Showing posts with label NPS. Show all posts
Showing posts with label NPS. Show all posts

Sunday, March 27, 2016

Removal of NPS: No proposal with Government

On reply of Unstarred question in Loksabha, Government stated that there is no proposal under consideration to replace the National Pension System (NPS) with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

LOK SABHA

UNSTARRED QUESTION NO: 1524

ANSWERED ON: 04.03.2016

Replacement of New Pension Scheme


SUKHBIR SINGH JAUNPURIA
Will the Minister of FINANCE be pleased to state:-

(a) whether the Government proposes to replace the New Pension Scheme (NPS) with old pension scheme; and

(b) if so, the details thereof and the reasons therefor?

ANSWER

The Minister of State in the Ministry of Finance 

(a) & (b) there is no proposal under consideration to replace the National Pension System (NPS) with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.

Thursday, April 24, 2014

Registration of government employees aged 60 years and above under NPS

Now PFRDA will enroll all eligible Government employees (central & state) who are on the rolls of the government in to NPS, irrespective of the age at the time of entry, subject to the condition that the total period of contribution to NPS account shall not be more than 42 years.
 The NPS applications of such subscribers need to be submitted through the appropriate nodal officer of the Government/ Department, in line with the procedure adopted for NPS registration for Government employees aged below 60 years.
 Also, the responsibility for ensuring that the employee is eligible for being covered under NPS and that the NPS contribution is not paid beyond 42 years during the entire service period for such an employee, lies with the department submitting the subscriber registration form.


Wednesday, April 23, 2014

Abolish NPS : Railway Minister writes to Finance Minister

Railway Minister Sh. Malikarjun Kharge has written a DO letter to Minister of Finance for abolishing New Pension System(NPS) from Indian Railways. Read here the contents of DO letter

“Dear Shri P. Chidambaram ji,
Through this letter, I wish tO draw your attention to a long standing demand raised by both Staff Federations of Railways on National Pension Scheme (NPS) for employees of Indian Railways. The Federations have been expressing resentment over operation in the Railways of the National Pension Scheme, which is perceived as a lower social security cover for Railway employees. Their contention is that there are enough grounds for Railway employees to be treated differently from other civil employees of the Government, and that Indian Railways should operate the traditional defined .benefit pension scheme available to pre-01-01-2004 appointee's.

Sunday, March 23, 2014

Pension is a statutory right : Madras High Court

Upholding a Central Administrative Tribunal rpt Tribunal order, the Madras High Court today said right of government servants to receive pension is not a bounty and it is a statutory right conferred under the pension rules applicable from the date when the government servant was appointed, either on daily wage, temporary or permanent basis.

A Division Bench, comprising Justice N.Paul Vasanthakumar and Justice M.Sathyanarayanan was dismissing a writ petition filed by Ministry of Atomic Energy, and Indira Gandhi Centre for Atomic Research (IGCAR), Kalpakkam challenging the order passed by Central Administrative Tribunal.

In its order, the bench said it was an undisputed fact that the 16 petitioner employees had been appointed as casual labourers and subsequently conferred temporary status from December 31, 1999.
".. Merely because they have been absorbed permanently in the year 2005 in Group 'D' service, they cannot be denied of their statutory right," the court said.
Earlier CAT had allowed the original application filed by the 16 employees to extend the benefit of pension under old Pension Scheme, Central Civil Service (Pension) Rules, 1972 as they were granted temporary status with effect from December 31, 1999 on conditions, among others , that 50% of their service rendered under temporary status would be counted for the purpose of retirement benefits after their superannuation.

This was challenged by IGCAR, stating that persons who joined in service on or after January 1, 2004 were governed by the new pension scheme. The CAT rejected it following which IGCAR filed the present petition.

IGCAR had engaged 50 Casual labourers for cleaning and assisting Technicians and Scientists Carrying out the task in various laboratories of IGCAR. Out of 50, 34 casual labourers were regularized prior to January 1,2004.

The court said a person already in service either as contingent staff or temporary staff continuously and absorbed in permanent establishment on or after Jan 1,2004 cannot be termed 'new entrant' into service. The new pension scheme can be applied only to persons appointed for the first time as casual or temporary or permanent employee on or after January 1,2004.

The bench clarified that the 50 casual employees appointed by the IGCAR being a class, there cannot be any classification within them, subsequently made as temporary employees and absorbed as Group 'D' employees.


