Category: NPS

PFRDA Circular regarding enhanced Govt Contribution from 10% to 14% under NPS i.r.o. CABs

PFRDA Circular regarding enhanced Govt Contribution from 10% to 14% under NPS i.r.o. CABs




PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area,
Katwaria Sarai, New Delhi-110016

PFRDA/17/07/11/0002/2019-SUP/CG
07.06.2019
To,

All Principal Accounting Officers of Central Autonomous Bodies

Sir/ Madam,

Subject: Necessary instructions for all CABs (Central Autonomous Bodies) concerned with reference to gazette notification F.No.1/3/2016-PR dated 31/01/2019 issued by Dept of Financial Services (DFS), Ministry of Finance containing recent announcements under NPS- reg.
This is with reference to the gazette notification F.No.1/3/2016-PR dated 31/01/2019 issued by Dept of Financial Services (DFS), Ministry of Finance (copy enclosed).

Vide the aforementioned notification, certain changes under NPS have been announced by Central Government including enhanced contribution by the Central Government to its employees covered under NPS from the existing 10% to 14% (to Tier-I account). The changes under said notification are applicable w.e.f. 01-04-2019 for Central Government employees. However, the circular is silent on the its applicability to the employees of the CABs covered under NPS.

In view of the above, PFRDA has requested the Department of Expenditure to clarify whether the above-mentioned changes/ modifications under NPS would be applicable to employees of Central Autonomous Bodies (CABs) covered under NPS.

In the interim, PFRDA has been approached by various CABs who have individually obtained their internal approvals for enhancing the employer contribution from 10% to 14% and hence, have sought PFRDA’s approval for uploading the same through the existing CRA functionality.

In light of the above and till the time clarification emerges on the matter of applicability of notification dated 31.01.2019 on CABs , it has been decided by the competent authority that the CABs who have obtained such internal approvals, should obtain a separate and express approval/concurrence for the applicability of the said provisions of the notification dated 31.01.19 on their employees from Department of Expenditure (DOE), Ministry of Finance.
Consequent upon receipt of such approval from the DOE, Ministry of Finance, a copy of the referred approval may be forwarded to the CRA, for necessary action at the CRA’s end.

Yours Sincerely,

(Sumeet Kaur Kapoor)

Chief General Manager


Source: NPSTrust.Org.in[https://ift.tt/2XzXbHT]

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Additional benefit on death/disability of Government servant covered by NPS

Provisional family pension on death of NPS covered Govt Employees prior to allotment of PRAN Card: Clarification of PFRDA & DoP&PW by Railway Board

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)

No. D-43/4/2018-F(E)III

New Delhi, dated: 26.02.2019.

The General Managers/Principal Financial Advisors,
All Zonal Railways/Production Units.

Sub: Additional benefit on death/disability of Government servant covered by NPS – reg.

Attention is invited to Board’s letter No. 2008/AC-II/21/19 dated 29.05.2009 on the above subject vide which instructions were issued providing for additional relief on death/disability of Government servants covered by New Defined Contribution Pension System (NPS).

In the wake of the above instructions, some of the Zonal Railways have raised the issue of admissibility of provisional family pension to the family members of the deceased railway servant who were governed by National Pension System (NPS) but died prior to allotment of PRAN Card and starting of the deductions towards NPS.

The above issue has been examined in consultation with Pension Fund Regulatory and Development Authority (PFRDA) and the Department of Pension & Pensioners’ Welfare (DOP&PW). It is clarified that all the railway servants appointed on or after 01.01.2004 are to be covered by the National Pension System (NPS). Therefore, the provisional benefits granted vide Board’s letter dated 29.05.2009 to all NPS employees in case of death in service/disability will be admissible to the family of the deceased subscribers/subscribers on fulfillment of the conditions specified therein irrespective of the fact that PRAN Card was not allotted at the time of death/disability or the deduction towards NPS had not started. However, while giving the provisional benefits instructions issued vide Board’s letter No. 2012/ F(E)III/1 (1)/4 dated 08.09.2014 may also be kept in view. 
sd/-
(Jitendra Kumar)
Deputy Director, Finance (Estt.) I,
Railway Board.
Ph.No.23304528.

Source: Indian railways

from Blogger http://www.systempost.in/2019/03/additional-benefit-on-deathdisability.html

Family Pension to family to missing employees covered under NPS: CPAO Order dated 13.02.2019

Family Pension to family to missing employees covered under NPS: CPAO Order dated 13.02.2019

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
3/5 TRIKOOT-II, BHIKAJI CAMA PLACE,
NEW DELHI-110066

CPAO/IT & Tech/NPS Procedure/22(Vol-II)/2018-19/2)

13.02.2019


Office Memorandum



Sub:- Extension of provisions of OM No.38/41/06-P&PW (A), dated 05.05.2009 for family pension to family to missing employees covered under NPS.

Attention is invited to Deptt. of Pensions & Pensioners Welfare OM No.1/24/2018-P&PW (E) dated 01.01.2019 (copy enclosed) wherein it is mentioned that the department is in the process of framing separate service rules for regulating the pensionary benefits. The question of extension of pensionary benefits to the families of missing NPS employees will be considered based on the NPS rules being finalized by DP&PW. This is for your kind information.


Encl:-As above

Sd/-
(Md. Shahid Kamal Ansari)
(Asstt. Controller of Accounts)

To,
1. Pr. CCAs/CCAs/CAs/AGs/Administrators of UTs.

