GOVT of NCT of Delhi vs Somvir Rana-----Similarly placed
Judgement of Madras High Court Madurai Bench - Reg grant of increment to one who superannuated on 31.3.2010
Article 13
Under possibly the first such legislation in the country, the amount deducted from their monthly salary will be given to their parents and siblings so they could support themselves
The Assam Employees' Parents Responsibility and Norms for Accountability and Monitoring Bill, 2017, aims "to provide for accountability for employees of the state government or any other organisation in Assam (under the government) in taking care of their parents and divyang (disabled) siblings and in matters connected therewith or incidental thereto"
Earlier, introducing the PRONAM bill, state minister Himanta Biswa Sarma said there are instances of parents having to live in old age homes as their children do not look after them
The PRONAM bill has been brought in so that if employees do not take care of their parents and divyang siblings 10 per cent of their monthly salary will be deducted for their upkeep, he said
The purpose of the bill, he said, was not to interfere in the private lives of employees but to ensure that their parents and siblings facing neglect are able to lodge a complaint with their respective departments
The legislation was passed by the House by voice vote
Sarma said a similar bill will be introduced later for MLAs and MPs, employees of Public Sector Undertakings (PSUs) and private companies operating in Assam
Former chief minister and opposition Congress leader Tarun Gogoi termed the legislation an "insult" to the Assamese society, which, he said, has a tradition of looking after old parents and siblings
Claiming such a legislation interfered in the private lives of government employees, Gogoi said, "Our culture is to not only look after our old parents and siblings, educating them, but also to take care of even cousins and other relatives.
Implementation of Digital Life Certificate Programme-regarding enrollment of Defence Civilian and Defence Civilian Pensioner
No. PT/3088/DLCP/Vol-V
To,
Sub : Implementation of Digital Life Certificate Programme-regarding enrollment of Defence Civilian and Defence Civilian Pensioner.
Encl:- As above
Daylight robbry: SBI WON’T REFUND MONEY DOCKED FROM PENSIONERS’ ACCOUNTS, RETIREES HIT HARDEST
A day after State Bank of India eased the controversial minimum balance requirement for pensioners, it faced furious reactions over the decision to not reimburse the charges it has docked from the retirees' accounts since June.
Neeraj Vyas, chief operating officer of SBI, said the minimum balance exemption for pensioners would come into effect from October. "Till the time, whatever amount has been deducted for not maintaining the monthly average balance will not be reimbursed," he said.
Clarification regarding bunching of stages in the revised pay structure under RS(RP) Rules, 2016 – RBE 139/2017
RBE 139/2017
GOVERNMENT OF INDIA (BHARA T SARKAR)
Ministry of Railways (Rail Mantralaya)
(Railway Board)
PC-VII No. 62 RBE No. 139/2017
File No. PC-VII/2016/RSRP/3 New Delhi, dated :27.09.2017
The General Manager/CAOs(R),
All India Railways & Production Units,
(As per mailing list)
Sub: Clarification regarding bunching of stages in the revised pay structure under RS(RP) Rules, 2016.
Instructions relating to bunching of stages while fixing the pay in in CPC was issued vide Board’s letter dated 26.09.2016. Subsequently in view of interim clarifications issued by Ministry of Finance (Department of Expenditure) vide their OM No. 1-6/2016-IC (Pt.) dated 13.06.2017, it was advised vide Board’s letter dated 29.06.2017 that, wherever not given effect to implementation of provision of bunching contained in Board’s letter dated 26.09.2016 may be put on hold till such time detailed clarifications are issued to avoid subjective interpretation of the provisions that could result in anomalies/recoveries at a later date.
2. Now, detailed clarifications over the issue has been issued by Ministry of Finance (Department of Expenditure) vide their O.M No. 1-6/2016-IC dated 03.08.2017 (copy enclosed).
3. The clarifications issued by Ministry of Finance (Department of Expenditure) vide their O.M. dated 03.08.2017 will be applicable mutatis mutandis in Railways w.r.t. RS(RP) Rules, 2016.
