2. This New Pension System now renamed as
National Pension System (NPS) is implemented
for the officials appointed in Govt. Service on or
after 01/01/2004.
There are two types of Pension in Govt.
Service viz. Old (Defined) Pension System and
National Pension System.
National Pension System
3. Various Amendments in re-classifying
the appointments after 01/01/2004, like
labourers on contingent service as on
01/09/1993 and regularised on or after
01/01/2004 and appointment orders issued
prior to 01/01/2004 and joined on or after
01/01/2004 will be treated as in Old
Pension System.
National Pension System
4. In Old (Defined) Pension System, the
pension of the retiring Govt. servant is defined
viz. 50% of the basic pay at the time of
retirement will be granted as Pension.
In National Pension System, the pension will
be based on the total accumulated funds on the
date of retirement and the same is calculated on
the amounts contributed during the entire service
by both Govt. employee, employer and the
accumulated wealth.
National Pension System
5. The important point to be noted is the enrolment
as NPS subscriber after appointment into Govt.
Service which should be done IMMEDIATELY by
submitting the requisite form available in the link
below and obtain the Permanent Retirement
Account Number know as PRAN to PAO through his
DDO alongwith supporting documents viz. copies of
PAN, Aadhaar, Bank account details, etc.
https://www.npscra.nsdl.co.in/download/government-sector/central-
government/forms/CSRF_Subscriber_Registration_Form.pdf
National Pension System
6. Alternatively, we can also generate Permanent
Retirement Account Number (PRAN) for enrolment as
NPS subscriber online through
https://enps.nsdl.com/eNPS/NationalPensionSystem.html after
appointment into Govt. Service, clearly
mentioning the DDO Registration No. during
registration.
The following are the screens which will appear
while doing online registration.
National Pension System
12. In the above screen, complete the second tab first
Acknowledgement ID Generation, which will generate the ID
and further proceed to complete all tabs. In case you are
required to stop at any point, this Ack. ID will be utilized to start
the process from you have left as indicated below, selecting
the Complete Pending Registration.
National Pension System
13. After completing the process all the tab till
Authorisation(6), PRAN will get generated. The
physical PRAN kit will be delivered to PAO which
has to be handed over to the DDO concerned.
The DDO has to enter the PRAN in the
employee profile in DDOMaker level of EIS and
got it approved by of the DDOChecker.
National Pension System
14. There are two Tiers viz. Tier-I and Tier-II.
Tier-I for Central Govt./ State Govt. / Public
Sector Bank/Companies consists of two parts of
contributions, one Employee Contribution and
other Govt. Contribution.
In Tier-I account, Employee Contribution will be
@ 10% of Basic Pay + Dearness Allowance and
Govt. Contribution will be @ 14% of Basic Pay +
Dearness Allowance.
National Pension System
17. Joining NPS can be done any individual
between the age of 18 and 70 can open an NPS
Account.
National Pension System
18. There are three difference sectors of PRAN
Accounts viz. State Government, Central
Government and Public Sectors.
If a person is transferred or re-appointed
between any of the three sectors, transfer of
PRAN accounts may be done at DTO / AO / PAO
level of the newly appointed sector.
National Pension System
19. For instance, if a person is re-appointed from
SBI bank to Central Government office, he or she
has to give a subscriber shifting form available in
the link below to PAO through his DDO alongwith
relevant informations and supporting documents
viz. copies of PAN and Aadhaar.
https://www.npscra.nsdl.co.in/download/government-
sector/central-government/forms/IntersectorShifting-
Form.pdf
National Pension System
20. On initial direct appointment to Central
Government Office, the NPS subscription @ 10% of
Basic Pay + DA has to be effected only from the first
complete month, leaving the partial days of entry
month.
For instance, if a person is appointed on
02/02/2021, salary for the month of February 21 may
be drawn and paid in full without NPS deduction. Full
NPS subscription for the month of March 2021 may
be effected. Simultaneously, for obtaining PRAN,
application form may be submitted to PAO through
DDO which normally takes 3 to 4 weeks.
National Pension System
21. On receipt of the PRAN, a kit containing the
PRAN card and other guidelines regarding your
PRAN account will be forwarded to PAO from
NSDL, which in turn will be handed over to the
subscriber through DDO.
Using the kit received, the subscriber can login
into the website https://cra-nsdl.com and view the
account details of PRAN generated.
National Pension System
22. On an yearly basis, the subscriber may generate a
Statement of Transaction (SOT) as on 31st March for
watching the Fund Accumulated in his / her PRAN
account.
