WN ON NATIONAL PENSION SYSTEM TB

[NEW PENSION SCHEME FROM 1.1.2004]

This system is applicable to all Central Government servants who are appointed on or after 1-1-2004.
Such officials are not eligible for Central Civil Service Pension (as applicable till 31.12.2003). This is not
applicable to Railway servants, casual and daily rated employees, persons paid from contingencies, members
of the All India Services, persons locally recruited for services in diplomatic, consular or other Indian
establishments in foreign countries, contract employees, persons to whom CCS (Pension) Rules apply.

Registration into NPS: Immediately on joining service, a Government employee must submit his application.
The Central Record keeping Agency shall complete registration process and allocate Permanent Retirement
Account Number (PRAN), a unique number provided to each subscriber under NPS which is portable across
locations and employments. A Subscriber is permitted to obtain only one PRAN. The Head of Office shall
intimate the PRAN to the Subscriber and record the same in the Service Book -Rule 4.

Emoluments: Emoluments for the purpose of determining the amount of mandatory contribution under the
NPS includes basic pay as defined in FR 9 (21) (a) (i), NPA and DA.

Re-employed retired Subscriber: Where pay on re-employment has been reduced by an amount not
exceeding his monthly pension, the element of monthly pension by which his pay is reduced shall be included
in emoluments.
On leave.- Leave salary actually drawn.
On deputation.- the pay drawn.
On suspension.- the subsistence allowance drawn.
On Foreign service.- the pay which he would have drawn had he not been on foreign service. -Rule 5

3. Contribution:-
Compulsory contribution: With effect from 1-4-2019, the monthly contribution would be 10% of the Basic Pay
plus NPA plus Dearness Allowance (DA) to be paid by the employee and the contribution shall be rounded off
to the next higher rupee. Recovery will commence from the month following the month of joining the
Government service.

b. During suspension, if he elects to pay for the period of suspension, the subscription will be based on
emoluments allowed for the period of suspension. The difference of the amount of contribution to be
deposited and the amount of contribution already deposited shall be credited to the individual pension
account along with interest.

c. During HPL, the subscription will be based on leave salary.

d.During EOL including on medical grounds, no contribution either from Government servants or from
Government.

e. Subscriber shall contribute during probation. -Rule 6

4. Contribution by the Government: The Central Government shall make contribution of 14% of the
emoluments of the Government servant every month. The amount of contribution shall be rounded off to the
next higher rupee. Rule 7.

5. Interest on delayed deposit of contributions: The interest shall be credited to the Individual Pension
Account of the employee within a period of thirty days of the crediting of the amount of contribution. The rate
of interest for this purpose would be the rate of interest, as decided by the Government from time to time, for
the Public Provident Fund deposits -Rule 8

6. Investment of the Accumulated Pension Corpus.- The Accumulated Pension Corpus in respect of a
Subscriber shall be invested by such pension fund or funds and in such manner as may be notified by the
Authority. -Rule 9

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Option to avail benefits
7. Option to avail benefits on death or invalidation or disability of Subscriber during service.-
a. At the time of joining service, every Government servant must submit an option along with details of
family for availing benefit under the NPS or under the Pension Rules or EOP Rules in the event of his
death or disablement or retirement on invalidation.
b. The option exercised may be revised any number of times by the Subscriber before his retirement by
making a fresh option
c. In the case of death of a Subscriber while in service, the last option exercised before his death shall be
treated as final and the family shall have no right to revise the option
d. If no option is exercised and he dies before completion of fifteen years of service or within three years
of the notification of these rules, his family will be granted family pension in accordance with the
provisions the Pension Rules or Extraordinary Pension Rules, as the case may be, as a default option.
e. When discharged from service on invalidation or disability before completion of service of fifteen
years or within three years of the notification of these rules without exercising an option, and is also
not in a position to exercise an option at the time of discharge, he will be granted invalid pension or
disability pension in accordance with the provisions of Pension Rules or Extraordinary Pension Rules,
as the case may be, as default option
f. In all other cases, where no option was exercised by the Subscriber, the claim of the Subscriber on
discharge from the service and that of the family on death of the Subscriber, shall be regulated in
accordance with the Pension Fund Regulatory and Development Authority (Exits and Withdrawals
under National Pension System) Regulations, 2015, as default option.
g. In cases where the option exercised by the deceased Subscriber for benefit under Pension Rules or
Extraordinary Pension Rules becomes infructuous on account of non-availability of an eligible member
of the family for grant of family pension, such option would be deemed to have become invalid and
the benefits admissible under the National Pension System shall be granted to the legal heir(s) of the
employee. -Rule 10.

