Is the choice of Pension Fund and Investment Pattern available for Subscriber under Tier I?
As per Ministry of Finance Gazette Notification dated January 31, 2019, the Central Government Subscribers, from April 1, 2019, will have the option of selecting the Pension Funds (PFs) and Investment Pattern in Tier I account. A Subscriber can choose anyone of the available PFs and Investment Option as per their choice. If the choice is not exercised by the Sub scriber, NPS contributions will be invested in the existing schemes – LIC, SBI and UTI will act jointly as default P Fs as per the guidelines issued by the Government of India/ PFRDA. For more details on ‘Investment Option ‘, please refer ‘Information on Scheme Preference’ available on CRA website (www.npscra.nsdl.co.in).

Is the choice o f Pension Fund and Investment Pattern can be exercised at the time of registration under NPS?
Yes, a Subscriber is allowed to select the Pens ion Fund and Investment Pattern as per his/ her choice at the time of registration under NPS. The Subscriber is required to provide the relevant details in the Subscriber Registration Form (CSRF).

What are the Investment Options available for Subscriber under Tier I?
The Subscriber can select anyone of the following investment schemes:

• Scheme G – 100% of contribution will be invested in Government Bonds and related instruments.
• Scheme LC 25 – It is the Life cycle fund w here the Cap to Equity investments is 25% of the total asset.
• • Scheme LC 50 – It is the Life cycle fund w here the Cap to Equity investments is 50% of the total asset.

If the choice is not exercised by tile Subscriber, NPS contributions will be invested in the existing schemes – LIC, SBI a/ld UTI as per the guidelines
issued by the Government of India/ PFRDA. For more details on ‘Investment Option’, please refer ‘Information on Scheme Preference’ available on CRA Website (www.npscra.nsdl.co.in).

How can a Subscriber change a Scheme Preference?
There are two options available to the Subscriber – Online as well as offline.

Online: The Subscriber can change Scheme Preference online through his/her NPS account log-in. Subscriber Call follow the simple steps as given below :

a. Go to your NPS account and log-in .
b. Click on sub menu “Scheme Preference Change” under main menu “Transaction”.
c. Select Tier type and Change the Scheme Preference as you intended to do.

Alternatively, the Subscriber can also submit physical request (Form GOS-S3) to his/her associated Nodal Office. The form GOS-S3 can be freely
downloaded from CRA Website. On receipt of physical request, the Nodal Office will update the Scheme Preference in the CRA system.

How many times a Subscriber can change ‘Scheme Preference’ ?
Yes, you have the option to change your Pension Fund manager. At present, the Subscriber can change the Pension Fund Manager once in a Financial Year.

‘What will happen to the contributions accumulated in NPS account till March 31,2019?
The legacy contributions i.e. contributions accumulated in NPS account till March 31,2019 will remain invested in the existing schemes – LIC, SBI and UTI will act jointly as default PFs as per the guidelines issued by the Government of India (GOI)/ PFRDA. Redemption and transfer of accumulated contributions will be carried out once guidelines and modalities are provided by GOI/ PFRDA.

Will there be any change in the Transaction Statement?
Yes. Transaction Statement will undergo a change for the PRANs having legacy contributions i.e. contributions accumulated in NPS account till March 31, 2019. For the Subscribers who have opted new schemes, the Investment details of the legacy schemes, and of the new scheme will be shown it two separate tables in the Transaction Statement.

Whether Subscriber can select ‘Scheme Preference’ at the time of shifting to Central Government?
The Subscriber will have the option of selecting the Pension Funds (PFs) and Investment Pattern in Tier I account at the time of shifting to Central Government. The Subscriber is required to provide the relevant details in Inter Sector Shifting (ISS) Form.

Whether a Non-IRA Subscriber can change ‘Scheme Preference’ under NPS?
At present, Non-IRA Subscribers do not have the option of ‘Scheme Preference’ change. A Non-IRA Subscriber should first submit the physical registration form to become an IRA compliant Subscriber. Once he / she becomes IRA, the Subscriber can change the Scheme Preference .

