Enhancement of initial subscriber registration charges for POP under NPS for all subscribers under Corporate & All Citizen Model

PFRDA

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDN2015/13/POP/02

Date: 20th April 2015

To.
All Points of Presence (PoPs)

Subject: Enhancement of initial subscriber registration charges for POP under NPS for all subscribers under Corporate & All Citizen Model

As per extant guidelines, the initial subscriber registration charges for POP is Rs. 100/-. and transaction charge is 0.25% of the initial contribution amount received from the subscriber on ad valorem basis. subject to a minimum of Rs.20/- and a maximum of Rs. 25,000/-

With the notification of the PFRDA (PoP) Regulations. 2015 dated 04/03/2015, and with a view to ensure better penetration of National Pension System (NPS) through enhanced participation of POPS to promote the scheme, it has been decided by PFRDA to increase the initial subscriber registration charges for subscribers of Corporate 8. All Citizen Model from Rs. 100/- to Rs. 125/-

Other PoP charges for financial Inon- financial transactions remain the same. They are as under:

• The charges for any subsequent transaction is 0.25% of the amount received from the NPS subscriber. subject to minimum of Rs.20/~ and a maximum of Rs. 25000/-.
• Any other transaction not involving a contribution from subscriber is Rs20/- per transaction.

The above charge structure would be applicable to both individuals under Corporate Model and under All Citizen Model subscribers in the Private (Non-Government) Sector and shall be effective once the PoPs get registered with PFRDA. under the PFRDA (POP) Regulations. 2015 dated 04/03/2015.

Ashish Kumar
General Manager

Source: http://pfrda.org.in/MyAuth/Admin/showimg.cshtml?ID=662

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

New Website of National Pension System Trust Launched

New Website of National Pension System Trust Launched

New Website of National Pension System Trust Launched; To Provide Proper and Effective Information Dissemination to the Stakeholders and Provide Ease of Access to Various Beneficiaries Under NPS

The National Pension System Trust has been set-up and constituted by Pension Fund Regulatory Development Authority (PFRDA) for taking care of the assets and funds under the National Pension System (NPS) in the interest of the beneficiaries (subscribers).

The National Pension System Trust has launched its new website www.npstrust.org.in here today.. The website was launched by Shri G. N. Bajpai, Chairman & Trustee of the Board of NPS Trust. The website is aimed to provide proper and effective information dissemination to the stakeholders and provide ease of access to various beneficiaries under NPS.

source-pib

NLCC access to CRA system to view and Print Statement to Transaction and E-PRAN

NLCC access to CRA system to view and Print Statement to Transaction and E-PRAN

PFRDA

Pension Fund Regulatory & Development Authority
1st Floor, ICADR Building
Plot No.6, Vasant Kunj
Institutional Area, Phase – II
New Delhi – 110070
Te;:011-26897948/226897949
Fax: 011-26897938

PFRDA/2015/10/SWM/03

CIRCULAR

To,
All Aggregators
Date:17th February,2015

Subject: NLCC access to CRA system to view and Print Statement to Transaction and E-PRAN

All the Aggregators are hereby informed that NPS lite collection centre’s (NLCCs) can now access the CRA system (www.npscra.nsdl.co.in) to view and print statement of Transaction (SOT) and E-PRAN card of underlying NPS Lite/Swavalamban subscribers.

At present, the NPS Lite Oversight Offices (NLOOs) and NPS Lite Account Offices (NLAOs) have an access to the CRA system. With the new feature made available in the CRA system, then NLCCs can access CRA system using one time password (OTP). The NLCCs who have obtained10 digit NLCC Registration number and have registered their mobile number in the CRA system can use this option to access the CRA system.

The Statement of Transaction (SOT) can be viewed and downloaded by NLCC financial yearwise

The E-PRAN card can be generated/downloaded by NLCCs can also print the E-Pran card. The E-PRAN card is similar to a physical PRAN card and will display the same details alongwith photograph and signature of the subscriber. However, physical PRAN card cannot be replaced by E-PRAN Card. The subscribers will be required to produce the physical PRAN card wherever necessary. CRA shall continue sending the physical PRAN card as per the approved process.

The detailed for accessing the CRA system by NLCCs is available on CRS’s website and also on PFRDA’s website i.e. www.pfrda.org.in under the section intermediaries central recordkeeping agency –Standard Operating Procedures – Seavalamban yojana (NPS-Lite) or directly at the given link – http://www.pfrda.org.in/index1.cshtml?lsid-173

The Aggregators are requested to disseminate the information to their underlying NPS-lite collection centers (NLCCs). In case any further clarification is required, they may contact shri.sunil Samuel at 022-24994279 (email id – sunlis@nsdl.co.in) or Shri.Kaustubh S.Vaidya at 022-24994577 (email id – kaustubhV@nsdl.co,in).