4. Illustrations in this regard are enclosed at Annexure-A & Auuexure-B.
Deputy Director, Pay Commission-VII
Railway Board
DOWNLOAD PDF VERSION OF RBE 139/2017
Grant of Dearness Relief to Central Government pensioners/family pensioners - Revised rate effective from 1.7.2017. dt:.28.09.2017
7th CPC: Modification of Level-13 of Pay Matrix - Issues IOR, Fitment Factor, Revision of Option etc. - Fin Min Order 28.09.2017
No. 4-6/2017-IC/E-III(A)
Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated, the 28th September, 2017
Office Memorandum
Subject: Modification of Level-13 of Pay Matrix - Issues regarding.
The undersigned is directed to invite attention to the Pay Matrix contained in Part A of the Schedule of the CCS(RP) Rules, 2016 as promulgated vide notification No. GSR 721 (E) dated 25th July, 2016, where the Level-13 of the Pay Matrix starts at Rs. 1,18,500 at Cell one and ends at Rs. 2,14,100 at Cell twenty one and to state that in terms of CCS(Revised Pay) (Amendment) Rules, 2017 promulgated vide GSR 592(E) dated 15.6.2017, the said Level 13 of the Pay Matrix has been modified. The modified Level 13 starts at Rs. 1,23,100 at Cell one, ending at Rs. 2,15,900 at Cell twenty
2. The modified Level-13 in terms of the CCS(Revised Pay) (Amendment) Rules, 2017 takes effect from 1st January, 2016. Accordingly, the earlier Level-13 of the Pay Matrix as contained in CCS(RP) Rules, 2016 notified on 2572016 and effective from 1st January, 2016 has become non-existent ab-initio with the promulgation of the CCS(Revised Pay) (Amendment) Rules, 2017.
The modified Level 13 is an improvement on the earlier Level 13 inasmuch as the earlier Level 13 is based on the ‘Index of Rationalisation' (IOR) of 2.57, whereas the modified Level 13 is based on the IOR of 2.67. It is for this reason of improvement that the modified Level 13 begins at Rs. 1,23,100, as against the earlier one which began at Rs. 1,18,500.
3. Consequent upon the aforesaid modification of Level 13 in terms of the CCS(Revised Pay) (Amendment) Rules, 2017 effective from 1.1.2016 and the resultant re-fixation of pay therein in supersession of the earlier pay fixation, references have been received from Ministries/Departments seeking clarifications on certain issues. These issues and the decisions thereon are brought in the succeeding paragraphs.
Issue No. 1 - Whether pay in the Level-13 is to be fixed by multiplying by a factor of 2.57 or 2.67
4. The 7th Central Pay Commission, while formulating the various Levels contained in the Pay Matrix, corresponding to the pre-Revised pay structure, used "Index Of Rationalization" (IOR) to arrive at the starting Cell of each Level (The 1st Cell) of The Pay Matrix. This IOR has been applied by The Commission on the minimum entry pay corresponding to the successive Grades Pay in the pre-revised pay structure. In Level-13 of the Pay Matrix, as formulated by The 7th CPC and as accepted by the Government in terms of the CCS(RP) Rules, 2016 promulgated vide notification dt. 25.7.2016, the IOR was 2.57. The IOR in respect of both Levels 12 and Level 13-A, i.e., Levels immediately lower and immediately higher than Level-13, is 2.67. Therefore, the modified Level-13 in terms of the Pay Matrix contained in the CCS(Revised Pay) (Amendment) Rules, 2017 has also been formulated based on the IOR of 2.67.
5. While the concept of the IOR, as applied by The 7th CPC, is exclusively in regard to formulation of the Levels in Pay Matrix, the formula for fixation of pay in The Pay MaTrix based on The basic pay drawn in The pre-revised pay structure for the purpose of migration to the Pay Matrix, as recommended by the 7th CPC, is based on the fitment factor of 2.57. The Commission recommends - “This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. Accordingly, Rule 7 (1)(A)(i) of The CCS(RP) Rules, 2016, relating to fixation of pay in the revised pay structure, clearly provides that in case of all employees the pay in the applicable level in the Pay Matrix shall be the pay obtained by multiplying the existing pay by a factor of 2.57
6. Thus, the fitment factor for the purpose of fixation of pay in all the Levels of Pay Matrix in the revised pay structure is altogether different from the IOR. The fitment factor of, 2.57 is uniformly applicable for all employees for the purpose of fixation of pay in all the Levels of Pay Matrix. This has no relation with the "IOR". The formula for fixation of pay based on the fitment factor of 2.57, as contained in Rule 7(1)(A)(i) of the CCS(RP) Rules, 2016, has not been modified by the CCS(Revised Pay) (Amendment) Rules, 2017.
