 |
| New Pension Scheme |
NPS (NEW PENSION SCHEME)
-
It
is called Contributory pension system.
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Effective
from 01.01.2004 & onward recruited employees
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Employee
recruited as apprentice before 01.01.2004 and absorb after 01.01.2004
CONTRIBUTION OF &
PPAN/PRAN
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Contribution
deduction shall be effect from 1st of the following month of
recruitment. No deduction in recruitment month.
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Immediately
on joining service, bill preparing officer will prepare service sheet &
fill up PPAN / PRAN (Permanent Pension/Retirement Account Number) form (S1)
& submit to Associate Account for allotment of PPAN / PRAN number within
month time. PRAN allotting authority is PFRDA (The Pension Fund Regulatory and
Development Authority) / NSDL (National Securities Depository Limited).PRAN
(S1) form is to be attach with Service Sheet which Comprises nomination also.
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PFRDA
(The Pension Fund Regulatory and Development Authority) is responsible for
protecting interest of NPS subscribers.
PRAN
& PPAN
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PRAN
is unique number (12 digits) allotted to each employees remain same for change
of employment also.
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All
details of your contribution & govt. share & investment details, latest
balance etc can be seen on website with the help of PRAN (with I-Pin & Pass
word).
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16
digit PPAN is to be allotted for contribution of employee & government
share by associated account.
PPAN ALLOTMENT SYSTEM
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Bill
Unit will advise PRAN (12 digits number) / PPAN (16 digits number) to concern
employee first time.
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Allotment
of Permanent Pension Account Number to Railway Employee appointed as on
1.1.2004 & onward (16 digit number issued by Associated Account)
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From
left Right of PRAN/PPAN
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1St
to 4th digits - Calendar Year of allotment.
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05th
digit - Ministry code by CGA - 5 for Railway
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06th
to 08th digits - Zone / Pus code / existing Rly code
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9th
to 11th digits - Associate account code by FA&CAO
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12th
to 16th digits - Employee code starting from 00001
running from
January to December
January to December
NON – IRA COMPLAINT SUBSCRIBER
IRA COMPLAINT SUBSCRIBER
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Subscriber
who is not having any PRAN Card is termed as NON-IRA Complaint Subscriber.
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A
subscriber who has registered by duty filling up the Subscriber Registration
Form (S1) and whose address, Photograph and signature are maintained in Central Record keeping Agency (CRA) system is termed as IRA Complaint subscriber. These
subscribers have a PRAN Card issued by CRA.
HOW TO BECOME AN IRA COMPLAINT SUBSCRIBER
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If
you still not an IRA (Individual Retirement Account) Complaint subscriber,
please submit dully filled S1 form to your DDO.
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The
form will be forwarded to a CRA-Facilitation Canters after authorization by the
concerned PAO.PRAN will be generated and the PRAN card will be printed and
dispatched to the Concerned PAO within 20 days from the date of receipt of duly
filled registration form at the CRA – Facilitation Centre.
-
It
is expected in the next 15days the PAOs will ensure that the PRAN cards are
provided to the DDOs for onward distribution to the subscribers.
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Now
‘E-PRAN’ also available through nodal office web.
SMS AND E-MAIL ALERTS
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IRA
Complaint subscriber can register their mobile number and email id in CRA
system and avail the facility of SMS and E-Mail alert.
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Whenever
a contribution is credited in the NPS account SMS and email alerts are sent to
the subscriber.
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The
facility is available for both Tier-I and Tier-II account.
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Alerts
are corresponding to contribution in Tier-I help subscribers to keep a track of
monthly contribution.
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CRA
doesn’t charge anything for the SMS and E-Mail alert. This value added service
is absolutely free.
I-PIN TO IRA
COMPLAINT SUBSCRIBER
I-PIN can be used by them for the following.
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Access
the CRA system and check the account details like address, bank account details
and nomination details for both Tier-I and Tier-II.
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Subscribers
can generate statement of holding for both Tier-I and Tier-II which given them
the latest valuation of their total investment.
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Subscribers
can generate Statement of Transaction for the last three financial years
including the current financial year for both Tier-I and Tier-II accounts.
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Subscriber
can track the credit monthly contribution into their Tier-I account.
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Subscribers
can register a complaint is raised, system generates a token number which can
be used later on to track status of the complaint.
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For
IRA complaint subscribers, Annual Account Statements are sent directly to the
Subscriber’s registered address. Now Stopped.
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But
for non –IRA complaint subscribers, the
statement is sent to the Concerned to PAO.
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The
Annual Account Statement also contains the details all the changes such as
change in nomination etc., happened in the account during that period.
