Showing posts with label NPS. Show all posts
Showing posts with label NPS. Show all posts
Monday, March 31, 2025
Monday, April 7, 2014
New Pension Scheme : Family pension under NPS
New Pension Scheme : Family pension under NPS
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
STARRED QUESTION NO-350
ANSWERED ON-18.02.2014
Family pension under NPS
350. SHRI PRABHAT JHA
Will the Minister of FINANCE be pleased to state:
(a) the details of cases of family pension sanctioned, so far, under the New Pension Scheme (NPS) to the families of deceased Central Government employees;
(b) whether family pension at the rate of old pension scheme to these family members of deceased employees has been stopped after coming into force of the New Pension Scheme;
(c) if not, the fate of those who have been receiving family pension under NPS at the rate of old pension scheme;
(d) whether some of the deceased employees have left behind them only few thousands rupees as Contributory Pension Fund (CPF) with the National Securities Depository Limited (NSDL); and
(e) if so, how Government would pay them family pension from their CPF?
ANSWER
FINANCE MINISTER
(SHRI P. CHIDAMBARAM )
(a) to (e): A Statement is laid on the Table of the House.
STATEMENT OF RAJYA SABHA STARRED QUESTION NO. *350 FOR ANSWER ON 18.02.2014 REGARDING “FAMILY PENSION UNDER NPS” RAISED BY SHRI PRABHAT JHA
(a): Central Pension Accounting Office has informed that as per its records there are 1900 cases of family pension and 20 cases of disability pension under National Pension System (NPS).
(b) and (c): The pension of the Government servants (except in the Armed Forces) appointed on or after 01-01-2004 is regulated by the NPS which is a defined contribution pension system. Employees appointed in the service of Central Government prior to this date are not covered by NPS. However, even after the introduction of NPS, the benefit of family pension is available to the families of the deceased Central Government employees covered under the NPS. Hence, family pension, at the rate of old pension scheme, to family members of deceased employees, who were in the service of the Central Government on or after 01-01-2004, is not denied or affected due to the implementation of NPS, as per the Office Memorandum (OM) No. 38/41/06/P&PW(A) dated 05-05-2009 of the Department of Pension and Pensioners Welfare, Ministry of Personnel, Public Grievances and Pensions. This OM envisages payment of various benefits on death/discharge of a Government employee after adjustment of the monthly annuitised pension from the accumulated funds in the NPS account of the employee.
(d) and (e): National Securities Depository Limited (NSDL) has informed that a few deceased employees, who passed away within a short span after joining NPS, had minimal accumulated pension wealth in their NPS accounts. However, as stated in reply to parts (b) and (c) above, the family members of the deceased employees are covered by the family pension
Source : http://rajyasabha.nic.in/
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Friday, September 20, 2013
Option to defer Annuity purchase under NPS at the time of exit-PFRDA
Option to defer Annuity purchase under NPS at the time of exit-PFRDA
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
PFRDA/ 2013/14/ PDEX /9
September 17, 2013
To,
All Govt depts./PAO’s/DDO/ POP’s, CRA & other stakeholders
Dear Sir/ Madam,
Sub: Option to defer Annuity purchase under NPS at the time of exit
As per the Exit guidelines of PFRDA for National Pension System (NPS) subscribers, a ubscriber on attaining the Normal Retirement Age (applicable to Govt. sector subscribers) or upon attaining 60 years – is required to compulsorily annuitize at least 40% of your pension wealth and the remaining 60% can be withdrawn as a lump sum. Also, a subscriber wishing to exit from NPS before the normal retirement age or before attainment of 60 years is allowed to exit subject to the condition that a minimum of 80% of accumulated pension wealth needs to be mandatorily utilized for purchase of annuity that provides for the monthly pension to the subscriber.
Presently, withdrawal of permissible lump sum withdrawal (60%) upon exit can be deferred by the subscriber to a later date but not beyond attaining 70 years of age. This is to take care of the reasons like unfavorable Market conditions or there being no requirement of the funds at that particular time.
Due to the upheavals in the market conditions including the bond market and the swings in NAV’s of the debt funds including NPS in the recent past, feedback has been received from various stakeholders that the subscribers be given an option to defer or time the annuity purchase (subject to a minimum of 40%/80% of accumulated pension wealth as applicable) akin to the deferment option for the lump sum withdrawal that is permitted currently under NPS.
PFRDA after examining the issued has approved the “Deferment option” for the annuity purchase at the time of exit from NPS with condition that such deferment can be for a maximum period of 3 years. One can initiate the annuity purchase option at any time before lapse of 3 years from the date of such deferment, by giving an application or notice to the Central Record Keeping Agency.
If no such notice is given before the lapse of 3 years from such date of deferment, the percentage of accumulated pension wealth as provided by the subscriber in the NPS withdrawal application form (subject to a minimum of 40%/80% of accumulated pension wealth as applicable) for purchase of annuity would be automatically monetized and such amount would not earn any investment income or interest to the subscriber
thereafter.
