PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area,

Katwaria Sarai, New Delhi-110016
Ph: 011-26517501, 26517503, 26133730
Fax : 011-26517507
Website : www.pfrda.org.in

CIRCULAR

CIR No.: PFRDA/2020/30/SUP-CRA/13

Date: 16th July 2020

To,
All stake holders under NPS

Choice for POPs to integrate with CRAs for NPS

Reference is invited to Pension Fund Regulatory and Development Authority (PFRDA) Circular No. PFRDA/2017/5/CRA/2 dated 9th Feb. 2017 on the captioned subject. Based on the feedback received from stakeholders, in partial modification to the said Circular, it has been decided and clarified as under:

• Points of Presence (POPs) shall have the option to integrate with one or more Central Record Keeping Agencies (CRAs) for the purpose of on-boarding and servicing of NPS subscribers under Voluntary/ Corporate sector. However, the POPs which have already integrated with both the CRAs and have subscribers enrolled under both CRAs, may continue with their existing arrangement so as not to inconvenience the existing Subscribers.
• Voluntary NPS subscribers desirous of obtaining the services from a particular CRA may open their NPS account through a POP which is integrated with that CRA. Alternatively, the subscriber shall have the option to open NPS account via the eNPS platform which offers the choice of both the CRAs.
• Similarly, the organizations/ corporates offering NPS to their employees under the aegis of “employer-employee relationship” and are desirous of obtaining the services from a particular CRA, may open their NPS accounts through a POP, which has integrated with that CRA. In case, they register themselves with PFRDA as POPs, they may integrate with the CRA (s) of their choice.
• POPs ore required to display charge or both the CRAs under NPS section on their website lo enable the subscribers to take well Informed decision.
• This circular shall be applicable only to the POPs covered under sub-regulation (I), (II) and (lll) of Regulation 3 or PFRDA (Point of Presence) Regulations, 2018.

This circular is issued in exercise or powers conferred under Section 14 of PFRDA Act. 2013 to protect the interests of the subscribers and is available on PFRDA’s website (www.pfrda.org.ln) under Regulatory Framework end In Circular Section of CRA and PoPs.

(K Mohan Gandhi)
General Manager

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F. No. PFRDA/24/Exit/1

May 26, 2016

Shri Amit Sinha
Executive Vice President,
NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower.
Kamla Mills Compound,
Senapati Bapat Marg, Lower Parel,
Mumbai – 400013

Subject: Guidelines for processing of Family Pension Cases.

Dear Mr Sinha,

Enclosure: a/a
CC:
Shri Kamal Chaudary
Chief Executive Officer,
National Pension System Trust,
3’d Floor, Chatrapati Shivaji Bhawan
B-14/A, Qutab Institutional Area
New Delhi 3100 016

Guidelines for processing of Family Pension cases

The post New Pension Scheme: Guidelines for processing of Family Pension Cases appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Shri Akhilesh Kumar, Dy. General Manager,
Pension Fund Regulatory and development Authority ICADR Building,
Plot no. 6,
Institutional Area Phase II, Vasant Kunj, New Delhi-110070

Concept Note on
Introduction of Retirement Adviser

Contents
1. Background
2. Retirement Planning
3. Retirement Adviser
4. Scope of Work of Retirement Adviser
5. Eligibility for Retirement Adviser
6. Application for Registration
7. Registration Fee
8. Exemption from registration and Certification
9. Period and Validity of Registration
10. Renewal of Registration
11. Suspension and Cancellation of Certificate of Registration
12. General Responsibilities and Obligations
13. Maintenance of records
14. Segregation of execution services
15. Appointment of Compliance Officer
16. Fees to be charged by the Retirement Adviser
17. Grievance Redressal
18. Penal provisions

1. Background

2. Retirement Planning

3. Retirement Adviser

4. Scope of Work of Retirement Adviser

5. Eligibility for Retirement Adviser a) Who can become Retirement Adviser

12. General Responsibilities and Obligations

13. Maintenance of records.

14. Segregation of execution services.

15. Appointment of Compliance Officer

16. Fees to be charged by the Retirement Adviser

17. Grievance Redressal

18. Penal provisions

The post Introduction of Retirement Advisers: Concept Note by PFRDA appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Frequently asked questions about the new Pension Bill, PFRDA Bill, 2011, are given below.