Copy to:-
i) Sr.PS to CGA, O/o the CGA, Mahalekha Niyantrak Bhawan, E-Block, General Pool Office (GPO) Complex, INA, New Delhi.
ii) PS to Addl. CGA, Mahalekha Niyantrak Bhawan, E-Block, General Pool Office (GPO) Complex, INA, New Delhi.
iii) PS to CC (P), CPAO, New Delhi

iv) The Director, DP&PW, Lok Nayak Bhawan, Khan Market, New Delhi – 110003.
v) The Dy. CGA(TA), Mahalekha Niyantrak Bhawan,E-Block, GPO Complex, INA, New Delhi-110023
vi) Sr. TD(NIC), CPAO, New Delhi
vii) Sr. AOs (CDN, NPS & IAW )

doppw-om-1-24-2018-ppw-e-dated-01-01-2019



Source: Click here to view/download the PDF
https://cpao.nic.in/pdf/CPAO_Tech_NPS_2018-19_215.pdf

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NPS for Central Government Employees – Contribution by Govt increased from 10% to 14% – Gazette Notification issued by Ministry of Finance

MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION
New Delhi, the 31st January, 2019
F. No. 1/3/2016-PR. – In partial modification of para 1(i) of Ministry of Finance’s Gazette Notification No. 5/7/2003-ECB-PR dated 22nd December, 2003, based on the Government’s decision on 6th December, 2018 on the recommendations of a Committee set up to suggest measures for streamlining the implementation of National Pension System (NPS), the Central Government makes the following amendments in the said notification, namely :
(1) In para 1(i) of the said notification, for the words “The monthly contribution would be 10 percent of the salary and DA to be paid by the employee and matched by the Central Government”, the words “The monthly contribution would be 10 percent of the Basic Pay plus Dearness Allowance (DA) to be paid by the employee and 14 percent of the Basic Pay plus DA by the Central Government” shall be substituted.
(2) The following provisions shall be inserted after para 1(v) of the said notification, namely:
CHOICE OF PENSION FUND AND INVESTMENT PATTERN IN TIER-I OF NPS AS UNDER:
(vi) Choice of Pension Fund: As in the case of subscribers in the private sector, the Government subscribers may also be allowed to choose any one of the pension funds including Private sector pension funds. They could change their option once in a year. However, the current provision of combination of the Public-Sector Pension Funds will be available as the default option for both existing as well as new Government subscribers.
(vii) Choice of Investment pattern: The following options for investment choices may be offered to Government employees:
(a) The existing scheme in which funds are allocated by the PFRDA among the three Public Sector Undertaking fund managers based on their past performance in accordance with the guidelines of PFRDA for Government employees may continue as default scheme for both existing and new subscribers.
(b) Government employees who prefer a fixed return with minimum amount of risk may be given an option to invest 100% of the funds in Government securities (Scheme G).
(c) Government employees who prefer higher returns may be given the options of the following two Life Cycle based schemes.
(A) Conservative Life Cycle Fund with maximum exposure to equity capped at 25% – LC-25.
(B) Moderate Life Cycle Fund with maximum exposure to equity capped at 50% – LC-50.
(viii) Implementation of choices to the legacy corpus: Transfer of a huge legacy corpus of more than Rs. 1 lakh crore in respect of the Government sector subscribers from the existing Pension Fund Managers is likely to impact the market. It may be practically difficult for the PFRDA to allow Government subscribers to change the Pension Funds or investment pattern in respect of the accumulated corpus, in one go. Therefore, for the present, change in the Pension Funds or investment pattern may be allowed in respect of incremental flows only.
(ix) Transfer of legacy corpus in a reasonable time frame: PFRDA may draw up a scheme for transfer of accumulated corpus as per new choices of Government subscribers in a reasonable time frame of say five years. Once PFRDA draws up this scheme, change in the Pension Funds or investment pattern may be allowed in respect of the accumulated corpus in accordance with that scheme.
COMPENSATION FOR NON-DEPOSIT OR DELAYED DEPOSIT OF CONTRIBUTIONS DURING 2004-2012:
(x) In all cases, where the NPS contributions were deducted from the salary of the Government employee but the amount was not remitted to CRA system or was remitted late, the amount may be credited to the NPS account of the employee along with interest for the period from the date on which the deductions were made till the date the amount was credited to the NPS account of the employee, as per the rates applicable to GPF from time to time, compounded annually.
(xi) In all cases where the NPS contributions were not deducted from the salary of the Government employee for any period during 2004-2012, the employee may be given an option to deposit the amount of employee contribution now. In case he opts to deposit the contributions now, the amount may be deposited in one lump sum or in monthly installments. The amount of installment may be deducted from the salary of the Government employee and deposited in his NPS account. The same may qualify for tax concessions under the Income Tax Act as applicable to the mandatory contributions of the employee.
(xii) In all cases where the Government contributions were not remitted to CRA system or were remitted late (irrespective whether the employee contributions were deducted or not), the amount of Government contributions may be credited to the NPS account of the employee along with interest for the period from the date on which the Government contributions were due till the date the amount is actually credited to the NPS account of the employee, as per the rates applicable to GPF from time to time. Instructions to this effect may be issued by the Department of Expenditure/ Controller General of Accounts. All such cases of delay may be resolved within a period of three months.
2. The above provisions shall come into force with effect from 1st April, 2019.
MADNESH KUMAR MISHRA, Jt. Secy

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