Is the choice of Pension Fund and Investment Pattern available for Subscribers under Central Autonomous Bodies (CABs)?
At present, the Subscribers under CABs do no t have the option of selection of Pension Fund and Investment Pattern under NPS. In case of CABs, NPS contributions will be invested in the existing schemes – LIC, SBI and UTI as per the guidelines issued by the Government of India / PFRDA.

The post FAQ for Scheme Preference under NPS for Central Government Subscribers appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

The Pension Fund Regulatory and Development Authority (Retirement Adviser) Regulations were notified in the year 2016. The objective of the Regulations is to provide a framework for eligibility of Retirement Advisers, their registration process, fees etc. of Retirement Advisers (RA) and to define the scope of work and responsibility of the Retirement Advisers to ensure orderly growth of pension sector

In order to expand the National Pension System (NPS) to NRIs, PFRDA has decided to amend the PFRDA (Retirement Adviser) Regulations, 2016 in order to facilitate RA to provide onboarding and advisory services to the NRIs.

Non Resident Indians (NRIs) between the ages of 18-60 years are eligible to join NPS on voluntary basis. NRIs have also been provided the online facility to open account under NPS besides the conventional mode of account opening through the Points-of-Presence (PoPs).

As on 30.03.2017, 2611 NRIs have subscribed to NPS, out of which 1401 NRIs have joined NPS during the financial year 2016-17.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

PIB

The post NRI Investments in NPS appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

B-14/A, Chhatrapati Shivaji Bhawan
Qutab Institutional Area,
Katwaria Sarai,
New Delhi-110016
Phone : 011-26517503
Fax : 011-26517507
Website : www.pfrda.org.in

01 March 2017

CIRCULAR

PFRDA/2017/8/PD/2

To,

All Stakeholder in the National Pension System

Subject: Allowing multiple choice to the subscribers/corporates to change Investment Option and Asset Allocation Ratio during the Financial Year

1. As per the extant guidelines, subscriber can change his/her existing Pension Fund (PF), the investment option(Active or Auto choice) as well as asset allocation ratio (allocation among asset class-Equity/Corporate Bonds/Government securities/Alternate investment ) once in a financial year. This scheme preference is applicable to the existing pension corpus as well as to the prospective subscriptions. Similarly in the NPS-Corporate Model where the choice of Pension Fund and Investment Options is exercised at Corporate level, the Corporates also have the option to change the pension fund and investment option and also asset allocation ratio once in a financial year.

2. In order to provide more choices in terms of investment option and asset allocation, the following has been decided:

(i) The subscribers/corporates will have the choice for change of the investment option (Active or Auto choice) as well as asset allocation ratio (allocation among asset class-Equity/Corporate Bonds/Government Securities/Alternate Investment) two times in a financial year.

This scheme preference will be applicable to the existing pension corpus as well as to the prospective subscriptions. The option will be available separately for Tier I and Tier II accounts.

(ii) The choice of change of Pension Fund shall remain once in a financial year.

4. The changes will come into effect from 01st April 2017.

Yours faithful

(Akhilesh Kumar)
Deputy General Manager

Signed copy

The post Allowing multiple choice to the subscribers/corporates to change Investment Option and Asset Allocation Ratio during the Financial Year appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

NEW DELHI: Pension regulator PFRDA has appointed IL&FS Skill Development Corporation to train 64,500 government employees and other stakeholders on various aspects of flagship schemes NPS and APY.

The training institute has been appointed to create mass awareness and impart training on National Pension System (NPS) and Atal Pension Yojna (APY) to the employees of Points of Presence, APY service providers, and corporates of North-West zone.

Nodal officers of central and state governments and those at state autonomous bodies too would be trained, said Pension Fund Regulatory and Development Authority (PFRDA).