Sd/-
(Rakesh sharma)
General Manager

Source: http://www.pfrda.org.in//MyAuth/Admin/showimg.cshtml?ID=580

PFRDA News : Clarification on Revision of Investment Guidelines for NPS scheme issued on 29.01.2014

Click Here to view

MERGER OF GRADE PAY Q&A LOK SABHA-PSU

MERGER OF GRADE PAY Q&A LOK SABHA-PSU

GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
LOK SABHA

UNSTARRED QUESTION NO 3965
ANSWERED ON 17.12.2014

MERGER OF GRADE PAY

3965 . Udhayakumar Shri M.

Will the Minister of PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS be pleased to state:-

(a) whether the Government is aware that some of the Public Sector Undertakings, autonomous institutions and other organizations of the Government have not merged grade pay of Rs. 4600/- and Rs. 4800/- as per the 6th Pay Commission recommendations; and

(b) if so, the details thereof; and

(c) the action taken by the Union Government in this regard?

ANSWER

Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister’s Office. (DR. JITENDRA SINGH)

(a) to (c): The employees of Public Sector Undertakings and Autonomous Bodies were not covered under the Terms of Reference of the 6th Central Pay Commission. Though the pay scales based on the recommendations of the 6th Central Pay Commission were later extended to employees of Autonomous Bodies subject to appropriate stipulations, the same are not applicable to employees of Public Sector Undertakings.

The 6th Central Pay Commission made recommendations inter-alia for revision of pre-revised pay scales which were in operation before 1.1.2006, i.e. prior to the date of effect of the recommendations of the 6th Central Pay Commission. The Grade Pay-based system of pay scales is based on the recommendations of the 6th Central Pay Commission in the revised pay structure effective from 1.1.2006. The Grade Pays of Rs.4600/- and Rs.4800/- are applicable to two different categories of posts on the basis of the recommendations of the 6th Central Pay Commission only.

Most of the Central Public Sector Enterprises are following Industrial Dearness Allowance pattern of pay scales. Only a few of them are on Central Dearness Allowance pattern of pay scales.

Department of Public Enterprises extended the notification dated 29.8.2008 by the Department of Expenditure, Ministry of Finance to the Central Public Sector Enterprises following Central Dearness Allowance pattern for pay revision w.e.f. 1.1.2006. Implementation of Department of Public Enterprises guidelines, including those related to pay revision, is with the Central Public Sector Enterprises concerned and their respective administrative Ministry / Department.

Source-http://164.100.47.132/LssNew/psearch/QResult16.aspx?qref=9200

NPS Calculator for employees joining after 01/04/2004

Developed by 

Shri. Amit patel, Mobile : 7878005579

NPS Calculator for Employees joining after 01/04/2004  : Click Here

Number of Subscribers Registered Under National Pension System (NPS) has more than Doubled

Number of Subscribers Registered Under National Pension System (NPS) has more than Doubled

Number of Subscribers Registered Under National Pension System (NPS) has more than Doubled
Since April 2012 from about 11.5 Lakh to 23 Lakh: Chairman,Pfrda ;
Number of States Joining NPS has Increased from 12 to 26 ;

Pfrda Working Towards Notification of Various Regulations in Respect of Efficient Management of Funds, Seamless Grievance Handling and Systems for Risk Mitigation and Containment Among Others

Shri Hemant Contractor, Chairman, Pension Fund Regulatory Development Authority (PFRDA) said that the number of subscribers registered under National Pension System (NPS) has more than doubled since April 2012 from about 11.5 Lakh to 23 Lakh. He commended the substantial improvement in performance of State Governments since April 2012.. He said that the Asset Under Management has also increased 7 fold from Rs.3,300 crores to approximately Rs.24,000 crores while the average contribution upload per month has increased from Rs.180 crores to approximately Rs.900 crores. Shri Contractor was speaking at a Conference on Implementation of National Pension System (NPS) by State Governments organized here today by Pension Fund Regulatory Development Authority (PFRDA). The main objective of the Conference was to focus on progress of performance of the State Governments and also to discuss the implications of the passage and notification of the PFRDA Act for respective States who are offering NPS to their respective employees.

Shri Contractor, Chairman, PFRDA informed, that barring the two States, all the other State Governments, have notified joining NPS. Since the last such conference held in April 2012, the number of States joining NPS has increased from 12 to 26, he added. He said that PFRDA was in talks with the other two State Governments on their joining NPS.

