PFRDA Organizes Conference for State Governments to Discuss Implementation of National Pension System

Press Information Bureau 
Government of India
Ministry of Finance

19-December-2016 19:52 IST

PFRDA Organizes Conference for State Governments to Discuss Implementation of National Pension System

A conference for State Governments was organized by PFRDA on 19th December 2016, at New Delhi to discuss NPS implementation by the state governments.

In his inaugural address, Chairman, PFRDA, Sh. Hemant Contractor congratulated winners of awards instituted by PFRDA for the State Government sector. He observed that the number of subscribers registered in State Government sector has increased to 32 lacs and also the Assets Under Management is touching approx. Rs. 79,000 crores. He urged the State Governments to frame timelines for all the activities specified by PFRDA. Currently, only 11 State Governments have issued instructions regarding timelines. Besides, framing of NPS rules for the respective states is also gaining importance and fixation of salary date will help in fixing accountability. He discussed various changes in product features and processes which will lead to increase in appeal of NPS. The prominent among them are mobile app and feature of making contributions through it, increase in usage of Tier 2 accounts due to increased returns, etc. He also referred to the various user friendly functionalities developed in coordination with the Central Recordkeeping Agency (CRA) for providing ease of transaction to the subscriber and the nodal offices. He advised the delegates about appointment of Ombudsman which puts onus on the State Governments to ensure prompt resolving of grievances in Centralized Grievance Management System (CGMS). He also discussed about the appointment of second CRA which will provide more choice to the State Governments. He added that this conference and more in the coming years would act as a platform for discussion with PFRDA and interactions among States to share their experiences and practices in order to enhance cross learning.

Shri R. V. Verma, Member (Finance) while welcoming the participants to the conference commended the substantial improvement in performance of State Governments since the last such conference held in December 2016. He advised the State Governments to ensure 100% subscriber coverage month on month. He laid stress on the inclusion of NPS related activities within the scope of audit of the State Governments. He also emphasised the need for discipline of remitting of the subscriber contribution especially in view of the enhanced role of the Government nodal officers as envisaged in the regulations and the provisions of the Act. He stressed on the need for enhancing capacity building both at the nodal officer level and subscriber level. Training of nodal officers will help in enhancing the financial literacy and awareness of the subscribers. This will also help in fixing accountability of the respective officers with respect to delays in various activities of NPS.

Dr. B.S. Bhandari, Member (Economics) advised the participants about the areas of concern which need to be looked on priority. Besides, he also highlighted the responsibility of nodal officers handling NPS and advised to know the product & process. He also referred to the mandatory inclusion of employees under NPS other than those which are covered under EPF. Further, he urged the participating states to introduce NPS related training programmes in their own State Training Institutes.

PFRDA instituted awards in April 2016 for the State Government sector in order to boost the best performers and also to encourage other states to improve their performance on the same lines. Awards were distributed to Andhra Pradesh, Bihar, Haryana, Jharkhand, Kerala, Mizoram, Odisha, Rajasthan, Sikkim and UT of Chandigarh on various parameters of NPS implementation, in the Conference.

Sh. Pravesh Kumar, DGM made a presentation on performance of NPS on various important parameters. Besides performance, past trends and future challenges were also discussed in the presentation. The feedback was positively taken by the participating state governments with the assurance to working towards plugging the gaps. Sh. Sumit Kumar, NPS Trust made a presentation on pending withdrawal claims and grievances, with emphasis on early resolution. Sh. Sunil Samuel, AVP, NSDL made a detailed presentation on new functionalities introduced in the software, mobile app, online PRAN generation, DDO login, etc. Officials of 3 states – Andhra Pradesh, Odisha and Madhya Pradesh also made presentations sharing their best practices.

Sh. Ashish Kumar, General Manager concluded the session by proposing the vote of thanks.

Currently, NPS has more than 1.03 crore subscribers with total Asset Under Management (AUM) of more than Rs.1,60,000 crores.