While quoting Supreme Court Judgements the bench said these 16 employees cannot be treated as 'Fresh appointees' for the purpose of applying new pension scheme and upheld the order of CAT while dismissing the petition from IGCAR.

Source : www.dnaindia.com

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Thursday, January 16, 2014

NPS news : Exposure draft on guideline for withdrawal of 25% accumulated contribution by NPS Subscriber.

PFRDA issued a exposure draft on guideline for withdrawal of 25% accumulated contribution by NPS Subscriber.

Read the full contents here

The following are the current rules/guidelines for withdrawals under NPS as approved by PFRDA:

Thursday, October 24, 2013

Exit Guideline under National Pension System : Option for complete withdrawal of accumulated pension wealth by subscriber


A circular is issued by PFRDA with partial modification in Exit guidelines. It is decided to provide an option to withdraw the entire accumulated pension wealth to subscriber other than the subscriber of NPS lite - Swalamban Scheme. 

Full details is as under 

Friday, September 6, 2013

After Lok Sabha, Rajya Sabha today passed the Pension Fund Regulatory and Development Authority (PFRDA) Bill


The Rajya Sabha today passed the Pension Fund Regulatory and Development Authority (PFRDA) Bill, which will help extend pension cover to more citizens of the country through PFRDA's New Pension Scheme (NPS).

Here are the salient features of the bill:

The main objective of the bill is to help extend pension cover to more citizens of the country through PFRDA's New Pension Scheme (NPS). Currently just 12 percent of the workforce in the country has any formal pension or social security plan.

The passage of the Pension Bill will make Pension Fund Regulatory and Development Authority (PFRDA) a statutory authority. Earlier it had a non-statutory status.

Thursday, September 5, 2013

Changes to the NPS Structure


The Bill seeks to initiate some structural changes to NPS. NPS is known as an investment vehicle that locks in subscribers’ money till they turn 60. At 60, a subscriber can withdraw about 60% of the retirement corpus and “annuitize” the remaining 40%—buy pension product that gives periodic income. 

In order to offer subscribers some liquidity, the proposed law allows for withdrawals with limits on the amount and number of withdrawals. The amendment to the Bill states: “Withdrawals not exceeding 25% of the contribution made by subscriber will be permitted from the individual pension account subject to the conditions, such as purpose, frequency and limits, as may be specified by regulations.

Wednesday, September 4, 2013

Lok Sabha Passes Pension Fund Regulatory and Development Authority Bill, 2011 with official amendments



The Pension Fund Regulatory and Development Authority Bill (PFRDA), 2011 was passed by the Lok Sabha today with official amendments. It was earlier introduced in Lok Sabha on the 24th March, 2011 to provide for a statutory regulatory body the Pension Fund Regulatory and Development Authority (PFRDA) under the provisions of the Bill. The legislation seeks to empower PFRDA to regulate the New Pension System (NPS).

The PFRDA Bill, 2011 was referred to the Standing Committee on Finance on the 29th March, 2011 for examination and report thereon. The Standing Committee on Finance gave its Report on 30th August, 2011. Some of the key amendments incorporated in the Bill based on the recommendations of the Standing Committee on Finance are as follows:

Friday, August 23, 2013

Additional Relief on Death/Disability of Govt. Servants (Civilians) Covered Under New Defined Contribution Pension System NPS: Procedures to be adopted for Submission of Claims.


OFFICE OF THE PR. CONTROLLER OF DEFENCE ACCOUNTS (PENSIONS)
DRAUPADI GHAT, ALLAHABAD – 211014

Circular No –110                                                       No. GI/C/Misc/NPS – I/Tech                                                                                         Dated : 12.08.2013

Sub: - Additional Relief on Death/Disability of Govt. Servants (Civilians) Covered Under New Defined Contribution Pension System NPS: Procedures to be adopted for Submission of Claims.

