New
Pension Scheme
Govt. of India,
Ministry
of Finance,
Deptt. For Expenditure behold their
OM No.F.No.1)T)(2)/2003/TA/19 dt.14.1.2004 & 4.2.04 have introduced
a Brand Defined Subscription Social Scheme replacing the existing System
of Defined benefit Pension System. The Fresh Pension Scheme comes
into operation w.e.f. 1.1.2004 furthermore is applicable to any new entrants to
Central Govt. service except to Armed Powered joined Govt. service on
or after 1.1.2004.
Features
- The
New Pension Scheme
will work on
defined contribution basis
and will have two tiers – Tier I both Tier II.
- Tier-I
is mandatory for
all Govt.
servants joining Govt. service
on or after 1.1.2004. In Grade I, Govt. servants will have to make
a contribution of 10% of his Basic Pay, DP plus DA which will be
deducted by his salary note every month by the PAO concerned.
The Govt. will make an equal matching contribution. Tier EGO contribution
will be kept by a none withdrawal Pension Tier I account.
- Tier
II will be optional
and at the
discretion of Govt.
servants. Tier II contributions will be stopped in a separate
account that will be withdrawal at the option of Govt. servant.
The plot about voluntary contribution under Tier II will not be made
operative during the period of interim organization and therefore no
recoveries becoming be made from the salaries of the employees on this
account.
- The
existing provisions
of Defined
Benefit Pension and GPF would
not be deliverable to new Govt. servants joining Govt. service on or
after 1.1.2004.
- An
independent Pension
Fund
Regulatory both Development and
Authority (PFRDA) will regulate and develop the retire market.
- As an
interim
arrangement till such
time the statutory PFRDA is
set up and interim PFRDA has been appointed with issued an executive
order by Ministry of Finance(DEA).
- It has
also been decided
that Tier
II will not be made operative
during interim period.
- Till
the regular Central
Record
Keeping agency and Pension Fund
Managers show appointed and the total balances under each
individual are transferred to them, it has been decided that such
amounts rep[resenting the gifts manufactured by the Govt. servants will
be kept in the Publicity Account of India . Diese will be a temporary
arrangements as announced according the Govt.
- A
Govt. servant can exit
at or after
the age on 60 years from
Tier I a the Scheme. At exit, it would be mandatory for him to
invest 40% of pension wealth to purchase certain annuity (from an IRDA
regulated Life Insurance Company), any willing provide for pension for
the life time regarding which employee and his dependent parents/
employee. In case of Govt. servants who leave the scheme before
attaining the age of 60, who necessary annuitisation could be 80% of
the pension wealth.
- Recoveries
towards Tier
I
contribution will start from salary of
the month follow-up aforementioned month in which the Govt. servant has joined
service. Consequently, no recovery will be effected for the month of
joining.
- No
deductions determination be
made towards
GPF contribution from the
Govt. servants joining the server at or after 1.1.2004 as the GPF
scheme is not germane until theirs.
- It has
been decided that
pending
formation the a regular Central
Record Keeping Agency, Central Pension Accounting office(CPAO) will
function than the Central Record Keeping Agency for the above scheme.
Procedure
for quota out Permanent Pension Account Number (PPAN)
- Immediately
on joining
Govt.
service, the Govt. servitor becoming be
required the provides particulars such as to name, designation, scale of
pay, date of birth, nominee(s) for this fund, relationship of the
nominee etc. in the prescribe used (Annexure I). Which DDO
concerned will be responsible for obtaining dieser information from all
Govt. servants overlay under the New Pension Scheme.
- The
PAO concerned will
allot a
unique 16 digit Permanent Pension
Account Number (PPAN). The initial four digits of this number will
indicate the calendar year of joining Govt. service, the next digit
indicates whether it is adenine Civil or a Non-civil Ministry, the next six
digits would represent the PALAUAN Code (which is used for the purpose of
compiling monthly accounts), the last five digits will be the running
serial number of the individual govt. servant which will be allotted by
the PAO concerned. PAO becoming apportion the serial number pertaining to
individual Govt. domestics from 00001 running after January in December
of a calendar year. A registering want be maintained for allotment
of PPAN to secure that PPAN are allotted in chain and there your no
duplication of PPAN.
