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

Exempting Railway employees from the NPS and also consider ONE RANK ONE PENSION – NFIR

Exempting Railway employees from the NPS and also consider OROP – NFIR

NFIR

National Federation of Indian Railwaymen

3, CHELMSFORD ROAD,NEW DELHI – 110 055

Affiliated to:

Indian National Trade Union Congress (INTUC)

International Transport Workers’ Federation (ITF)

No.IV/NPS/PFRDA BILL

Dated: 06-09-2015

Shri Narendra Modi,
Hon’ble Prime Minister of India
South Block,
Raisina Hills,
New Delhi.

Respected Sir,
Sub: Uniform Pension Scheme to retiring Railways employees at par with ex-servicemen – reg.

At the outset, the National Federation of Indian Railwaymen (NFIR) thanks the Government for conceding to the demand of ex-Servicemen for introduction of “One Rank – One Pension” for them.

In this connection, I would invite your kind attention to the case of Railway employees numbering over 1.3 million as placed below:-

The Railway employees have been subjected to injustice as a result of introduction of New Pension Scheme (which is a contributory pension scheme) with effect from 01/01/2004. Consequently, those employees who joined railways on and after 01-01-2004 are governed by the contributory pension scheme with present nomenclature “New Pension System”(NPS).

Presently, there are two sections of Rail Workforce – One governed by the Liberalized pension Scheme (applicable to pre 01-01-2004 appointees) and the other one governed by the contributory pension scheme i.e. NPS applicable to post 01.01.2004 appointees. Since 2004, NFIR has been pressing the Government of India and the Ministry of Railways to withdraw New Pension Scheme as the duties and responsibilities of Railway employees are very complex, Complicated and their working conditions are arduous as they perform duties at remote places, extremist infested areas, jungle areas, without any supply chain. Vast percentage of Railway employees cannot afford to have timely medicines, social life, schooling facilities etc.,

Pursuant to the discussions held with the Railway Ministry on our pending demand seeking abolition of New pension-Scheme in Railways, the then Railway Minister Shri Mallikarjun Kharge had agreed with the demand and accordingly he had sent a communication to the Finance Ministry on 29-03-2014 duly explaining the nature of duties of the Railway employees and seeking Government’s approval for exempting the Railway employees from the NPS whereby they can be governed by the Liberalized pension scheme. This issue is continued to remain unresolved.

For your kind appreciation, I mention here that according to the report of the Dr.Anil Kakodkar committee, Submitted to the Railway Ministry in the year 2012. the death rate of Railway employees in the courses of performing duties was much larger than the public. I quote below the figures given by the High Level Safety Review committee headed by Dr.Kakodkar.

	Killed	Injured
(a)    Railway employees	1600	8700
(b)   Passenger/ Public	1019	2110
(c)    Unmanned Level Crossing	723	690

The above position reveals that the Railway employees killed during the period 2007-08 to 2011 were 1600 while those injured on duty were 8700. This figure would convince that the duties of Railway employee cannot be treated as less arduous in comparison with the defence and para-military forces. Like armed forces, Railway employees are expected to remain at their place of posting even during periodic rest and they cannot afford to leave the headquarters and they perform duties under open sky facing inclement weather conditions and ensure running of trains round the clock.

It would therefore, be necessary to exempt Railway employees from the New Pension System (NPS).

2. Need to provide Uniform pension Scheme or One Rank – One Pension to Rail Workforce:

The Railway employees discharges their duties round the clock by shifts and over 85% staff work in remote places where no human life exists. Their duties are safety- oriented. The are facing continuous stress and strain in the course of performing. Train passing duties causing health hazards leading to pre-mature death, medical invalidation at a scale larger than the armed/Par-Military forces. The demand for introduction of Uniform Pension Scheme to Railway employees of the same rank regardless of their date of retirement deserve consideration like that of retiring armed personnel.

I therefore, request you to kindly see that the Government accords approval, exempting Railway employees from the New Pension System for the purpose of covering them under the Liberalized Pension Scheme. I also request that “One Rank – One Pension” Scheme i.e. uniform pension for Railway employees retiring in the same rank regardless of their retirement may kindly be approved by the Government, considering the fact that Railway personnel are serving the nation, transporting military hardware and the army to the borders and ensuring uninterrupted movement of rail transport services at all times round the clock in all weather conditions.

Yours faithfully,

Sd/-

(Dr.M.Raghavaiah)

General Secretary.

Source: NFIR

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