This subscription will be effected from time to time,
whenever Pay & DA is paid to the Govt. servant, i.e.
monthly Salary, DA arrears, Pay arrears on account
of Promotion / MACP / Upgradation of Pay, etc.
National Pension System
23. At present, withdrawal from NPS fund are
done with the following Rules.
The subscriber should have contributed to NPS
account for a minimum period of 3 years.
A total of three withdrawals is admissible during the
entire service from the NPS subscriber’s account.
National Pension System
24. At present, withdrawal from NPS fund are
done with the following Rules.
The eligibility amount each time should not exceed
25% of the balance at credit of the subscriber.
Balance at credit is arrived only by taking into
account the Employee Contribution part.
National Pension System
25. Withdrawal is allowed only against the
specified reasons as detailed below
National Pension System
27. Considering a total balance at credit of
Rs.750000/- which includes Employee
Contribution of Rs.2,60,000/-, Employer/Govt.
Contribution of Rs.3,90,000/- and accumulated
wealth of Rs.1,00,000/- of an employee, the
withdrawal will be calculated as 25% of
Rs.2,60,000/- which works out to Rs.65,000/-
only.
National Pension System
29. Exit on Superannuation may be done on
attaining the age of Superannuation or 60 years.
On Regular Exit, if the total accumulated
pension corpus in an NPS account is less than
Five Lakhs, then the subscriber can opt for 100%
lumpsum withdrawal and close the NPS account.
National Pension System
30. Premature exit (exit before attaining the age of
superannuation / attaining 60 years of age) from
NPS account is admissible only after completion
of three years.
For premature exit, if the total corpus in an
NPS account is less than 2.5 Lakh, the entire
amount may be withdrawn and account may be
closed.
National Pension System
31. For premature exit, if the total accumulated
amount in an NPS account is more than 2.5
Lakhs, then only 20% of the entire amount may
be withdrawn and the remaining 80% of the
amount should be utilized for purchase of
Annuity.
In case of Premature Exit, the subscriber still
has a choice to continue his NPS account by
converting into individual account.
National Pension System
32. On Regular Exit, the subscriber has to utilize
atleast 40% of the accumulated corpus fund to
purchase an annuity that would provide a regular
monthly pension and withdraw the balance
corpus amount in lump sum.
Upon DEATH of the subscriber – The entire
accumulated pension corpus (100%) would be
paid to the nominee / legal heir of the subscriber.
National Pension System
33. Also, If a NPS subscriber wishes to continue
his NPS Account, he can continue it till the age of
75, converting the account to individual account
after the age of 60.
National Pension System
34. Annuity Service Providers (ASP) are basically
Insurance Regulatory and Development Authority
(IRDA) regulated Insurance companies which are
empanelled by PFRDA to provide Annuity
services to NPS Subscribers.
There are four schemes available with ASPs
under NPS.
National Pension System
35. Annuity for life : On death of the
annuitant, payment of Annuity ceases.
Annuity for life with return of
purchase price on death : On death of
the annuitant, payment of Annuity ceases
and the purchase price is returned to the
nominee
.
National Pension System
36. Annuity payable for life with
100% Annuity payable to spouse on
death of annuitant : On death of the
annuitant, Annuity is paid to the
spouse during life time. If the spouse
predeceases the annuitant, payment
of Annuity will cease after the death of
the annuitant.
National Pension System
37. Annuity payable for life with 100%
Annuity payable to spouse on death of
annuitant with return on purchase of
Annuity : On death of the annuitant,
Annuity is paid to the spouse during life
time and purchase price is returned to
the nominee after the death of the
spouse..
National Pension System
38. These are the list of some Annuity Service Providers (ASP)
(Source : http://npstrust.org.in/annuity-service-providers)
National Pension System
39. List of websites for your record and reference
1. https://enps.nsdl.com/eNPS/NationalPensionSystem.html
(for eNPS PRAN Generation)
2. https://npscra.nsdl.co.in (for NPS related queries, forms and FAQs)
3. https://cra-nsdl.com/CRA/ (for login purposes)
4. http://npstrust.org.in/ (Pension Fund Regulatory Development Authority related
information)
5. https://npscra.nsdl.co.in/all-citizens-faq.php (for NPS related queries FAQs)
National Pension System
40. Thank you very much to one & ALL who
attended the session and A special thanks to
NACIN, Chennai for giving me this opportunity
allowing me to throw light on the subject which I
got some little exposure.
Thank U Very Much
R.Prasanna, AAO,
Southern Rivers Division,
Central Water Commission, Coimbatore
CONCLUSION
