NACIN_NPSClass.pptx
- 1. An Overview on National Pension System
- 2. This New Pension System now renamed as National Pension System (NPS) is implemented for the officials appointed in Govt. Service on or after 01/01/2004. There are two types of Pension in Govt. Service viz. Old (Defined) Pension System and National Pension System. National Pension System
- 3. Various Amendments in re-classifying the appointments after 01/01/2004, like labourers on contingent service as on 01/09/1993 and regularised on or after 01/01/2004 and appointment orders issued prior to 01/01/2004 and joined on or after 01/01/2004 will be treated as in Old Pension System. National Pension System
- 4. In Old (Defined) Pension System, the pension of the retiring Govt. servant is defined viz. 50% of the basic pay at the time of retirement will be granted as Pension. In National Pension System, the pension will be based on the total accumulated funds on the date of retirement and the same is calculated on the amounts contributed during the entire service by both Govt. employee, employer and the accumulated wealth. National Pension System
- 5. The important point to be noted is the enrolment as NPS subscriber after appointment into Govt. Service which should be done IMMEDIATELY by submitting the requisite form available in the link below and obtain the Permanent Retirement Account Number know as PRAN to PAO through his DDO alongwith supporting documents viz. copies of PAN, Aadhaar, Bank account details, etc. https://www.npscra.nsdl.co.in/download/government-sector/central- government/forms/CSRF_Subscriber_Registration_Form.pdf National Pension System
- 6. Alternatively, we can also generate Permanent Retirement Account Number (PRAN) for enrolment as NPS subscriber online through https://enps.nsdl.com/eNPS/NationalPensionSystem.html after appointment into Govt. Service, clearly mentioning the DDO Registration No. during registration. The following are the screens which will appear while doing online registration. National Pension System
- 7. National Pension System Press National Pension System s
- 8. National Pension System Press Registration s
- 12. In the above screen, complete the second tab first Acknowledgement ID Generation, which will generate the ID and further proceed to complete all tabs. In case you are required to stop at any point, this Ack. ID will be utilized to start the process from you have left as indicated below, selecting the Complete Pending Registration. National Pension System
- 13. After completing the process all the tab till Authorisation(6), PRAN will get generated. The physical PRAN kit will be delivered to PAO which has to be handed over to the DDO concerned. The DDO has to enter the PRAN in the employee profile in DDOMaker level of EIS and got it approved by of the DDOChecker. National Pension System
- 14. There are two Tiers viz. Tier-I and Tier-II. Tier-I for Central Govt./ State Govt. / Public Sector Bank/Companies consists of two parts of contributions, one Employee Contribution and other Govt. Contribution. In Tier-I account, Employee Contribution will be @ 10% of Basic Pay + Dearness Allowance and Govt. Contribution will be @ 14% of Basic Pay + Dearness Allowance. National Pension System
- 17. Joining NPS can be done any individual between the age of 18 and 70 can open an NPS Account. National Pension System
- 18. There are three difference sectors of PRAN Accounts viz. State Government, Central Government and Public Sectors. If a person is transferred or re-appointed between any of the three sectors, transfer of PRAN accounts may be done at DTO / AO / PAO level of the newly appointed sector. National Pension System
- 19. For instance, if a person is re-appointed from SBI bank to Central Government office, he or she has to give a subscriber shifting form available in the link below to PAO through his DDO alongwith relevant informations and supporting documents viz. copies of PAN and Aadhaar. https://www.npscra.nsdl.co.in/download/government- sector/central-government/forms/IntersectorShifting- Form.pdf National Pension System
- 20. On initial direct appointment to Central Government Office, the NPS subscription @ 10% of Basic Pay + DA has to be effected only from the first complete month, leaving the partial days of entry month. For instance, if a person is appointed on 02/02/2021, salary for the month of February 21 may be drawn and paid in full without NPS deduction. Full NPS subscription for the month of March 2021 may be effected. Simultaneously, for obtaining PRAN, application form may be submitted to PAO through DDO which normally takes 3 to 4 weeks. National Pension System
- 21. On receipt of the PRAN, a kit containing the PRAN card and other guidelines regarding your PRAN account will be forwarded to PAO from NSDL, which in turn will be handed over to the subscriber through DDO. Using the kit received, the subscriber can login into the website https://cra-nsdl.com and view the account details of PRAN generated. National Pension System