7. Accordingly, pay in The Level-13 of the Pay Matrix, as provided for in the CCS(Revised Pay) (Amendment) Rules, 2017, shall continue to be fixed based on the fitment factor of 2.57 as already provided for in Rule 7(1) (A) (i) of CCS(RP) Rules, 2016. In case pay has been fixed in the modified Level-13 by way of fitment factor of 2.67, the same is contrary to the Rules and is liable to be rectified and excess amount recovered forthwith.
Issue No. 2 Pay re-fixed in the modified Level-13 working out lower than the pay fixed in the earlier Level-13
8. As mentioned above, earlier Level 13 in operation before the coming into force of CCS(Revised Pay) (Amendment) Rules, 2017 promulgated vide notification dt. 15.6.2017, has become non-existent ab-initio and the modified Level 13 as contained in CCS(Revised Pay) (Amendment) Rules, 2017 is the applicable Level 13 from 1.1.2016. Therefore, the earlier Level 13 is extinct and, hence, no employee can retain the same consequent upon promulgation of CCS(Revised Pay Amendment) Rules, 2017.
9. As such, pay in respect of those, who are entitled to Level 13 either from 1.1.2016 or from any date later than 1.1.2016, has to be re-fixed in the modified Level 13 and the pay as earlier fixed in the earlier Level 13 gets automatically rescinded. Therefore, pay, as fixed in the modified Level 13 in terms of Rule 7 of the CCS(RP)Rules, 2016 in case of those who were drawing pay in the pre-revised pay structure in PB-4 plus Grade Pay of Rs. 8700 as on 31.12.2015 or in terms of Rule 13 thereof in case of those promoted to Level 13 on or after 1.1.2016, shall now be the pay for all purposes.
10. However, a few instances have been brought to the notice of this Ministry, where pay fixed in the modified Level-13 contained in CCS (RP) (Amendment) Rules, 2017 works out less than the pay fixed in the earlier Level-13 before promulgation of this amendment.
11. The pay fixed strictly in terms of the applicable provisions of CCS(RP) Rules, 2016 in the earlier Level-13 before promulgation of CCS(Revised Pay)(Amendment) Rules, 2017, was the pay before the date of promulgation of the said Amendment Rules on 15.6.2017. As pay is now required to be re-fixed in the Level-13 contained in the CCS(Revised Pay) (Amendment) Rules, 2017, any overpayment, if taking place, consequent upon such re-fixation is not attributable to the concerned employee.
12. Accordingly, it has been decided that if the pay re-fixed strictly as per Rule 7 or Rules 13, as the case may be, of the CCS(RP) Rules, 2016 in the Level-13 based on the Pay Matrix contained in the CCS(Revised Pay) (Amendment) Rules, 2017 ( as per the fitment factor of 2.57) happens to be lower than the pay as earlier fixed as per the said Rules ( fitment factor of 2.57) in the earlier Level-13, then while the pay as re-fixed shall be the pay as applicable to the concerned employee for all purposes, any recovery of over payment on account of such re-fixation during the period up to 30.6.2017, the month in which the CCS(Revised Pay) (Amendment) Rules, 2017 has been issued, shall be waived.
13. The cases of employees who retired on or after 1.1.2016 and up to 30.6.2017 and if covered under para 12 above, shall be processed as per Rule 70 of the CCS(Pension) Rules, 1972.
Issue No. 3 - Re-exercise of option for coming over to the Revised Pay structure in case of Level 13
14. A reference has been received whether in view of the modification in the Level 13 in terms of the CCS(Revised Pay) (Amendment) Rules, 2017 promulgated on 15.6.2017 with effect from 1.1.2016, the date of effect of the revised pay structure contained in CCS(RP) Rules, 2016, the employees who are entitled to the Level 13 on 1.1.2016 may be given fresh option to come over to the revised pay structure in case of modified Level 13.