1. What does the new pension law do?

The PFRDA Bill, 2011, (proposed to be enacted as a law) provides for the establishment of an Authority to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto.
An Interim Authority has already been created vide Govt Resolution dated October 10, 2003, and November 14, 2008, and is fully functional. The passage of the bill will confer statutory status to the Interim PFRDA to develop and regulate National Pension System (NPS) earlier known as New Pension Scheme.

2. What is NPS ?

The National Pension System reflects (NPS) Government’s effort to find sustainable solutions to the problem of providing adequate retirement income.
The NPS is an easily accessible, low cost, tax-efficient, flexible and portable retirement savings account. Under the NPS, the individual contributes to his retirement account and also his employer can also co-contribute for the social security/welfare of the individual.
The NPS is designed on Defined contribution basis wherein the subscriber contributes to his account, there is no defined benefit that would be available at the time of exit from the system and the accumulated wealth depends on the contributions made and the income generated from investment of such wealth.
Eventual pension wealth is based on the level of contributions made over the years, the charges (administrative and fund management) deducted from the funds and the returns achieved by the investment fund (pension fund managers) used over a period of time during the accumulation phase in the NPS.
The greater the value of the contributions made, the greater the investments achieved, the longer the term over which the fund accumulates and the lower the charges deducted, the larger would be the eventual benefit of the accumulated pension wealth likely to be.

3. Why should one subscribe to a pension fund?

Pension ensures that a person has steady and adequate financial security during his old age, even after he has retired from employment or his earning capacity has extinguished/decreased.

4. What does the pension bill propose?

The PFRDA shall administer the NPS for subscriber’s interest in accordance with the provisions of the PFRDA Act and the rules and regulations framed thereunder. The Authority has the mandate to regulate all other pension funds (other than the NPS) which are not regulated by any other enactment.

5. Is it compulsory?

The NPS is compulsory in respect of persons appointed to public services in connection with the affairs of the Union, or to All-India Services, on or after 1-1-2004. It is also compulsory in case of employees of Central Autonomous bodies.
The NPS is also applicable in respect of employees of various state governments and its autonomous bodies, who have joined the NPS and in respect of whom, such state governments have extended the NPS based on the notifications issued by such states.
The NPS is voluntarily extended to the citizens of India w.e.f May, 2009, who may choose to be covered under the NPS. The NPS has also been extended to various corporates, who may choose to provide the scheme to their employees on a voluntary basis.

6. When was it first introduced?

The PFRDA Bill 2005 was introduced in Lok Sabha in March, 2005, but could not be considered and passed due to dissolution of 14th Lok Sabha. Earlier, the PFRDA Ordinance 2004 was promulgated on December 29, 2004, which lapsed on April 7, 2005.

7. Can one decide how much on ones savings should go into stocks and how much in debt?

Presently, in respect of government employees, the investment choice in asset class E (Equities), asset Class C (Corporate Debts) and Asset Class G (Government Securities) is in accordance with investment pattern contained in Ministry of Finance notification No. F. No. 5 (88)/2006 –PR.— dated August14,  2008. For others different schemes are applicable based on the choice exercised by the subscriber.

8. If stock prices crash, will pension be affected?

The rate of return and NAV (Net Asset Value) of the subscriber will be susceptible to market risk.

9. Can one choose the stocks in which pension fund will put the money?

Pension Fund Managers based on their expertise will choose the stocks for investing the collective monies of the subscriber (under full disclosure to the NPS Trust). However, individual subscriber will not have the option of choosing a particular stock.