Benefits and Retirement:

8. Retirement on superannuation: On superannuation he shall be entitled to benefits as admissible under the

Pension Fund Regulatory and Development Authority (Exits and Withdrawals under National Pension System)
Regulations, 2015. Rule 11

9. Retirement on completion of twenty years' regular service.- On completion of 20 years service, he may
retire by giving notice of not less than three months in writing to the Appointing Authority.

"Regular service shall mean service commencing from the date of joining of a post in the Central Government
on a regular basis, whether on direct recruitment or absorption or re-employment basis, and shall include past
regular service, in the same or another Central Government Department, or an autonomous or statutory body,
before joining the present service with proper permission, if such past service is allowed to be counted
qualifying service for the purpose of gratuity in accordance with orders issued by the Government from time to
time. It includes periods of all kinds of leave (including study leave and extraordinary leave), deputation foreign
service, duly sanctioned by the Competent Authority but does not include service rendered on casual, ad hoc
or contract basis, before appointment on regular basis, in the same or another Central Government
Department, a State Government or an autonomous or statutory body.

1. The notice of voluntary retirement shall require acceptance by the Appointing Authority.
2. Subscriber, may withdraw his notice with the specific approval of such authority if the request for
withdrawal is made at least fifteen days before the intended date of his retirement.
3. The Subscriber, on voluntary retirement from service, shall be entitled to benefits admissible under
the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under National
Pension System) Regulations, 2015 to the Subscriber retiring on superannuation.
4. If the Subscriber intends to continue his Individual Pension Account or to defer payment of benefits
under the National Pension System beyond the date of retirement, he shall exercise an option in this
regard in accordance with the Pension Fund Regulatory and Development Authority (Exits and
Withdrawals under National Pension System) Regulations, 2015. -Rule 12

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6. Effect of resignation / Absorption / dismissal
10. Resignation from Government service.- On resignation, unless it is allowed to be withdrawn in the
public interest by the appointing authority the lump sum and the annuity out of the Subscriber's
accumulated pension corpus shall be paid to him in accordance with the regulations notified by the
Authority as admissible in the case of exit of a Subscriber from the National Pension System before
superannuation after a period of ninety days from the date on which the resignation becomes effective
and the Subscriber is relieved of his duty. If he dies before the expiry of a period of ninety days from the
date on which the resignation becomes effective, the payment shall be made to the person eligible to
receive such payment as admissible in the case of exit of a Subscriber from the NPS before
superannuation.

If the resignation has been submitted, with proper permission to take up another appointment, whether
temporary or permanent, in the same or any other Department of the Central Government or the State
Government and the employees of such Department are covered by the NPS, the Subscriber shall
continue to subscribe to the NPS. Rule 14

11. Benefit on absorption in or under a corporation, body. A Subscriber who has been permitted to receive
benefits as admissible in the case of exit of Subscriber on superannuation -Rule 15

12. Effect of compulsory retirement or dismissal or removal- When superannuation. compulsorily retired
from service as a penalty or is dismissed or removed from Government service, the lump sum and the annuity
out of his accumulated pension corpus shall be paid to him as admissible in the case of exit of a Subscriber
from the National Pension System before superannuation. -Rule 18.

