details of the last five contributions credited,  can change contact details (Telephone/Mobile no./Email ID), change password/security Question add/modify his/her password and set security question (for password reset) through Mobile App. Notifications, if any, from CRA will be available to the Subscriber. Short messages will be displayed here.
2	Change of address using Aadhaar authentication	The Subscribers can now update/modify their address on their own using Aadhaar based authentication. After logging in CRA, Subscriber will use the menu “Update Address” by providing the Aadhaar No and click on the ‘submit’ button. After which an OTP will be sent to Subscriber’s mobile. Once the Subscriber authenticates by submitting the OTP, address details from Aadhaar system will be fetched and updated in the CRA system. In this process, Subscriber will be able to update permanent as well as correspondence address.
3	Scheme Preference change facility	Once Subscriber opts to change his / her Scheme Preference after logging in, an OTP will be sent to the Subscriber (on their registered mobile number). After authentication is done with OTP, the Subscriber can change their PFM, Asset Class, Allocation Ratio, Scheme Options.
4	Tier II activation through eNPS	Any subscriber having Tier I account in NPS can now activate Tier II account online through eNPS by entering his / her PRAN, DOB and PAN. An OTP will be generated and will be sent to the registered mobile number. Subscriber has to enter the OTP and proceed for Tier II activation under NPS.
5	KYC re-verification using Aadhaar authentication	A Subscriber whose Bank has not confirmed (rejected) his / her KYC verification request can now update the address details and confirm KYC using Aadhaar based authentication. The Subscriber needs to simply go to eNPS site, click on Update details and proceed.
6	Facility to contribute Online	Subscribers are contributing through online mode using eNPS portal of NPS Trust. Now, a facility has been made available to contribute online by Subscribers using IPIN credentials in CRA system. Subscriber can login into the CRA system and click on “Contribution” menu. On submission, the Subscriber will be redirected to eNPS contribution page from where he / she can contribute as per existing process of eNPS.
7	Withdrawal from Tier II account	At present, for Withdrawal from Tier II account, the NPS subscribers are required to visit the branch of the associated Point of Presence (POPs) or Nodal Office. Now, the NPS Subscribers have a facility to initiate withdrawal request from Tier II account using their login credentials and OTP authentication on registered mobile number.
8	Online IPIN generation	The eNPS Subscribers can now access the CRA system immediately after registering without waiting for physical I-PIN to be despatched. Facility is now available where the Subscriber will generate I-PIN instantly and access his / her NPS account.

Currently, NPS and APY together have 1.29 crore subscribers with total Asset under Management (AUM) of 1.34 lakh crore.

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Frequently Asked Question About New Pension Scheme (NPS)

Frequently Asked Question About New Pension Scheme (NPS)

1. What is the New Pension System (NPS)?

The NPS is a new contributory pension scheme introduced by the Central Government for employees joined in Government Service on or after 1.1.2004. During the year 2009, the NPS was kept open for public.

2. Who is covered by the NPS?

a. Employees who have joined central government service on or after 01 January 2004 including Railways, Posts, Telecommunication or Armed Forces (Civil), Autonomous Body, Grant-in-Aid Institution, Union Territory or any other undertaking whose employees were eligible to a pension from the Consolidated Fund of India., earlier.

b. This contribution pension scheme is also open to any Indian citizen between the age of 18 and 55.

3. I am covered by the NPS. Can I contribute to the GPF?

No. The General Provident Fund ( Central Service) Rules, 1960 is not applicable for employees covered by NPS.

4. I Am covered by the NPS. Am I eligible to Gratuity?

No. You will not be eligible to Gratuity.

5. How does the NPS work ?

When you join Government service, you will be allotted a unique Personal Pension Account Number (PPAN). This unique account number will remain the same for the rest of your life. You will be able to use this account from any location and also if you change your job. The PPAN will provide you with two personal accounts:

1. A mandatory Tier-I pension account, and

2. A voluntary Tier-II savings account.

6. What is the difference between Tier-I and Tier-II accounts?

1. Tier-I account: You will have to contribute 10% of your pay in pay band + grade pay + DA into your Tier-I (pension) account on a mandatory basis every month. You will not be allowed to withdraw your savings from this account till you retire at age 60. Your monthly contributions and your savings in this account, subject to a ceiling to be decided by the government, will be exempt from income tax. These savings will only be taxed when you withdraw them at retirement.

2. Tier-II account: This is simply a voluntary savings facility for you. Your contributions and savings in this account will not enjoy any tax advantages. But you will be free to withdraw your savings from this account whenever you wish.

7. How will I contribute to my Tier-I (pension) account?

Every month, the government will deduct 10% of your salary (10% of pay in pay band + grade pay + DA) and automatically transfer this amount to your Tier-I account in your name.

