Old Pension Scheme to Railway Employees

Grant of Old Pension Scheme to Young Employees Working in Railways

The Railway Board replied to the President of Akhil Bhartiya Railway Mazdoor Sangathan on 6th September, 2018

Government of India

 (Bharat Sarkar) 

Ministry of Railways 

(Rail Mantralaya) 

(Railway Board)

No.D-43/19/2017-F(E)III

Dated: 06.09.2018

Sh.Mangat Ram Saini, 

National President, 

Akhil Bharitya Railway 

Mazdoor Sangathan, 

125/R, Ram Nagar, 

Pathankot – 145001, 

Mob: 9464000303

Dear Sir,

Sub: Grant of Old Pension to the Young Employees Working in the Railway

Please refer to your letter dated 12.07.2018 on the above cited subject.

Check also various news about National Pension System

2. In this regard it is stated that the decision to implement the National Pension System (NPS) w.e.f.01.01.2014 for all recruits, is of the Government of India. The Ministry of Railways being an administrative Ministry in respect of Pensionery matters is bound to adhere to the decision taken by the Nodal Department, i.e., Department of Financial Services (Ministry of Finance).

The Ministry of Railways is not empowered to take any unilateral decision.

sd/- 

(G.Priya Sudarsani) 

Diector, 

Finance (Estt.) 

Railway Board

Source: Confederation

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Central Govt Rejects the Demand to Scrap NPS

Central Govt Rejects the Demand to Scrap NPS

Abolition of Contributory Pension Scheme

Representations have been received from various Associations of Government Employees on the problems being faced and the demand to withdraw the National Pension System (NPS). The 7th Central Pay Commission (CPC) also in its report examined the issues related to NPS and made recommendations for addressing these issues.

                   Check all news about Old and New Pension Scheme for CG Employees

Pursuant thereto, it was decided to constitute a Committee of Secretaries to suggest measures for streamlining NPS. The Committee has submitted its report. Due to rising and unsustainable pension bill and keeping in view of fiscal imperatives, it is not possible for the government to revert back to old pension scheme.

This information was provided by the Minister of State in the Ministry of Finance Shri. Shiv Pratap Shukla in written reply to a question in Rajya Sabha on 24.7.2018.

Source: Confederation

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Reversion to Old Pension Scheme

Reversion to old pension scheme due to administrative delay

“NPS applicable to Government servants appointed to civil posts on or before 31.12.2003. The date on which the vacancies arose or the date on which the examination was conducted for filling up the vacancies is not relevant for deciding the applicability of the Central Civil Services (Pension) rules, 1972”

Reversion to old pension scheme

In accordance with the scheme for National Pension System (NPS), as notified vide Ministry of Finance (Department of Economic Affairs)’s Notification No. 5/7/2003-ECB & PR dated 22.12.2003, the System is mandatory for all new recruits to the Central Government service (except armed forces) from 01.01.2004. Accordingly, as per Rule 2 of the Central Civil Services (Pension) Rules, 1972, as amended on 30.12.2003, these rules are applicable to Government servants appointed to civil posts on or before 31.12.2003. The date on which the vacancies arose or the date on which the examination was conducted for filling up the vacancies is not relevant for deciding the applicability of the Central Civil Services (Pension) rules, 1972.

Check all news about Old and New Pension Scheme for CG Employees

Ministry of Home Affairs have not sought any advice from Department of Pension and Pensioners’ Welfare on the question of having a policy to cover the paramilitary personnel appointed after 01.01.2004 under the Old Pension Scheme on the ground that the vacancies arose, or the examination was conducted, in the year 2003. However, a reference was received from Ministry of Home Affairs in a specific case relating to appointments as Sub-Inspector in various Central Para Military Forces after selection in August, 2003 on the basis of an Examination conducted in 2002.

