New Pension Scheme in Ordnance Factories: FAQ
OFFICE OF THE PRINCIPAL CONTROLLER OF ACCOUNTS(FYS)
10-A, S K BOSE ROAD. KOLKATA – 700001
NPS Section
Questionnaire regarding New Pension Scheme :-1.What is New Pension Scheme ?A
new defined contribution pension system in place of existing defined
benefit system, applicable for fresh entrants to Central Government
Service from 01-01-2004.
2. When it is started & for whom ?The system is mandatory for all new recruits to the Central Government Service from 01-01-2004 except the Armed Forces.
3.What is the quantum of the Contribution ?The
monthly contribution to be deducted amounts to 10% of the Basic Pay,
Grade Pay and DA to be paid by the employee & matched by the Central
Government.
4.What will be the amount of Government Contribution?It is equal to the individual’s subscription.
5.Is there any maximum limit of the subscription for an individual?The maximum limit is 10%.
6.When does the NPS subscription start?Recoveries
towards Tier-I contribution start from the salary of the month
following the month in which the Government Servant has joined the
service. Therefore, no recovery is to be effected for the month of
joining.
7.Whether GPF will be available to the subscribers of the NPS ?The
existing provisions of defined benefit pension & GPF would not be
available to the new recruits in the Central Government service covered
under NPS.
8.How many Tiers are there in the NPS ?There
are two Tiers in the NPS. Tier-I is compulsory & Tier-II is
voluntary. Tier-II is a withdrawable account at subscriber’s option. The
employee would be free to withdraw part or all of the Tier-II of his
money any time. Government will not make any contribution to Tier-II
account.
9.When can the subscriber of NPS exit from the system ?Individual can exit at the date of Superannuation i.e. at the age of 60 years.
10.What amount will be paid to the subscriber of the NPS at the time of retirement?At
exit, the individual would be mandatorily required to invest 40% of the
pension wealth to purchase an annuity and balance pension wealth will
be paid to him. Individual would have the flexibility to leave the
pension system prior to age 60. However, in this case, the mandatory
annuitization would be 80% of the pension wealth.
11.What is the Architecture of the New Pension Scheme ?In
order to implement the scheme there is a Central Record Keeping Agency
(National Securities Depository Limited) & several Pension Fund
Managers. At this stage there are three PFMs viz. SBI Pension Funds
Pvt.Ltd., UTI Retirement Solutions Ltd. & LIC Pension Fund Ltd.
An independent Pension Fund Regulatory & Development Authority (PFRDA) is to regulate and develop the pension market.
12.How & when an employee can contribute to Tier-II of the Scheme ?An
individual can open a Tier-II account with a Nationalized Bank and the
contribution will be deposited to the Bank by the subscriber concerned.
As Government will not make any contribution to Tier-II account no
recoveries will be made from the salaries of the employees on this
account.
13.How an employee be a member of the NPS ?Immediately
on joining Government service, the Government servant will be required
to provide particulars such as his name, designation, scale of pay, date
of birth etc. in the prescribed form viz. S-I form prescribed by the
NSDL, Mumbai, and submitted to his DDO. The S-I form shall be submitted
by the DDO to his Pay & Accounts Officer. The PAO will forward the
S-I form to the NSDL, Mumbai. On receipt of the form, NSDL will allot 12
digit PRAN (Permanent Retirement Account Number) to the subscribers and
a PRAN kit will also be forwarded to the subscribers by the NSDL.
14.How will the subscription recovered from the subscribers be remitted to the concerned authorities ?The
subscription of the NPS subscribers will be recovered from his regular
pay by the PAO concerned. The PAO will upload the NPS data to the NPSCAN
of NSDL & a cheque of the same amount will be remitted to the
Trustee Bank appointed by the PFRDA viz. Bank of India after the data
has been uploaded to the NPSCAN.
15.What is the investment plan of the NPS ?The
contribution towards pension will be invested in the default Schemes
termed as ‘Scheme I’ of various Pension Fund Managers (SBI Pension Funds
Pvt. Ltd., UTI Retirement Solutions Ltd. & LIC Pension Fund Ltd.)
presently in the proportion of 33%, 32% & 35%, respectively. Each
PFM will invest 85% of the contributions received by it in fixed income
instruments and 15% in equity & equity related instruments.
16.Whether the individual is entitled for leave encashment after retirement ?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 Employees who join the Government Service
on or after 01-01-2004. Therefore, the benefit of encashment of leave
salary payable to the Government Employees/ to their families on account
of retirement/death will be admissible.
17.What happens if an employee gets transferred during the month ? Which office will make deduction of contributions ?As
in the case of other recoveries, the recovery of contributions towards
NPS for the full month (both individual & Government) will be made
by the office who will draw salary for the maximum period.
18.Who will pay additional relief on death/disability of Government Servants covered by NPS ?Additional
relief on death/disability of Defence Civilians Personnel covered by
the New Defined Contribution System (NPS) will be dealt with by PCDA (P)
Allahabad.
19.What is the procedure for recovery of NPS contribution in the case of EOL/HPL ?The
subscription of the employee and the Government would be restricted
proportionately to the leave salary in case of HPL cases.
In case
of EOL since no salary is drawn during this period, no contribution
either from employee or from Government would be payable.
20.What is the procedure for recovery of NPS contribution in the case of Suspension cases?Every subscriber shall subscribe monthly to the NPS when on duty or Foreign Service but not during a period of Suspension.
On
exoneration or otherwise, the amount of subscription shall be the
emoluments to which he was entitled on the first day after his return to
duty.
If a subscriber elect to pay arrears of subscriptions in
respect of a period of suspension, the emoluments or portion of
emoluments which may be allowed for that period on re-instatement, shall
deemed to be emoluments drawn on duty.
21.What is the Time Line of regular upload and Fund Transfer ?The
responsibility for timely remittance to the Trustee Bank is that of the
PAO in respect of all the subscribers under his domain. After pre-audit
of pay bill the PAO should upload the subscriber contribution details
on NPSCAN and obtain the transaction ID by the 25th of each month.
If
the remittance is through RTGS/NEFT then it may be ensured that the NPS
contributions (Govt. & Employees) should be credited to the account
of the Trustee Bank by the PAO on the last working day of each month
for that salary month. If the remittance is through a cheque payable to
the Trustee Bank, then the same should be delivered to the local branch
of the Trustee Bank by the PAO by the 26th of each month marked NPB for
the last working day of the month.
Source :
http://pcafys.nic.in/
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http://pcafys.nic.in/pages/display/146-nps-helpdesk]