15. The matter has been considered and it has been decided that since the modification of the Level 13 as per CCS(Revised Pay) (Amendment) Rules, 2017 is a material change, the employees, who were entitled to Level 13 as on 1.1.2016 and who had already opted for the earlier Level-13 as per Rules 5 and
6 of the CCS(RP) Rules, 2016, shall be given an opportunity for re-exercise of their option thereunder. Such an option may be exercised within three months from the date of issue of these orders.
16. In their application to employees belonging to the Indian Audit and Accounts Department, these orders issue after consultation with the Comptroller and Auditor General of India.
17. Hindi version of these orders is attached.
(Amar Nath Singh)
Director
7th CPC Pay Matrix: Modification of Level-13
No.4-6/2017-IC/E-III(A)
Ministry of Finance
Department of Expenditure
Dated,the 28th September, 2017
Issue No. 1 – Whether pay in the Level-13 is to be fixed by multiplying by a factor of 2.57 or 2.67
Issue No. 2 : Pay re-fixed in the modified Level-13 working out lower than the pay fixed in the earlier Level-13
Issue No. 3 – Re-exercise of option for coming over to the Revised Pay structure in case of Level 13
(Amar Nath Singh)
Director
Click here to view order
7th CPC Bunching of Stages – Railway Board Clarification Order with Illustrations
7th CPC Fixation of employees in 1S scale of 4440-7440 in GP 1300 (6th CPC) and without GP: Railway Board Order RBE No. 140/2017
The new pay structure notified by Ministry of Finance vide Revised Pay Rules, 2016 has not provided a framework for replacement of existing pay structure of employees in -1S scale of 3 4440-7440 GP 3 1300 (6th C PC) and without GP. Therefore, a proposal for aligning the same on lines of 7th CPC pay structure was forwarded to Implementation Cell/Ministry of Finance, after taking cognizance of the demands raised by Staff Federations.
(Jaya Kumar G)
Implementation of Government decision on the recommendation of the VIIth Pay Commission on CCS (Extraordinary Pension) Rules, 1939 - Constant Attendant Allowance - regarding.
Implementation of Government's decision on the recommendations of 7th Central Pay Commission - Revision of pension of pre- 2016 Pensioners / Family Pensioners etc.-reg.
BPS monthly magazine October 017 issue
Board level and below Board level posts including non-unionised supervisors in Central Public Sector Enterprises (CPSEs)- Revision of scales of pay w.e.f. 1:11.01.2007 — Payment of IDA at revised rates-regarding.
No. W-02/0002/2014-DPE (WC)-GL-xx/17 Government of India
Ministry of Heavy Industries & Public Enterprises Department of Public Enterprises
Public Enterprises Bhawan Block 14, CGO Complex, Lodi Road, New Delhi-I10003
Dated: 5th October, 2017
OFFICE MEMORANDUM
Subject:-Board level and below Board level posts including non-unionised supervisors in Central Public Sector Enterprises (CPSEs)- Revision of scales of pay w.e.f. 1:11.01.2007 — Payment of IDA at revised rates-regarding
In modification of this Department's O.M. of even No. dated 04.07.2017, the rate of DA payable to the executives and non-unionized supervisors of CPSEs (2007 pay revision) is as
follows:
(1) Date from which payable: 01.10.2017
(g) Average AICPI (2001=100) for the quarter June'2017 August' 2017
June, 2017 280
July, 2017 285
August, 2017 285
Average of the quarter 283.33
(h) Link Point: 12633 (as on 01.01.2007)
(I) Increase over link point: 157 (28333 minus 12633)
(1) DA Rate w.e.f. 01.10.2017: 124.3% [(157 +126.33) x 100]
2. The above rate of DA i.e. 124.3% would be applicable in the case of IDA employees who
have been allowed revised pay scales (2007) as per DPE O.M. dated 26.11.2008, 09.02.2009 &
02.04.2009.
3. All administrative Ministries/ Departments of the Government of India are requested to bring the foregoing to the notice of the CPSEs under their administrative control for necessary action at their end.