8. Will the Government contribute anything to my Tier-I (pension) account?

Yes. As your employer, the Government will match your contribution (10% of pay in pay band + grade pay + DA) and transfer this amount also to your Tier-I account in your name.

9. Can I contribute more than 10% into my Tier-I account?

Yes. You will be permitted to contribute more than the mandated 10% of pay in pay band + grade pay + DA into your Tier-I account – subject to any ceiling that may be decided by the Government.

10. Will the Government also contribute more than 10% into my Tier-I account?

No. The contribution of the Government will be limited to 10% of your pay in pay band + grade pay + DA.

11. What will happen if I am transferred to another city?

The PPAN number will stay the same and you will be able to use the same account.

12. If I leave Government service before I retire will the Government continue to contribute to my Tier-I account?

No. The 10% contribution by the Government will stop when you leave Government service. However, your savings in your Tier-I and Tier-II accounts will stay in your name and you will be able to continue using these accounts to save for your retirement.

13. What if I die or become permanently disabled during my service?

Additional Relief on death/disability of Government servants covered by the NPS(New Pension Scheme) recruited on or after 1.1.2004 has been discussed in this Office Memorandum No.38/41/06/P&PW(A) Dated 5th May, 2009

14. How will the money be invested?

The money you invest in NPS will be managed by professional fund managers. Currently, you have the choice of picking up one of the following six fund managers: ICICI Prudential Pension Management, IDFC Pension Fund Management, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund, SBI Pension Funds, and UTI Retirement Solutions. In addition to this there are three schemes for which you have to opt.

Scheme A This scheme will invest mainly in Government bonds

Scheme B This scheme will invest mainly in corporate bonds and partly in equity and government bonds

Scheme C This scheme will invest mainly in equity and partly in government bonds and corporate bonds.

15. Can I switch fund managers if I am not happy with my current fund manager?

Yes, you can switch fund managers. PFRDA, the pension fund regulator, will declare the value of your investment every year in April. At that point of time, if you are not satisfied with the performance of your fund manager, you can switch to another fund manager between May 1 and May 15.

16. What are the charges?

This is where NPS wins hands down against all other modes of creating a corpus to generate income after retirement. The fund management charge of NPS is 0.0009% of the value of the investment, every year. In comparison, pension plans of insurance companies charge 0.75-1.75% as fund management charge, which is 800-2000 times higher. The other expenses charged are also very reasonable.

17. I am covered by the NPS. Do the old Pension Rules apply to me?

No. The Central Civil Service Pension Rules (1972) will not be applicable to you.

18. Who will be responsible for the NPS and for protecting my interests?

The Government has set up a new dedicated regulatory authority known as Pension Fund Regulatory and Development Authority (PFRDA). The PFRDA will be responsible for the NPS and for protecting your interests in the NPS in consultation with Ministry of Finance.

19. Who in the Government will issue me a PPAN account and be responsible for the deductions?

When you join Government service, your Drawing and Disbursement Officer (DDO) will instruct you to fill out a NPS form. You will be required to provide your full professional and personal details including details of your nominee in this form. The DDO will issue you the PPAN number(PRAN) and will also be responsible for all administrative matters related to your NPS accounts including deduction of your contributions, transferring your contributions and the matching contribution of the Government to your Tier-I pension account.

20. What will happen to my contributions to my Tier-I account?

Your monthly contributions, and the matching contributions by the Government into your Tier-I account, will be transferred by the Government in your name to a Pension Fund Manager (PFM). The PFM will invest your contributions on your behalf. In this way, your savings will appreciate and grow over time.

21. Will I be permitted to select more than one Pension Fund Manager to manage my savings?

Yes. If you wish, you will be able to spread your savings across multiple PFMs – where a part of your savings are managed by 2 or more PFMs.

22. Am I guaranteed a certain rate of return?

No return is guaranteed as it is in case of EPF and PPF. The amount of money you make is dependant on how well the fund managers chosen by you perform. But, the extremely low charges in NPS sure give it an edge over the the pension plans of insurance companies.

23. Can I contribute more than 10 into my Tier-I account?

Yes. You will be permitted to contribute more than the mandated 10% of Basic+DA+DP into your Tier-I account – subject to any ceiling that may be decided by the Government.

24. Can I withdraw money from the account?

The NPS offers two accounts: tier I and tier II. Currently only tier I account is available. This is a non-withdrawable account and investments in this keep accumulating till you turn 60. Withdrawal is allowed only in case of death, critical illness or if you are building or buying your first house. In case of death the nominee can get 100% of NPS wealth in a lump sum. He can however continue with the NPS in case he wishes to.

