N7PC LTD. DEFINED CONTRIBUTION PENSION TRUST Ref:01/F&A/DCPS/Circulars/M-21 Date: 15.09.2020 CIRCULAR NO: 08 Subject: Option to withdraw from the Scheme for joining National Pension System (NPS) 1.0 All Members are hereby informed that Board of Trustees of the Pension Trust in their 21* meeting held on 15.06.2020 have approved amendments in the Trust Rules to allow Members who are still in the service of the Company (NTPC Limited) to exercise one time irreversible option to withdraw from the Scheme for joining National Pension System (NPS)-Corporate sector model as employee of NTPC Limited. 2.0 NPS is a Defined Contribution Pension Scheme promoted by the Government of India and regulated by the Pension Fund Regulatory and Development Authority (PFRDA) under PFRDA Act, 2013. NPS is managed by the Board of Trustees of the NPS Trust and all the assets under the NPS vests with the NPS Trust. Funds invested under NPS are managed by the Pension Funds Managers appointed as per the rules and regulations issued by the PFRDA. Detailed circular for introduction of NPS will be separately issued by the Company. Detailed information regarding NPS scheme, intermediaries under NPS and role and responsibilities, applicable charges etc. can be found on the PFRDA/NPS Trust web sites (www.pfrda.org.in / www.npstrust.org.in). 3.0 Itis also to be noted that from the date of notification for introduction of NPS in the Company, no new Members shall be admitted into NTPC Defined Contribution Pension Scheme. 4.0 On withdrawal from Scheme for joining NPS, no further contribution shall be accepted for such employees in the Trust. Employees joining NPS shall also have the option to transfer their existing accumulated corpus in lump sum from the Trust to NPS. Transfer of existing corpus from the Trust to NPS would not have any tax impact on the Members. Existing corpus of all the Members of the Scheme is deposited under Group Superannuation Scheme of LIC and for transfer to NPS; some exit load may be levied by LIC, which has to be borne by Employee. Trust is trying for waiver of exit load by LIC and further developments in this regard shall be shared in due course of time. 5.0 Employee exercising withdrawal option shall cease to be a Member of the Scheme from the date of withdrawal of funds from the Trust and no provisions of the NTPC Ltd Defined Contribution Pension Trust Deed/Rules shall be applicable to him/her. Pension benefits of such Members shall be regulated as per the provision of National Pension System (NPS). sell Regd. Office : NTPC Bhawan, Core-7, Scope Complex, 7 Institutional Area, Lodhi Road, New Delhi-1100036.0 7.0 8.0 9.0 Board of Trustees have also approved that in case of Members who have already separated from the services of the Company but have not yet applied for settlement of their pension benefits i.e. whose accumulated corpus is still lying with the Trust, may instead of taking pension annuity as per the Rules, can opt for transfer of their contribution to NPS account or into his/her account in the Superannuation Funds of their present employer, if any. As per the rules, in case of separation on account of resignation (other than cases of resignation for joining any other CPSE) and cases of termination, dismissals, removal etc. before 01.01.2017, only the amount of employee's contribution plus interest accrued thereon shall be transferred. In case of separation because of any reason on or after 01-01-2017, amount of both employee's and employer's contribution along with interest accrued thereon, shall be transferred. Member(s) opting for withdrawal of existing corpus may please note that existing corpus is deposited with LIC of India and based on the option exercised by the Member(s), Trust would take up with LIC for transfer of funds to NPS. However, there would be some time gap between submission of option by a Member and processing of transfer request by LIC and actual transfer of money. As per the rules of LIC, interest is credited at applicable rate till the date of settlement of claim by LIC. Although there is no cut-off date for submission of option for transfer of existing corpus and this option can be exercised at any time, however, for timely credit of money in their NPS account, interested Members must submit their option at the earliest and at least three months before their due date of Superannuation. This circular shall be effective from the date of issue of circular by NTPC Limited for introduction of NPS Corporate Sector model in the Company. Interested Members may submit their withdrawal option through ESS. It is for information to all the Members of the Trust: 4) ta (Sandeep Aggarwal) Secretary Trust Distribution: All Members of the Trust through email/ESS notice board, Chairman Trust and all members of the Board of Trustees