GOVERNMENT OF INDIA
MINISTRY OF Education
LOK SABHA

UNSTARRED QUESTION NO: 52
ANSWERED ON: 18.07.2022

Pension Rules for JNV Employees

Rajmohan Unnithan

Will the Minister of Education be pleased to state:-

(a) whether the Government noticed that Jawahar Navodaya Vidyalayas employees/ Staffs who have joined on or before 1 January 2004 are not entitled to get a CCS pension (1972) as per rules; and

(b) if so, the reasons therefor?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF EDUCATION
(SMT. ANNPURNA DEVI)

(a) & (b) : Department of Pension and Pensioners’ Welfare issued an Office Memorandum dated 01.05.1987 whereby all Contributory Provident Fund (CPF) beneficiaries, who were in service as on 01.01.1986 would be deemed to have come over to the Pension Scheme, unless specifically opted to remain under the CPF Scheme. The employees of NVS had been given the benefits of CPF Scheme w.e.f. 01.04.1988. The matter to extend the benefit of CCS (Pension) Rules, 1972 to NVS employees who joined prior to 01.01.2004 has been considered by the Ministry from time to time in consultation with Ministry of Finance and Department of Pension and Pensioners’ Welfare. However, it has not been agreed to, as it would be against the policy regime of the Government of India in terms of Department of Expenditure’s directives dated 16.03.2000. The New Pension Scheme (now National Pension System) (NPS), which was introduced for the Central Government employees w.e.f. 01.01.2004, was made applicable to the regular employees of NVS w.e.f. 01.04.2009. Those employees who had joined NVS on regular basis before 01.04.2009 were given an option to continue with the existing CPF Scheme or to join the NPS. Those employees of NVS who have opted for and are covered under the NPS, are entitled to the benefits envisaged under this Scheme. The staff of NVS are entitled to benefits of either the CPF Scheme or the NPS Scheme having regard to the option exercised by them.

Source: Loksabha

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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA

UNSTARRED QUESTION NO: 3100

ANSWERED ON: 15.03.2021

National Pension Scheme

Parbatbhai Savabhai Patel
Naranbhai Bhikhabhai Kachhadiya

Will the Minister of FINANCE be pleased to state:-

(a) the main objective of National Pension Scheme;

(b) the age prescribed for availing the benefit of said scheme;

(c) whether all citizens of the country can avail benefit of the scheme or limited retired employees can avail the benefit of the scheme and if so, the details thereof; and

(d) whether this scheme has also been implemented in States and if so, the details of the services provided in Gujarat State so far?

ANSWER

The Minister of State (Finance)

(a) The National Pension System (NPS) was introduced by the Government of India to replace the defined benefit pension system. NPS was made mandatory for all new recruits to the Central Government service from 1st January 2004, (except the armed forces in the first stage) and has also been rolled out for all citizens with effect from 1st May 2009, on a voluntary basis. The Government had made a conscious move to shift from the defined benefit, pay-as-you-go pension scheme to defined contribution pension scheme, NPS, due to rising and unsustainable pension bills. The transition aimed at freeing the limited resources of the Government for more productive and socio-economic sectoral development.

(b) NPS is open for subscription to all citizens of India, resident as well as non-resident, aged between 18- 65 years. A person after retiring at the age of 60 years can also join NPS and contribute till the age of 65 years.

(c) All citizens of the country, resident as well as non resident, aged between 18-65 years can subscribe to NPS, and can avail the following benefits under NPS:

• i. Contribution up to Rs. 1.50 lakhs made to the NPS Tier-I account are eligible for tax deduction under Section 80CCD (1) and Section 80CCE of the Income Tax Act, 1961. An additional tax rebate of Rs.50000/- is also allowed for contributions made to NPS Tier-I under Section 80CCD (1B) of the Income Tax Act, 1961. The contribution made by an employer to the Tier 1 account of an employee (up to 14% of the salary for Central Government and up to 10% of the salary in case of other employers) is also tax-exempt under Section 80CCD (2) of the Income Tax Act, 1961 subject to a maximum of Rs. 7.50 lakhs under Section 17(2) (vii) of the Income Tax Act, 1961.
• ii. Deduction under Section 80C for the contribution made to Tier II NPS account by Central Government employees for a fixed period of not less than three years, is allowed.
• iii. In accordance with Section 10(12A) of the Income Tax Act, 1961, the entire 60% amount withdrawn as a lump sum is tax-free.
• iv. Partial withdrawal of up to 25% of the subscriber’s own contributions before attaining the age of superannuation is allowed, subject to certain conditions.
• v. Transparency and portability are ensured through online access of the pension account by the NPS subscribers, across all geographical locations, and portability of employments.

(d) As of now all State Governments (except West Bengal) have notified NPS for their employees. Further, as reported by the Central Recordkeeping Agency (CRA), a total of 2,38,599 subscribers from the State Government of Gujarat have joined NPS as on 27.02.2021 and the total Assets Under Management (AUM) for the State Government of Gujarat are Rs.14,152.36 cr.