- 22. On an yearly basis, the subscriber may generate a Statement of Transaction (SOT) as on 31st March for watching the Fund Accumulated in his / her PRAN account. This subscription will be effected from time to time, whenever Pay & DA is paid to the Govt. servant, i.e. monthly Salary, DA arrears, Pay arrears on account of Promotion / MACP / Upgradation of Pay, etc. National Pension System
- 23. At present, withdrawal from NPS fund are done with the following Rules. The subscriber should have contributed to NPS account for a minimum period of 3 years. A total of three withdrawals is admissible during the entire service from the NPS subscriber’s account. National Pension System
- 24. At present, withdrawal from NPS fund are done with the following Rules. The eligibility amount each time should not exceed 25% of the balance at credit of the subscriber. Balance at credit is arrived only by taking into account the Employee Contribution part. National Pension System
- 25. Withdrawal is allowed only against the specified reasons as detailed below National Pension System
- 27. Considering a total balance at credit of Rs.750000/- which includes Employee Contribution of Rs.2,60,000/-, Employer/Govt. Contribution of Rs.3,90,000/- and accumulated wealth of Rs.1,00,000/- of an employee, the withdrawal will be calculated as 25% of Rs.2,60,000/- which works out to Rs.65,000/- only. National Pension System
- 29. Exit on Superannuation may be done on attaining the age of Superannuation or 60 years. On Regular Exit, if the total accumulated pension corpus in an NPS account is less than Five Lakhs, then the subscriber can opt for 100% lumpsum withdrawal and close the NPS account. National Pension System
- 30. Premature exit (exit before attaining the age of superannuation / attaining 60 years of age) from NPS account is admissible only after completion of three years. For premature exit, if the total corpus in an NPS account is less than 2.5 Lakh, the entire amount may be withdrawn and account may be closed. National Pension System
- 31. For premature exit, if the total accumulated amount in an NPS account is more than 2.5 Lakhs, then only 20% of the entire amount may be withdrawn and the remaining 80% of the amount should be utilized for purchase of Annuity. In case of Premature Exit, the subscriber still has a choice to continue his NPS account by converting into individual account. National Pension System
- 32. On Regular Exit, the subscriber has to utilize atleast 40% of the accumulated corpus fund to purchase an annuity that would provide a regular monthly pension and withdraw the balance corpus amount in lump sum. Upon DEATH of the subscriber – The entire accumulated pension corpus (100%) would be paid to the nominee / legal heir of the subscriber. National Pension System
- 33. Also, If a NPS subscriber wishes to continue his NPS Account, he can continue it till the age of 75, converting the account to individual account after the age of 60. National Pension System
- 34. Annuity Service Providers (ASP) are basically Insurance Regulatory and Development Authority (IRDA) regulated Insurance companies which are empanelled by PFRDA to provide Annuity services to NPS Subscribers. There are four schemes available with ASPs under NPS. National Pension System
- 35. Annuity for life : On death of the annuitant, payment of Annuity ceases. Annuity for life with return of purchase price on death : On death of the annuitant, payment of Annuity ceases and the purchase price is returned to the nominee . National Pension System
- 36. Annuity payable for life with 100% Annuity payable to spouse on death of annuitant : On death of the annuitant, Annuity is paid to the spouse during life time. If the spouse predeceases the annuitant, payment of Annuity will cease after the death of the annuitant. National Pension System
- 37. Annuity payable for life with 100% Annuity payable to spouse on death of annuitant with return on purchase of Annuity : On death of the annuitant, Annuity is paid to the spouse during life time and purchase price is returned to the nominee after the death of the spouse.. National Pension System
- 38. These are the list of some Annuity Service Providers (ASP) (Source : http://npstrust.org.in/annuity-service-providers) National Pension System
- 39. List of websites for your record and reference 1. https://enps.nsdl.com/eNPS/NationalPensionSystem.html (for eNPS PRAN Generation) 2. https://npscra.nsdl.co.in (for NPS related queries, forms and FAQs) 3. https://cra-nsdl.com/CRA/ (for login purposes) 4. http://npstrust.org.in/ (Pension Fund Regulatory Development Authority related information) 5. https://npscra.nsdl.co.in/all-citizens-faq.php (for NPS related queries FAQs) National Pension System
- 40. Thank you very much to one & ALL who attended the session and A special thanks to NACIN, Chennai for giving me this opportunity allowing me to throw light on the subject which I got some little exposure. Thank U Very Much R.Prasanna, AAO, Southern Rivers Division, Central Water Commission, Coimbatore CONCLUSION