Shri Contractor, Chairman, PFRDA, further said that with the passage and notification of the Act, PFRDA has been conferred with a statutory status. Its mandate covers development of the pension sector as also framing regulations for the advancement of the NPS and protection of the interest of the subscribers. He informed the participants that regulations under the Act are expected to be notified within the next two months. The Chairman added that steps have been taken for communicating more frequently with the subscribers to increase awareness levels about NPS. He directed the State Government officials to regularly visit the PFRDA website for updates on various policies and information. Shri Contractor added that there were various points of concerns which have to be dealt with proactively to protect the interest of the subscribers. He added that this conference and more in the coming years would act as a platform for discussion with PFRDA and interactions with other states to share their best practices.

Earlier speaking on the occasion, Dr. Anup Wadhawan, Joint Secretary, Department of Financial Services, Ministry of Finance emphasised upon the fact that NPS of the Central and the State Governments forms the backbone of the NPS as it is a direct replacement of the erstwhile DB pension system. Hence, its proper implementation is very important for the NPS product as well as the sector, he added. Dr. Wadhawan further stressed upon the fact that the State Government Nodal offices need to keep the information in respect of their employees like email ids, mobile numbers and addresses etc. updated in all respects at regular intervals. Dr. Wadhawan further asked the State Governments to sort-out the issue of legacy contributions and inclusion of State Autonomous Bodies in an expeditious manner. He further called upon the State Governments to further the cause of the Government of India promoted NPS Swavalamban scheme for economically weaker sections of the unorganised sector, through their respective Rural Development Departments.

Shri R V Verma, Member (Finance) laid emphasis on the fact that despite NPS being voluntary in nature; most of the State Governments have proactively adopted it. He further dwelt on the fact that the paradigm shift from the Defined Benefit to the Defined Contribution has put the subscriber’s interest at the centre and the involvement of the subscriber’s justify from the entry into the system up to his/her exit becomes prominent. He mentioned that the involvement of the State Government Nodal offices, as the first point of interaction of the subscriber attains importance. He added that with the passage of the Act, PFRDA is working towards notification of various regulations in respect of the efficient management of funds, seamless grievance handling and systems for risk mitigation and containment. Shri Verma emphasised that various issues like expanding coverage, adequately safeguarding the interest of the subscriber and robust risk management system is of paramount important for protecting the interest of subscribers. He said that synchronization of information and funds is very important in NPS; hence Nodal offices have to lay emphasis on the same. He stated that it is the collective endeavour of the Regulator and the stakeholders involved i.e. State Governments, State Autonomous Bodies (SAB) and their Nodal offices, that a two way feedback process has to be in place to innovate upon the operational aspects of the NPS.

Though it is mandatory to register under National Pension System (NPS) for the joinees/employees of the Central Government who have joined or are joining it on or after 01-01-2004, yet most of the State Governments have adopted NPS voluntarily for their employees from their respective adoption dates. Currently, NPS has 76 Lakh subscribers with total Asset Under Management (AUM) of Rs.68,000 crores. Out of this, State Government sector has approx. 23 Lakh subscribers with AUM of Rs.30,000 crores.

Source:PIBNews

Retirement benefit for NPS employees likely to get Rs. 2,87,26,201 – Is it possible..?

wopostbank

GConnect has published an article titled, ‘NPS is far beneficial than Government Pension’ – Comparison of New Pension Scheme (National Pension Scheme) and Central Government Pension

A very popular website among Central Government employees, GConnect, which began functioning more than 8 years ago, continues to be a strong line of communication between the Central Government and its employees.

The article that was published yesterday seeks to answer critics who claim that the new pension scheme is outright bad. GConnect has made it very clear that the opinions expressed in the article belong to its writer, Mr. Dorai, Deputy Director, ESIC Model Hospital and that the website doesn’t necessarily subscribe to them.

The ‘study report,’ that compares the salient features of the old(Central Government Pension Scheme) and new pension schemes, is bound to create controversies.

While various Central Govt employees associations and federations are putting pressure on the Government to withdraw the new pension scheme and enforce the previous one, we believe that this article is going to make a huge impact.

The writer begins the article by stating that those who are opposing the new pension scheme, with more benefits than the old pension scheme, are doing so due to their ignorance. The article also explains how the new pension scheme could create huge wealth.

The report gives as an example, the case of an employee who joins the Central Government employment as a Upper Division Clerk(UDC) in 2014 and retires after 35 years service, in 2049. The report gives a comparative study of how the pension fund grow each of these 35 years. The study also assumes a regular dearness allowance of 6% every six months, and an annual increment of 3%.