“It is intended to have at least 50-60 participants in each session of 3-4 hours duration and conduct approximately 1,610 training sessions and train 64,500 participants in the NW zone over the next 12 months,” PFRDA said while notifying the training institute.
Participants from Jammu and Kashmir, Himachal Pradesh, Uttar Pradesh, Uttaranchal, Punjab, Haryana, Bihar, Jharkhand, Chandigarh, Delhi, Goa, Gujarat, Maharashtra, Madhya Pradesh, Rajasthan, Chhattisgarh, Daman and Diu, Dadra and Nagar Haveli would be imparted training on various aspects of the two flagship social security programmes.

As on January 17, the overall number of NPS and APY subscribers stood at 1.42 crore, with Asset Under Management (AUM) of Rs 1.61 lakh crore. APY, which guarantees a monthly pension of Rs 1,000 – Rs 5,000, has about 43 lakh subscribers.

As on January 17, the overall number of NPS and APY subscribers stood at 1.42 crore, with Asset Under Management (AUM) of Rs 1.61 lakh crore. APY, which guarantees a monthly pension of Rs 1,000 – Rs 5,000, has about 43 lakh subscribers.

The post PFRDA eyes training 64,500 employees to create mass awareness on NPS, APY appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

18-November, 2016

Fee for NPS Advisors

A Retirement Adviser can charge three types of fee from the subscribers to whom he/she has given retirement advice in accordance with the Pension Fund Regulatory and Development Authority (Retirement Adviser) Regulations, 2016, as per details given below;

i. A Retirement Adviser is entitled to charge On Boarding fees for facilitating on-boarding to National Pension System. The upper ceiling of such fees is Rupees One Hundred and Twenty.

ii. For any subsequent services, the individual Retirement Adviser is entitled to charge a minimum of Rupees Twenty per transaction and maximum of Rupees One Hundred per annum.

iii. The Retirement Adviser may also charge 0.02% advisory fee from any existing subscriber, on their assets under management (AUM) of National Pension System (NPS) or any other scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA), on the date of advice, subject to a minimum of Rs. 100/- and maximum Rs. 1000/- per annum, for providing advice to the subscribers.

Further, the advisory fee can be charged by Retirement Adviser only when the subscriber has signed an agreement with the Retirement Adviser for providing advice, wherein the lower and upper limits of advisory fee, as specified by the PFRDA is incorporated. No advisory fee shall be charged at the time of on boarding of the subscriber along with on boarding fee of Rs.120/-.

The fees are chargeable as per the written agreement between the prospect/subscriber and the Retirement Adviser under advisory fee head as prescribed by PFRDA. The Retirement Adviser has to issue a receipt for each type of fee separately and collect all charges upfront.

This was stated by Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

PIB

The post Fee for NPS Advisors appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Pension Fund Regulatory and Development Authority
First Floor, ICADR Building, Plot No 6, Institutional Area Phase II,
Vasant Kunj, New Delhi-110070

ATAL PENSION YOJANA – BENEFITS AND FEATURES

1. Anybody in the age group of 18-40 years can join !!

2. You can choose your pension plan from Rs 1,000/- to Rs 5,000/- per month.

3. Your contribution depends on your age and the pension plan you choose!

4. You can be a member of any existing PF/Pension scheme such as EPF/PPF/Govt. pension and still join APY!

5. You can be an Income tax payer and still join APY.

6. For (4) and (5) above, Govt. Co-contribution is not available but Govt. guarantee for pension will be available!

7. Govt. Co-contribution of 50% of subscribers’ contribution or Rs 1,000/- per annum, whichever is lower will be available for five years only to subscribers joining by 31st December 2015.

