Showing posts with label New Pension Scheme. Show all posts
Showing posts with label New Pension Scheme. Show all posts

Remittance of NPS funds solely through electronic mode (NEFT/RTGS) from 01st April 2014

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
PFRDA/2014/01/CSG/1
Date: 09th January 2014
To,
All Central Government Ministries & State Governments
Dear Sir/Madam,
Remittance of NPS funds solely through electronic mode (NEFT/RTGS) from 01st April 2014
1. The Circulars no. PFRDA/2013/10/CRTB/1 dated 30th April 2013 and PFRDA/2013/12/CRTB/2 dated 31″ May 2013 may be referred.

2. It has been observed that the following problems are presently being faced on account of remittance of NPS contribution funds through physical instruments:
a.) Higher percentage of rejection of contributions/ funds return
b.) Delays due to cheque clearing activity
c.) incidences of cheque rejection due to financial/ technical reasons.

3. All the aforementioned issues affect the timely investments of the subscribers thus adversely impacting their pension corpus accumulation. To obviate the aforesaid concerns, and in compliance of CVC instructions issued vide Office Order No. 20/4/04 File No. 98/ORD/1 dated 06-04-2004 PFRDA has decided to discontinue the remittance of NPS contribution funds through physical instruments and to accept remittance solely through electronic mode from 01st April 2014.
 
4. Accordingly from 01st April 2014 onwards, all the nodal offices remitting NPS contributions have to mandatorily remit NPS Contributions through electronic mode i.e. NEFT/ RTGS only.

5. The overall procedure for remittance of funds to Axis Bank (Trustee Bank), matching & booking of SubscriberContribution Files (SCFs) and the receipt of funds from it shall remain unchanged.
6. This circular may be sent to all the nodal offices under your jurisdiction for necessary action/ compliance.
7. The contact details of NPS Cell at Axis Bank is as follows:
First Level of Contact:
S No.
Contact Person
Designation
Phone No.
1
Mr Abhishek Gautam
Senior Manager
022-24253678
2
Mr Dakshesh Barbhaya
Senior Manager
022 24253639
3
Mr Yash Mayekar
Senior Manager
022 24253628

Second Level of Contact:
S No.
Contact Person
Designation
Phone No.
1
Mr Debraj Saha
Assistant Vice President
011 43506532
2
Mr Piyush K Singh
Deputy Vice President
022 24253680
The Circular has also been placed on PFRDA website at http://www.pfrda.org.in
Yours faithfully,
sd/-
(Ashish Kumar)
General Manager
Source: https://www.npscra.nsdl.co.in/download/Remittance-Update.pdf


PFRDA Circular;Accounting Policy for Inflation Linked Bonds

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
 
CIRCULAR

File No.: PFRDA/2013/19/PFM/5

Date: 11th Dec. 2013


To,
 
All Pension Funds

Subject: Accounting Policy for Inflation Linked Bonds
 
   1. Inflation Indexed Bonds (IIB) 2013-14 issued by RBI has a fixed real coupon rate and a nominal principal value that is adjusted against inflation. Coupons will be paid on adjusted principal and on maturity, the adjusted principal or face value (whichever is higher) will be paid. For providing inflation protection, Final Wholesale Price Inflation (WPI) will be used with four months lag.

FAQ regarding New Pension Scheme in Ordnance Factories

OFFICE OF THE PRINCIPAL CONTROLLER OF ACCOUNTS(FYS)
10-A, S K BOSE ROAD. KOLKATA – 700001

NPS Section

Questionnaire regarding New Pension Scheme :-

1.What is New Pension Scheme ?

   A new defined contribution pension system in place of existing defined benefit system, applicable for fresh entrants to Central Government Service from 01-01-2004.

2. When it is started & for whom ?

   The system is mandatory for all new recruits to the Central Government Service from 01-01-2004 except the Armed Forces.

3.What is the quantum of the Contribution ?

   The monthly contribution to be deducted amounts to 10% of the Basic Pay, Grade Pay and DA to be paid by the employee & matched by the Central Government.

PENSION BILL OR PENSIONLESS BILL? - Confederation News.

   Finally the ruling Congress party and the main opposition Party BJP joined together and passed the  Pension Fund Regulatory and Development Authority (PFRDA) Bill in the Parliament. In the year 1982 on 17th December, the Constitution Bench of the Supreme Court consisting of Justice (s) Y. B. Chandrachud, V. D. Tulzapurkar, O. Chinnappa Reddy. D. A. Desai and Bahrul Islam delivered the historic judgment on pension in the D. S. Nakara case, which declared as follows:

   “(i) Pension is neither a bounty nor a matter of grace depending upon the sweet will of the employer and it is Fundamental right (ii) Pension is not an ex-gratia payment, but it is payment for past service rendered (iii) It is a social welfare measure rendering socio-economic justice to those who in the heyday of their life ceaselessly toiled for the employer on an assurance that in their old age they would not be left in lurch.”