Ref:- This office Important Circular No. 79 dated: 29-10-2010

Para 1 & 4 of the Circular No. 79 dated 29-10-2010 is amended to read as under:-

Para No-1. H.O.O will prepare pension papers in case of NPS beneficiaries in accordance with the same procedure as prescribed for Defence Civilian Personnel appointed before 01-01-2004 and will submit the same along with Service Book and all the relevant documents (which is required in case of pre-01-01-2004 Cases) to PAO

Portability of PRAN – NPS Lite/Swavalamban to NPS – All Citizen Model and other sectors : PFRDA circular


Pension Fund Regulatory and Development Authority issued a circular no. PFRDA/2013/13 /PDEX/08 dated 20th August’2013 regarding Portability of PRAN – NPS Lite/Swavalamban to NPS – All Citizen Model and other sectors. There were several requests from NPS Lite/Swavalamban subscribers seeking porting of their PRANs from NPS Lite/Swavalamban to the All Citizen Model of NPS (UOS). PFRDA after examining the matter has approved the shifting/porting of NPS/Lite/Swavalamban accounts to NPS-All Citizen model and other Sectors through an Inter platform shift process which is detailed as below:

1. The subscriber has to submit the following documents to the new nodal office (POP/PAO/DDO etc) who in turn will process the application and forward the document to CRA.
a.        Duly filled in Inter platform shift (IPTR-1) form along with the duly filled in registration form of the sector to which he wishes to migrate

b.       Submit the PRAN already issued and in absence of PRAN has to provide a notarized affidavit as to the reasons for non-submission.

2.       CRA upon receipt of request would initiate the process for creation of new Permanent Retirement Account (PRA) with new PRAN for the subscriber on the target platform and disable the earlier PRAN of the subscriber in the system. The earlier/old PRAN would not be allotted to anybody else in the system. Also, the earlier record would be tagged to the new account for audit trail as well as for knowing information like if the subscriber has availed Swavalamban benefit under the earlier PRAN or not etc.
3. CRA would issue necessary instructions for monetization of the accumulated corpus in the old/earlier PRAN and also necessary instructions for crediting of such accumulated corpus received upon monetization into the new PRAN account. The entire activity would be a controlled activity from CRA end.

4. There would not be any requirement of providing KYC documents once again by the subscriber, if the same have been submitted/ collated at the time of subscriber registration under NPS already and the address provided in the new registration for is matching with that of existing record. If there is any change in the address from the existing NPS account address proof need to be submitted afresh. The CRA would tag the KYC documents to the new PRAN and ensure that all the required details are available.

5. CRA would print and dispatch the PRAN card directly to the subscriber/aggregator as the case may be and CRA would not be charging any extra charges for the same.

Subscribers intending to shift their PRAN from NPS Lite/Swavalamban to All Citizen Model and other sectors may approach the new/intended contribution uploading office (POP/PAO/DDO etc) for doing the needful on the matter.





Saturday, July 27, 2013

Returns on NPS schemes for F.Y. 2012-13 - Press Release

The Pension Fund Regulatory and Development Authority (PFRDA) which regulates the National Pension System (NPS) has delivered double digit returns for the financial year 2012-13.

Due to this performance PFRDA has evidenced itself as not just being the cheapest retirement product but also as the highest returns generating scheme. PFRDA informed about the average annual returns delivered by the NPS schemes, during the financial year ended on 31.03.2013,  is as under :

(Weighted Average):

Details are as under: 

Sr. No.         Scheme Weighted.             Average Returns (in %)

   1                  Central Government                                  12.39

   2                 State Government                                      13.00
   3                 Swavalamban                                             13.40
   4                 Private: Equity                                            8.38
   5                 Private: Corporate Debt                            14.19
   6                 Private: Government Debt                         13.52


Last year revised guidelines had been issued by PFRDA for Registration of Pension Fund Managers to manage NPS for Private sector, under which eight Pension Fund Managers have been registered so far- SBI Pension Funds Pvt. Ltd., UTI Retirement Solutions Ltd., LIC Pension Fund Ltd., Kotak Mahindra Pension Fund Ltd., Reliance Capital Pension Fund Ltd., ICICI Prudential Pension Funds Management Co. Ltd., HDFC Pension Management Co. Ltd. and DSP BlackRock Pension Fund Managers Pvt. Ltd.


 It is well known that the National Pension System was introduced by the Central Government for the employees who joins the central government job on or after 01.01.2004 and subsequently subsequently extended to the private sector in May 2009 has accumulated a corpus of Rs 33,000 crores contributed by 50 lakhs subscribers.

Friday, July 26, 2013

Issue of Identity Card to Central Government Pensioners


No.41/21/2000-P&PW (D)
GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES & PENSIONS
(DEPARTMENT OF PENSION & PENSIONERS' WELFARE)

3rd Floor, Lok Nayak Bhawan
New Delhi-110 003.
Dated the 25th July, 2013
OFFICE MEMORANDUM

Sub:- Issue of Identity Cards to Central Govt. Pensioners -reg.