(Samsul Hague) Under Secretary
To,
All the administrative Ministries/Departments of the Government of India. Copy to:
6. Chief Executives of Central Public Sector Enterprises.
7. Financial Advisers in the Administrative Ministries/ Departments.
8. Department of Expenditure, E-II Branch, North Block, New Delhi.
9. The Comptroller & Auditor General of India, 9, Deen Dayal Upadhayay Marg, New Delhi.
10. NIC, DPE with the request to upload this OM on the DPE website.
(Samsul Flaque)
Under Secretary
GOVERNMENT OF INDIA MINISTRY OF RAILWAYS RAILWAY BOARD
GOVERNMENT OF INDIA MINISTRY OF RAILWAYS RAILWAY BOARD
RBA No.145/2017 No.2016/AC-II/21/8
New Delhi, dated 11-10-2017
General Managers All Zonal Railways and Production Units
Sub: Revision Of Pension of Pre-2016 Pensioner as per 7th CPC
Ref: 1. Board’s letter No.2016/F(E)III/1(1)/7 dated 22.5.2017 (RBE No.49/2017) & 11.07/2017 (RBE No.66/2017)
2. Board’s letters of even No. dated 9.6.2017, 19.7.2017 & 25.07.2017 (RBA No.68/2017, 98/2017 & 103/2017)
3.Board (FC) D.O.letter No.2016/AC-II/21/8/PT-III dated 05.09.2017
Instructions have been issued regarding revision of pre-2016 pensioners/family pensioners in line with 7th CPC recommendations vide Railway Board’s letter under reference above. These instructions envisage ‘suo moto’ revision in pension for all pre-2016 retirees. Till date 151982 pensioners PPO have been revised.
It may be appreciated that against the 14 lakh pensioners cases on Indian Railways, the pace of pension revision is slow. In the recently held review meeting, additional secretary (Expenditure) has also emphasized that adequate priority may be given to this area of work. Finance Secretary also expressed that exercise of pension revision may be completed in a time-bound manner. In this connection, Financial Commissioner, vide his DO letter No.2016/AC-II/21/8/PT-III dated 5.9.2017 has also advised that the exercise of revision may be carried out on a parallel track alongwith ARPAN to expedite the process.
As a welfare measure, it should be ensured to step up with pace for revision of pension. The work flow of pension revision envisages close coordination between the personnel and the accounts Department and hence, it is advised that PCPO and PFA to monitor the progress of revision of pension cases at their level to ensure that pension revision exercise is completed at the earliest.
S/d,
Ravindra Gupta
Member Staff
Railway Board.
Frequently Asked Questions (FAQs) on Exit from NPS for Central Government Sector (CG) and Central Autonomous Bodies (CABs)
Question | Answer | ||||||||
1. What is an exit? | An exit is defined as closure of individual pension account of the subscriber under National Pension System. | ||||||||
2. When can I exit from NPS? | A subscriber can exit from NPS at any point but complete withdrawal is subject to certain conditions. | ||||||||
3. Whether pre-mature exit and voluntary retirement are same or not? | Yes, under NPS both are same Pre-mature exit is defined under NPS as exit re the superannuation/retirement age. Under NPS, Voluntary retirement is treated as pre-mature exit. However, eligibility & terms of Voluntary retirement are defined/governed by service rules and regulations of the respective organization. | ||||||||
4. What shall be my benefits, if I opt for pre-mature exit from' NPS? | Pre-mature exit or Voluntary retirement- Minimum Annuitization- 80% of accumulated wealth. Maximum Lump Sum Withdrawal- 20% of accumulated wealth. If the accumulated pension wealth of the subscriber is equal to or less than one lakh rupees or a limit to be specified by the Authority, such subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing any annuity. | ||||||||
5. What shall be my benefits, if I retire/ superannuate from NPS? | Minimum Annuitisation- 40% of accumulated wealth Maximum Lump Sum Withdrawal- 60% of accumulated wealth. The Subscriber may choose to purchase an annuity for an amount greater than 40 percent also. If the accumulated pension wealth of the subscriber is equal to or less than two lakh rupees, or a limit to be specified by the Authority, such subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing any annuity. | ||||||||
6. What are the provisions to settle the cases in the unfortunate death of the NPS subscriber during the service? | As per Office Memorandum No. 38/41/06/P&PW (A dated 05 05.2009, the central government subscribers covered under NPS are eligible for family pension in case of death / disability during the service. If the family member opts for family pension, as per regulations all the accumulated wealth shall be transferred to the bank account of the nodal office for further settlement as per government directives. However, our exit regulations say ( not applicable as mentioned above ) : Minimum Annuitisation- 80% of accumulated wealth. Maximum Lump Sum Withdrawal- 20% of accumulated wealth. If the accumulated pension wealth of the subscriber is equal to or less than two lakh rupees, or a limit to be specified by the Authority, such nominees/legal heirs shall have the option to withdraw the entire accumulated pension wealth without purchasing any annuity. | ||||||||
