New pension Scheme for Bank Employees,Central Government employees,State Government employees

Document Sample
New pension Scheme for Bank Employees,Central Government employees,State Government employees Powered By Docstoc

     DDO Training

                    Tamojyoti Bose
Salient Features:

   Two Tier I & Tier II
   Tier I Mandatory for regular State Government
    Servant joining on or after 01/02/2005
   10% deduction on Basic Pay, DA & NPA from
    monthly pay bill following the month of joining
   Equal and matching share paid by the Govt
   Tier I Non withdrawable till 60 years of age
   Investment up to 1 Lakh in Tier I account is
    exempted u/s 80C of IT Act
Registration Procedure:

   Submission of Annexure S1: Application for
    Generation of PPAN and PRAN
   PPAN unique 16 digit number issued by
    concerned Treasury after joining
   PRAN unique 12 digit number issued by NSDL
   Both PPAN and PRAN are unique and should
    not be issued twice
   PRAN Kits are issued by NSDL containing
    PRAN Card, I-PIN & T-PIN for accessing
    Statement from
Maintenance of PPAN& PRAN:
   PPAN should be quoted in the schedule of NPS
    to be submitted along with monthly paybill at
   PPAN & PRAN should be recorded in Service
   PPAN & PRAN should be quoted in LPC on
    Transfer and to be submitted in treasury for
    Treasury & DDO shifting in CTMIS
   PPAN & PRAN Register to be recorded at office
   Monthly Contribution Register to be recorded at
Know PPAN:


First 4 Digits : Year of Joining Govt Service (2011)
Next 2 Digits : Treasury Code(18)
Next 2 Digits : Ministry Code(50)
Next 3 Digits : Department Code(004)
Last 5 Digits : Running Serial Number(00087)
Components of NPS

   PFRDA(Pension Fund Regulatory Development
   NSDL (National Security Depository Limited)
    Central record keeping Agency
   Trustee Bank: Bank of India
   PFM (Pension Fund Manager) SBI, UTI, LIC for
   Custodian (Stock Holding Corporation India Ltd)
   ASP(Annuity Service Provider)
       Nodal Office            Regulator             Trustee Bank

Subscribers           Central Recordkeeping Agency

                      Annuity Service Providers
                                                     Pension Fund Managers

Deduction to Investment:

   Monthly deductions collected centrally from
    CTMIS and the Govt share is added
   Total contribution PRAN wise is uploaded in
    CRA system
   Money is transferred to trustee bank
   Individual accounts gets credited with the
    investment in 3 PFM in allocated proportion
   SBI: 35%, LIC: 34% and UTI: 31%
Information (Blue line) & Fund ( Green dotted line) Flow Chart

   Directorate of
   Treasuries &
     Accounts                                                                                NPS TRUST

     District                                                      Trustee Bank                          Custodian

     Drawing &                                                            NAV


                                                                 Annuity Service Providers


   At 60 years maximum 60% can be withdrawn in
    lump sum and 40 % to be invested through ASP
    for monthly pension & family pension
   Incase of exit before 60 years maximum 20%
    can be withdrawn and 80% to be invested
   Death cases are still to be considered
Pattern of Investment

Each PFM would invest the fund in proportion of
 85% in fixed income instruments & 15% in
 equity and equity related instruments
Process Flow
Employees under NPS

   No GPF
   No Gratuity
   No advance in NPS
Tier II

Pre requisites:
1. Already in Tier I
2. IRA Compliant subscriber with PRAN Card

1. Voluntary Savings
2. Free to withdraw at their will
3. No matching contribution
 Investment Scheme:

Asset class E (equity market instruments) –
 The investment in this asset class would be
 subject to a cap of 50%. This asset class will
 be invested in index funds that replicate the
 portfolio of a particular index such as BSE
 Sensitive index and NSE Nifty 50 index.
 These schemes invest in securities in the
 same weightage as comprised in an index.
Asset class G (Government Securities) – This
 asset class will be invested in central
 government bonds and state government
Scheme preference choice

The NPS offers two approaches to invest
 subscriber’s money:
Active choice - Individual Funds (Asset class E,
 Asset Class C, and Asset Class G )
Auto choice - Lifecycle Fund
Important Links

Shared By:
Description: Details about new Contributory pension scheme