Government
of India have
introduced a new restructured defined contributory pension system,
namely ‘New Pension Scheme’ for its employees (except Armed Forces)
recruited on or after 01.01.2004 replacing existing system of defined
pension scheme vide Notification F. No.5/7/2003-ECB&PR dated
22/12/20003 Department of Economic affairs, Ministry of Finance,
Government of India. Accordingly, the scheme was made applicable to
All India Service (AIS) officers recruited to Kerala Cadre on or after
01.01.2004. As per GO (P) No.20/2013/Fin dated 07.01.2013, State
Government adopted National Pension System (NPS) and implemented for all
appointments made on or after 01.04.2013
The
System is working on a defined contribution basis and has two tiers
viz.,Tier- I and Tier - II. Contribution to Tier I is mandatory where as
Tier II is optional and at the discretion of the employee. The
employee shall make a contribution of 10% of his/her Basic Pay and
Dearness Allowance to Tier I. The Government will also make a matching
contribution. The entire amount including returns from investment will
be kept in Tier I account. The pension funds of employees will be
managed by Pension Fund Managers (PFMs) nominated by the Pension Fund
Regulatory and Development Authority (PFRDA) and records
will be maintained by National Securities Depository Limited (NSDL)
that functions as the Central Record Keeping Agency (CRA). At exit, it
would be mandatory for the employee to invest 40% of his/her pension
wealth to purchase an annuity from Annuity Service Providers (ASPs)
which will provide pension for life time of the employee
Sanctioning of pensionary benefits before clearing audit objections - Instructions issued - Circular No 64-2014-Fin dated 21-06-2014
Implementation of National Pension System-Order
Sanctioning of pensionary benefits before clearing audit objections - Instructions issued - Circular No 64-2014-Fin dated 21-06-2014
Implementation of National Pension System-Order
IMPORTANT ORDERS
GO(P)No.622/2013/Fin Dated 19/12/2013
Age limit for higher rate of family pension has been enhanced to 63 years
Age limit for higher rate of family pension has been enhanced to 63 years
circular of the Government on preliminary verification Qualifying Service by the Accountant General for Voluntary Retirement
Disbursement of pensionary benefits on the date of retirement; Instructions issued
Government have withdrawn the unification of the date
of retirement and enhanced the age of compulsory retirement of
Government Employees,Teachers and staff of aided Educational
Institutions -Notification - CircularDisbursement of pensionary benefits on the date of retirement; Instructions issued
Reckoning of prior service for pensionary benefits - Instructions Issued
- Government of Kerala is organizing NPS Service Week during 1-6 February 2016 with an objective of awareness building and improved information dissemination.Subscribers can approach treasury office concerned/nodal office in the case of SABs or PSUs/LSGIs for any kind of service with regard to NPS including clearing doubts.All subscribers are requested to make use of the opportunity. For further enquiry please contact Finance (NPS Cell) at 0471-2737901,7902.
| INTRODUCTION |
| Government of India have introduced a new restructured defined contributory pension system, namely ‘New Pension Scheme’ for its employees (except Armed Forces) recruited on or after 01.01.2004 replacing existing system of defined pension scheme vide Notification F. No.5/7/2003-ECB&PR dated 22/12/20003 Department of Economic affairs, Ministry of Finance, Government of India. Accordingly, the scheme was made applicable to All India Service (AIS) officers recruited to Kerala Cadre on or after 01.01.2004. As per GO (P) No.20/2013/Fin dated 07.01.2013, State Government adopted National Pension System (NPS) and implemented for all appointments made on or after 01.04.2013 |
| WORKING OF THE SYSTEM |
| The System is working on a defined contribution basis and has two tiers viz.,Tier- I and Tier - II. Contribution to Tier I is mandatory where as Tier II is optional and at the discretion of the employee. The employee shall make a contribution of 10% of his/her Basic Pay and Dearness Allowance to Tier I. The Government will also make a matching contribution. The entire amount including returns from investment will be kept in Tier I account. The pension funds of employees will be managed by Pension Fund Managers (PFMs) nominated by the Pension Fund Regulatory and Development Authority (PFRDA) and records will be maintained by National Securities Depository Limited (NSDL) that functions as the Central Record Keeping Agency (CRA). At exit, it would be mandatory for the employee to invest 40% of his/her pension wealth to purchase an annuity from Annuity Service Providers (ASPs) which will provide pension for life time of the employee. |
| MANAGEMENT |
| The rules and regulations for the management of NPS implemented in the State will be governed by directions /rules /circulars / orders etc issued by Government of India/State Government/PFRDA/NSDL from time to time. In order to facilitate and monitor all the NPS related activities in the State, Additional Secretary (Pension) has been designated as State Nodal Officer (SNO). The Finance (NPS Cell) Department is the authority dealing with the subject of National Pension System in the State. |