The post PFRDA: ATAL PENSION YOJANA – BENEFITS AND FEATURES appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Pension Fund Regulatory
& Development Authority

1st Floor, ICADR Building,
Plot No. 6, Vasant Kunj
Institutional Area, Phase – II,
New Delhi – 110070
Tel : 011-26897948/26897949
Fax : 011-26897938

CIRCULAR

PFRDA/2015/02/PFM/02

Date: 05 Jan. 2015

To,
All Pension Fund Managers
CRA
Custodian Trustee bank NPS Trust Auditors

Subject: Amendment to PFRDA (Appointment of Auditors) Guidance Note-2012

Part B – Clause 2 of the PFRDA (Appointment of Auditors)Guidance Note-2012 -has been amended to –

Appointment of auditors and their fee will have to be approved by the Board of NPS Trust.

The recovery of the audit fee and the appointment of auditor would be applicable as per Clause 6 of ‘PFRDA (Preparation of Financial Statements and Auditor’s Report of Schemes under National Pension System) Guidelines-2012 ’.which is reproduced hereunder for ready reference:

‘Every PF shall have the financial statements of scheme audited by an external auditor who is not in any way associated with the audit of the PF or sponsor of the concerned PF or any other PF or schemes of any other PF. Scheme Auditor will be appointed by the NPS Trust and audit fee will be paid by the Pension Fund after obtaining approval for payment from NPS Trust’.

sd/-

Sumeet Kaur Kapoor
(General Manager)

http://www.pfrda.org.in/MyAuth/Admin/showimg.cshtml?ID=568

Source: http://www.pfrda.org.in/

The post Amendment to PFRDA (Appointment of Auditors) Guidance Note-2012 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDA/2014/01/CSG/1

Date: 09th January 2014

To,
All Central Government Ministries & State Governments

Dear Sir/Madam,

Remittance of NPS funds solely through electronic mode (NEFT/RTGS) from 01st April 2014

1. The Circulars no. PFRDA/2013/10/CRTB/1 dated 30th April 2013 and PFRDA/2013/12/CRTB/2 dated 31″ May 2013 may be referred.

2. It has been observed that the following problems are presently being faced on account of remittance of NPS contribution funds through physical instruments:

a.) Higher percentage of rejection of contributions/ funds return
b.) Delays due to cheque clearing activity
c.) incidences of cheque rejection due to financial/ technical reasons.

3. All the aforementioned issues affect the timely investments of the subscribers thus adversely impacting their pension corpus accumulation. To obviate the aforesaid concerns, and in compliance of CVC instructions issued vide Office Order No. 20/4/04 File No. 98/ORD/1 dated 06-04-2004 PFRDA has decided to discontinue the remittance of NPS contribution funds through physical instruments and to accept remittance solely through electronic mode from 01st April 2014.

4. Accordingly from 01st April 2014 onwards, all the nodal offices remitting NPS contributions have to mandatorily remit NPS Contributions through electronic mode i.e. NEFT/ RTGS only.

5. The overall procedure for remittance of funds to Axis Bank (Trustee Bank), matching & booking of SubscriberContribution Files (SCFs) and the receipt of funds from it shall remain unchanged.

6. This circular may be sent to all the nodal offices under your jurisdiction for necessary action/ compliance.

7. The contact details of NPS Cell at Axis Bank is as follows:

First Level of Contact:

Second Level of Contact:

The Circular has also been placed on PFRDA website at http://www.pfrda.org.in

Yours faithfully,
sd/-
(Ashish Kumar)
General Manager

Source: https://www.npscra.nsdl.co.in/download/Remittance-Update.pdf

The post Remittance of NPS funds solely through electronic mode (NEFT/RTGS) from 01st April 2014 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

The Lok Sabha today passed the Pension Fund Regulatory and Development Authority Bill 2011, which will open the doors for foreign investment in pension funds. The bill aims to create a regulator for the pension sector and extend the coverage of pension benefits to more people. The Pension Bill has been hanging fire since 2005 when it was first introduced in the Parliament. It was again reintroduced in 2011.