Appointments on the basis of these selections were made in Central Reserve Police Force in 2003 and the candidates appointed were covered by the pension scheme under Central Civil Service (Pension) Rules, 1972. However, in the Border Security Force, offers of appointment on the basis of the same examination/selection were issued in January, 2004. On a petition filed by some personnel appointed in the Border Security Force on the basis of that examination, Hon’ble High Court of Delhi directed to cover the petitioners under the Central Civil Service (Pension) Rules, 1972 on the grounds of administrative delay on the part of Border Security Force in making appointments.

The order of Hon’ble High Court of Delhi was implemented by the Ministry of Home Affairs/Border Security Force in view of the peculiar circumstances of that case. The decision taken in that case is, however, not relevant for deciding applicability of Central Civil Service (Pension) Rules to all appointments made on or after 01.01.2004 in the Central Para Military Forces or in any other Department/organization on the basis of year of examination/selection.

This information was provided by the Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, DrJitendra Singh in written reply to a question in Rajya Sabha on 19.7.2018.

Source: PIB

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Implementation of National Pension System by Central Autonomous Bodies

Implementation of National Pension System by Central Autonomous Bodies

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PRESS RELEASE

Conference on Implementation of National Pension System by Central Autonomous Bodies

A conference on implementation of National Pension System by Central Autonomous Bodies (CABs) was organized by PFRDA on 13th June 2018 at New Delhi. The prime objective was to provide a forum to all Central Autonomous Bodies (CABs), where the progress in the implementation of NPS with respect to compliance of timelines in various NPS related activities could be brought to the fore and a way forward could be provided. Officials from most of the Central Autonomous Bodies (CABs) attended the conference.

Also check: Exemption from National Pension System (NPS) – NFIR

Dr. Badri Singh Bhandari, Whole Time Member (Economics) in his opening remarks mentioned that currently there are 557 CABs which have about 1.73 lacs subscribers and about Rs.11800 crores of Asset Under Management (AUM). He further emphasised the need for discipline in submission of subscriber registration forms and remittance of the subscribers’ contributions. He also highlighted the responsibility of nodal officers handling NPS and advised that they should be aware of the NPS and its related process in detail for addressing the queries/grievances of the subscribers.

Chairman, PFRDA, Sh. Hemant Contractor, in his address emphasized the fact that NPS, being a Contributory scheme, was different from the earlier pension system and discussed various determinants of pension such as promptness of the Nodal offices in performing various NPS related activities mainly subscriber registration, upload/remittance of NPS contributions and also period of stay in the scheme, contribution level, returns on investments, annuity schemes chosen, annuity service providers chosen etc. In this regard, he stressed upon the need to work in tandem to ensure that NPS works efficiently and pensions are served effectively. He also highlighted endeavour of PFRDA in educating subscribers in handling their pension accounts, through a dedicated website, Pension Sanchay.

Secretary, Department of Expenditure, Govt. of India Sh. Ajay Narayan Jha, in his key-note address appreciated the initiative of PFRDA for holding this conference exclusively for Central Autonomous Bodies as it provided two-way communications between stakeholders for the ultimate benefit of the subscribers. He stressed to all participants on the need of becoming sensitive and responsible towards employee-subscribers currently covered under NPS in order to protect their interest, while monitoring various NPS related activities. He also stressed upon the role which can be played by the Head of Institutions and PrAOs of the respective CABs in streamlining NPS operations.

A presentation was also made by the NSDL e-Governance Infrastructure Ltd, the Central Record keeping Agency for NPS about the operational issues and new functionalities released for the convenience of the nodal officers-PAOs/DDOs and the subscribers. A presentation was also made by Jamia Millia Islamia University about the best practices they have adopted to administer the subscribers’ interface effectively. While presenting the Vote of Thanks Shri Ashish Kumar, GM mentioned that PFRDA is periodically holding Review meetings/ Video conferences also with the CABs on important parameters having financial implications and expects significant improvement from the present state of affairs.