The study also assumes that, at an interval of 10 years, the employee gets 3 promotions during his service tenure. Most importantly, it is assumed that matching the employee’s contribution, the Government’s contribution too would witness an 8.7% increase per annum.

At the time of retirement, the employee is likely to get Rs. 2,87,26,201, which is split into two shares – 40% and 60%, which amounts to Rs. 1,14,90,481, and Rs. 1,72,35,720, respectively. 60% of the lumpsum pension wealth is given at the time of retirement. The remaining 40% is invested in an annuity scheme.

It is stated that the monthly pension will be a minimum Rs. 83,306. In addition to this, at the age of 70, the employee gets the remaining 40% back. The article strongly claims that this money could be the gift that the person leaves behind for his future generation.

The article’s highlight feature is the claim that if the Pay Commission recommendations are taken into account, the amount could be much higher and that the UDC could get as much as Rs. 5 crores at the time of retirement.

According to the old Govt pension scheme, the employee’s monthly pension amount would be Rs. 1,00,934, and after his demise, his spouse would get Rs. 10,317 plus Dearness Allowance. After his/her death, there are no more benefits for the family.

The article is indirectly stating that the absence of gratuity and other such benefits is not a huge issue. According to the old Govt pension scheme, at the time of retirement, the employee would make only Rs. 38,32,550, which is Gratuity (16.5 months) + EL Encashment + Commutation.

While discussing the General Provident Fund (GPF), the article assumes that since nobody leaves anything much in this fund, its overall impact on the total pension fund would be minimal.

The writer concludes his article by declaring that those who oppose the new pension scheme lack intelligence.

NPS is far beneficial than Government Pension

NPS is far beneficial than Government Pension

NPS is far beneficial than Government Pension – Comparison of New Pension Scheme (National Pension Scheme) and Central Government Pension

The Central Government employees who have joined after 1/1/2004 and are put under National Pension Scheme (NPS) have been demanding abolition of NPS and have been persuading the Central Government to make the government pension scheme applicable to them.

This only exhibits their ignorance of the fact that the New Pension Scheme is highly lucrative and make the government employees who joined after 1/1/2004 far richer than the government employees who enjoy government pension scheme. By doing so they are in the process of ruining the great fortunes that lies in store under New Pension Scheme. Let me compare both the scheme:

Benefits under NPS

Let me take a case of Upper Division Clerk(UDC) who joins government service in 2014 at the age of 25 and renders 35 years of service till attaining 60 years of age. He / She gets 3% annual increment every year and gets one promotion every 10 year under M.A.C.P. Although he / she is likely to get 14 to 20% increase in D.A every year as per Consumer Price Index I just take 12%(assuming 6 + 6%) 2 times D.A in a year

YEAR	D.A. assumed @ 12% Per annum	PAY + GRADE PAY with 3% annual increment	D.A	TOTAL	Total Monthly Subscription (employee and Govt)	Annual Subscription	AnnualAppreciationof Investments @ 8.7% Only	TOTAL PENSION WEALTH
2014	107%	9910	10604	20514	4102	49224	2320	51,544
2015	119%	10210	12150	22360	4471	53652	7012	1,12,208
2016	131%	10520	13781	24301	4860	58320	12511	183039
2017	143%	10840	15501	26341	5268	63216	18903	265158
2018	155%	11170	17314	28484	5696	68352	26290	359800
2019	167%	11510	19222	30732	6146	73752	34779	468331
2020	179%	11860	21229	33089	6618	79416	44487	592234
2021	191%	12220	23340	35560	7112	85344	55546	733124
2022	203%	12590	25558	38148	7630	91560	68097	892781
2023	215%	12970	27886	40856	8172	98064	82293	1073138
2024*	227%	14130	32075	46205	9240	110880	98589	1282607
2025	239%	14560	34798	49358	9872	118464	117170	1518241
2026	251%	15000	37650	52650	10530	126360	138041	1782642
2027	263%	15450	40634	56084	11216	134592	161433	2078667
2028	275%	15920	43780	59700	11940	143280	187596	2409543
2029	287%	16400	47068	63468	12694	152328	216809	2778680
2030	299%	16900	50531	67431	13486	161832	249371	3189883
2031	311%	17410	54145	71555	14312	171744	285614	3647241
2032	323%	17940	57946	75886	15178	182136	325893	4155270
2033	335%	18480	61908	80388	16078	192936	370601	4718807
2034*	347%	21060	73078	94138	18828	225936	421184	5365927
2035	359%	21700	77903	99603	19920	239040	478101	6083068
2036	371%	22360	82956	105316	21064	252768	541139	6876975
2037	383%	23030	88205	111235	22248	266976	610878	7754829
2038	395%	23730	93734	117464	23492	281904	687954	8724687
2039	407%	24450	99512	123962	24792	297504	773068	9795259
2040	419%	25190	105546	130736	26148	313776	866975	10976010
2041	431%	25950	111845	137795	27560	330720	970498	12277228
2042	443%	26730	118414	145144	29028	348336	1084535	13710099
2043	455%	27540	125307	152847	30570	366840	1210066	15287005
2044*	467%	29640	138419	168059	33612	403344	1348977	17039326
2045	479%	30530	146239	176769	35354	424248	1501283	18940857
2046	491%	31450	154420	185870	37174	446088	1668876	21055821
2047	503%	32400	162972	195372	39074	468888	1853953	23378662
2048	515%	33380	171907	205287	41058	492696	2057162	25928520
2049	527%	34390	181235	215625	43126	517512	2280169	28726201