T-PIN TO IRA COMPLAINT SUBSCRIBER
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CRA
also issues T-PIN to all IRA complaint subscribers which can be used by them to
speak to out customer service executives at our Toll-free helpline 1800
222 080 for any
query or complaint. They can also use the same T-PIN to access Interactive
Voice Response (IVR) System and avail the services listed below.
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Change
of T-PIN.
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Check
holding details.
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Check
the status of any scheme preference or account details change request.
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Check
details last Contribution credit.
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Check
details of last withdrawal request (for Tier II only).
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Request
for Statement of transaction for last 3 financial years.
NPS ACCOUNTS
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As
a subscriber of NPS, you enjoy various facilities and rights including online
access to you account, annual statement of transaction, portability across jobs
and locations, platform to raise grievance etc.
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Under
NPS two types of accounts are available
(a)
Tier-I
account
(b)
Tier-II
account
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Tier-I
account for employees joined in service on or after January 1,2004.
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Tier-II
is voluntarily saving account from which subscriber can withdraw whenever
he/she wish.
DEDUCTION IN NPS
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Your monthly contribution towards pension is deducted from
your salary. Monthly deduction along with your employer’s contribution is being
invested in scheme of three PFMs as decided by PFRDA.
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System
is mandatory for all Govt. employees who join on after 01.01.2004.
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In
Tier-I, Govt. employee shall make compulsory Contribution @ 10% of salary
·
(Basic
pay) + DA & matching contribution @ 10% of salary (Investment) for other
than running & doctors.
·
(Basic
pay + 30% Running Allowance ) + DA & matching contribution will be made by
Govt(investment) for running staff.
·
(Basic
pay) + DA + NPA & matching contribution will be made by Govt(Investment)
for Doctors.(NPA=Non Practicing Allowance)
·
From
01.04.2004 to 31.12.2005 contribution : @ 10% of salary (Basic Pay) +DP+DA+NPA
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From
01.01.2006 to 31.12.2005: Basic Pay(Band Pay + Grade Pay) +DA+NPA.
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From
01.01.2016: Basic Pay in Matrix & Level +DA+NPA
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The
Contribution of employee + Employer equal Share deposited in Tier-I account.
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Subscriber
can contribute more than above i.e up to
50,000/- p.a
TAX
BENEFIT IN NPS
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Tax
benefit allowed on Tier-I only under Sec.80CC D(1) up to 10% of salary (Basic +
DA) which capped up to 1.5 lakhs per year but terminal benefits will be taxed
at applicable rate of that financial year.
-
Rs.50000/-
tax free under sec 80CCD(1B) for all CG Employees including old pension scheme
staff if invest in NPS(RBE-31/2016 dated 07.04.2016)
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Tier-II
is withdrawal account on option of Govt. employee & no any contribution in
this account from Govt. In Tier-II, Govt employee is free to withdraw part or
whole of the money any time. Tax benefit not allowed on Tier-II account.
CHOICE OF FUND MANAGERS
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NPS
Offers you a choice of six fund managers as well as two approaches to invest in
your account (*Defaults FMs for Govt Subs.)Scheme Preference:
-
NPS
allow you to choose from any one of the following six entities to manage your pension
fund:-
1.
ICICI
Prudential Pension Funds Management Company Ltd.
2.
IDFC
Pension Fund Management Company Limited.
3.
Kotak
Mahindra Pension Fund Limited.
4.
Reliance
Capital Pension Fund Limited.
5.
SBI
Pension Funds Private Limited. ***
6.
UTI
Retirement Solutions Limited. ***
7.
LIC
Pension Fund Limited. ***
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The
NPS offers you two approaches to invest in your account:-
a.
Active
choice – Individual Funds
b.
Auto
choice – Lifecycle Fund.
ACTIVE CHOICE – INDIVIDUAL FUNDS
System implementation will be done by
CRA (Central Record Keeping) & PFMs (Pension Fund Manager) & offer 3
categories of scheme through 03 PFMs to Govt. employees by default system under
Tier-I viz. option E (Equity), C
(Corporate Bonds) & G (Government Security) on the ratio of
investment fixed income instruments and some investment in equity.
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E-
“High return, medium risk” – investments in predominantly equity market
instruments.
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C
– “Medium return, medium risk” – investments in predominantly fixed income
bearing instruments.
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G
– “Low return, Low risk” – investments in purely fixed income instruments.
Government employees are not allowed
to option investment as on date.
Default system of investment
introduced by PFRDA for Govt. Employees.
G-45%, C-40%, & E-15% .i.e.85%
secure investment & 15% in equity
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An
independent Pension Fund Regulatory and Development Authority (PFRDA) will
regulate & develop the pension market.