Source: https://7thpaycommissionnews.in

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Reversion to Old Pension Scheme for Personnel of Ministries

Reversion to old pension scheme for personnel of Ministries

Rajya Sabha Unstarred Question No.2665 – Answered on 9.8.2018

Shri K. Bhabananda Singh

(a) whether a decision has been taken for hundreds of paramilitary forces whose recruitment process commenced/done before 2004 but joined in 2004 or after due to administrative delays, to revert to the old pension scheme as per a Delhi HC order and if so, the details thereof; (b) whether the Ministry, on similar lines of CAPFs, would identify such personnel in all the Ministries and extend the benefit of old pension scheme; and (c) if so, the details thereof and if not, the reasons therefor?

(a) to (c): In accordance with the scheme for National Pension System (NPS), as notified vide Ministry of Finance (Department of Economic Affairs)’s Notification No. 5/7/2003-ECB & PR dated 22.12.2003, the System is mandatory for all new recruits to the Central Government service (except armed forces) from 01.01.2004. Accordingly, as per Rule 2 of the Central Civil Services (Pension) Rules, 1972, as amended on 30.12.2003, these rules are applicable to Government servants appointed to civil posts on or before 31.12.2003. The year of commencement/completion of the recruitment process is not relevant for deciding the applicability of the Central Civil Services (Pension) Rules, 1972.

Read also: New Pension Scheme(NPS) Vs Old Pension Scheme(OPS)

ANSWER

MINISTER OF STATE IN THE MINISTRY OF PERSONNEL, 

PUBLIC GRIEVANCES AND PENSIONS AND 

MINISTER OF STATE IN THE PRIME MINISTER’S OFFICE

(DR. JITENDRA SINGH)

In the specific cases relating to appointments as Sub-Inspector in various Central Para Military Forces after selection in August, 2003 on the basis of an Examination conducted in 2002, appointments were made in Central Reserve Police Force in 2003 and the candidates appointed were covered by the pension scheme under Central Civil Service (Pension) Rules, 1972. However, in the Border Security Force, offers of appointment on the basis of the same examination/selection were issued in January, 2004. On a petition filed by some personnel appointed in the Border Security Force on the basis of that examination, Hon’ble High Court of Delhi directed to cover the petitioners under the Central Civil Service (Pension) Rules, 1972 on the grounds of administrative delay on the part of Border Security Force in making appointments. The order of Hon’ble High Court of Delhi was implemented by the Ministry of Home Affairs/Border Security Force in view of the peculiar circumstances of that case and the administrative delay in making appointments in that case. The decision taken in the aforesaid case is not relevant for deciding applicability of Central Civil Service (Pension) Rules in other cases where recruitment process was commenced or completed before 01.01.2004.

Authority: https://rajyasabha.nic.in/

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Not Possible to Revert Back to Old Pension Scheme

Not Possible to Revert Back to Old Pension Scheme

It is not possible for the government to revert back to old pension scheme – Minister replied in Parliament on 24.7.2018

Abolition of Contributory Pension Scheme

Representations have been received from various Associations of Government Employees on the problems being faced and the demand to withdraw the National Pension System (NPS).

The 7th Central Pay Commission (CPC) also in its report examined the issues related to NPS and made recommendations for addressing these issues. Pursuant thereto, it was decided to constitute a Committee of Secretaries to suggest measures for streamlining NPS. The Committee has submitted its report.

Due to rising and unsustainable pension bill and keeping in view of fiscal imperatives, it is not possible for the government to revert back to old pension scheme.

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Reversion to Old Pension Scheme

Reversion to old pension scheme

Ministry of Personnel, Public Grievances & Pensions Reversion to old pension scheme

In accordance with the scheme for National Pension System (NPS), as notified vide Ministry of Finance (Department of Economic Affairs)’s Notification No. 5/7/2003-ECB & PR dated 22.12.2003, the System is mandatory for all new recruits to the Central Government service (except armed forces) from 01.01.2004.