NPS subscribers of Central Government are 14.1% of the total subscribers as Jan 2016

NPS subscribers of Central Government are 14.1% of the total subscribers as Jan 2016

Press Information Bureau 

Government of India

Ministry of Finance

02-February-2016 16:35 IST

1.15 Crore Subscribers for National Pension System (NPS) as on 23.1.2016

National Pension System (NPS) had 11,459,555 subscribers with a total corpus of Rs. 90, 327 crore as on 23rd January, 2016. The total Assets under Management are worth Rs. 109,140 crore while Assets under Management per subscriber is Rs. 95,000 on an average.

The number of NPS Subscribers of the Central Government are 1611,020 with a total corpus of Rs. 34,754 crore while subscribers from the different State Governments are 2,859,094 with a total corpus of Rs. 45,486 crore. The number of NPS subscribers in the Corporate Sector are 448,509 while in Unorganized Sector is 128,484, the total being 576,993. The number of subscribers under NPS Lite include 4,463,637 and under Atal Pension Yojana (APY) 1,948,811, with a total number of subscribers 6,412,448 in these two categories.

NPS subscribers of Central Government are 14.1% of the total subscribers while that of the State Governments are 24.9%. The NPS subscribers under NPS Lite constitute 39% while under APY 17% of the total subscribers.

Since PFRDA has completed two years of its statutory status on 1st February, 2016, to mark this occasion, PFRDA in collaboration with all its intermediaries in the National Pension System including Central and State Governments’ Nodal Offices, POPs, Aggregators, Central Recordkeeping Agency and NPS Trust etc. is observing NPS Service Week from 1st to 6th February, 2016. This week-long campaign is being dedicated to service-orientation towards the subscribers and aimed at awareness building and improved information dissemination. During this Service Week, besides sharing of information on the range of functionalities and services now available under the NPS, the subscriber community will be apprised about the need for constant updation of data/information to enable the system to operate at its optimum service level, so that the intended benefits can reach all the employees/subscribers under NPS. Besides, the subscribers will also be able to make best use of all the opportunities and facilities.

The Pension Fund Regulatory and Development Authority (PFRDA) is organizing the 2nd Pension Conclave in national Capital on 4th February 2016 with the theme, “Towards Universal Pension: Coverage, Adequacy and Sustainability” in which all the stake holders are expected to participate and share their experiences. PFRDA proposes to use this occasion to acknowledge/award the best performing banks and Post Offices in mobilization and registration of subscribers under the Atal Pension Yojana (APY) up to 31st December 2015, and institute awards for best performing POPs under the Voluntary segment of the National Pension System.

Earlier, PFRDA launched NPS Awareness Programme for State autonomous bodies, Unorganized Sector, Corporate Sector and other categories in order to highlight the benefits of joining NPS and has requested the various State Governments to implement NPS more inclusively among the State Autonomous Bodies, Boards, Corporations, Societies, Universities and State aided institutions under various State Government departments. During the awareness programme, key features and benefits of NPS, details and process of joining NPS, details about NPS architecture investment and exit guidelines of NPS are highlighted.

Source: PIB News

Exemption of Railway employees from New Pension Scheme/National Pension System (NPS) – NFIR writes to Railway Board on 24th October 2015

Exemption of Railway employees from New Pension Scheme/National Pension System (NPS) – NFIR writes to Railway Board on 24th October 2015

NFIR

National Federation of Indian Railwaymen

No. IV/NPS/PFRDA BILL/Part I

Dated : 24/10/2015

The Suresh Prabhu,

Hon’ble Minister for Railways

(Railway Board)

Rail Bhavan

New Delhi

Sub: Exemption of Railway employees from New Pension Scheme/National Pension System (NPS)-reg.

Ref: GS/NFIR’s letter No. IV/NPS/PFRDA BILL dated 26/08/2015 addressed to the Railway Board (MS).

