FAQs related to the New Pension Scheme (NPS)

New Pension SystemFAQs related to the New Pension Scheme (NPS)

1.    Whether a retiring Government servant is entitled for leave encashment after retirement under the NPS?
      The benefit of encashment of leave salary is not a part of the retirement benefits admissible under Central Civil Services (Pension) Rules, 1972. It is payable in terms of CCS (Leave) Rules which will continue to be applicable to the government servants who join the government service on after 1-1-2004. Therefore, the benefit of encashment of leave salary payable to the governments/to their families on account of retirement/death will be admissible.
 
2.    Why is it mandatory to use 40% of pension wealth to purchase the annuity at the time of the exit (i.e. after the age of 60 years) from NPS?
      This provision has been made in the New Pension Scheme with an intention that the retired government servants should get regular monthly income during their retired life.
 
3.    Whether any minimum age or minimum service is required to quit from Tier-I?
      Exit from Tier-I can only take place when an individual leaves Government service.
 
4.    Whether Dearness Pay is counted as basic pay for recovery of 10% for Tier-I?
      As per the New Pension Scheme, the total Dearness Allowance is to be taken into account for working out the contributions to Tier-I. Subsequently, a part of the “Dearness Allowance” has been treated as Dearness Pay. Therefore, this should also be reckoned for the purpose of contributions.
 
5.    Whether contribution towards Tier-I from arrears of DA is to be deducted?
      Yes. Since the contribution is to be worked out at 10% of (Pay+ DP+DA), it needs to be revised whenever there is any change in these elements
 
6.    Who will calculate the interest PAO or CPAO?
      The PAO should calculate the interest.
 
7.    What happens if an employee gets transferred during the month? Which office will make deduction of Contribution?
      As in the case of other recoveries, the recovery of contributions towards New Pension Scheme for the full month (both individual and government) will be made by the office who will draw salary for the maximum period.
 
8.    Whether NPA payable to medical officers will count towards ‘Pay’ for the purpose of working out contributions to NPS?
      Yes. Ministry of Health & Family Welfare has clarified vide their O.M. no. A45012/11/97-CHS.V dated 7-4-98 that the Non-Practising Allowance shall count as ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the New Pension Scheme.
 
9.    Whether a government servant who was already in service prior to 1.1.2004, if appointed in a different post under the Government of India, will be governed by the CCS (Pension) Rules or NPS?
      In cases where Government servants apply for posts in the same or other departments and on selection they are asked to render technical resignation, the past services are counted towards pension under CCS (Pension) Rules, 1972. Since the Government servant had originally joined government service prior to 1-1-2004, he should be covered under the CCS (Pension) Rules, 1972.

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Comments

  1. Abe simon says:

    In less than two weeks, your time for assessing your options outlined in the General Motors Pension Buyout Plan will be over. The offer from GM, announced on June 1, presented you with three choices: to take a lump-sum payment, to continue a monthly benefit, or to take on a new sort of monthly benefit. From the start it has been strongly encouraged that you meet with a financial advisor experienced in the areas of retirement and investment planning. Additionally, you can watch this video which may help to shed some light on the three available options: http://youtu.be/32ZRne7AoTQ. You’ve had time to think about your pension options, now is the time to act.

  2. Bajrang Singh says:

    I was appointed in CRPF as HC(Ministiral) on 13/02/2006. I applied for the post of UDC In Kendriya Vidyalaya Sangathan(An Autonomous body of MHRD, GOI) through proper channel. on selection to the post of UDC I technically resigned form CRPF. I am seeking clarification whether, I am eligible for count of past service of CRPF for the purpose of DCRG, Commutation, Leave Encashment and seniority & which is application in NPS employees after 01.01.2004 as I was in same scale i.e. 5200-20500 , GP 2400/- in CRPF and now In KVS.

  3. A.V.SUJAY KUMAR says:

    HI,
    THIS IS SUJAY WORKING AS A LAB TECHNICIAN IN ORDNANCE FACTORY HOSPITAL , YEDDUMAILARAM – 502205. IT IS UNDER MINISTRY OF DEFENCE. I WAS GROUP ‘C’ EMPLOYEE WITH 2800/- GRADE PAY.
    FOR THE BLOCK YEAR 2010-2011 LTC FOR NER (NORTH EAST REGION) I TRAVELLED FROM HYDERABAD TO GANGTOK VIA DELHI. ( HYD TO DELHI BY TRAIN & DELHI TO BAGDOGRA BY AIR INDIA FLIGHT). AND RETURN. IN 2011 OCTOBER-NOVEMBER.

    MY BILLS I SUBMITTED AND FINAL BILL WAS CLEARED IN MARCH 2012. NOW BUT UNEXPECTEDLY , THE PCA ACCOUNTS (FYS), KOLKATA ( MY HEAD QUARTERS) ISSUED A RECOVERY LETTER , STATING THAT I SHOULD TRAVEL VIA KOLKATA NOT VIA DELHI.

    . I SUBMITTED 23000/- PER HEAD HYD TO GANGTOK VIA DELHI PER HEAD TICKET.
    NOW THEY GAVE ONLY 13000/- PER HEAD CALCULTING HYDERABAD TO GANGTOK VIA KOLKATA FARE. AND REMAINING 10,000/- RECOVERY FROM MY SALARY FROM NOV.12 WITH IMMEDIATE EFFECT.

    I REQUEST ALL THE PEOPLE . IF YOU CAN HELP IN THIS MATTER, PLEASE FORWARD YOUR VALUABLE SUGGESTIONS TO SUJAYAV1982@GMAIL.COM OR 09290705177….PLEASE

  4. A.V.SUJAY KUMAR says:

    HAI
    THIS IS SUJAY I BELONGS GROUP “C” AND MY GRADE PAY IS 2800. I WAS RECRUITED IN 07.10.2008. I WOULD LIKE KNOW THAT I WILL BE COVERED UNDER NEW PENSION SCHEME (CPF) . HOW TO CHECK THE CPF BALANCE. AND IS THERE ANY PROVISION TO HAVE LOANS OR SOME PERCENT WITHDRAW LIKE GPF FOR CPF EMPLOYEES. …PLEASE IF U HAVE ANY INFO….FORWARD TO SUJAYAV1982@GMAIL.COM OR 09290705177