Thursday, July 25, 2013

Govt to relax norms for PSU employees to join NPS : The Hindu

The government is considering relaxing norms to enable PSU employees to join the National Pension Scheme and a Cabinet note in this regard is likely to be moved soon, interim pension regulator PFRDA said on Wednesday.

“We have taken up this matter with the Department of Public Enterprises (DPE) Secretary and he has prepared a note which he would be soon taking to the cabinet,” Pension Fund and Regulatory Development Authority (PFRDA) Chairman Yogesh Agarwal said in New Delhi.

Under the existing guidelines, if an employee of central public sector undertakings (CPSUs) does not have a minimum 15 years of services, he or she cannot join National Pension Scheme (NPS), Mr. Agarwal said on the sidelines of a seminar titled “Financial Consumer Protection” here.

Monday, July 22, 2013

Exit rules under National Pension System for Government Employee Subscribers



PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY



PFRDA has issued necessary instructions to CRA for implementation of the withdrawal process under National Pension System (NPS) for all sectors viz., Government Employees, All Citizen model and Swavalamban scheme. The said information is being re-iterated hereunder for the information of all stakeholders for a better appreciation of the matter.

The following are the details for the withdrawals allowed in case of Government Employees subscribers:

a) Upon Normal Superannuation: At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber and balance is paid as lump sum payment to the subscriber.

b) Upon Death: The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/monthly pension.

c) Exit from NPS before the age of Normal superannuation (irrespective of cause): At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension  to the subscriber and the balance is paid as a lump sum payment to the subscriber.

The subscribers would be able to purchase the annuities directly from the empanelled Annuity Service Providers as per their choice of annuity that is available in the market/with the Annuity Service Provider’s(ASP’s) empanelled by PFRDA.


Source: www.pfrda.org.in

Wednesday, July 10, 2013

BASIC FEATURES AND FAQS REGARDING NEW PENSION SCHEME



1.

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.

2.

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.

3.

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

4.

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.

5.

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

6.

The PAO should calculate the interest.

7.

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

8.

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-Practising 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.

9.

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.


Saturday, July 6, 2013

Retirement Benefits under New Pension Scheme

A new restructured defined contribution pension system for the new entrants to Central Government service, except to the Armed Forces, replacing the system of defined benefit pension including GPF, was notified on 22nd December, 2003.

The Government employees appointed on or after 1.1.2004 and governed by the New Pension System can withdraw 60% of their Pension Fund as a lumpsum when they retire and the balance 40% of their wealth is used to purchase an annuity scheme from a life insurance company of their choice, which will pay him/her a monthly pension for the rest of his life.

In case the employees leave the New Pension Scheme prior to age 60, the mandatory anuitization would be 80% of the pension wealth. 

The monthly annuity under the New Pension Scheme is only a replacement of pension on retirement and family pension on death after retirement.

The benefits of Death-cum-Retirement Gratuity (DCRG) and pension/family pension have been provisionally allowed, vide Department of Pension & Pensioners` Welfare OM No. 38/41/06-P&PW(A) dated 5.5.2009, in respect of the Central Government servants covered by the New Pension Scheme in cases where a Government Servant is retired on invalidation/disability and in the case of death of a Government servant in service, on the same rates as are applicable under the old pension scheme, i.e. CCS (Pension) Rules, 1972. 

The details of DCRG payable to employees of Central Government under NPS are as under: 

(i) The retirement gratuity is payable to the retiring Government servant. A minimum of 5 years qualifying service and eligibility to receive service gratuity/ pension is essential to get this one time lump sum benefit. Retirement gratuity is calculated @ l/4th of a month`s Basic Pay plus Dearness Allowance drawn before retirement for each completed six monthly period of qualifying service. The maximum retirement gratuity payable is 16 XA times the Basic Pay, subject to a maximum of Rs. 10 lakhs. 

(ii) If the Government Servant dies while in service, the death gratuity shall be paid to his family at the rates furnished in the table below:

S.No.
Length of Qualifying Service
Rate of Death Gratuity
1.
Less than one year
2 times of emoluments
2.
One year or more but less than 5 years
6 times of emoluments
3.
5 years or more but less than 20 years
12 times of emoluments
4.
20 years or more
Half of emoluments for every completed six monthly period of qualifying service subject to a maximum of 33 times of emoluments.


Maximum amount of Death Gratuity admissible is Rs. 10 lakhs w.e.f. 1.1.2006.