सभी सरकारी कर्मचारी जो NPS यानि PRAN के अंतर्गत आते है वो इसे जरुर पढ़े...
1. What is the New Pension System (NPS)?
The NPS is a new contributory pension scheme introduced by the Central Government for employees joined in Government Service on or after 1.1.2004. During the year 2009, the NPS was kept open for public.
2. Who is covered by the NPS?
a. Employees who have joined central government service on or after 01 January 2004 including Railways, Posts, Telecommunication or Armed Forces (Civil), Autonomous Body, Grant-in-Aid Institution, Union Territory or any other undertaking whose employees were eligible to a pension from the Consolidated Fund of India., earlier.
b. This contribution pension scheme is also open to any Indian citizen between the age of 18 and 55.
3. I am covered by the NPS. Can I contribute to the GPF?
No. The General Provident Fund ( Central Service) Rules, 1960 is not applicable for employees covered by NPS.
4. I Am covered by the NPS. Am I eligible to Gratuity?
No. You will not be eligible to Gratuity.
5. How does the NPS work ?
When you join Government service, you will be allotted a unique Personal Pension Account Number (PPAN). This unique account number will remain the same for the rest of your life. You will be able to use this account from any location and also if you change your job. The PPAN will provide you with two personal accounts:
1. A mandatory Tier-I pension account, and
2. A voluntary Tier-II savings account.
6. What is the difference between Tier-I and Tier-II accounts?
1. Tier-I account: You will have to contribute 10% of your pay in pay band + grade pay + DA into your Tier-I (pension) account on a mandatory basis every month. You will not be allowed to withdraw your savings from this account till you retire at age 60. Your monthly contributions and your savings in this account, subject to a ceiling to be decided by the government, will be exempt from income tax. These savings will only be taxed when you withdraw them at retirement.
2. Tier-II account: This is simply a voluntary savings facility for you. Your contributions and savings in this account will not enjoy any tax advantages. But you will be free to withdraw your savings from this account whenever you wish.
7. How will I contribute to my Tier-I (pension) account?
Every month, the government will deduct 10% of your salary (10% of pay in pay band + grade pay + DA) and automatically transfer this amount to your Tier-I account in your name.
8. Will the Government contribute anything to my Tier-I (pension) account?
Yes. As your employer, the Government will match your contribution (10% of pay in pay band + grade pay + DA) and transfer this amount also to your Tier-I account in your name.
9. Can I contribute more than 10% into my Tier-I account?
10. Will the Government also contribute more than 10% into my Tier-I account?
No. The contribution of the Government will be limited to 10% of your pay in pay band + grade pay + DA.
11. What will happen if I am transferred to another city?
The PPAN number will stay the same and you will be able to use the same account.
12. If I leave Government service before I retire will the Government continue to contribute to my Tier-I account?
No. The 10% contribution by the Government will stop when you leave Government service. However, your savings in your Tier-I and Tier-II accounts will stay in your name and you will be able to continue using these accounts to save for your retirement.
13. What if I die or become permanently disabled during my service?
Additional Relief on death/disability of Government servants covered by the NPS(New Pension Scheme) recruited on or after 1.1.2004 has been discussed in this Office Memorandum No.38/41/06/P&PW(A) Dated 5th May, 2009
14. How will the money be invested?
The money you invest in NPS will be managed by professional fund managers. Currently, you have the choice of picking up one of the following six fund managers: ICICI Prudential Pension Management, IDFC Pension Fund Management, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund, SBI Pension Funds, and UTI Retirement Solutions. In addition to this there are three schemes for which you have to opt.
Scheme A This scheme will invest mainly in Government bonds
Scheme B This scheme will invest mainly in corporate bonds and partly in equity and government bonds
Scheme C This scheme will invest mainly in equity and partly in government bonds and corporate bonds.
15. Can I switch fund managers if I am not happy with my current fund manager?
Yes, you can switch fund managers. PFRDA, the pension fund regulator, will declare the value of your investment every year in April. At that point of time, if you are not satisfied with the performance of your fund manager, you can switch to another fund manager between May 1 and May 15.
16. What are the charges?
This is where NPS wins hands down against all other modes of creating a corpus to generate income