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NPS 3 4

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42 views2 pages

NPS 3 4

K

Uploaded by

mypersonal198792
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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declared before 01.01.

2004 against vacancies occurring on or before


31.12.2003, the candidates declared successful for recruitment shall be
eligible for coverage under the Central Civil Services (Pension) Rules, 1972.
Accordingly, such Government servants who were declared successful for
recruitment in the results declared on or before 31.12.2003 against
vacancies occurring before 01.01.2004 and covered under the National
Pension System on joining service on or after 01.01.2004, may be given a
one-time option to be covered under the Central Civil Services (Pension)
Rules, 1972.

• CCS (Implementation of National Pension System ) Rules, 2021 were


notified on 30.03.2021 for regulating service related matters for Central
Government employees covered under NPS.

(B) Initiatives by Department of Financial Services

• National Pension System (NPS) was introduced for Central Government


employees vide Ministry of Finance (Department of Economic Affairs)
Notification No. 5/7/2003-ECB & PR dated 22nd December, 2003. NPS is
now regulated under PFRDA Act, 2013 and regulation framed thereunder
by Department of Financial Services and PFRDA.

• Under the NPS, every Government servant is registered and allotted a


Permanent Retirement Account Number (PRAN). Before 1.4.2019, a
Government employee had to mandatorily contribute 10% of pay and
Dearness Allowance (DA) and an equal amount of 10% was contributed by
the Government to the employee’s pension fund.

• The contribution made by the employees and contribution from the


Government were invested by Pension Fund Managers in accordance with
the investment pattern prescribed by the PFRDA for Central Government
employees. There were three PSU Pension Fund Managers for Government
employees. Government employees had no choice for Pension Fund
Managers or investment pattern.

• On exit from NPS on superannuation, an individual is mandatorily required


to invest at least 40% of the accumulated pension corpus in Tier-I to
purchase an annuity from an Annuity Service Provider an Insurance
Regulatory and Development Authority (IRDA) regulated Insurance
Company registered with PFRDA and a maximum of 60% of the
accumulated corpus in the Tier –I account is given to the individual in lump-
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sum. If the Government servant exits from NPS before superannuation (i.e.
before 60 years of age), he/ she has to invest at least 80% of the
accumulated corpus to purchase an annuity and the remaining 20% can be
withdrawn as lump sum.

• Department of Financial Services notification dated 31.01.2019 – In


implementation of the recommendations of the committee constituted for
suggesting measures for streamlining implementation of NPS, Department
of Financial Services vide their notification dated 31.01.2019 extended
following benefits to Government employees covered under NPS:

(i) Employee contribution 10% of the salary and DA with matching


contribution @ 14% by the Government w.e.f. 01.04.2019.

(ii) Investment of NPS wealth upto 95% in infrastructure/Debt funds


and 5-15% in equity for Government employees. Life Cycle based
funds viz. LC-50 and LC-25 also available w.e.f. 01.04.2019.

(iii) Option for investment choices and Pension Fund made available to
Government servants w.e.f. 01.04.2019.

(iv) Investment in NPS Tier II has been brought under Section 80 C for
tax exemption w.e.f. 01.04.2019.

(C) Initiatives by Department of Personal and Training

• DOPT OM No. No. 28020/1/2010-Estt.(C) dated 17/08/2016 –


Department of Personal and Training have issued consolidated guidelines
on technical resignation and lien for Government employees covered under
NPS. Instruction contained in the OM are related to carry forward of leave
and LTC, Pay Protection, seniority, retention of Lien, Joining Time,
Travelling Allowance, transfer of service book etc. on mobility to other
organization after technical resignation from previous organization.

• DOPT OM 28035/2/2014-Estt.(A) dated 10/06/2019 - Instructions were


issued by Department of Personal and Training on withdrawal of
resignation of Central Government servants appointed after 31.12.2003
covered under the National Pension System (NPS).

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