10. Can one withdraw money whenever one wants or only after one retires?

The subscriber can exit from the NPS and withdraw the accumulated pension wealth in the following manner and no other exits or withdrawals are permitted presently:
a. Upon attainment of age of 60 years   : At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of an annuity providing for the monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber.
b. Upon Death (irrespective of cause)   : The entire accumulated pension wealth (100%) would be paid to the nominee / legal heir of the subscriber and there would not be any purchase of annuity/monthly pension.
c. Exit from the NPS before attainment of age of 60 years (irrespective of cause):   At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of an annuity providing for the monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber.

11. Can it help the industry?

The industry can benefit by the availability of long term funds under the NPS, which may be deployed to build infrastructure. The industry can also provide the  NPS as an important social security scheme to the employees serving in such industries.

Source: http://english.manoramaonline.com

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CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
1st Floor, North Avenue PO Building, New Delhi – 110001

WITHDRAW CONTRIBUTORY PENSION SCHEME

SCRAP PFRDA BILL

CONFEDERATION CALLS UPON THE CENTRAL GOVERNMENT EMPLOYEES TO ORGANIZE TWO HOURS WALK-OUT PROGRAMME ON THE DAY WHEN THE BILL IS TAKEN UP FOR DISCUSSION IN PARLIAMENT

As you are aware, Central Government is going ahead with their agenda on pension privatization. The controversial PFRDA Bill (Pension Fund Regulatory and Development Authority Bill) is listed as an agenda item for the current Parliament session. The bill may be taken up for discussion in Parliament on any day. Confederation of Central Government Employees & Workers has opposed the Contributory Pension Scheme and also the PFRDA Bill from the very beginning.

We have conducted so many agitational programmes including strike. The left parties in the parliament have also strongly opposed the Bill. Inspite of the opposition from employees (both Central Government and State Government Employees & Teachers) and also from left political parties, the Central Government is not ready to withdraw the contributory Pension scheme or to scrap the PFRDA Bill.

The National Secretariat of the Confederation has viewed the move of the Government with grave concern and decided to call upon the entirety of the Central Government Employees & Workers to organize mass protest demonstration in front of all offices throughout the country after walking out from offices for two hours, on the day when the bill is taken up for discussion in Parliament or on the next day if information is received late.

All India office bearers, State level COCs and other COCs are requested to make the two hours walk out programme a grand success.

(M. Krishnan)
Secretary General

Source : http://confederationhq.blogspot.in/
[http://confederationhq.blogspot.in/2013/08/confederation-of-central-govt.html]

The post Confederation News: Confederation calls upon the CG Employees to organize mass protest demonstration on the day when the bill is taken up for discussion in Parliament – Scrap PFRDA Bill appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

Cir no: PFRDA/ 2013/2/ PDEX / 2
SL-3

Subject: Exit rules under National Pension System for All Citizen model under UoS including Corporates and Swavalamban scheme.

PFRDA has issued necessary instructions to CRA for implementation of the withdrawal process under National Pension System (NPS) for all sectors viz., Government Employees, All Citizen model and Swavalamban scheme. The said information is being re-iterated hereunder for the information of all stakeholders for a better appreciation of the matter.

The following are the details for the withdrawals allowed in case of All Citizen model and Swavalamban scheme subscribers:

a) Upon reaching the age of 60 Years: At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber and balance is paid as lump sum payment to the subscriber.

b) Upon Death: The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/monthly pension.

c) Exit from NPS before the age of 60 Years (irrespective of cause): At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension  to the subscriber and the balance is paid as a lump sum payment to the subscriber.

The subscribers would be able to purchase the annuities directly from the empanelled Annuity Service Providers as per their choice of annuity that is available in the market/with the Annuity Service Provider’s (ASP’s) empanelled by PFRDA. For Swavalamban withdrawals under (a) & (c) above, there is an overriding condition on the lump sum payment payable due to which the entire accumulated pension wealth would be annuitized in case if the monthly pension obtained by using the 40%/80% of the pension wealth is below Rs. 1000/- per month.