7. What are the provisions to settle the cases in the unfortunate death of the NPS subscriber during the service and no nomination has been provided in the account? | Where no valid nomination exists in accordance with these regulations, at the time of exit of such subscriber on account of death, the nomination if any existing in the records of such subscriber with his or her employer for the purpose of receiving other admissible terminal benefits shall be treated as nomination exercised for the purposes of receiving benefits under the National Pension System. The employer shall send a confirmation of such nomination in its records, to the National Pension System Trust or the central recordkeeping agency, while forwarding the claim for processing. | ||||||||
8. Can I defer my lump sum in case of pre-mature exit from the system? | No | ||||||||
9. Can I defer my lump sum in case of retirement superannuation? If yes, what are the provisions and requirements to avail this facility? | Yes. The lump sum can be deferred till the age of 70 years which can be withdrawn at any time between superannuation and 70 years of age or every year till age of 70 years. The subscriber has to give in writing (intimation to the employer) in the specified form at least fifteen days before the attainment of age of superannuation and same should be authorized by the associated Nodal office in the CRA system. If deferment is availed by the subscriber, subscriber has to bear the maintenance charges like CRA, PFM etc. | ||||||||
10. Can I defer my annuity at the time of retirement/superannuation? yes, what are the provisions? | Yes Annuity purchase can also be deferred for maximum period of 3 years. The subscriber has to give in writing (intimation to the employer) at least fifteen days before the attainment of age of superannuation and same should be authorized by the associated Nodal office in the CRA system. If the death of the subscriber occurs before such due date of purchase of an annuity after the deferment, the annuity shaft mandatorily be purchased by the spouse. | ||||||||
11. Can I defer both lump sum and annuity at the time of retirement/superannuation? | Yes | ||||||||
12. Can I keep on contributing in my Tier-I -account even after retirement / superannuation? | Yes. The Subscriber shall have the option to do so by giving in writing and up to which age he would like to contribute to his individual pension account but not exceeding seventy years of age. In such scenario, subscriber has to shift his/her PRAN to any POP or e-NPS. Nodal office shall not assist in uploading of contribution after the date of superannuation. Subscriber has to operate account in his/her individual capacity only. Such option shall be exercised at least fifteen days prior to the age of attaining sixty years or age or superannuation, as the case may be, and same should be authorized by the associated Nodal office in the CRA system. Subscriber has to bear the maintenance charges like PoP, CRA, PFM etc. | ||||||||
13. I continue my Tier-I account even after retirement / superannuation, Can I avail the facility of deferment of lump sum and annuity during the extended period? | No, Upon exercise of the option of continuation after the superannuation, the other options of deferment of benefits (lump sum and annuity) shall not be available to such a subscriber. | ||||||||
14. Can terminate my extension any time before the attaining the age of 70 years or I have to continue the Tier -1 till the age of 70 years? | Even after exercise of such option, the subscriber may exit at any point of time from National Pension System, by submitting a withdrawal request as prescribed. | ||||||||
15. Who shall bear the transaction and other charges, if I avail the facility of continuation of Tier-I account after the retirement / superannuation? | Subscriber has to bear all the applicable charges including maintenance charges like POP, CRA, PFM etc., if he avails such facility. | ||||||||
16. Can I continue my Tier-2 account after the closure of Tier -1 account? | No. Upon exit from Tier 1 account, the Tier 2 account gets closed automatically. | ||||||||
17. Can I continue my Tier -2 account, if decide to continue Tier-I account even after the retirement / superannuation? | Yes. A subscriber can contribute to his Tier 2 account till the time he has an active Tier 1 account. | ||||||||