The Government of India had introduced New Pension Scheme (NPS) applicable to the Central Government employees appointed on or after 01/01/2004. Under the scheme, 10% of the Pay of each employee is deducted from his/her salary every month and equal amount is contributed by the employer and credited to the NPS Trust controlled by the PFRDA. However those who were appointed prior to 01/01/2004 have been covered under “Liberalized Pension Scheme” and their pensionary benefits like Pension, Family Pension etc., are guaranteed by the Government. While the New Pension Scheme now being re-named as “National Pension System” is not applicable to Defence Forces, the same had unfortunately been made applicable for Railway employees with effect from 01/01/2004.

2. The duties, responsibilities, risk involved, remoteness, arduous and hazardous conditions of railway employee are akin to that of Army Personnel and therefore NFIR has been urging upon the Government as well the Railway Ministry to exempt Railway employees from New Pension Scheme. The Federation was compelled to take strike ballot on pending demands, among them “Abolition of New Pension Scheme” was one of the most important issues. Responding to the demands, the Railway Board (CRB, MS, FC) had held separate meeting with the Federations on 7’th February 2014, wherein the justification for exempting railway employees from New Pension Scheme was discussed, consequently the Railway Ministry had agreed to approach the Government. Hon’ble MR Shri Mallikarjun Kharge had sent communication to the Finance Minister on 29th March, 2014 explaining case and justifying that the Railways deserves to be exempted from NPS. Unfortunately, there has been no positive decision from the Government till now.

3. In this context, NFIR also brings to your kind notice that the JCM (Staff Side) as well the Federations have decided to launch industrial action as the Government has not responded to the charter of demands of Central Government employees. During the meeting with you on 6th August,20l5, we have also mentioned some of the issues continued unresolved when CRB and Member Staff were present.

Railway Board (CRB, NPS & FC) held another meeting with the Federations on lst October 2015 on eight short listed demands which include “Exemption of Railway Employees from New Pension Scheme”. After discussions, the Railway Board has agreed to pursue the case with the Government again. In this connection, NFIR has earlier sent a communication with full details to the Railway Board (MS) vide letter No. IV/NPS/PFRDA BILL dated 26/08/2015 (copy enclosed) to facilitate Railway Ministry to prevail upon the Government to grant exemption to Railway from NPS. Federation is confident that the Railway Ministry is taking necessary action on the inputs given by the NFIR for presenting the case before you.

4. It is, however, shocking to note that a notice has been issued by the National Pension System Trust (NPS Trust) to all the subscribers under NPS that the Trust will start recovering fee/charge @ 0.01% of the AUM on daily accrual basis to meet its expenditure w.e.f. 1st November 2015. (Copy of Notice dated 19/10/2015 is also enclosed) This provocative and arbitrary decision has generated deep sense of disappointment and anger among railway employees”

In view of the above, NFIR invites your kind attention to the communication dated 29th March 2014 of your predecessor (Shri Mallikarjun Kharge) to the Finance Minister and in-puts given by the Federation vide letter dated 26/08/2015 for taking special initiative at the level of Government for exempting Railway employees from “New Pension Scheme” (NPS) as a special case.

With regards.

Yours Sincerely

sd/-

(Dr.M.Raghavaiah)

General Secretary

Source: NFIR

National Pension System for Central Government Employees

Subscriber details of CG Employees under National Pension System as on 3.10.2015

Number of subscribers and their asset details of Central Government employees under National Pension System as on 3rd October 2015 has been published by PFRDA. More than 15 lakh CG employees registered under NPS and their ‘Asset Under Management’ value have more than 42 thousand crore. All employees unions and federations including NC JCM

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PRESS RELEASE

Assets under Management (AUM) of National Pension System (NPS) crosses Rs. 1 lac crore

NPS has been implemented for all Government Employees (except armed forces) joining Central Govt. on or after 01 January 2004. Most of the State/UT Governments have also notified the National Pension System (NPS) for their new employees. NPS has been made available to every Indian Citizen from 01st May 2009 on a voluntary basis.