   After 30 years, the bill passed by Parliament categorically proclaims that the Contributory Pension Scheme introduced w.e.f 01.01.2004 will not give any guarantee for a minimum pension of 50% of the pay drawn at the time of retirement of the employee. Nor does it provide for the protection of the family members in the form of family pension in the event of death. New pension is going to make the social security uncertain and dependent on market forces. Government compulsorily imposed the scheme on one section of the employees in a most discriminatory manner, inspite of the fact that such scheme had been a failure in many countries including Chile, U K and even in USA. In USA the entire pension wealth (fund) has been wiped out leaving no pension due to the economic recession and share market crash. In Argentine the contributory scheme which was introduced at the instance of IMF was replaced with the defined benefit pension scheme. In majority of the countries “pay as you go” is the system of pension.

Subscriber registration under NPS – NPS-Swavalamban

CIRCULAR

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDA/ 2013/15/POP/1

September 17, 2013

To,
All POP’s, Aggregators, CRA & other stakeholders

Dear Sir/ Madam,

Sub: Subscriber registration under NPS – NPS-Swavalamban

   Presently Swavalamban Scheme subscribers can be registered either through Aggregators or through Points of Presence (POPs). In order to streamline the system to cater to the Swavalamban scheme objectives, it has been decided that with effect from 01/10/2013, registration of NPS-Swavalamban subscribers would be allowed only through aggregators on the NPS-Lite platform. In effect, no new NPS- Swavalamban subscriber registration would be allowed through POP’s on the all citizen model (UOS) on or after 01/10/2013.

Lok Sabha Passes Pension Fund Regulatory and Development Authority(PFRDA) Bill, 2011 with official amendments;

   Lok Sabha Passes Pension Fund Regulatory and Development Authority Bill, 2011 with official amendments; Subscribers Seeking Minimum Assured Returns Allowed to OPT for Investing their Funds in such Scheme Providing Minimum Assured Returns

   The Pension Fund Regulatory and Development Authority Bill (PFRDA), 2011 was passed by the Lok Sabha today with official amendments. It was earlier introduced in Lok Sabha on the 24th March, 2011 to provide for a statutory regulatory body the Pension Fund Regulatory and Development Authority (PFRDA) under the provisions of the Bill. The legislation seeks to empower PFRDA to regulate the New Pension System (NPS).

   The PFRDA Bill, 2011 was referred to the Standing Committee on Finance on the 29th March, 2011 for examination and report thereon. The Standing Committee on Finance gave its Report on 30th August, 2011. Some of the key amendments incorporated in the Bill based on the recommendations of the Standing Committee on Finance are as follows:

Portability of PRAN – NPS Lite/Swavalamban to NPS – All Citizen Model and other sectors.

Pension Fund Regulatory and
Development Authority

CIRCULAR

PFRDA/2013/13 /PDEX/ 08 

              20th August’2013

Subject: Portability of PRAN – NPS Lite/Swavalamban to NPS – All Citizen Model and other sectors

   There were several requests from NPS Lite/Swavalamban subscribers seeking  porting of their PRANs from NPS Lite/Swavalamban to the All Citizen Model of NPS (UOS). PFRDA after examining the matter has approved the shifting/porting of  NPS/Lite/Swavalamban accounts to NPS-All Citizen model and other Sectors through an Inter platform shift process which is detailed as below:

   1. The subscriber has to submit the following documents to the new nodal office (POP/PAO/DDO etc) who in turn will process the application and forward the document to CRA.

   a. Duly filled in Inter platform shift (IPTR-1) form along with the duly filled in registration form of the sector to which he wishes to migrate.

Additional Relief on death/disability of Government Servants covered by the Defined Contribution Pension System (NPS).

1(7)1/DCPS(NPS)/2009/TA/295
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CONTROLLER GENERAL OF ACCOUNTS
7th FLOOR, LOK NAYAK BHAWAN
NEW DELHI

Corrigendum

Dated: 27/05/2013

Sub:- Additional Relief on death/disability of Government Servants covered by the Defined Contribution Pension System (NPS)

   Reference is invited to this office OM No.1(7)/DCPS (NPS)/2009/TA/221 dated 02.7.2009 on the above mentioned subject. The existing para No. 3(xix) of the above OM has been substituted by the following:-

   "(xix). The Pension Account holding bank will be responsible for obtaining periodical certificates such as Life Certificate, Re-employed Certificate etc. (as prescribed in CPAO’s Scheme for Payment of Pensions to Central Government Civil Pensioners through Authorised Banks and intimated electronically to CPAO on due dates. (Life certificate should be obtained by 1st November each year and intimation uploaded on CPAO’s website). Drawing of pensions/family pensions will be subject to the receipt of Life Certificate by CPAO".