25. What will happen to my savings in the Tier-I account when I retire?

You will be able to withdraw 60% of your savings as a lump sum when you retire. You will be required to use the balance 40% of your savings to purchase an annuity scheme from a life insurance company of your choice. The life insurance company will pay you a monthly pension for the rest of your life.

26. Can I use more than 40% of my savings to purchase the annuity?

Yes. You can use more than 40% of your savings to purchase annuity.

27. What will happen to my savings if I decide to retire before age 60?

You will be required to use 80% of your savings in your Tier-I account to purchase the annuity. You will be able to withdraw the balance 20% of your savings as a lumpsum. The other option is , you can continue to invest in NPS on monthly basis and then purchase annuity using 40% of your savings at the age of 60.

28. Will the annuity also provide a family (survivor) pension?

Yes. You will have an option of selecting an annuity which will pay a survivor pension to your spouse.

29. What will happen to my savings in the Tier-I account when I retire?

You will be able to withdraw 60% of your savings as a lumpsum when you retire. You will be required to use the balance 40% of your savings to purchase an annuity scheme from a life insurance company of your choice. The life insurance company will pay you a monthly pension for the rest of your life.

30. What happens at retirement?

NPS by default sets the retirement age at 60. Once you attain that age, you can use the money that has accumulated to generate a regular pension for yourself. In order to do this, you have to compulsorily buy immediate annuity from a life insurance company with 40% of the money that has accumulated. As explained at the beginning, buying an immediate annuity will assure a regular payment for you. Since a minimum of 40% needs to be used to buy an immediate annuity, a maximum of 60% of the money accumulated can be withdrawn. However, unlike other tax-saving instruments like Public Provident Fund (PPF) and Employees’ Provident Fund (EPF), wherein the amount at maturity is tax-free, in case of NPS this amount is taxable.

31. Whether a retiring Government servant is entitled for leave encashment after retirement under the NPS?

The benefit of encashment of leave salary is not a part of the retirement benefits admissible under Central Civil Services (Pension) Rules, 1972. It is payable in terms of CCS (Leave) Rules which will continue to be applicable to the government servants who join the government service on after 1-1-2004. Therefore, the benefit of encashment of leave salary payable to the governments/to their families on account of retirement/death will be admissible.

32. Why is it mandatory to use 40% of pension wealth to purchase the annuity at the time of the exit (i.e. after the age of 60 years) from NPS?

This provision has been made in the New Pension Scheme with an intention that the retired government servants should get regular monthly income during their retired life.

33. Whether any minimum age or minimum service is required to quit from Tier-I?

Exit from Tier-I can only take place when an inpidual leaves Government service.

34. Whether Dearness Pay is counted as basic pay for recovery of 10% for Tier-I?

As per the New Pension Scheme, the total Dearness Allowance is to be taken into account for working out the contributions to Tier-I. Subsequently, a part of the “Dearness Allowance” has been treated as Dearness Pay. Therefore, this should also be reckoned for the purpose of contributions.

35. Whether contribution towards Tier-I from arrears of DA is to be deducted?

Yes. Since the contribution is to be worked out at 10% of (Pay+ DP+DA), it needs to be revised whenever there is any change in these elements.

36. Who will calculate the interest PAO or CPAO?

The PAO should calculate the interest.

37. What happens if an employee gets transferred during the month? Which office will make deduction of Contribution?

As in the case of other recoveries, the recovery of contributions towards New Pension Scheme for the full month (both inpidual and government) will be made by the office who will draw salary for the maximum period.

38. Whether NPA payable to medical officers will count towards ‘Pay’ for the purpose of working out contributions to NPS?

Yes. Ministry of Health & Family Welfare has clarified vide their O.M. no. A45012/11/97-CHS.V dated 7-4-98 that the Non-Practicing Allowance shall count as ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the New Pension Scheme.

39. Whether a government servant who was already in service prior to 1.1.2004, if appointed in a different post under the Government of India, will be governed by the CCS (Pension) Rules or NPS?

In cases where Government servants apply for posts in the same or other departments and on selection they are asked to render technical resignation, the past services are counted towards pension under CCS (Pension) Rules, 1972. Since the Government servant had originally joined government service prior to 1-1-2004, he should be covered under the CCS (Pension) Rules, 1972.

40. Will I get a tax deduction for the investment?

Yes, under Section 80CCD of the Income Tax Act investments of up to Rs 1 lakh in the NPS can be claimed as tax deductions. Readers should remember that this Rs 1 lakh limit is not over and above the Rs 1 lakh limit available under Section 80C. In fact, the combined limit of investments made under Section 80C, 80CCD and section 80CCC (for investments made into pension plans of insurance companies) is Rs 1 lakh.

Source: AIRF

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