7. Entitlement for family on death of a Subscriber

On death for disbursement of benefits in accordance with the Central Civil Services Pension) Rules,
1972. If the death is attributable to Government service, further action will be taken by the Head of Office for
disbursement of benefits accordance with Extraordinary Pension Rules. The Government contribution in and
returns thereon in the accumulated pension corpus of the Subscriber shall be transferred to Government
account. The remaining accumulated pension corpus shall be paid in lump sum to the persons) in whose favour
a nomination has been made. If there is no such nomination or if the nomination made does not subsist, the
amount of remaining accumulated pension corpus shall be paid to the legal heir(s). -Rule 20.

8. Partial Withdrawal
Following are the conditions of Partial Withdrawal:
(a) Subscriber should be in NPS system for 3 years.
(b) Withdrawal amount will not exceed 25% of the contributions made by the Subscriber.
(c) Withdrawal is allowed only against the specified reasons
(i) Higher education of children.
(ii) Marriage of children.
(iii) For the purchase/construction of residential house or flat in his or her own name or in a joint
name with his or her legally wedded spouse. In case the Subscriber already owns either individually or in the
joint name a residential house or flat other than ancestral property, no withdrawal under these regulations
shall be permitted.
iv) For treatment of specified illnesses - suffered by Subscriber, his legally wedded spouse, children
including a legally adopted child and dependent parents.
(d) A Subscriber is allowed to withdraw to a maximum of three times during the entire tenure of subscription.
(e) Ease of Partial withdrawal of NPS subscribers through sel declaration. The subscribers shall be allowed
partial withdrawal based on self-declaration and thereby doing away with the submission of supporting
documents to substantiate the reasons for partial withdrawal, subject to fulfilment of all other process as per
OM -OM, dated 14-1-2021

Permission of partial withdrawals towards treatment of specific illnesses-COVID-19 as a pandemic:- As

"COVID-19" has been declared as a critical illness which is life-threatening in nature (a) The partial withdrawals
shall be permitted to fulfil financial needs of the subscribers, if required to him/her against the request placed
for partial withdrawals towards treatment of illness of subscriber, his legally wedded spouse, children,

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including a legally adopted child or dependent parents as mentioned in Regulation 8 ( (A) (d) of the said
regulations.

(b) The other terms and conditions as prescribed under Regulation & of the PFRDA (Exits and Withdrawals
under NPS) Regulations, 2015 and amendments thereto shall continue to be applicable regarding defining of
limits and frequencies.

(c) Documentation: The Nodal Office/PoPs/Aggregators would ensure that the subscriberhas provided the
following documents before authorizing partial withdrawals
1) Medical Certificate:
(2) Formal request for partial withdrawal.
-PFRDA, Circular, dated 9-4-2020
9. Exit/ Withdrawal
PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 allows the following withdrawals –

Upon Normal Superannuation.- At least 40% of the accumulated pension wealth of the Subscriber has to be
utilized for purchase of an Annuity providing for monthly pension to the Subscriber and the balance is paid a
lump sum to the Subscriber. In case, the total corpus in the account is less than or equal to 2 2 lakh as on the
Date of Retirement, Subscriber can avail the option of complete withdrawal.

Upon Death.- At least 80% of the accumulated pension wealth of the Subscriber has to be utilized for purchase
of an Annuity providing for monthly pension to the Spouse and the balance is paid as lump sum to the
nominee/legal heir. In case the total corpus in the account is less than or equal to 2 lakhs as on the Date of
Death of the Subscriber, nominee/legal heir can avail the option of complete withdrawal. Further, if family
member opts for family pension, as per the Regulations, all the accumulated pension wealth shall be
transferred to the bank account of the Nodal Office for further settlement as per Government directives.

Premature Exit.- At least 80% of the accumulated pension wealth of the Subscriber has to be utilized for
purchase of an Annuity presiding the monthly pension to the Subscriber and the balance is paid as a lump sum
to the Subscriber. In case the total corpus in the account is less than or equal to 1 lakh as on the Date of
Resignation, the Subscriber can avail the option of complete withdrawal.

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