New Pension Scheme

Responsibility of DDO
New Pension Scheme was introduced by GoI from 01.01.2004.
Most of the State Governments introduced it from 01.01.2005.
The new scheme is a defined contributory pension scheme.
The new pension scheme have two tiers:
Tier – I (Retirement / Pension Account)
Tier-II ( Saving Account)
Tier – I (Retirement / Pension Account):
Non-withdrawable account
Contribution is mandatory for all Government servants, who joins Government service after introduction of NPS.
Tier-II ( Saving Account):
Withdrawal is allowed at any point of time.
Optional and at the discretion of Government servants..
The existing pension benefits and GPF scheme will not be applicable to the contributory pensioners.
Employee's contribution 10 percent (basic pay + grade pay + dearness allowance) and equivalent contribution by the government.
The contribution will start from the next month in which employee has joined the service.
The contribution will be deducted from each month's salary.
At present, the facility of 3 withdrawals under special circumstances after 10 years of regular service during the service period is available.
Appropriation of 60% of the balance amount at the time of retirement (40% of self or family name as annuity)
Currently about 10 percent interest rate on deposits.
No deductions in GPF and GPF number will not be allotted.
Government servant who joins the service after introduction of NPS will give personal information in the prescribed form.
The concerned drawing and disbursing officer will be responsible for obtaining the above information.
Drawing and Disbursing Officer will submit the information of government servants in the treasuries and the TO will take action to allot the unique Employee Code and Permanent Account Number (PRAN) to the concerned government servant.
Drawing and Disbursing Officer will draw the salary of newly appointed government servants from the salary bill separately from the GPF servants.
Investments
The Pension contributions of Govt. employees covered by the New Pension System (NPS) are being invested by professional Pension Fund Managers in line with investment guidelines of Government applicable to non-Government Provident Funds.
Fund Management
Pension Fund Managers for Government sector to perform investment management function under the NPS are:
LIC Pension Fund Ltd.
SBI Pension Fund
UTI Retirement Solutions Pension Fund
Supervision- NPS Trust
NPS Trust is responsible for taking care of the funds under the NPS and the Trust also holds an account with the Bank of India, designated as the NPS Trustee Bank.
Axis Bank as Trustee Bank is responsible for transfer of funds collected and remittances to PFM.
Transfer of Employee
Contributions towards NPS for the full month (both individual and government) will be made by the office who will draw salary for the maximum period.
Non-Practice Allowance for Doctors
The Non-Practice Allowance is counted as ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the NPS.
Technical Resignation
In cases where Government servants apply for posts in the same or other departments and on selection, they are asked to render technical resignation, the past services are counted towards pension under CCS (Pension) Rules,because the Government servant had originally joined government service prior to introduction of NPS.

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