Accordingly, as per Rule 2 of the Central Civil Services (Pension) Rules, 1972, as amended on 30.12.2003, these rules are applicable to Government servants appointed to civil posts on or before 31.12.2003. The date on which the vacancies arose or the date on which the examination was conducted for filling up the vacancies is not relevant for deciding the applicability of the Central Civil Services (Pension) rules, 1972.

Ministry of Home Affairs have not sought any advice from Department of Pension and Pensioners’ Welfare on the question of having a policy to cover the paramilitary personnel appointed after 01.01.2004 under the Old Pension Scheme on the ground that the vacancies arose, or the examination was conducted, in the year 2003. However, a reference was received from Ministry of Home Affairs in a specific case relating to appointments as Sub-Inspector in various Central Para Military Forces after selection in August, 2003 on the basis of an Examination conducted in 2002.

Appointments on the basis of these selections were made in Central Reserve Police Force in 2003 and the candidates appointed were covered by the pension scheme under Central Civil Service (Pension) Rules, 1972. However, in the Border Security Force, offers of appointment on the basis of the same examination/selection were issued in January, 2004.

On a petition filed by some personnel appointed in the Border Security Force on the basis of that examination, Hon’ble High Court of Delhi directed to cover the petitioners under the Central Civil Service (Pension) Rules, 1972 on the grounds of administrative delay on the part of Border Security Force in making appointments.

The order of Hon’ble High Court of Delhi was implemented by the Ministry of Home Affairs/Border Security Force in view of the peculiar circumstances of that case. The decision taken in that case is, however, not relevant for deciding applicability of Central Civil Service (Pension) Rules to all appointments made on or after 01.01.2004 in the Central Para Military Forces or in any other Department/organization on the basis of year of examination/selection.

This information was provided by the Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, DrJitendra Singh in written reply to a question in Rajya Sabha today.

Source: PIB

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Important Announcements and Approvals in Board Meeting of PFRDA

Important Announcements and Approvals in Board Meeting of PFRDA

“Modification in Partial Withdrawal rules under NPS & Increasing cap on equity investment in active choice to 75% from current 50% for Private Sector Subscribers”

Ministry of Finance Important Announcements and Approvals in Board Meeting of PFRDA

Pension Fund Regulatory and Development Authority (PFRDA) is 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, during the recently held Board Meeting some important decisions were taken to improve the operational and regulation issues in National Pension System (NPS). Some of the decisions taken in the Board Meeting are as follows:

• Budget announcement- Rating criteria for investments– Proposal on changing the investment grade rating from ‘AA’ to ‘A’ for corporate bonds was approved. The change is subject to a cap on investments in ‘A’ rated bonds to be not more than 10% of the overall Corporate Bond portfolio of the Pension Funds. This initiative will enlarge the scope of investment for the Fund Managers while ensuring credit quality.
• Introduction of a Common Stewardship Code: The proposal on adoption of Common Stewardship Code, as a measure of good Corporate Governance, was approved. Further, it was also approved that the Principles enumerated in such code shall be circulated to all Pension Funds for compliance and implementation. Adoption of these Principles by Pension Funds will improve their engagement with investee companies and benefit subscribers.
• Modification in Partial Withdrawal rules under NPS: Partial withdrawals will now be allowed to NPS subscribers who wish to improve their employability or acquire new skills by pursuing higher education/ acquiring professional and technical qualifications. Further, individual NPS subscribers who wish to set up a new business/ acquire new business will also be allowed to make partial withdrawals from his contributions. Other terms applicable to partial withdrawals will remain unchanged.
• Increasing cap on equity investment in active choice to 75% from current 50% for Private Sector Subscribers: Presently there is a cap of 50% on equity investment under active choice in NPS. The proposal on increasing cap on equity investment in active choice to 75% from currently 50% has been approved by the Board. However, it comes with a clause of tapering of the equity allocation after the age of 50 years. Currently, NPS and APY have a cumulative subscriber base of over 2.13 crore with total Asset Under Management (AUM) of more than Rs. 2.38 lakh crore.