Sd/-
(Chandan Mishra Dwivedi)
Dy. Controller General of Accounts

Source:http://cga.nic.in/forms/OrderList.aspx?Id=29

Gratuity Pay under New Pension System

Press Information Bureau
Government of India
Ministry of Finance

03-May-2013

   Gratuity Pay under New Pension System

   Death-cum-Retirement Gratuity is paid to Central Government employees under New  Pension System (NPS) as it is paid under the old pension scheme. The monthly annuity under the New Pension System (NPS) is only a replacement of pension on retirement and family pension of death after retirement.

   The benefits of Death cum Retirement Gratuity (DCRG) and pension/family pension have been provisionally allowed,  vide the Office Memorandum of Department of Pension and Pensioners’ Welfare No. 38/41/06-P & PW(A) dated 5.5.2009 in respect of Central Government servants covered under NPS in cases where a Government Servant is retired on invalidation/disability and in the case of death of a Government servant in service on the same rates as are applicable under the old pension scheme Central Civil Service (Pension) Rules, 1972.

   The retirement gratuity is payable to the retiring Government servant. A minimum of 5 years’ qualifying service and eligibility to receive service gratuity/pension is essential to get this one time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a month’s Basic Pay plus Dearness Allowance drawn before retirement for each completed six monthly period of qualifying service.

   The maximum retirement gratuity payable is 16½ times the Basic Pay, subject to a maximum of Rs. 10 lakh. If the Government Servant dies while in service, the death gratuity shall be paid to his family at rates furnished in the table below:

Sl. No

Length of Qualifying Service

Rate of Death Gratuity

1.

Less than one year

2 times of emoluments

2.

One year or more but less than 5 years

6 times of emoluments

3.

5 years or more but less than 20 years

12 times of emoluments

4.

20 years or more

Half of emoluments for every completed
six monthly period of qualifying service subject to a maximum of 33 times of emoluments.

   Maximum amount of Death Gratuity admissible is Rs, 10 lakh with effect from 1.1.2006.

   This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha on 03rd May.

PIB

 

Appointment of new Trustee Bank (TB) under National Pension System (NPS)-reg.

Circular

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDA/2013/10/CRTB/1

30th April, 2013

To
All Central Government Ministries & State Governments
All PrAOs / PAOs / DTAs / DTOs
All POPs / POP-SPs / Aggregators / Corporates
All PFMs / ASPs

Dear Sir/ Madam,

Subject: Appointment of new Trustee Bank (TB) under National Pension System (NPS)-reg.

   1. All the offices are hereby informed that Axis Bank has been appointed as a new Trustee Bank in place of Bank of India (the current Trustee Bank) for National Pension System (NPS) with effect from 1st July, 2013.

   2. Accordingly, all NPS related funds are to be remitted to the designated accounts of Axis Bank from 1st July, 2013. The Offices shall continue to remit funds to the designated NPS Trust accounts being maintained with the current Trustee Bank, i.e., Bank of India till 30th June, 2013.

   3. Kindly note that the overall procedure for remittance of funds to the Trustee Bank and Matching & Booking of Subscriber Contribution Files (SCF) as well as the receipt of funds from Trustee Bank shall remain unchanged.

   4. The Offices are requested to take note of the same. A detailed circular communicating the new NPS Trust Account numbers where the funds will have to be remitted from 1st July, 2013 and the name, contact numbers and email ids of the Axis Bank officials for any query/assistance will be communicated subsequently.

Yours faithfully

Sd/-
(Subroto Das)
Chief General Manager

Source:http://pfrda.org.in/writereaddata/linkimages/Appointment%20of%20TB7841226642.pdf

INVESTMENT GUIDELINES FOR PRIVATE SECTOR NPS.

INVESTMENT GUIDELINES FOR PRIVATE SECTOR NPS

1. Guidelines

1.1 The PF will manage the following separate schemes, each investing in a different asset class, being:

  1.1.1. Asset class E (equity market instruments) — (a)The investment by an NPS participant in this asset class would be subject to a cap of 50%. This asset class will be invested in shares of the companies which are listed in Bombay Stock Exchange or National Stock Exchange and on which derivatives are available or are part of BSE Sensex or Nifty Fifty Index. subject to restrictions outlined in Clause 2 below

   (b)The permitted cap, as mentioned above, is expected to be maintained at that level at all points in time. However, the amount of funds invested in that asset class can differ from the specified cap by no more than 5% for purposes of portfolio balancing.

