National Pension System(NPS)
NPS
• Government of India has introduced a new
Defined Contribution Pension Scheme replacing
the existing system of Define...
NPS
• All PCsDA/CsDA/PC of A (Fys)/CFA (Fys)
functions as Pr. AO under the New Pension
System
• Area Accounts Offices, Bra...
Functions of the PAO
– Consolidate DDO registration form and forward it to CRA
for registration.
– Facilitate registration...
– PAO will update through NPSCAN, the Switch
requests, New Scheme Preference requests,
Withdrawal Requests, the request fo...
Preparation of SCF (Subscriber’s Contribution File)
• Under the existing system the monthly contribution details
have to b...
Accounting of NPS
• The recovery made on account of individual
contribution and equal matching Govt.
contributions will be...
Registration of New entrants to Central Govt. service
under MoD
• As per SOP for registration prepared by NSDL, the
DDOs h...
Refund under NPS
– Exit from NPS upon attaining the age of Normal superannuation: At
least 40% of the accumulated pension ...
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National pension system(NPS)

A Primer
Published on: Mar 3, 2016
Published in: Government & Nonprofit      
Source: www.slideshare.net


Transcripts - National pension system(NPS)

  • 1. National Pension System(NPS)
  • 2. NPS • Government of India has introduced a new Defined Contribution Pension Scheme replacing the existing system of Defined Pension System vide Government of India, Ministry of Finance Department of Economic Affairs Notification dated 22.12.2003. The New Pension Scheme (now known as National Pension System) came into operation with effect from 01.01.2004 and is applicable to all new entrants to Central Government service, except to Armed Forces, joining Government service on or after 01.01.2004.
  • 3. NPS • All PCsDA/CsDA/PC of A (Fys)/CFA (Fys) functions as Pr. AO under the New Pension System • Area Accounts Offices, Branch Accounts Offices, PAO (ORs), AO GEs/AAO GEs etc. which are pre-auditing/maintaining the pay bills of Defence Civilians/GREF personnel including pay bills of DAD employees will function as PAO.
  • 4. Functions of the PAO – Consolidate DDO registration form and forward it to CRA for registration. – Facilitate registration of subscribers by consolidating the application for allotment of PRAN received from the concerned DDO and forward it to the CRA-FC. – Upload subscriber Contribution File (SCF) to NPSCAN system. – PAO will deposit the contribution amount in the Trustee Bank as per the SCF uploaded in NPSCAN. This contribution amount will be invested in the various schemes of PFM, based on the scheme preference of subscribers for which SCF has been uploaded.
  • 5. – PAO will update through NPSCAN, the Switch requests, New Scheme Preference requests, Withdrawal Requests, the request for change in subscriber details received from subscribers. – PAO will raise grievance on behalf of DDO and the subscriber. – PAO will resolve the grievance raised against it by any entities in the CRA system.
  • 6. Preparation of SCF (Subscriber’s Contribution File) • Under the existing system the monthly contribution details have to be uploaded on the NSDL web site (NPSCAN) using the File Preparation Utility & File Validation Utility. The Subscriber’s Contribution File includes the following details. • PRAN (Permanent Retirement Account Number) • DDO ID • PAO ID • Contribution Details • Month and year of specific contribution record. The system would generate a Transaction ID and Contribution Submission Form. The PAO will have to deposit the contribution through NEFT/RTGS only along with contribution Submission Form to the Trustee Bank.
  • 7. Accounting of NPS • The recovery made on account of individual contribution and equal matching Govt. contributions will be compiled to relevant code heads as under:- • 00/016/04 (Government Servant Contribution under Tier-I) • 00/016/05 (Government Contribution under Tire-I)
  • 8. Registration of New entrants to Central Govt. service under MoD • As per SOP for registration prepared by NSDL, the DDOs have been entrusted with the responsibility of the registration of the subscribers (new entrants). Immediately on joining Govt. service the subscriber should fill the application (Form S1) for allotment of PRAN and submit it to DDO. DDO too should ensure that the duly filled applications are received from subscribers within seven days of joining and forwarded to the concerned PAO for onward transmission to CRA/CFA-FC for allotment of PRAN which is essential for transfer of subscribers’ data to NSDL and remittance of subscription amount to Trustee Bank by the PAO in the CRA system.
  • 9. Refund under NPS – Exit from NPS upon attaining the age of Normal superannuation: At least 40% of the accumulated pension wealth of the subscriber needs to be mandatorily utilized for purchase of an annuity providing or the monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber. – Exit from NPS before attaining the age of Normal superannuation: At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of an annuity providing for the monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber. – Upon Death: The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the subscriber. – In case of ‘technical resignation’ of NPS subscribers, no withdrawal may be permitted and the balance outstanding in their personal retirement account and along with PRAN may be carried forward, as the retirement account of NPS is portable amongst jobs.

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