Further, from 1st June 2015, the Atal Pension Yojana, has been launched which has given the much required impetus to the social security schemes Currently, NPS and APY together have more than One Crore subscribers with total Asset Under Management (AUM) of Rs.1,00,275 crores. The segment wise status of the NPS and APY as on 03.10.2015 is as under:

PFRDA has taken various steps at the policy as well as operational level to make NPS more subscriber friendly. In addition to this additional tax benefits made available exclusively to NPS has given a fillip to the scheme. This is further expected to result into a substantial increase in the subscriber base by end March 2016.

The following steps have been taken in the recent past for the convenience of the subscriber:

• The investment guidelines for NPS have been revised to expand the investment avenues for optimisation of the returns.
• Partial withdrawal upto 25% of subscriber’s own contribution for specific purposes like higher education of children, marriage of children, construction of house and specified illness have been allowed to the NPS subscribers after
  completion of 10 years in NPS.
• NPS Private Sector subscribers can continue contributing beyond 60 years upto 70 years of age.
• NPS Subscriber can defer the withdrawal of lumpsum amount upto the age of 70 years and also have the option to defer purchase of annuity upto 3 years from the date of superannuation or 60 years. The funds during this period remain invested in the system.
• The Statement of Transactions (SOT) being sent by CRA to the existing subscribers has been modified to reflect the returns of the individual subscriber since the date of account opening and also the return generated during the last
  financial year.
• To facilitate and operationalize the deposit of additional contribution of Rs.50,000/- to avail of the additional tax benefit under Section 80 CCD(1B), Government Subscribers already covered under NPS have been provided the
  facility to deposit voluntary contributions in their Tier I account through any POPSP. Government employee covered under old pension scheme can also avail this tax benefit by opening individual Tier I account through any POP-SP and contributing to the same.
• Online reset of password and facility to change mobile no. and email Id have been provided to all the NPS subscribers.
• SMS alerts on balances in the NPS account being sent to the subscribers on quarterly basis, in addition to regular monthly alerts on contribution and other changes in the PRAN.

APY scheme provides minimum Govt guaranteed monthly pension to subscribers ranging from Rs 1000 to Rs 5000. Further, Govt. of India also co-contributes 50% of the total contribution made by a subscriber during a financial year subject to maximum of Rs 1,000/- per annum for a period of five years, if eligible subscribers open the account by 31st December 2015. All Indian Citizens, in the age group of 18-40 years are eligible to join the scheme through any bank branch. About 8 lakh subscribers have joined APY till date.

Source: PFRDA

Payment of Gratuity and Guaranteed Benefits under New Pension Scheme (NPS) Beneficiaries – BPMS Resolutions

Removal of ceiling for Compassionate Appointment, Payment of Gratuity to NPS Beneficiaries and Minimum Guaranteed Benefits under NPS

BPMS Resolutions adopted in CEC Meeting held in Hyderabad

BHARATIYA PRATIRAKSHA MAZDOOR SANGH

(An All India Federation of Defence Workers)

(An Industrial Unit of B.M.S.)

(Recognized by Govt of India, Min of Defence)

Central Office: 2A, NaVin Market, Kanpur – 208001

REF: BPMS/ RESOLUTION/ 10(7/1/M)

Dated: 21.09.2015

To,

The Secretary,

Govt. of India, Min of Defence,

South Block, DHQ PO,

New Delhi – 110011

Subject: Resolutions adopted in the Central Executive Committee meeting of BPMS.

Respected Sir,

With due regards, it is submitted for your kind information that the Central Executive Committee meeting of this federation has held on 08th & 09”” Sep. 2015 at Dr APJ Abdul Kalam Complex, DRDO Township, Kanchanbagh, Hyderabad and 03 Resolutions have been unanimously adopted by the CEO of the federation & the same are enclosed herewith for your kind consideration and further necessary action please.