Source: PIB

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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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NPS subscribers can withdraw after three years

NPS subscribers can withdraw after three years

“The NPS subscribers can withdraw after three years from the date of joining the system and a maximum of three times during the entire tenure of subscription under NPS”

Partial Withdrawal under NPS

The Pension Fund Regulatory Development Authority (PFRDA) has relaxed the norms for partial withdrawal under the National Pension Scheme (NPS). In accordance with the PFRDA (Exits and Withdrawals under the National Pension System) (First Amendment) Regulations 2017, the subscriber ought to be subscribed to the National Pension System, at least for a period of three years from the date of his or her joining to such system, to be eligible to make partial withdrawals, under specific circumstances as specified in such regulations.

The NPS subscribers can withdraw after three years from the date of joining the system and a maximum of three times during the entire tenure of subscription under NPS, but the partial withdrawal is linked with contributions made by the subscriber. The subscriber shall be permitted to withdraw accumulations not exceeding twenty-five per cent of the contributions made by him or her and standing to his or her credit in his or her individual pension account, as on the date of application for withdrawal.

Earlier the subscriber under NPS was permitted to withdraw accumulations not exceeding twenty-five per cent of the contributions made by him or her after 10 years from the date of his or her joining the system, and a maximum of three times during the entire tenure of subscription under NPS.

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha today.

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Exemption from National Pension System (NPS) – NFIR

Exemption from National Pension System (NPS) – NFIR

Exemption of Railway employees appointed on or after 1.1.2004 from the purview of National Pension System (NPS)

Government of India(BHARAT SARKAR) 

Ministry of Railways (RAIL MANTRALAYA) 

(RAILWAY BOARD)

No.2012/F(E)III/1(1)/4-Pt.

New Delhi, dated 13/02/2018

The General Secretary, 

NFIR, 

3, Chelmsford Road,

New Delhi – 110055

Dear Sir, 

Sub : Exemption of Railway employees appointed on or after 01.01.2004 from the purview of National Pension System (NPS) – regarding

The undersigned is directed to refer to NFIRs letter No. IV/NPS/PFRDA BILL/Part- I dated 13.02.2017, 26.10.2017 and 11.12.2017 on the above subject.

2. In this regard it is informed that on the request of NFIR, Hon’ble former Minister of Railways, Sh.Suresh Prabhu had written a D.O letter dated 11.04.2017 to the Hon’ble Minister of Finance and Corporate Affairs, Sh.Arun Jaitley, to have a second look on the issue of exemption of Railway employees from the application of National Pension System (NPS). In reply, Hon’ble Minister of Finance and Corporate Affairs Sh. Arun Jaitley has communicated that the matter was reconsidered in consultation with pension Fund Regulatory and Development Authority (PFRDA) and that the request for exemption railway servants appointed on or after 01.01.2004 from the application of NPS does not seem to be feasible proposition.

Yours faithfully,

 sd/-

for Secretary/Railway Board

Source: NFIR

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Offer Document for NPS-All Citizen Model-Revised

National Pension System (NPS)
 
   Pension Fund Regulatory and Development Authority (PFRDA) originally established by the Government of India through a resolution dated 10th October, 2003 & 14th November, 2008, has since attained a statutory status post the passage of Pension Fund Regulatory and Development Authority Act, 2013. In accordance with the provisions of the said Act PFRDA is mandated to promote old age income security by establishing, developing and regulating pension funds, to protect the interest of the subscribers to the schemes of pensions funds and for matters connected therewith or incidental thereto.
 
   PFRDA has established the institutional framework and infrastructure required for administering the ‘National Pension System’ (NPS) for government employees as well as other citizens of India. For servicing of NPS subscribers, various intermediaries such as Central Recordkeeping Agency (CRA), Pension Fund Managers (PFMs) for professional management and investment of subscriber funds, Points of Presence (POP’s) for distribution of the product, Trustee Bank, Custodian and NPS Trust have been appointed and are functional.

