New pension Scheme for Bank Employees,Central Government employees,State Government employees by krishna53

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     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

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