This federation is in full hope to get favourable consideration in this regard.

Thanking you in anticipation.

Sincerely yours

(M P SINGH)

General Secretary

RESOLUTION No. 1: Payment of Gratuity to NPS Beneficiaries

In spite of our strong opposition, the Government has made the New Pension Scheme applicable to all recruits after 01-01-2004. While continuing our opposition to the scheme, BPMS have given several inputs from time to time to ensure that maximum benefit be given to the employees.

As a part of this, the entire bye-laws and other issues pertaining to the formulation of the New Defined Contribution Pension System (popularly known as the NPS) was studies and it was found that as per clarification issued by the Ministry of Finance (Department of Economic Affairs) the NPS is a replacement for only Pension, and thus, other benefits provided to employees like Gratuity remains constant i.e. the employees enrolled under NPS are also eligible for Gratuity as per provision of extant law.

After vigorously pursuing the issue, the Department of Pension & Pensioners Welfare had issued O.M. No. 38/41/06/P&PW (A) DT. 05-05-2009, with the approval of Cabinet to provide for Invalid Pension, Family Pension, Disability Pension, Extra-Ordinary Family Pension, Retirement Gratuity and Death Gratuity in respect of NPS subscribers on provisional basis.

Consequent thereof, BPMS has been consistently demanding that this “Provisional” basis be converted into a PERMANENT BASIS feature of the NPS. The Government has, now vide DC. No. 1(4)/E-2006 DT. 17-08-2015 of JS (Pers) of the Ministry of Finance (Department of Expenditure) circulated a note proposing that the budget for the payment of gratuity be projected from the office of the Controller General of Accounts.

Subsequently, the issue has been earmarked to various Ministries, who in turn have further asked comments from various channels.

The federation having taken stock of the present situation feels that asking comments etc. is not required on a Policy decision and demands that the feature of payment of Gratuity to all NPS subscribers upon Retirement or Death, be made a Permanent feature, without further loss of time.

This resolution is therefore, unanimously adopted at the Central Executive Committee Meeting of the Federation on September 08th, 2015.

RESOLUTION No. 2: Minimum Guaranteed Benefits under NPS

In spite of our strong opposition, the Government has made the New Pension Scheme applicable to all recruits after 01-01-2004. While continuing our opposition to the scheme, BPMS have given several inputs from time to time to ensure that maximum benefit be given to the employees.

Even after a lapse of more than 10 years since the arbitrary implementation of the scheme, the Government has failed to formulate a policy ensuring “Guaranteed Minimum Pension” to the subscribers of the NPS.

Having examine the issue in detailed, BPMS now demands that without any further waste of time, the Government should frame a policy to ensure that irrespective of the financial/market conditions at the time of Retirement and/or Death of the NPS subscriber, he should get a minimum guaranteed pension equivalent to FIFTY PERCENT of his last drawn Basic Pay plus dearness relief for neutralization of price rise.

This Central Executive Committee Meeting of the Federation held at Hyderabad, on September 08th, 2015, hereby RESOLVES, to call upon the Government to frame a policy to ensure that the NPS subscribers receive a minimum guaranteed pension equivalent to FIFTY PERCENT of his last drawn Basic Pay plus dearness relief thereupon at par with Central Government Employees/Pensioners.

RESOLUTION No. 3: One time relaxation & removal of ceiling for Compassionate Appointment

The Government has imposed an arbitrary limit of 5% only for filling up of vacancies on compassionate grounds, subject to several conditions. As a result of this decision, many families are living in distress and the very concept of helping the families of those employees who die in harness, stands defeated due to imposition of this ceiling.