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Max
investment in Equity increased 50 to 75 % in meeting of NSDL of 04.05.2018 for
public & remaining in C &G.
TABLE FOR LIFECYCLE FUND
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Neither
the Active Choice nor the Auto Choice provides assured returns.
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While
exercising an Active Choice, remember that your investment allocation is one of
the most important factors affecting the growth of your pension wealth. Please
refer to the offer document for details on the risk involved.
Age
|
Asset
Class - E
|
Asset
Class - C
|
Asset
Class - G
|
Age
|
Asset
Class - E
|
Asset
Class - C
|
Asset
Class -G
|
|
up to 35 years
|
50 %
|
30 %
|
20 %
|
46 years
|
28 %
|
19 %
|
53 %
|
|
36 years
|
48%
|
29%
|
23%
|
47 years
|
26 %
|
18 %
|
56 %
|
|
37 years
|
46 %
|
28 %
|
26 %
|
48 years
|
24 %
|
17 %
|
59 %
|
|
38 years
|
44 %
|
27 %
|
29 %
|
49 years
|
22 %
|
16 %
|
62 %
|
|
39 years
|
42 %
|
26 %
|
32 %
|
50 years
|
20 %
|
15 %
|
65 %
|
|
40 years
|
40 %
|
25 %
|
35 %
|
51 years
|
18 %
|
14 %
|
68 %
|
|
41 years
|
38 %
|
24 %
|
38 %
|
52 years
|
16 %
|
13 %
|
71 %
|
|
42 years
|
36 %
|
23 %
|
41 %
|
53 years
|
14 %
|
12 %
|
74 %
|
|
43 years
|
34 %
|
22 %
|
44 %
|
54 years
|
12 %
|
11 %
|
77 %
|
|
44 years
|
32 %
|
21 %
|
47 %
|
55 years & Above
|
10 %
|
10 %
|
80 %
|
|
45 years
|
30 %
|
20 %
|
50 %
|
TIER – II ACCOUNT
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Tier
II is a Pension Savings Account, with a facility for withdrawal to meet
financial contingencies.
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Interfacing
entity for Tier II account.
-
PFRDA
has appointed various banks and financial institutes as Point of Presence – POP
(similar to PAO for your Tier I account). The registered branches of the POP
are termed as Point of Presence Service Provider – POPSP (similar to a DDO for
your Tier-I account). The list of POPSPs their contact details are available in
CRA website www.npscra.nsdl.co.in
-
Once you
submit your Tier II activation request to a POP-SP, it becomes your associated
POP-SP. For any request related to Tier-II account, you need to contact your
associated POPSP. However, you can submit your request for contribution to any
POPSP any POP.
-
At present
there are more than 5000 POP-SPs located across the country.
-
Tier –II account
is voluntary saving facility wherein the withdrawal is as per subscriber’s
choice. Any government employee who is mandatorily covered under NPS can activate
the Tier II account submitting duly filled from UOS-S10 along
with the copy of PRAN Card and initial contribution of Rs.1000/- to any POP-SP.
-
Now open
through departmentally by applying concern associate accounts.
KEY
FEATURES OF TIER-II ACCOUNT
-
You can
enjoy unlimited number of withdrawals.
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Minimum contribution
at the time of opening Rs.1000/-.
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Minimum amount
contribution is Rs.250/- and minimum 04 contributions to be made in a financial
year.
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Minimum balance
of Rs.2000 at the end of financial year.
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Minimum number
of transaction in a year: 01
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Penalty of
Rs 100/- for non maintaining minimum balance.
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Separation nomination
details and scheme preference.
-
Fund can be
transferred from Tier-II to Tier-I but not reverse.
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Contribution
can be made through any POP/POP-SP & Rly.
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Your account
details can access through internet and telephone using the same I-PIN and
T-PIN received for Tier-I account.
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Consolidated
account statement for Tier-I and Tier-II.
-
No
additional CRA charges for annual account maintenance
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Bank details
will be mandatory for opening Tier-II.
-
Tier-I
account is required for opening Tier-II.
CHARGES
FOR TIER-II
Intermediary
|
Charge head
|
Charges (Rs.)
|
Mode of recovery
|
CRA
|
A/C Opening Charge & AMC
|
Nil For Rly
250 for Oth.
|
Through cancellation of units on a
quarterly basis.
|
Annual Maint
|
190
|
||
Charge Per transaction
|
4*
|
||
POP (Maximum Permissible Charge for each
Subscriber)
|
Charges for Tier II activation
|
100* + 0.25 % of contribution
|
To be collected upfront
|
POP (Maximum Permissible Charge for each
Subscriber)
|
Charge Per transaction
|
Min 20*
max
25000*
|
To be collected upfront
|
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