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://pfrda.org.in/ | |
Thursday, May 16, 2013
Double Digit Returns on National Pension System (NPS) Schemes for Financial Year 2012-13
Double Digit Returns on National Pension System (NPS) Schemes for Financial Year 2012-13
The National Pension System (NPS) regulated by Pension Fund Regulatory and Development Authority (PFRDA) has delivered double digit returns for the financial year 2012-13 and has evidenced itself as not just being the cheapest retirement product but also as the highest returns generating scheme.
PFRDA advises that various NPS schemes have earned the following average annual returns during the financial year recently ended on 31st March, 2013 (Weighted Average):
Details are as under:
Last year PFRDA had issued revised guidelines for Registration of Pension Fund Managers to manage NPS for Private sector, under which eight Pension Fund Managers have been registered so far- SBI Pension Funds Pvt. Ltd., UTI Retirement Solutions Ltd., LIC Pension Fund Ltd., Kotak Mahindra Pension Fund Ltd., Reliance Capital Pension Fund Ltd., ICICI Prudential Pension Funds Management Co. Ltd., HDFC Pension Management Co. Ltd. and DSP Black Rock Pension Fund Managers Pvt. Ltd.
Pension Fund Managers are now allowed to prescribe their own fee subject to ceiling of 0.25% to enable an economically viable model for their operations.
PFRDA also recently revised its Investment Guidelines, with a view to improve performance of Pension Fund Managers by direct investment in equity & corporate debt and not through mutual funds etc. Further for better risk management prudential sectoral norms have also been introduced.
The National Pension System which was introduced by the Central Government in January 2004 for its new entrants and subsequently extended to the private sector in May 2009 has accumulated a corpus of Rs 33,000 crores contributed by 50 lakhs subscribers.
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Monday, May 6, 2013
Gratuity Pay under New Pension System
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:
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 today. | |||||||||||||||
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Wednesday, April 3, 2013
Comparison in the returns between Employees Provident Fund and New Pension Scheme
Comparison in the returns between Employees Provident Fund and New Pension Scheme
Returns on EPFO fund is difficult to compare with return on other Pension Schemes like New Pension Scheme.
With an important message, a written reply was submitted in Lok Sabha 4th March, 2013 by the Minister of State for Labour and Employment Shri. Kodikunnil Suresh about the returns on NPS as follows...
"The wage ceiling for mandatory provident fund contributions under the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 is Rs. 6,500/-.
Data of workers outside the wage limit is not maintained by the Employees’ Provident Fund Organization.
EPF money is invested as per the investment pattern of 2003 notified by Government of India which allows investment in Central Government Securities, State Government Securities, Bonds of Public Sector Undertakings and Private sectors. Returns on EPFO fund is difficult to compare with return on other Pension Schemes like New Pension Scheme.
The declaration of the return of NPS is on the basis of the accounting policy prescribed by NPS which allow the NAV to be declared on the basis of current market value of the investments. While EPFO follows the cost value of the investment for accounting its investment and return is declared on the basis of actual receipt of interest on the investments.
The return on EPFO investments are fixed whereas the return on NPS are not fixed and fluctuates on daily basis depending on the prevailing market conditions".
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Tuesday, March 19, 2013
Public Sector Bank Employees Pension Scheme
Public Sector Bank Employees Pension Scheme
Public Sector Bank(PSB) employees pension scheme : Public Sector Banks employees, who have joined on or after 1.4.2010 are covered under New Pension Scheme (NPS) and , the employees of State Bank of India, who have joined on or after 1.8.2010 are covered under New Pension Scheme (NPS).
The below detailed information was presented as a written reply to a question in Lok Sabha by the Minister of State for Finance Shri.Namo Narain Meena on 8.3.2013.
"Most of the employees of various Public Sector Banks (PSBs) are covered under Bank Employees Pension Regulations pronounced in 1995. Employees who did not opt for pension scheme are continuing under Contributory Provident Fund. Employees who have joined on or after 1.4.2010 are covered under New Pension Scheme (NPS). Employees of State Bank of India are covered under SBI Pension Fund Rules which came into existence in 1955. Employees joining State Bank of India on or after 1.8.2010 are covered under New Pension Scheme (NPS).
Employees of Regional Rural Banks cannot be included in the prevailing Pension Schemes of the PSBs since they belong to different organisations.
National Bank for Agriculture and Rural Development( NABARD) has framed a draft Model Pension Scheme and Regulations on the above lines for introducing pension for RRBs which envisages RRBs to decide on introduction of pension for its employees at par with nationalised banks taking inter alia their financial position into consideration".
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NPS Status as on 2nd March 2013
NPS Status as on 2nd March 2013
PFRDA publishes new status
of subscribers of National Pension Scheme as on March, 2013
Pension Fund Regulatory and
Development Authority (PFRDA) has published a latest status of NPS subscribers
as on 2nd March 2013 on its portal. As per the status, Central Government have
11,25,871 subscribers and 22 State Government have implemented the scheme to
its employees.
National Pension System
Status – March 2013
A. Sector wise NPS status
as on March 2, 2013
Till date 9506 Tier II accounts have been activated. B. Status of Implementation of NPS by various States
* Kerala has indicated in-principle approval for joining NPS w.e.f. 01.04.2013 Source : www.pfrda.org.in [http://pfrda.org.in/writereaddata/linkimages/NPS%20status%20March138259648465.pdf] | ||||||||||||||||||||||||||||||||||
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