The Federation has been taking up the issue at all levels to relax the ceiling to enable the deserving candidate get employment and thereby provide help to the families of the deceased. Having examine the issue in detailed, BPMS now demands that without any further waste of time, the Government should frame a policy to ensure that as a onetime measure, all existing cases of compassionate appoints are provided suitable employment assistance immediately.

This Central Executive Committee Meeting of the Federation held at Hyderabad, on September 08th , 2015, hereby RESOLVES, to call upon the Government to frame a policy to ensure that one time measure, all existing cases of compassionate appoints are provided suitable employment assistance immediately and to further scrap the artificial ceiling of 5% with immediate effect.

(M P SINGH)

Source: BPMS

Fraudulent Collection of Funds in the name of National Pension System (NPS) - Public Notice

Fraudulent Collection of Funds in the name of National Pension System – Public Notice

Pension Fund Regulatory and Development Authority

First Floor, ICADR Building, Plot No 6, Institutional Area Phase II,

Vasant Kunj, New Delhi-110070 Tel. 011-26897948

PUBLIC NOTICE

It has come to notice of the Authority recently that some organizations, NGOs, societies, individuals, etc. are resorting to offer employment to students/ members of general public under and/or in the name of National Pension System. It has also been reported that some of these entities are also collecting funds from the students in the name of security money for offer of jobs or using the National Emblem and PFRDA logo on their website and other documents. It is hereby informed that PFRDA has not authorized any entity to engage in any such activity, which is illegal and fraudulent. Any entity/ or person found to be engaged in such fraudulent activities, is liable to be prosecuted in law.

The Authority is the regulatory body for National Pension System and other pension schemes under the provisions of the PFRDA Act, 2013, and detailed information pertaining to its functions are available on its website being www.pfrda.org.in.

Members of general public are hereby advised not to pay heed to or act on such false and misleading propaganda issued by such organizations/ individuals. Authority shall not be liable for any loss suffered by any person on account of any dealings with such unauthorized entities/individuals which shall be at his/ her own risk. Members of the general public are also requested to report such unauthorized activities to local authorities/ police department with a copy addressed to grc@pfrda.org.in;

This public notice is issued in interest of members of the general public.

Date: 20.08.2015

Ashish Kumar

General Manager

Authority : www.pfrda.org.in

Click to view the Public Notice

NPS is more beneficial than EPF

NPS is more beneficial than EPF

Is NPS better than EPF?

The NPS is more complicated than EPF, but it may ensure a sufficient retirement kitty

If there’s one investment option that has received generous tax breaks in the Budget, it is the National Pension System (NPS). In a watershed move, the Finance Minister has also announced that employees in the organised sector will now be able to opt out of contributions to the Employees Provident Fund (EPF) and invest in the NPS instead. So, if given this choice, what should you do? Here’s how they compare.

Contributions

EPF contributions are mandatory for employees earning up to ₹15,000 a month in the organized sector. Many employers however insist on EPF contributions for all their employees. The contribution is pegged at 12 per cent of your pay (basic plus dearness allowance). Your statutory EPF contributions are matched by your employer. If you are an employee who usually struggles to save, the EPF is a good option for you as it forces you to save at least 12 per cent of your pay.

Read more at The Hindu Business Line

Employees Provident Fund(EPF) to be Provided two Options

Employees Under the Employees Provident Fund(EPF) to be Provided two Options

The Union Finance Minister Shri Arun Jaitley has announced that with respect to Employees Provident Fund (EPF), the employee needs to be provided two options. Firstly, the employee may opt for EPF or the New Pension Scheme (NPS). Secondly, for employees below a certain threshold of monthly income, contribution to EPF should be optional, without affecting or reducing the employer’s contribution. He said, with respect to ESI, the employee should have the option of choosing either ESI or a Health Insurance product, recognized by the Insurance Regulatory Development Authority (IRDA).

The Finance Minister announced that he intends to bring amending legislation in this regard, after stakeholders’ consultation.

Source: www.7thpaycommissionnews.in