   1.1.2 Asset class G (Government Securities) — This asset class will be invested in central government bonds and state government bonds subject to restrictions outlined in Clause 2 below.

   1.1.3 Asset class C (credit risk bearing fixed income instruments) — This asset class contains bonds issued by any entity other than Central and State Government. This asset class will be invested in Fixed deposits and credit rated debt securities. This includes rated bonds/securities of Public Financial Institutions and Public sector companies, rated municipal bodies/infrastructure bonds and bonds of all firms (including PSU/PSE), subject to restrictions outlined in Clause 2 below.

   1.1.4 Corporate CG – Presently applicable to only SBI Pension Funds Private Ltd, UTI Retirement Solutions Ltd & LIC Pension Fund Ltd. and replicates the scheme as applicable to Central Government employees and subject to instructions from PFRDA/NPS Trust in this regard from time to time.

   1.1.5 NPS Lite – Investment pattern similar to that prescribed by the Central Government for its own employees as amended from time to time (charges applicable as per Schedule VII).

   1.2 The PF must not leverage the portfolio. For the purpose of this Schedule, the PF shall be deemed to have leveraged the portfolio if it:

   1.2.1 enters into borrowings or other financial arrangements or creates or purports or attempts to create any security, charge, mortgage, pledge, lien or encumbrance of any kind whatsoever on the assets of the portfolio or any part thereof;

   1.2.2 undertakes any transaction the result of which would overdraw the account maintained by the Custodian on behalf of the PF for the purpose of settling transactions;

   1.2.3 commits the Trustee to supplement the assets of the portfolio or the account maintained by the Custodian on behalf of the PF for the purpose of settling transactions without the prior written consent of the Trustee by a Proper Instruction, either by borrowing in the name of the PF or the Trustee or by committing the PF or the Trustee to a contract which may require the Trustee to supplement those assets; or

   1.2.4 allows market movement to result in a leveraged position.

2. Investment Universe

2.1 Asset class E (equity market instruments)

2.1.1 Authorised Investments

   Investment in shares of the companies which are listed in Bombay Stock Exchange or National Stock Exchange and on which derivatives are available or are part of BSE Sensex or Nifty Fifty Index.

2.1.2 Restrictions

   a. the assets are not to be encumbered.

   b. the PF shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relative securities and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction or engage in badla finance (except as permitted under the extant regulations, from time to time).

   c. the investment exposure in an industry sector (classification as per NIC classification) shall be restricted to 15% of all NPS schemes portfolio of each PFM .

   d. the investment in any equity stock of a sponsor group shall be restricted to 5% of the paid up equity capital of all the sponsor group companies or 5% of the AUM of the concerned NPS scheme (Tier I and ll taken together) , whichever is lower. The investment in equity stock of the investee company of sponsor group shall be restricted to 5% of the paid up equity capital of the concerned investee

   company of the sponsor group or 5% of the AUM of the concerned NPS scheme (Tier I and ll taken together) , whichever is lower

   e. the investment in any equity stock of a non-sponsor group shall be restricted to 10% of the paid up equity capital of the concerned group companies of a non- sponsor group or 10% of the AUM of the concerned NPS scheme (Tier I and II taken together) , whichever is lower. The investment in any equity stock of the concerned investee company of non-sponsor group shall be restricted to 10% of the paid up equity capital of the investee company of a non- sponsor group or 10% of the AUM of the concerned NPS schemes (Tier I and ll taken together) whichever is lower.

   f. investment in IP0s/FPOs is not allowed

   g. investment in unlisted equity shares or equity related instruments is not permitted except in derivatives for the purpose of hedging and portfolio balancing only in accordance with the guidelines issued by SEBI/RBI

   h. no loans for any purpose can be advanced by the PF.

   i. pending deployment of funds of a scheme in securities in terms of investment objectives of the scheme, funds may be invested in short-term deposits of schedule commercial banks or in call deposits or in short term money market instruments or other liquid instruments or liquid schemes of mutual funds not exceeding a limit of 10% of the scheme corpus on temporary basis only.

2.2 Asset class G (Government Securities)

2.2.1 Authorised Investments

   1. Government of India Bonds

   2. State Government Bonds restricted to 10% of the AUM of the Scheme and 5% to any individual state government

2.2.2 Restrictions

   a) the assets are not to be encumbered

   b) no loans for any purpose can be advanced by the PF.

   c) pending deployment of funds of a scheme in securities in terms of investment objectives of the scheme, funds may be invested in short-term deposits of schedule commercial banks or in call deposits or in short term money market instruments or other liquid instruments or liquid schemes of mutual funds not exceeding a limit of 10% of the scheme corpus on temporary basis only.

