File No.1-05(04)/2019-PAT File No, 1-05(04)/2019-PAT Government of India Ministry of Communication Department of Telecommunications j Sanchar Bhavan, 20, Ashoka Road ‘New Delhi-110001 Dated 20/05/2019 CIRCULAR No, 114 | Subject: Amendment in National Pension Scheme (NPS)-reg. The undersigned is directed to circulate herewith a copy of the Ministry of | Finance’s Gazette Notification No. 1/3/2016-PR. dated 31.01.2019 on the aforesaid subject for information and necessary action. Encl: As above. se vb (Patanjali Prakash) Assistant Director General (PAT) Tel: 23036245 Copy to: 1, P.S, to Minister of State for Communications(ICYMOC, New Delhi; 2. Sr. PPS to Secretary (T)Chairman , DCC, New Delhi; 3. PPS/PS to Member (T), Member(S), Member(F), DoT; 4, PPS/PS to Director General Telecom; 5. All Advisors/Addl. Secy./Sr. DDGs/DDGs/ISs, DoT, New Delhi: 6. All Advisors/Sr. DDGs of DoT field Unit; 7. Sr. DDG, TEC, Khurshid Lal Bhavan, New Delhis, 8. Sr. DDG, NTIPRIT 9. CMD,BSNL, Corporate office, Bharat Sanchar Bhavan, New Delhi; 10.CMD, MTNL, 9 CGO Complex, 5" Floor, Lodhi Road, New Delhi; 11,CMD, TCIL, New Delhi; 12.CMD, BENL, New Delhi; 13.Ex. Dir, C-DOT/Dir. WMO, New Delhi; 14,All Controllers/Jt. Controllers of Communications Accounts, DoT; 15. Director (Staff), Director (SEA), DoT & Director (Civil), DoT, New Delhi; 16,Dy. Sccretary (Admin-I)((Admin-II)/(Admin-II}) & (Admin-IV), DoT; 17.All Telecom Enforcement Resources Monitoring Cells (TERMS); 18.Director (I), DoT for posting this circular on the official web site of DoT. 19.PAO and all the concerned Sections, DoT, New Delhi; 20.80 (Pay Bill), DoT, HQ, Sanchar Bhawan, New Delhi; 21. All recognized Unions/Associations/Federations, DoT, New Delhi; 22.Internal Audit Unit, DoT Hq. Sanchar Bhavan, New DelREGD. NO. D. L-33004/99 The Gazette of Gndia srerereoT EXTRAORDINARY st [ave 1 PART Section 1 saferare & wartira PUBLISHED BY AUTHORITY = 4 ag feret, qeeafvane, seat 31, 2019/mE 11, 1940 No. at} NEW DELHI, THURSDAY, JANUARY 31, 2019/MAGHA 11, 1940 ‘fara sire (Behe Berg eam) aft art Peet, 31 sera, 2019 wr. &. 119/2016-ftare arr aeare Pret Hares ft 22 Resiar, 2003 ft cranes aT HE, 5/7/2003-Serat-eFtamre % Fr 4(i) H satferr aeeitert Tea BE Test Hers wort (end) aT afer aT % farm qara 29 8g ates afta A Profs oe acer 06 Rerrax, 2018 & Por & arene ae Te safer 8 Pater dtore arc &, area -— (1) ee afar era 1() 8, “astra aver pra ea ara area anf alarara Sa ate eee wah (Enya 10% St ate ee a aver sa TAT AY sear A oA, St ee eat a wea Pea ‘srrecr, “aatarfeat aor afte sterera sae Sera atte aeerrs areet (Sm) ar 10% eer aire eee Te aT aT aerara aa Bam atte eT wee aT 14% TTY (2) Patina wrawrer sen afiegrar frerare (vy) ave wenfita fer ar, area ‘Upreftere Bs Peare a Sere FAR ate Pre deat ar emer Frargere ee: (vi) Sere AR a Rae: AT ors Prva rH age, eet Recreate era ‘afar fea Peeft oft tore Pat ar wae eee Fh wane St are A a A oe are aT Peer aT ae Tee arta, afte arate aor ferr fee A aera exer ager athe va aan sisrararoit & fey ea: area cath 6650 612019 o2 ‘THE GAZETTE OF INDIA : EXTRAORDINARY [Pant See. 1) (vil) Frate cafet ar Paver: ear tt tare ar Paar & freafeters Peres fer sree, area: () worries aoe agar oe a ara ht atoeranst Fae eae: se Seo Fort eth oe ator & stents, Arevaredin Peer & qe ara oT Sra ata Fa beret Siw aa A afore rae we FAT rife AY art (@) aa rer tart at agree sift aftr are Pathe afer & Paver ar Tae wea e, FT sarcarét afte arora sft) 100% Per ae a Free Pear ar (2) it arent omar sare ster & Fre Per ar sar wea Fae crea oe sneer ‘freafeferd & atorarat a7 fas feat are: (@) vera sat aw fafa, fart fat # free ft after aiar 25% freifta a (tert - 25) (Ca). arere ft se FY, Frei ARSE te oA afore ster 50% Prater -(erre-S0) (vill) Ge shh & Peed a ar wer: Tear Ga F aftaraat