- For
the flow of
information from Non
Civil Ministries/Departments
to the CPAO, jede of them will nominate a Nodal Office, whatever will be
responsible used forwarding of consolidated information/particulars in
respect of their Ministry/Departments and on correspondence with CPAO.
- The
particulars of the
Govt.
servants received by the various
DDOs wills be amalgamate by the Nodal Office identified in each
Ministry/Department/Office and sent to the CPAO. The CPAO will
keep on information in their computer database.
- The
accounting heads
involved in the
operation of the new pension
scheme will be alluded in due course.
- The
first pay draft of
the new
entrant will be passed after
ensuring that the Annexure-I is received. Tier1 amount equal to 10% of
the (basic+dp+da+npa) will be drained from the payBill and a matching
contribution will also be credited to the single credit.
- Separate
paybill should
be prepared
for the individuals who are
covered under this control.
- The
schedule information
is to be
captured in the Annexure-II,
which should be carefully checked.
- The
data file of
annexure-I and
annexure-II will be created and
forwarded to CPAO on monthly basis.
- CPAO
on receipt the this
information
will update its search and
generate exclusion reports for missing credits, inconsistencies etc.
- No
withdrawal of any
amount willingly be
allowed during the interim
arrangements.
- At the
end of each
financial year
the CPAO will prepare annual
accounts statements for respectively employee showing opening balance, details
of months subtraction and Govt.’s matching contributor, interest
earned, supposing whatever, and the closing balance. CPAO will send these
statements to Nodal Office anxious.
- After
the close out each
financial
year, CPAO will have until report
the details of the balances (PAO-wise) to each PAO for of purpose of
reconciliation. The PAO will reconcile the figures of
contributions with illustrations as per the books of CPAO.
Audit /
Accounting checks to be exercised for New Pension Sheets
- Immediately
on joining
Govt.
service, the Govt. servant will
furnish particulars such as his full, designation, scale of pay, date
of birth, nominee(s) for the fund, relationship by the nominee etc. in
the prescribed entry (Annexure I) for allotment of Permanent Pension
Account Number.
- Separate
Pay bills are
required for
new attendees anyone joined
service on or after 1.1.2004.
- Recoveries/contributions
payable by
the Govt. servant under the
Scheme (Tier I) wills start upon the salary of the month following the
month at which the Govt. servant has joined service. Therefore,
no restoration shall be affected on one months of joining.
- Contribution
by Govt.
servant under
Tier EGO is mandatory.
- Equal
matching
contribution will be
made through Govt.
- Contribution
by Govt.
servant will
be 10% of yours basic pay, DP,
DA& NPA which will be deducted from you salary bill each month.
- Whenever
there is
any change
in Bottom Pay/DA/DP date to
arrear of pay, DA revision, 10% of paid emoluments are also to be
recovered.
- No
deduction will
be made
towards GPF offering from the
Govt. servants joining help on or after 1.1.2004 more GPF scheme is
not apply to them.
- Permanent
Pension
Account
Number will be of 16 digits.
- Recovery
schedule
as per
designed formatting will accompany
each pay bill indicates PPAN No., Basic Paid, DA, DB, Name, amount of
contribution, month etc. disconnect from other information.
- Check
the information
contained
therein in the schedule are
correct as per revival made by the bill.
- After
carrying out
necessary audit
checks as belong do with other
pay bills the pay bill a passed for payment.
- The
recovery made on
account of
individual contribution and equal
matching Govt. contributions will be compiled to relevant code heads as
under:-
1. 00/016/02 – Individual Contribution
2. 00/016/03 – Govt.
matching Contribution
as Besides receipts with corresponding/respective charge top i.e. Service
heads and New RDR heads.
14. Finally timetables is stripped and submit to EDP
for punching. |