   2.3 Asset class C (credit risk bearing fixed income instruments)

 2.3.1 Authorised Investments

   (i) Fixed Deposits of not less than 365 days of scheduled commercial banks with following filters:

   a) Net worth of at least Rs.500 crores and a track record of profitability in the last three years.

   b) Capital adequacy ratio of not less than 9% in the last three years. Net NPA of under 5% as a percentage of net advances in the last year

   c) List to be reviewed half-yearly

   (ii) (a) Debt securities with maturity of not less than three years tenure issued by Bodies Corporate including scheduled commercial banks and public financial institutions [as defined in Section 4 (A) of the Companies Act]

   (b) Provided that at least 75% of the investment in this category is made in instruments having an investment grade rating from at least two credit rating agency. Apart from the ratings by agencies, PFM shall undertake their own due diligence for assessment of risks associated with the securities before investments

   (iii) Credit Rated Public Financial lnstitutions/PSU Bonds

   (iv)Credit Rated Municipal Bonds/Infrastructure Bonds/Infrastructure Development Funds.

Investment Restrictions

   1. The assets are not to be encumbered

   2. The investment exposure in an industry sector (classification as per NIC classification) shall be restricted to 15% of all NPS schemes portfolio of each PFM.

   3. The investment exposure in debt securities of a sponsor group shall be restricted to 5% of the net worth of all the sponsor group companies or 5% of the AUM of the concerned NPS scheme (Tier I and ll taken together), whichever is lower. The investment exposure in debt securities of the investee company of sponsor group shall be restricted to 5% of the net-worth of the concerned investee company of sponsor or 5% of the AUM of the concerned NPS scheme (Tier I and ll taken together), whichever is lower.

   4. The investment in debt securities of a non-sponsor group shall be restricted to 10% of the net worth of all companies of a non- sponsor group or 10% of the AUM of the concerned NPS scheme (Tier I and ll taken together), whichever is lower. The investment in debt securities of the investee company of non-sponsor group shall be restricted to 10% of the net worth of the concerned investee company of a non- sponsor group or 10% of the AUM of the concerned NPS scheme (Tier I and ll taken together), whichever is lower.

   5. Investment decisions should be taken by PF in the best interest of subscribers with emphasis on safety, prudence, optimum return, sound commercial judgement and avoiding funds to remain idle.

   6. Any moneys received on the maturity of earlier investments reduced by obligatory outgoings shall be invested in accordance with the investment pattern.

   7. In case of any instruments mentioned above, the PF should take all steps to ensure that the interests of the subscribers are not compromised towards this and amongst other steps the investment should be under continuous monitoring and be reviewed from time to time to detect any signal of impairment /downgrade in rating of the security and the PF should take immediate steps to ensure that the interest of the subscriber are protected.

   8. The investment should be made by the PF through a Stock Exchange, or directly with other counterparties in respect of Government Securities and other debt instruments at the best possible rate available at the material time of transactions. The PF shall not purchase or sell securities through any broker (other than an associate broker) which is an average of 5% or more of the aggregate purchases and sale of securities under all schemes, unless the PF has recorded in writing the justification for exceeding the limit of 5% and reports of all such investments are sent to the Trustees on a quarterly basis. Provided that the aforesaid limit of 5% shall apply for a block of three months. The PF shall not utilise the services of the sponsor or any of its associates, employees or their relatives, for the purpose of any securities transaction. A PF may utilise such services only after obtaining prior permission of the Trustees.

   9. NPS Funds shall not be used by the PF to buy securities/bonds held in its own investment portfolio or any other portfolio held by it or in its subsidiary or in its Sponsor.

   10. The PF shall buy and sell securities on the basis of deliveries and shall in all cases of purchase, take delivery of relative securities and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sales or carry forward transactions or engage in badla finance (carry forward).

   11. The PF may enter into derivatives transactions, if it is in the interest of the subscribers’, only for the purpose of hedging and portfolio balancing, in

   accordance with the guidelines issued by SEBI/RBI. These derivatives transactions should be entered into only in recognised stock exchange. Credit default Swap are also approved derivatives for the purpose.

   12. The PF shall enter into transactions relating to Securities only in dematerialised form. The PF shall, for securities purchased in the non depository mode get the securities transferred in the name of the NPS Trust on account of the Scheme.

   13. Transfer of investments from one Scheme to another Scheme in the same PF, shall be allowed only if:-

   13.1 such transfers are made at the prevailing market price for quoted Securities on spot basis (Explanation: spot basis shall have the same meaning as specified by Stock Exchange for spot transactions)

   13.2 the Securities so transferred shall be in conformity with the investment objective of the Scheme to which such transfer has been made.