Fae Hf are ee wT ahs TPT are ardtearcaey ger tte a athe Sere Paes wheat & safe eet er rare arr qe ft ea A era Bt aeeret aftrararatt 1 afer Patty & ater H Bera FRY array Paar cafe at re area cars A aqata BA # fremarcéte a arsenite afSaré at wedt Bt ae: ea aes Hers PAR arate vale Ht feats arqata aa at ef fifi ahi FA TT (by Ger whe Bt ow afte aera H atafte we: ear aa afireranst ae awa & arqere herwsaredie, gran iPr she at agPhe aerarat raha wie aH ska area A ew aoa Fare oT eet Bi dteerarcdiey aren aoa are fire a oe ee hoa aga fire atte ater te PAR area rae sata a aftada At agatt at or oat a an 2004-2012 % dhere ater Sh orar a wer awe BES aT CA Be TAYE: (x) Sra are & fart aearft etait & aa 8 a wet at ae oh at oft af af aT tare Fareen # fatn tte ret Fear star ar area 36h Fara ftes Paear rar ar, afer a aa Pah A ae seth At at 8 Beare omer We eter are ory rar oA AAR re At a fe oes ve ee re aT ar cet eat er Barge ee Be eae eae nba eee ere ea Per TEL (xi) ar ash arett Forte af 2004-2012 % ahera Prat oft aaft Bg wearét afarh Aare a Ore siararett At nett art At ahh oft a aah ar aterars ara are TA a Ped Pear ae ae ag we SteeTT rar et Fe eT 8 at eT ere A aera ae Pete HE or rar rare Bt Reet aft Ft vate antarht & aoe 8 nh oat weft ere Hore FeTTo HAT 8 TT aA ater eafrrard sterart At aifa arene afar % stata ae Rerrait ag are aM Gail) Saat arreit fara rear serene afrarem freer & faafta ad gy & ora A A fase get (a St oar sisrarat Fh act ge ft aera eh), Hof at oe AR ee TA sires Ba a, Ba “ser PARR rw erry ahah Be ears ed eee ve B re GE At, Ae A aca Pe ts re a re ra TRL ae Te arse are Tear storara AY ata Rar are aay Praesens art seer ake aerate aren AH ehh ret ar tare A ava rT FT ae a sade wrarars 1 sta, 2019 # waret atin aren are fea, he ae Reon: gr afer ret % rawr, aTarem, are, ave 1 Hf 22 Fees, 2003 aT emt 5/7/2003-ttare % sea wantin gf tiCom 1s 1) UT TTT: STATE 3 MINISTRY OF FINANCE, (Department of Financial Services) NOTIFICATION New Dethi, the 31st January, 2019 F. No. 1/3/2016-PR.—In partial modification of para 1(i) of Ministry of Finance's Gazette Notification No, 5/7/2003-ECB-PR dated 22nd December, 2003, based on the Government's decision on 6" December, 2018 on the recommendations of a Committee set up to suggest measures for streamlining the implementation of National Pension System (NPS), the Central Government makes the following amendments in the said notification, namely :- (1) Inpara 1G) of the said notification, for the words “The monthly contribution would be 10 percent of the salary and DA to be paid by the employee and matched by the Central Government”, the words, “The monthly contribution would be 10 percent of the Basic Pay plus Dearness Allowance (DA) to be paid by the employee and 14 percent of the Basic Pay plus DA by the Central Government” shall be substituted (2)The following provisions shall he inserted after para 1(¥) of the said notification, namely:~ CHOICE OF PENSION FUND AND INVESTMENT PATTERN IN TIER-I OF NPS AS. UNDER: (vi) Choice of Pension Fund: As in the case of subscribers in the private sector, the Government subscribers may also be allowed to choose any one of the pension funds including Private sector pension funds. They could change their option once in a year. However, the current provision of combination of the Public-Sector Pension Funds will be available as the default option for both ccxisting as well as new Government subscribers, (vil) Choice of Investment pattern: The following options for investment choices may be offered to Government employees: - (a) The existing scheme in which funds are allocated by the PFRDA among the three Public Sector Undertaking fund managers based on their past performance in accordance with the guidelines of PFRDA for Government employees