18. What is annuity? | An annuity is a product that pays out regular income. It is a contract for deferred payment. The main objective of an annuity is to give regular income to the subscriber even after retirement/working age. | ||||||||
19. In case of pre-mature exit, when will my annuity start i.e. immediately or after the age of 60 years? | Annuity starts immediately after the minimum age required for purchasing any annuity (depending upon choice of ASP and Annuity scheme. For e.g. 30, 35 or 38) from any of the empaneled annuity service providers. Subscriber need not wait till the age of 60 years. | ||||||||
20. What are the annuity options available to me under NPS? | The following are the most common variants that are available: a) Default scheme: Annuity for life of the subscriber and his or her spouse (if any) with provision for return of purchase price of the annuity- After the demise of such subscriber, the annuity will be re-issued to the family members in the order specified hereunder: (a) living dependent mother, (b) living dependent father. After the coverage of all the family members specified above, the purchase price shall be returned to the surviving children of the subscriber and in the absence of children, the legal heirs of the subscriber, as may be applicable. If subscriber does not want to purchase default annuity scheme, he may choose any of the following schemes: b) Annuity for life with return of purchase price (amount, given to annuity service provider) on death– Employee shall get annuity (monthly pension) till he/she is alive and payment of annuity ceases on the death and the purchase price is returned to the nominee. c) Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter • On death during the guaranteed period — Employee shall get annuity and after his/her death during the guaranteed period, annuity is paid to the nominee till the end of the guaranteed period after which the same ceases and no return of purchase price to the nominee. • On death after the guarantee period — Employee shall get payment of annuity till he/she is alive even after the guaranteed period and annuity ceases after his/her death and no return of purchase price to nominee. d) Annuity for life – Employee shall get payment of annuity till he/she is alive & payment of annuity ceases on death and no return of purchase price to nominee. e) Annuity for life increasing at simple rate of 3% p.a. Employee shall get payment of annuity till he/she is alive & payment of annuity ceases on death and no return of purchase price to nominee. f) Annuity for life with a provision for 50% of the annuity to the spouse of the annuitant for life on death of the annuitant– Payment of annuity ceases on death of subscriber and 50% of the annuity is paid to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, payment of annuity will cease after the death of the annuitant. It can be with or without return of purchase price. g) Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant. – Payment of annuity ceases after death of the annuitant and full annuity is payable to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, the annuity ceases after death of the annuitant. It can be with or without return of purchase price. Subscriber can also add spouse in any of the variants (other than default) above. All ASPs may not provide all the variants. It may vary from ASP to ASP. Pricing of annuity also varies ASP to ASP. | ||||||||
21. Whether I have to go by the default annuity or I have a choice to decide other annuity type also? | The subscriber can choose any other annuity, other than default annuity, available with the empaneled Annuity Service Providers (ASPs). | ||||||||
22. Where can I check the rates offered by the annuity service providers on various type of annuities? | Details of annuity rates and other details may be checked on CRA website (link given below). https://www.npscra. | ||||||||
23. Can I change my annuity service provider or annuity type any time? | Once an annuity is purchased, the option of cancellation or reinvestment with another Annuity Service Provider or in other annuity scheme shall not be allowed unless the same is within the time limit specified by the Annuity Service Provider, for the free look period as provided in the terms of the annuity contract or specifically provided by the Insurance Regulatory and Development Authority. | ||||||||
24. What functions are performed by Annuity Service Providers (ASPs)? | Annuity Service Providers (ASPs) are empaneled by PFRDA to annuity to subscribers through their various schemes. Subscribers will have the option to invest their amount into one annuity scheme ' upon retirement/resignation. ASPs would be responsible for delivering a regular monthly pension (annuity) to the subscriber for the rest of his/her life. | ||||||||