   14. Pending deployment of funds of a scheme in securities in terms of investment objectives of the scheme, funds may be invested in short-term deposits of schedule commercial banks or in call deposits or in short term money market instruments or other liquid instruments or liquid schemes of mutual funds not exceeding a limit of 10% of the scheme corpus on temporary basis only.

   15. The PF may alter these above stated restrictions from time to time to the extent the PFRDA Regulations change, so as to permit the Schemes to achieve their investment objective.

3. Investment Objectives

   The investment objectives for the three asset classes are outlined below:

3.1 Asset class E

   3.1.1 Benchmark — the performance of the scheme will be measured by reference to the total performance (dividends reinvested) of the BSE Sensex and NSE Nifty 50 Index.

   3.1.2 Performance objective — the investment objective is to optimise returns while investing in the chosen index over a rolling annual basis.

3.2 Asset class G

   3.2.1 Performance objective — the investment objective is to optimise returns.

   3.2.2 Risk — It is expected that the PF will be able to identify and justify the additional risks relative to the return, while managing the portfolio on an absolute return basis.

3.3 Asset class C

   3.3.1 Performance objective — the investment objective is to optimise returns.

   3.3.2 Risk — It is expected that the PF will be able to identify and justify the additional risks relative to the return, while managing the portfolio on an absolute return basis.

4. Allocation of funds across asset class for “Auto choice”

   The methodology for allocating funds in the three asset classes are outlined in the table below which illustrates the allocation of each asset class for “Auto Choice” option based on age of the investor:-

Age

Asset Class E

Asset Class C

Asset Class G

Up to 35 years

50%

30%

20%

36 years

48%

29%

23%

37 years

46%

28%

26%

38 years

44%

27%

29%

39 years

42%

26%

32%

40 years

40%

25%

35%

41 years

38%

24%

38%

42 years

36%

23%

41%

43 years

34%

22%

44%

44 years

32%

21%

47%

45 years

30%

20%

50%

46 years

28%

19%

53%

47 years

26%

18%

56%

48 years

24%

17%

59%

49 years

22%

16%

62%

50 years

20%

15%

65%

51 years

18%

14%

68%

52 years

16%

13%

71%

53 years

14%

12%

74%

54 years

12%

11%

77%

55 years

10%

10%

80%

Source:http://pfrda.org.in/writereaddata/linkimages/INVESTMENT%20GUIDELINES%20FOR%20PRIVATE%20SECTOR%20NPS147808164.pdf

Revision in documentary requirements in case of exits arising from Death of the subscriber under NPS-Swavalamban.

CIRCULAR

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDA/2013/3/PDEX/3 

                                            Date: 06/02/2013

To,
Dear Sir/Madam,

Subject:   Revision in documentary requirements in case of exits arising from Death of the subscriber under NPS-Swavalamban.

   Attention of all stakeholders is invited to the requirement of Death Certificate in original for claiming the benefits of the accumulated pension wealth in the account of a deceased subscriber by the nominee/legal heirs under National Pension System (NPS).

   Basing on representations from some of the stakeholders, the matter has been re-examined in light of the difficulties faced by subscribers in obtaining several sets of original death certificates.   

   It has been now decided that “a certified copy of the death certificate duly attested by the Aggregator/ POP (with the Aggregator/ POP having seen the original of death certificate and returning the same to the nominee/legal heirs) would be acceptable as sufficient proof of death of the subscriber for settlement of death claims arising from NPS-Swavalamban accounts only”.  The Aggregator/ POP in such cases have to specifically certify the copy of the death certificate with wording “ORIGINAL SEEN AND VERIFIED”.

   This is for the information of all concerned.

   The circular has also been placed on PFRDA website at  http://www.pfrda.org.in and CRA website at http://www.npscra.nsdl.co.in

Yours Faithfully

Sd/-
Venkateswarlu Peri
General Manager

Source:http://www.pfrda.org.in/writereaddata/eventimages/revison%20of%20doc%20req%20NPS%20Swavalamban8093653445.pdf

Fixed Medical Allowance to railway beneficiaries of New Pension Scheme drawing additional relief on death /disability of railway servants.

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No. PC-VI/ 311  
No. PC-V/2010/A/Med./1

RBE No. 05/2013. 
New Delhi, dated 22-01-2013.

The General Manager
All Indian Railways & Pus
(As per mailing list)

Sub:- Fixed Medical Allowance to railway beneficiaries of New Pension Scheme drawing additional relief on death /disability of railway servants.

   The Fixed Medical Allowance (FMA) is granted,to Railway pensioners/family pensioners in terms of instructions, contained in Board’s letter dated 21-4-99, 1-3-2004 and subsequent clarifications issued from time to time.