Source: www.pfrda.org.in

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Cir no: PFRDA/ 2013/2/ PDEX / 2
SL-1

Subject: Withdrawal of erroneous contribution received into NPS instead of GPF

There have been various queries and requests from the subscribers and the PAOs/DDOs/DTOs on refund of  contribution received into NPS erroneously, due to wrongly classifying subscriber as falling under NPS instead of GPF.

After examining the matter, it has been  the decided that  such cases will be treated as erroneous transfer by the concerned department and do not fall under the exit/withdrawal from NPS.  In all such cases, 100% withdrawal of accrued pension wealth is allowed subject to the condition that such proceeds should mandatory transferred back to the concerned PAO/DDO from whom the request for withdrawal has arisen.

The concerned subscriber can approach through his PAO/DTO/DDO to our NPS claims cell at CRA for processing of such requests.

Source: www.pfrda.org.in

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PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

Cir no: PFRDA/ 2013/2/ PDEX / 2
SL-2

Subject: Exit rules under National Pension System for Government Employee Subscribers

PFRDA has issued necessary instructions to CRA for implementation of the withdrawal process under National Pension System (NPS) for all sectors viz., Government Employees, All Citizen model and Swavalamban scheme. The said information is being re-iterated hereunder for the information of all stakeholders for a better appreciation of the matter.

The following are the details for the withdrawals allowed in case of Government Employees subscribers:

a) Upon Normal Superannuation: At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber and balance is paid as lump sum payment to the subscriber.

b) Upon Death: The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/monthly pension.

c) Exit from NPS before the age of Normal superannuation (irrespective of cause): At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension  to the subscriber and the balance is paid as a lump sum payment to the subscriber.

The subscribers would be able to purchase the annuities directly from the empanelled Annuity Service Providers as per their choice of annuity that is available in the market/with the Annuity Service Provider’s(ASP’s) empanelled by PFRDA.

Source: www.pfrda.org.in

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The Pension Fund Regulatory and Development Authority Bill, 2005 was initially introduced in Lok Sabha in March, 2005 to provide for a statutory PFRDA. However, since the Bill and the official amendments, based on the recommendations of the Standing Committee on Finance, could not be considered by the Lok Sabha, the Bill lapsed on dissolution of the 14th Lok Sabha.

The Government has announced in the Budget 2011-12 that the revised PFRDA Bill would be moved in the Parliament. Accordingly, PFRDA Bill, 2011 was introduced in Lok Sabha on the 24th March, 2011 to provide for a statutory regulatory body the Pension Fund Regulatory and Development Authority (PFRDA) under the provisions of the Bill. The legislation sought to empower PFRDA to regulate the New Pension System (NPS). The PFRDA Bill, 2011 was referred to the Standing Committee on Finance on the 29th  March, 2011 for examination and report thereon. The Standing Committee on Finance gave its Report on 30th August, 2011.

The Government decided to accept the recommendations of the Standing Committee on Finance.  Based on the recommendations of the Standing Committee, the official amendments to the PFRDA Bill-2011 a proposal to move these additional official amendments in the ensuing session of the Parliament, was  approved by the Union Cabinet in its meeting held on 4th October, 2012.

The PFRDA Bill, 2011, inter alia, provides for:
(i) Establishing a statutory Pension Fund Regulatory and Development Authority (PFRDA):
(a) to promote old age income security by establishing, developing and regulating pension funds;
(b)  to protect the interests of subscribers to various schemes of pension funds.

(ii)  Empowering PFRDA to :
(a) regulate the New Pension System and other pension schemes not covered under any other Act;
(b) register and regulate pension funds and the central  recordkeeping agency;
(c) frame investment guidelines for pension funds;
(d) levy monetary penalties for violations of various  provisions of the PFRDA Act;

(iii)  Imprisonment upto 10 years by courts for contravention of the PFRDA Act, etc. or fine upto Rs. 25 crore or both; and

(iv) Subjecting subordinate legislation to Parliamentary scrutiny.

Source: www.financialservices.gov.in
[http://financialservices.gov.in/PFRDA%20Bill_2011.pdf]

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