25. Is it mandatory to purchase annuity under NPS at the time of exit? | Yes, but there are some scenarios where the subscriber/nominees/legal heirs can withdraw the whole accumulated wealth. | ||||||||
26. Which companies empaneled under PFRDA as Annuity Service Providers (ASPs)? | 1. Life Insurance Corporation of India 2. SBI Life Insurance Co. Ltd. 3. ICICI Prudential Life Insurance Co. Ltd. 4. HDFC Standard Life Insurance Co Ltd 5. Star Union Dai-ichi Life Insurance Co. Ltd *Subject to change from time to time. | ||||||||
27. Will I get back the amount invested for annuity purchase? | Only in annuity types where there is provision of return of purchase price. | ||||||||
28. In case of retirement / superannuation, when should I submit my withdrawal request i.e. after the date of retirement or before the retirement? | CRA network sends a communication 6 month before the superannuation/retirement date generating a Claim ID to the subscriber and nodal office. It' is advisable that the subscriber should submit all the documents to the nodal office atleast 1 month before the superannuation/retirement date. | ||||||||
29. Can I withdraw before attaining the age of retirement / superannuation? | Yes, it is termed as Partial Withdrawal. https://npscra. | ||||||||
30. If yes, how much amount can be withdrawn? | Up to 25% of the contribution made by the subscriber (without considering the appreciation /returns on the amount ) as on date of application of withdrawal. | ||||||||
31. Can I withdraw any number of times during the service? | No A subscriber is allowed to withdraw only three times during the entire tenure of service. | ||||||||
32. What are the conditions under which partial withdrawal can happen? | Conditions: 1. NPS subscriber for atleast 3 years. 2. Withdrawal is allowed for some specific purposes only. a) For the higher education of children b) For the marriage of children c) For the purchase/construction of residential house or flat in his or her own name or in a joint name with his or her legally wedded spouse. In case, the subscriber already owns either individually or in the joint name a residential house or flat, other than ancestral property, no withdrawal under these regulations shall be permitted. d) Treatment for prescribed illnesses — suffered by subscriber, his legally wedded spouse, children including a legally adopted child and dependent parents. Prescribed illnesses includes: (i) Cancer; (ii) Kidney Failure (End Stage Renal Failure); (iii) Primary Pulmonary Arterial Hypertension; (iv) Multiple Sclerosis; (v) Major Organ Transplant; (vi) Coronary Artery Bypass Graft; (vii) Aorta Graft Surgery; (viii) Heart Valve Surgery; (ix) Stroke; (x) Myocardial Infarction (xi) Coma; (xii) Total blindness; (xiii) Paralysis; (xiv) Accident of serious/ life threatening nature. (xv) Any other critical illness of a life threatening nature as stipulated in the circulars, guidelines or notifications issued by the Authority from time to time. | ||||||||
33. If I avail partial withdrawal facility, will I get the same benefit as applicable at the time of retirement/ superannuation? | Yes | ||||||||
34. Whether I am eligible for Gratuity? | Yes, as per latest 0M No.7/5/2012-P&PW(F)/B dt. 26.08.2016 issued by Department of Pension and Pensioners Welfare, the Central Government employees covered under NPS are eligible for 'Retirement Gratuity and Death Gratuity | ||||||||
35. What are tax benefits available under IT Act, 1961 for Tier 1 Account? | On Contributions: Employee’s own Contribution- Eligible for tax deduction under sec 80 CCD (1) of Income Tax Act up to 10% of salary (Basic + DA) within the overall ceiling of Rs. 1.50 Lacs under Sec. 80 C of the Income Tax Act. From F.Y. 2015-16, subscriber will be allowed tax deduction in addition to the deduction allowed under Sec. 80CCD(1) for contribution in his NPS account subject to maximum of Rs. 50,000/- under sec. 80CCD ) . Employer’s contribution: Up to 10% of Basic & DA (no upper monetary ceiling) under 80CCD(2). This rebate is over and above 80 C. (This tax benefit is only available for NPS subscribers). II) Partial Withdrawal– Tax free III) Lump sum Withdrawal– In case of superannuation, 40% of lump sum withdrawal is tax free. IV) Annuity– Amount utilized for purchase of annuity is not taxable in the hands of the subscriber. | ||||||||
36. What are tax benefits available under IT Act, -1961 for Tier 2 Account? | No tax benefit is available for Tier 2 account | ||||||||
37. Where can I find list of important forms related to exit and withdrawal? |
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