||What is NPS? |
|Ans. ||NPS is New Pension Scheme also known as New Re-Structured Defined Contribution Pension Scheme. |
|Q.2. ||Who are the target groups to be covered under NPS? |
|Ans. ||The employees, who joined on or after 01.01.2005 in Government of Odisha and that to only in a pensionable establishment, shall become members of the scheme.Regarding Central Government employees, those who have joined on or after 01.01.2004 shall become members of the scheme |
|Q.3. ||Who will register the bonafide employees covered under NPS?
|Ans. ||The employees will fill up in details the form in Annexure S1 and submit it to the Drawing and Disbursing officer. It is the responsibility of the DDO to obtain true and correct information from the Government servants |
|Q.4. ||What are the procedure after S1 are submitted? |
|Ans. ||Soon after the receipt of the information from all the Government servants covered under NPS system, the DDO shall furnish the consolidated information of all those employees to the District/Special/Sub Treasuries concerned. The Sub Treasury officers submit the forms to the District Treasury Officer. |
|Q.5. ||What is the registration process for new DDOs? |
|Ans. ||The DDOs are to fill up the form in Annexure-N3 and submit it to the DTOs who after receipt of those forms and conducting necessary scrutiny will submit those forms to the Directorate (DTAs). |
|Q.6. ||Do the Treasuries also get registered? |
|Ans. ||The District Treasury/Special Treasury officials also fill up the form in Annexure N2 and get themselves registered upon submitting the forms to the Directorate. The Directorate of Treasuries and Inspection, Odisha, Bhubaneswar has also been registered by filling the form in Annexure N1.
|Q.7. ||Who registers everybody? |
|Ans. ||It is the Central Record Keeping Agency (CRA) coming under the purview of NSDL (National Securities and Depository Limited) Mumbai registers everybody including the subscribers, Drawing and Disbursing Officers, District/Special Treasuries/ Directorate of Treasuries and Inspection, Odisha, Bhubaneswar upon receiving true and correct filled up forms in Annexure S1, N3 an N1 respectively.
|Q.8. ||What is PFRDA? |
|Ans. ||PFRDA is Pension Fund Regulatory and Development Authority, situated at New Delhi. The NPS Trust comes under the PFRDA. The PFRDA regulates each and every aspect of the New Pension Scheme. |
|Q.9. ||What are Tier-I and Tier-II Contribution? |
|Ans. ||The New Pension Scheme will work on defined contribution basis and will have two tiers, Tier-I and Tier-II. Contribution to Tier-I is mandatory for all Government servants joining Government service in regular establishment, which are pensionable in nature on or after 01.01.2005, whereas Tier-II will be optional and at the discretion of the Government servant. The employees, who joined on or after 01.01.2005 in Government of Odisha and that to only in a pensionable establishment, becomes members of the schedule. |
|Q.10. ||What is the amount of subscription in Tier-I of NPS System? |
|Ans. ||In Tier-I, each employee will pay a monthly contribution of 10% of the basic pay (Pay+Grade Pay) plus dearness allowance from his salary to the contribution pension scheme. An equal matching contribution will be made by the State Government for each employee who contributes to the scheme. |
|Q.11. ||When the deduction from salary will start? |
|Ans. ||The Contribution towards the Pension Scheme shall be recovered from the salary of the employees every month. The said recoveries will start from the salary of the month following the month in which the Government Servant has joined service. Therefore, no recovery will be effected for the month of joining. For example, for employees joining service in the month of January, 2005 deductions towards Tier-I Contribution will start from the salary will of February, 2005. No deduction will be made from his salary earned in January 2005. |
|Q.12. ||How the Funds so recovered will be managed? |
|Ans. ||In order to implement the NPS, such investment would be made in different categories of schemes approved by the Pension Fund Regulatory and Development Authority (PFRDA) which will be a mix of debt and equity. The Fund Managers will give out easily understood information about the performance of different investment schemes so that individual Government employee would be able to make choice. In that case, Government will not take any responsibility regarding liability of interest.