   Grant of FMA to the railway beneficiaries of NPS drawing additional relief on death /disability of railway servant in terms of Board’s letter No. 2008/AC-II/21/19 dated 29-5-2009 has been examined in consultation with Department of Pension and Pensioners’ Welfare. Since in terms of para 602 of IRMM-2000, railway employees are entitled for medical attendance and treatment facilities, free of charge, the NPS railway pensioners drawing additional relief on death/disability of Railway servant in terms of Board’s letter dated 29-5-2009 and staying beyond 2.5 KMs from the nearest Railway Hospital/Health unit can get a RELHS card by paying necessary amount to enable them to obtain indoor treatment. They are also entitled to draw FMA as fixed by the Government. The necessary amount for getting RELHS Card as prescribed in Board’s letter No. 2003/H/28/1/RETES dt. 16.3.2009 are as under:-

(i) The employees who have already retired A sum equivalent to double the amount of revised basic pension after the implementation of VIth CPC.
(ii) Family pensioners A sum equivalent to double the amount of revised family pension after the implementation of VIth CPC

   As and when the Health Insurance is introduced in Railways, the New Pension Scheme railway pensioners would be shifted to the Health Insurance Scheme.

   3. These orders are issued with the concurrence by Health and Finance Directorates of the Ministry of Railways.

   4. Hindi version is enclosed.

sd/-
[N.P. Singh]
Dy. director, Pay Commission-V
Railway Board

Source:- NFIR

Procedure for refund of money Deposited to GPF Account or Suspense Head of Account in respect of the Officers of All India Services covered under New Pension Scheme.

Government of West Bengal
Finance Department
Audit Branch
Writers’ Buildings, Kolkata-700 001.

No.10263.-F(y)

Kolkata, the 18th December, 2012.

MEMORANDUM

Sub:- Procedure for refund of money Deposited to GPF Account or Suspense Head of Account in respect of the Officers of All India Services covered under New Pension Scheme.

   This Department vide Notification No.1069-F(Y) dated 03.02.2012 prescribed the procedures for the implementation of the ‘New Pension Scheme’ [NPS] of the Government of India applicable for the All India Service [AIS] Officers borne on West Bengal Cadre on or after 01.01.2004.

   In paragraph 1(c) of the said Notification it was stated that “On amendment of the All India Service (Death cum Retirement Benefit) Rules, 1958 and the All India Service (Provident Fund) Rules, 1955,the benefits of the Defined Benefit Pension and General Provident Fund shall not be available to the new recruits. The AIS Officer who is covered under NPS but so far Contributed to General Provident Fund/or any other fund or account, his entire contribution to the General Provident Fund Accounts/ or any other fund or account shall be refunded to him by the concerned DDO in consultation with the DTA and Office of the Pr, A.G.(A&E) WB and that amount may be deposited by the concerned AIS Officer for payment of backlog Contribution to the NPS.”

Implementation of NPS.

   The New Pension System (NPS) has been implemented for various sectors like Central Government, State Government, Private Sector and NPS-Life.  The status of NPS in these sectors as on 10th November, 2012 is as under:-

Sector

No. of Subscribers (Figures in lakhs)

Assets under Management (Rs. In crores)

Central Government  

10.62

14,846

State Government    

14.67

7,445

Private Sector  

1.64

835

NPS-Life           

13.05

344

Total    

39.98

23,470

   The number of subscribers is increasing every year in all the sectors.

PFRDA to appoint auditors for pension fund managers.

   To keep a tighter check on investments, the pension regulator has decided to appoint auditors for the pension fund managers (PFMs) and schemes of the National Pension System (NPS). Fund managers will also be expected to make full disclosure of scheme-wise investments on their websites.

   “As the NPS gets more subscribers, there is a need to keep a tighter check on investments being made by the fund managers... That is why we have made the reporting and audit norms more stringent,” said a senior PFRDA official.

   The auditors, for which the Pension Fund Regulatory and Development Authority (PFRDA) has recently issued guidelines, will review the performance of schemes under the NPS as well as investments made by the fund managers. They will also be expected to audit prepare financial and annual reports of schemes managed by each of the fund manager.

Frequently Asked Questions on New Pension Scheme.

1. What is the New Pension System (NPS)?

   The NPS is a new contributory pension scheme introduced by the Central Government for employees joined in Government Service on or after 1.1.2004. During the year 2009, the NPS was kept open for public.

2. Who is covered by the NPS?

   a. Employees who have joined central government service on or after 01 January 2004 including Railways, Posts, Telecommunication or Armed Forces (Civil), Autonomous Body, Grant-in-Aid Institution, Union Territory or any other undertaking whose employees were eligible to a pension from the Consolidated Fund of India., earlier.

   b. This contribution pension scheme is also open to any Indian citizen between the age of 18 and 55.