Features of New Pension Bill

1: The Pension Fund Regulatory and Development Authority Bill 2011 will give statutory powers Pension Fund Regulatory and Development Authority (PFRDA) which was established in August 2003 as a regulator for the pension sector.

2:  The bill allows 26% foreign direct investment (FDI) in the pension sector or such percentage as may be approved for the insurance sector, whichever is higher. At least one of the pension fund managers shall be from the public sector.

3:  The subscriber seeking minimum assured returns shall be allowed to opt for investing their funds in such scheme providing minimum assured returns as may be notified by the authority.

4: Withdrawals will be permitted from the individual pension account subject to the conditions, such as, purpose, frequency and limits, as may be specified by the regulations.

5: This bill would also provide subscribers a wide choice to invest their funds including for assured returns by opting for government bonds etc as well as in other funds depending on their capacity to take risk.

6:   The passage of the bill could see pure pension products coming into the market. At present most of the pure pension products available in the market are linked with insurance coverage.

7: In 2005, the government had earlier introduced a pension bill but it lapsed as the Lok Sabha’s term got over before the legislation could be passed.

8: The Pension Fund Regulatory and Development Authority Bill 2011 was reintroduced in the Lok Sabha in 2011 by the then finance minister Pranab Mukherjee and it was subsequently referred to a standing committee.

9: PFRDA’s National Pension System (NPS) was made mandatory for all new government recruits, except armed forces, joining after January 1, 2004.

10:   The NPS was later opened up to all Indian citizens from 2009 on a voluntary basis.

11:  The NPS allows its subscribers to invest in stock markets but there is a cap on equity investment. The NPS also offers subscribers the option of selecting the fund managers of their choice.

12:   The pension bill could help channelize funds into building long-term assets for the country, including the infrastructure sector. The government wants to ease rules for insurance and pension sectors to allow them to invest in infrastructure, where it is seeking $1 trillion investment till 2017.

Courtesy : http://www.imyideas.com/

The post Key Points – Loksabha Passes Pension Bill appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

(Act No. 19 of 1952)
4th March, 1952

An Act to provide for the institution of provident funds, pension fund and deposit-linked insurance fund for employees in factories and other establishments.

2. Definitions. – In this Act, unless the context otherwise requires, –

(m) “Tribunal” means the Employees’ Provident Funds Appellate Tribunal constituted under section 7D.

7D. Employees’ Provident Funds Appellate Tribunal. – (1) The Central Government may, by notification in the Official Gazette, constitute one or more Appellate Tribunals to be known as the Employees’ Provident Funds Appellate Tribunal to exercise the powers
and discharge the functions conferred on such Tribunal by this Act and every such Tribunal shall have jurisdiction in respect of establishments situated in such area as may be specified in the notification constituting the Tribunal.

(2) A Tribunal shall consist of one person only to be appointed by the Central Government.
(3) A person shall not be qualified for appointment as a Presiding Officer of a Tribunal hereinafter referred to as the Presiding Officer, unless he is, or has been, or is qualified to be, –
(i) a Judge of a High Court; or
(ii) a District Judge.

7E. Term of office. – The Presiding Officer of a Tribunal shall hold office for a term of five years from the date on which he enters upon his office or until he attains the age of sixty-two years, whichever is earlier.

7F. Resignation. – (1) The Presiding Officer may, by notice in writing under his hand addressed to the Central Government, resign his office;

Provided that the Presiding Officer shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.

(2) The Presiding Officer shall not be removed from his office except by an order made by the President on the ground of proved misbehavior or incapacity after an inquiry made by a Judge of the High Court in which such Presiding Officer had been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges.

(3) The Central Government may, by rules, regulate the procedure for the investigation of misbehavior or incapacity of the Presiding Officer.

7G. Salary and allowances and other terms and conditions of service of Presiding Officer. – The salary and allowances payable to, and the other terms and conditions of service including pension, gratuity and other retirement benefits of, the Presiding Officer shall be such as may be prescribed:

Provided that neither the salary and allowances nor the other terms and conditions of service of the Presiding Officer shall be varied to his disadvantage after his appointment.