* MACP / Promotion Years

(A) Therefore, the total pension wealth of a government servant who joined in 2014 and retiring under New Pension Scheme shall at the time of his retirement be Rs. 2,87,26,201/-

(B) 60% of the lump-sum pension wealth which he / she will be getting on retirement:
Rs.1,72,35.720

(C) 40% invested in an annuity scheme which he / she can receive before 70 years:
Rs.1,14,90,481

(D) Earned Leave Encashment: Rs. 215625 x 10 months : Rs. 21,56,250

TOTAL of (A) (B) (C) and (D) will be Rs. 3,08,82,451

Death Gratuity:

Although not entitled for retirement gratuity, but eligible for Death Gratuity If died during the service

Monthly Pension:

At the assumed Interest at the rate of 8.7% per annum on the other 40% of pension wealth of Rs.1,14,90,481 invested in annuity shall fetch
monthly pension of at least : Rs.83,306/ –

Not only this, before he / she attains the age of 70 he / she can withdraw the remaining 40% of his pension wealth of Rs. 1,14,90,481/- which if invested in Fixed Deposit of a nationalised bank can fetch interest and take care of not only of his wife and children but his descendants also for generations to come.

This is just a tip of the iceberg. If we consider the other 4 pay commission benefits that materialize on 1/1/2016, 1/1/2026, 1/1/2036 and 1/1/2046 which a NPS pensioner who joins as UDC shall be getting before his retirement in 2049,his total pension wealth will be undoubtedly double the above amount which comes to more than Rs.5 crores. While a person who joins as U.D.C. gets this much, one will be rocked out of stupor to know what a Group A officer who renders 35 years of service may get – undoubtedly his total pension wealth will be more than Rs.10 crores.

Benefits under Central Government Pension Scheme

Now let us see what will be the retirement benefits of the above person if he / she is put in government pension scheme:

1.Gratuity for 16.5 months :

Rs.2,15,625 x 16.5 months = Rs.35,57,812/- Restricted to Rs.10,00,000

2. Earned Leave Encashment:

Rs. 215625 x 10 months : Rs.21,56,250

3. Pension Commutation:

Rs.17195 x 40% = Rs.6878 x 12 x 8.194 years Rs 6,76,300

Total Benefits under Central Government Pension Scheme: Rs.38,32,550

4. GPF Balance:

As it is a general tendency of the government servants to withdraw from GPF frequently, there will be very little left at the time of retirement

5. Monthly pension

i) Rs.34390 / 2 = Rs.17195 (basic pension being 50% of pay and grade pay Less 40% of basic pension towards commutation (Rs 6878) which will be restored after 15 years

Balance basic pension is Rs. 10317

ii) DA @ 527% of basic pension of Rs.17195 = Rs. 90617 (subject to increase in DA every 6 months based on consumer price index)

Total pension is Rs.1,00,934 per month.

After the death of government servant say after 67 years, spouse can take only 60% of the basic pension i.e.Rs.17195 x 60% = Rs.10317 plus D.A.at the prevailing rates. After spouse’s death children are unlikely to draw the pension as they would have already crossed the age limit. Thus, unlike the dependents of NPS pensioners, there will be nothing left for financial security of the dependents of the government pensioners .

Thus it is unwise on the part of government servants who have joined after 1/1/2004 to demand for abolition of NPS scheme and grant of government pension.

Mr.M.Dorai
Deputy Director
ESIC Model Hospital,
Bangalore (Ministry of Labour, Government of India) is the author of this Article.