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No.NC-JCM-2019/Pension/NPS

April 23 , 2019

The Secretary
Government of India
Department of Pension and Pensioners welfare
3rd Floor, Lok Nayak Bhawan.
Khan Market, New Delhi.

Sir,

Sub : GPF for those who have been recruited on or after 1-1-2004.

Ref : Item No. 5 of the agenda point discussed in the 47th meeting of National Council (JCM) held under the Chairmanship of Cabinet Secretary on 13th April 2019.

You are aware that the Staff side of the National Council JCM is repeatedly demanding for withdrawing the NPS and re introduce the defined Guaranteed pension scheme under the CCS (Pension) Rules 1972 to the employees who have been recruited on or after 1-1-2004. However pending the same the staff side has represented for extending the benefit of GPF for those employees who have been appointed on or before 1-1-2004 and governed under NPS on an optional basis. In the 47th National Council JCM meeting held on 13-4-2019, the Staff side reiterated their demand and requested that the GPF scheme may be extended to the NPS employees who opt for the same as an additional saving benefit. The Cabinet Secretary desired that the demand of the Staff Side may be considered favorably. Your good self has also assured that the demand of the Staff side would be considered and decision taken at the earliest.

In view of the above we submit the following justification for extending the GPF benefit on optional basis to the employees who are governed under the NPS scheme.

The advantage of GPF to the employees is as follows:

(1) The interest rate for GPF accumulation is 8% as on date.

(2) Advances from GPF is permissible for the following purposes.

• Illness of self, family members or dependants.
• Education of family members or dependant of the subscriber. Education will include primary, secondary and higher education, covering all streams and educational institutions.
• Obligatory expenses, viz. betrothal, marriage, funerals or other ceremonies.
• Cost of legal proceedings
• Cost of defence
• Purchase of consumer durables
• Pilgrimage and visiting places of eminence. This will include any travel and tourism related activities.

(3) Apart from the advances as mentioned above GPF subscribers are entitled for withdrawals from GPF for the following purposes.

(i) Education : This will include primary, secondary and higher education covering all streams and institutions.
(ii) Obligatory expenses, viz. betrothal, marriage, funerals, or other ceremonies of self or family members and dependants.
(iii) Illness of self, family members or dependants.
(iv) Purchase of consumer durables.
(v) Housing including building or acquiring a suitable house or a ready built flat for his residence.
(vi) Repayment of outstanding housing loan.
(vii) Purchase of house site for building a house.
(viii) Constructing a house on a site acquired.
(ix) Reconstructing or making additions on a house already acquired.
(x) Renovating, additions or alterations of ancestral house.
(xi) Purchase of motor car/ motor cycle/ scooter etc. or repayment of loan already taken for the purpose.
(xii) Extensive repairs / overhauling of motor car.
(xiii) Making deposit to book a motor car / motor cycle / scooter, moped, etc

Apart from the above tax deduction under section 80C is also available. Annual statements will be issued on the 1st of April every year.

From the above it is amply clear that the GPF is more advantages to the employees than the Tier-II scheme of NPS. Therefore as stated by the staff side in the National Council JCM meeting held on 13-4-2019 it is once again reiterated that the GPF scheme may be extended to the willing NPS employees who opt for the same. Necessary orders in this regard may please be issued at the earliest.

A copy of your instructions may please be endorsed to this Office.

Thanking you

Yours faithfully,
(Shiva Gopal Mishra)
Secretary

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CIRCULAR

PFRDA/2015/05/PFM/03

To,
All Pension Funds,

Date: 22nd Jan. 2015

Subject: Clarification on Revision of Investment Guidelines for NPS Scheme issued on 29.01.2014

This is with reference to the Circular No. PFRDA/2014/02/PFM/1 for Revision of Investment Guidelines for NPS Schemes issued by PFRDA on 29.01.2014.

2. Pursuant to above mentioned circular, the Pension Funds were expected to realign their portfolios in accordance with the revised guidelines.

3. However in the interest of the subscribers the following was stipulated in clause 5.

“Pension Funds to ensure that the interest of the subscribers is safeguarded and that they should not incur any loss while exiting the existing investments to comply with the revised guidelines. However, all future investments should be made strictly in compliance with the above guidelines’

4. It is to clarify that the above clause was only intended to protect the subscriber any loss on exiting any existing security merely to comply with revised investment pattern

5. However this does not imply that Pension Funds cannot exit from existing investments at a loss, if it is so required as a measure of portfolio management by the Pension Funds within the parameters of their internal Investment Management/Risk Management/ Stop loss policy and within the overall framework of guidelines issued by PFRDA.

6. A case in the point is when there is downgrade of any security, it is for the Pension Funds to determine the point of exit from it. The guidelines do not bar any such exit even if there is a loss, if the exit is so determined by the policy of Pension Funds within the overall framework of PFRDA guidelines.

sd/-

Sumeet Maur Kapoor
(General Manager)

Source: http://www.pfrda.org.in/MyAuth/Admin/showimg.cshtml?ID=575

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