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

GConnect has published an article titled, ‘NPS is far beneficial than Government Pension’

GConnect has published an article titled, ‘NPS is far beneficial than Government Pension’

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.

Source: 7thpaycommissionnews.in

New Pension Scheme Contribution Kept Under PF/CPF

New Pension Scheme Contribution Kept Under PF/CPF

NPS Contribution Kept Under PF/CPF

The New Pension Scheme (NPS) was implemented in Delhi Cantonment Board for the employees appointed on or after 01.01.2004 with effect from 01.04.2011. During the intervening period these employees made contributions to the Provident Fund (PF) account maintained by the Board. After implementation of the New Pension Scheme contributions made in the PF account were utilized for depositing prescribed subscriptions with the National Securities Depository Limited under Tier-I of NPS alongwith the equal amount of the employer’s share, for the period prior to 01.04.2011.

In the case of 61 employees after adjusting the subscriptions payable towards Tier-I of NPS certain amounts still remain in the PF accounts of these employees. As PF accounts cannot be held after the introduction of NPS, these employees have been asked to give their option either for deposit of the amounts under Tier-II of NPS or for their refund alongwith the interest accrued.

This information was given by Defence Minister Shri Arun Jaitley in a written reply to SmtBimlaKashyapin Rajya Sabha today.

Application Forms for Commutation : CCS (CP) Second Amendment Rules, 2014

Application Forms for Commutation: CCS(CP) Second Amendment Rules, 2014

MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(Department of Pension and Pensioners’ Welfare)

NOTIFICATION

New Delhi, the 26th May, 2014

G.S.R. 355(E).- In exercise of the powers conferred by the proviso to article 309 and clause (5) of article 148 of the Constitution and after consultation with the Comptroller and Auditor General of India in relation to persons serving in the Indian Audit and Accounts Department, the President hereby makes the following rules further to amend the Central Civil Services (Commutation of Pension) Rules, 1981, namely :-

1. (1) These rules may be called the Central Civil Services (Commutation of Pension) New-Pension-System Second Amendment Rules, 2014.

(2) They shall come into force on the date of their publication in the Official Gazette.

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HAL to Introduce Pension Scheme for its Executives

HAL to Introduce Pension Scheme for its Executives

Based on the guidelines issued by the Department of Public Enterprises (DPE) and approved by the Ministry of Defence, Hindustan Aeronautics Limited (HAL) is introducing a Defined Contribution Pension Scheme for its executives who retired from January 1, 2007 onwards. In line with this, Mr. V.M. Chamola, Director (HR), Dr. A.K Mishra, Director (Finance) and Mr Ashok Tandon, Executive Director (Company Secretary) HAL jointly signed the ‘Trust Deed’ to form the “HAL Executives Defined Contribution Pension Trust” in presence of Dr. R.K. Tyagi, Chairman, HAL and Trustees of the Pension Fund, here in Bangalore today.

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