3. I am covered by the NPS. Can I contribute to the GPF?

   No. The General Provident Fund ( Central Service) Rules, 1960 is not applicable for employees covered by NPS.

4. I Am covered by the NPS. Am I eligible to Gratuity?

   No. You will not be eligible to Gratuity.

5. How does the NPS work ?

   When you join Government service, you will be allotted a unique Personal Pension Account Number (PPAN). This unique account number will remain the same for the rest of your life. You will be able to use this account from any location and also if you change your job. The PPAN will provide you with two personal accounts:

   1. A mandatory Tier-I pension account, and

New Pension Scheme : Official amendments to the PFRDA Bill, 2011.

   Official amendments to the Pension Fund Regulatory and Development Authority Bill, 2011

   The Union Cabinet today approved the introduction of certain official amendments to the Pension Fund Regulatory and Development Authority Bill, 2011. These official amendments have been necessitated in view of the recommendations of the Standing Committee on Finance which has examined the Bill. Based on the recommendations of the Standing Committee on Finance, the Government has decided to accept the following:

   1. that the subscriber seeking minimum assured returns shall be allowed to opt for investing his funds in such schemes providing minimum assured returns as may be notified by the Authority;

   2. withdrawals not exceeding 25 per cent of the contribution made by subscriber will be permitted from the individual pension account subject to the conditions, such as, purpose, frequency and limits, as may be specified by regulations by the Pension Fund Regulatory Authority and Development Authority (PFRDA)

3. the foreign investment ceiling in the pension sector at 26 per cent or such percentage as may be approved for the Insurance Sector, whichever is higher may be incorporated in the present legislation;

   4. to establish a vibrant Pension Advisory Committee with representation from all major stakeholders to advise PFRDA on important matters of framing of regulations under the PFRDA Act.

   5. the membership of the PFRDA will be confined to professionals having expertise in economics, finance or law only.

   The New Pension Scheme (NPS) has been made mandatory for all the Central Government employees (except Armed Forces) entering service with effect from 1.1.2004. 27 State / UT Governments have notified NPS for their employees. NPS has been launched for all citizens of the country including unorgnised sector workers, on voluntary basis, with effect from 1st May, 2009. Further, to encourage people from the unorganised sector to voluntarily save for their retirement, Government has launched the co-contributory pension scheme titled "Swavalamban Scheme" in the Budget of 2010-11. As on 7th September, 2012 the number of subscribers under NPS is 37.45 lakh with a corpus of Rs. 20535.00 crore.

   In order to effectively invest and manage such huge funds belonging to a large number of subscribers and to ensure the integrity of the NPS, creation of a statutory PFRDA with well defined powers, duties and responsibilities is considered absolutely necessary and would benefit all NPS subscribers.

   The official amendments to the Bill will be moved in the next session of the Parliament.

   Background:

The following recommendations of the SCF have not been accepted:

   • As regards the recommendation of SCF for compulsory insurance of the funds of subscribers by pension fund managers, a provision has already been made in the PFRDA Bill, to protect the interest of the subscribers by ensuring safety of contribution of subscribers and also by keeping the operational costs in check,

   • As regards the selection of pension fund managers in such a manner that one third of all such fund managers are from the public sector, since a provision has already been made in the PFRDA Bill that at least one of the pensions fund shall be from the public sector which sets a floor, the ceiling can be any number based on objective criteria.

   The Pension Fund Regulatory and Development Authority Bill, 2005 was initially introduced in the Lok Sabha in March, 2005 to provide for a statutory PFRDA. However, since the Bill and the official amendments, based on the recommendations of the Standing Committee on Finance, could not be considered by the Lok Sabha, and the Bill lapsed on dissolution of the 14th Lok Sabha. The Government had announced in the Budget 2011-12 that the revised PFRDA Bill would be moved in Parliament. Accordingly, the PFRDA Bill, 2011 was introduced in the Lok Sabha on the 24th March, 2011 to provide for a statutory regulatory body, the Pension Fund Regulatory and Development Authority (PFRDA) under the provisions of the Bill. The legislation sought to empower FRDA to regulate the New Pension System (NPS). The PFRDA Bill, 2011 was referred to the Standing Committee on Finance on the 29th March, 2011 for examination and report thereon. The Standing Committee on Finance gave its Report on 30th August, 2011. Based on the recommendations of Standing Committee, a Cabinet Note, to introduce additional recommendations of the Standing committee on Finance was moved on 19th December, 2011. Since the PFRDA Bill, 2011 was deferred in the Winter Session of the Lok Sabha, therefore the Cabinet Note was withdrawn.

Source: PIB