may continue as default scheme for both existing and new subscribers (©) Government employees who prefer a fixed retum with minimum amount of risk may be given an ‘option to invest 100% of the funds in Government securities (Scheme G), (©) Government employees who prefer higher returns may be given the options of the following two Life Cycle based schemes. (A) Conservative Life Cycle Fund with maximum exposure to equity capped at 25% - LC-25. (B) Moderate Life Cycle Fund with maximum exposure to equity capped at 50% - LC-50. (vii) Implementation of choices to the legacy corpus: Transfer of a huge legacy corpus of more than Rs. I lakh crore in respect of the Government sector subscribers from the existing Pension Fund Managers is likely to impact the market. It may be practically difficult for the PFRDA to allow Government subscribers to change the Pension Funds or investment pattcrn in respect of the accumulated corpus, in one go. Therefore, forthe present, change in the Pension Funds or investment pattern may be allowed in respect of incremental flows only. (ix) Transfer of legacy corpus in a reasonable time frame: PFRDA may draw up a scheme for transfer of accumulated corpus as per new choices of Government subscribers in a reasonable time frame of say five years. Once PFRDA draws up this scheme, change in the Pension Funds or investment pattern may be allowed in respect of the accumulated corpus in accordance with that scheme.4 ‘THE GAZETTE OF INDIA : EXTRAORDINARY Pane l—Sec. 1) COMPENSATION FOR NON-DEPOSIT OR DELAYED DEPOSIT OF CONTRIBUTIONS ‘DURING 2004-2012: () __ Imall cases, where the NPS contributions were deducted from the salary of the Government ‘employee but the amount was not remitted to CRA system or was remitted Tate, the amount may be credited to the NPS account of the employee along with interest for the period from the date on which the deductions were made tll the date the amount was credited to the NPS account of the employee, as per the rates applicable to GPF from time to time, compounded annually. xi) all_cases where the NPS contributions were ducted from the salary of the Government employee for any period during 2004-2012, the employee may be given an option to ‘deposit the amount of employee contribution now. In case he opts to deposit the contributions now, the amount may be deposited in one lump sum or in monthly installments. The amount of installment may be deducted from the salary of the Government employee and deposited in his NPS account. The same may qualify for tax concessions under the Income Tax Act as applicable to the mandatory contributions of the employee. (xii) In all cases where the Government contributions were not remitted to CRA system or were remitted Jate (irrespective whether the employee contributions were deducted or nob) the amount of Government contributions may be credited to the NPS account of the employee along with interest for the period from the date on which the Government contributions were due till the date the amount is actually credited to the NPS account of the employee, as per the rates applicable to GPF from time to time. Instructions to this effect may be issued by the Department of Expenditure/ Controller General of Accounts. All such cases of delay may be resolved within a period of three months, 2. The above provisions shall come into force with effect from Ist April, 2019. MADNESH KUMAR MISHRA, It. Secy. Note : The main notification was published in the Gazette of India, Extraordinary, Part-l, Section 1, vide notification No. 5/7/2003-PR dated the 22nd December, 2003, Uploaded by Di. of Printing at Government of laa Press, Ring Read, Mayapar, New Delhi 110060 snd Published bythe Contoler of Publications, DeThi- 110054,