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Option to defer Annuity purchase under NPS at the time of exit.

CIRCULAR

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDA/ 2013/14/ PDEX /9

September 17, 2013

To,
All Govt depts./PAO’s/DDO/ POP’s, CRA & other stakeholders

Dear Sir/ Madam,

Sub: Option to defer Annuity purchase under NPS at the time of exit

   As per the Exit guidelines of PFRDA for National Pension System (NPS) subscribers, a subscriber on attaining the Normal Retirement Age (applicable to Govt. sector subscribers) or upon attaining 60 years – is required to compulsorily annuitize at least 40% of your pension wealth and the remaining 60% can be withdrawn as a lump sum. Also, a subscriber wishing to exit from NPS before the normal retirement age or before attainment of 60 years is allowed to exit subject to the condition that a minimum of 80% of accumulated pension wealth needs to be mandatorily utilized for purchase of annuity that provides for the monthly pension to the subscriber.

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Additional Relief on death/disability of Government Servants covered by the Defined Contribution Pension System (NPS).

1(7)1/DCPS(NPS)/2009/TA/295
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CONTROLLER GENERAL OF ACCOUNTS
7th FLOOR, LOK NAYAK BHAWAN
NEW DELHI

Corrigendum

Dated: 27/05/2013

Sub:- Additional Relief on death/disability of Government Servants covered by the Defined Contribution Pension System (NPS)

   Reference is invited to this office OM No.1(7)/DCPS (NPS)/2009/TA/221 dated 02.7.2009 on the above mentioned subject. The existing para No. 3(xix) of the above OM has been substituted by the following:-

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Appointment of new Trustee Bank (TB) under National Pension System (NPS)-reg.

Circular

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDA/2013/10/CRTB/1

30th April, 2013

To
All Central Government Ministries & State Governments
All PrAOs / PAOs / DTAs / DTOs
All POPs / POP-SPs / Aggregators / Corporates
All PFMs / ASPs

Dear Sir/ Madam,

Subject: Appointment of new Trustee Bank (TB) under National Pension System (NPS)-reg.

   1. All the offices are hereby informed that Axis Bank has been appointed as a new Trustee Bank in place of Bank of India (the current Trustee Bank) for National Pension System (NPS) with effect from 1st July, 2013.

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PFRDA Issues Revised Set of Guidelines for Registration of Pension Fund Managers to Manage National Pension System for the Non-Government and Private Sector.

   The Pension Fund Regulatory and Development Authority (PFRDA) today issued a revised set of guidelines for registration of Pension Fund Managers (PFMs) to manage the National Pension System (NPS) for the non-government and private sector.

   The revised guidelines, available on PFRDA’s website www.pfrda.org.in, have done away with the earlier bidding process, wherein a pre-determined number of slots were bid for by the PFMs, and the fees charged by them for managing the pension funds had to be uniform for all players. The earlier process has now been replaced by a system which lays down the eligibility criteria for registration as PFMs, and all interested players desiring to enter the pension industry, can register as PFMs subject to their fulfilling the eligibility criteria. There is no limitation on the number of PFMs. Further, the PFMs are now allowed to prescribe their own fee charges, subject to an overall ceiling to be laid down by PFRDA. It is expected that this would provide for an economically viable business model for the PFMs attracting a fresh set of entrants into the pension industry, and the resultant competition would ensure market driven fee structures, which would work to the advantage of the pension subscribers.

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'Govt's NPS funding incomplete'

   The government may not have fully funded its pension liabilities in respect of employees who are covered under the National Pension System (NPS). This revelation has been made by a panel headed by former Sebi chief G N Bajpai which has submitted a report on pensions for the informal sector to the pension's regulator.

   The report, which was released last week, said that the present number of accounts (12 lakh) appear to be on the lower side considering that it has been over six years since the NPS was made mandatory for government employees. However, there is no source that provides information on the exact number of government employees who have joined after January 2004.

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