|Q.13. ||Who were the interim Fund Managers? |
|Ans. ||The Accountant General (A&E) Odisha, Bhubaneswar and the Controller of Accounts, Odisha were the interim Fund Managers being approved by PFRDA. |
|Q.14. ||Who are the new Fund Managers? |
|Ans. ||The PFRDA has appointed the UTI, SBI, and LIC as the new Pension Fund Managers. |
|Q.15. ||What is the ratio of allocation of fund among those new Pension Fund Managers? |
|Ans. ||The ratio of allocation of funds is as follows- UTI-32%, SBI-33%, LIC-35%. This ratio is the latest which has been accepted by the Government of Odisha. This ratio is subject to change from time to time and Government of Odisha has agreed to accommodate such changes that would take place from time to time.
|Q.16. ||What is PRAN? |
|Ans. ||PRAN is Permanent Retirement Account Number allotted to each subscriber under the NPS System. This is a unique identity number which will be issued by NSDL, Mumbai. Every deduction from salary, matching contribution by the state and other interest deposit will bear this unique PRAN issued in favour of an individual subscriber. |
|Q.17. ||What are the Head of Accounts under NPS? |
|Ans. ||The amount recovered from the pay bill shall be credited to the following new Deposit Head of Account by the Pay and Accounts office/Treasuries/Special Treasuries/ Sub Treasuries in respect of Government employees. “8342-other deposits-117-Defined Contribution Pension Scheme for Government Employees”.The Government’s contribution (matching share) to the scheme shall be debited to the following Head of Account. “Demand No5-2071-pension and other Retirement Benefits-01-civil-117-Government Contribution for Defined Contribution Pension Scheme-42007-Government Contribution”.
|Q.18. ||How the bills under the NPS are prepared? |
|Ans. ||The DDO will prepare separate pay bill register in respect of the Government employees joining on or after 01.01.2005. The DDO will have to prepare separate pay bills in respect of these Government servants and will send the same with all the schedules to the treasury. The DDO shall prepare a separate bill along with the salary bill for the Government Servant for drawal of matching contributions to be paid by the Government and credited to the pension account of the employees concerned who join in the Government Service on or after 01.01.2005.
|Q.19. ||What is the rate of interest under the NPS System? |
|Ans. ||Detailed instructions on the interest payable on Tier-I Contribution will be issued by the state Government in the due course. Soon after, the same is issued by Government of India for their employees |
|Q.20. ||Is nomination facility available under NPS System? |
|Ans. ||Yes, it is available. Nomination has to be filed by the employees concerned at the time of admission to the scheme and has to be revised upon marriage of the subscriber and thereafter once in five years, if necessary. Necessary entry to the effect of filing nomination along with name of the nominee(s) should be noted in the service of the concerned employee. |
|Q.21. ||What will be the fate of the fund after retirement? |
|Ans. ||At the time of retirement, Government Servant will receive the lump sum amount of 60% deposited in pension Tier-I account as pension wealth which he would be free to utilize in any manner. But it is mandatory for the Government Servant to invest 40% of his pension wealth to purchase any annuity from an Insurance Regulatory and Development Authority regulated Life Insurance Company. In case of Government employees, the annuity shall provide for pension for the lifetime of the employee at the time of his retirement and after his death, his dependant parents or his other eligible family members. The Government Servant would have the flexibility to leave the pension system prior to age 58 years or 60 years as the case may be. In such cases, the mandatory annuitisation would be 80% of the pension wealth.
|Q.22. ||What is Tier-II subscription? |
|Ans. ||In addition to the provision in Tier-I, each employee recruited on or after 01.01.2005 to the State Government service may also have a voluntary Tier-II withdrawable account like General Provident Fund at his option. Government will make no contribution into this account. In Tier-II system, the employee may subscribe 10% of his basic pay and this contribution will be kept in a separate account withdrawable at the option of the Government Servant. The employee would be free to withdraw part or full of the Tier-II investment does not attract any tax treatment. This will attract the rate of interest as per the decision of the Government from time to time. |
|Q.23. ||Whether one is eligible to contribute towards General Public Fund? |
|Ans. ||No. Deduction will be made towards General Provident Fund contribution from the Government Servant who has joined on or after 01.01.2005 as the GPF Contribution is not applicable to them. |
|Q.24. ||Whether Accounts slips are issued to the Subscribers? |
|Ans. ||At the end of each financial year, an account slip indicating monthly deposits, subscription and commutative figures are issued to each Government employee covered under NPS System. |
|Q.25. ||Which Website should be referred for downloading of prescribed formats in Annexure- N1, N2, N3, and S1 Forms and other information regarding NPS? |
|Ans. ||http://www.npscra.nsdl.co.in |