7H. Staff of the Tribunal. –

(1) The Central Government shall determine the nature and categories of the officers and other employees required to assist a Tribunal in the discharge of its functions and provide
the Tribunal with such officers and other employees as it may think fit.

(2) The officers and other employees of a Tribunal shall discharge their functions under the general superintendence of the Presiding Officer.

(3) The salaries and all allowances and other conditions of service of the officers and other employees of a Tribunal shall be such as may be prescribed.

7 – I. Appeals to the Tribunal. – (1) Any person aggrieved by a notification issued by the Central Government, or an order passed by the Central Government, or any authority, under the proviso to subsection 3, or sub-section4, of section I, or section3, or sub-section 1 of section 7A, or section 7B except an order rejecting an application for review referred to in sub-section 5 thereof, or section 7C, or section 14B may prefer an appeal to a Tribunal against such order.

(2) Every appeal under sub-section 1 shall be filed in such form and manner, within such time and be accompanied by such fees, as may be prescribed.

7 – J. Procedure of Tribunals. –

(1) A Tribunal shall have power to regulate its own procedure in all matters arising out of the exercise of its powers or of the discharge of its functions including the places at which the Tribunal shall have its sittings.

(2) A Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the officers referred to in section 7A and any proceeding before the Tribunal shall be deemed
to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860) and the Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).

7K. Right of appellant to take assistance of legal practitioner and of Government, etc., to appoint presenting officers. – (1) A person preferring an appeal to a Tribunal under this Act may either appear in person or take the assistance of a legal practitioner of his choice to
present his case before the Tribunal.

(2) The Central Government or a State Government or any other authority under this Act may authorise one or more legal practitioners or any of its officers to act as presenting officers and every
person so authorised may present the case with respect to any appeal before a Tribunal.

7L. Orders of Tribunal. – (1) A Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the order appealed against or may refer the case back to the authority which passed such order with such directions as the tribunal may think fit, for a fresh adjudication or order, as the case may be, after taking additional evidence, if necessary.

(2) A Tribunal may, at any time within five years from the date of its order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section 1 and shall
make such amendment in the order if the mistake is brought to its notice by the parties to the appeal:

Provided that an amendment which has the effect of enhancing the amount due from, or otherwise increasing the liability of, the employer shall not be made under this sub-section, unless the Tribunal has given notice to him of its intention to do so and has allowed him a reasonable opportunity of being heard.

(3) A Tribunal shall send a copy of every order passed under this section to the parties to the appeal.

(4) Any order made by a Tribunal finally disposing of an appeal shall not be questioned in any court of law.

7M. Filling up of vacancies. – If, for any reason, a vacancy occurs in the office of the Presiding Officer, the Central Government shall appoint another person in accordance with the provisions of this Act, to fill the vacancy and the proceedings may be continued before a Tribunal from the stage at which the vacancy is filled.

7N. Finality of orders constituting a Tribunal. – No order of the  Central Government appointing any person as the Presiding Officer shall be called in question in any manner, and no act or proceeding before a Tribunal shall be called in question in any manner on the ground merely of any defect in the constitution of such Tribunal.

7–O. Deposit of amount due, on filing appeal. – No appeal by the employer shall be entertained by a Tribunal unless he has deposited with it seventy-five per cent of the amount due from him as determined by an officer referred to in section 7A:

Provided that the Tribunal may, for reasons to be recorded in writing, waive or reduce the amount to be deposited under this section.
7P. Transfer of certain applications to Tribunals. – All applications which are pending before the Central Government under section 19A, shall stand transferred to a Tribunal exercising jurisdiction in respect of establishments in relation to which such applications had been made as if such applications were appeals preferred to the Tribunal.

Source: epfindia.com

The post EPF: THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.