NPS : Introduction of choice of Pension Funds and Investment Pattern in Tier-I for Central Govt subscribers

-

PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutab Institutional Area,
Katwaria Sarai, New Delhi - 110 016.

CIRCULAR
PFRDA/2019/12/REG-PF/1
Date: 5th May, 2019
SUBJECT: Introduction of choice of Pension Funds and Investment Pattern in Tier-I of NPS for Central Government subscribers -reg.
Reference is invited to the Gazette Notification F.No.1/3/2016-PR dated 3151 January, 2019 issued by Ministry of Finance, Department of Financial Services, modifying Ministry of Finance's Notification No. 5/7/2003-ECB dated 22nd December, 2003, based on the Government's decision on the recommendations of a Committee set up to suggest measures for streamlining the implementation of National Pension System (NPS).

2. Accordingly, it has been decided to introduce the following options for Central Government subscribers:
 

(i) Choice of Pension Fund: As in the case of subscribers in the private sector, the Government subscribers shall 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 existing as well as new Government subscribers.

(ii) Choice of Investment pattern: The following options for investment choices shall 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 shall continue as default scheme for both existing and new subscribers.
(b) Government employees who prefer a fixed return with minimum amount of risk shall be given an option to invest 100% of the funds in Government securities (Scheme G).
(c) Government employees who prefer higher returns shall 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.
The subscribers may exercise one of the above choices of Investment Pattern twice in a financial year.

(iii) Implementation of choices to the legacy corpus: Transfer of a huge legacy corpus of more than Rs. 1 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 pattern in respect of the accumulated corpus, in one go. Therefore, for the present, change in the Pension Funds or investment pattern is allowed in respect of incremental flows only.

(iv) Transfer of legacy corpus in a reasonable time frame: PFRDA shall draw up a scheme in due course 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 shall be allowed in respect of the accumulated corpus in accordance with that scheme.

3. For investment option as per para 2 (ii) (a) above, all other terms and conditions as contained in the investment guidelines issued by the Authority dated 03.06.2015 for NPS Schemes (Applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite Schemes and APY) and subsequent amendments made thereto shall be applicable. Further, for investment options as per para 2 (ii) (b) or 2 (ii) (c) (A) or 2 (ii) (c) (B) above, all other terms and conditions as contained in the investment guidelines issued by the Authority dated 04.05.2017 in respect of NPS Schemes {Other than Govt. Sector (CG & SG), Corporate CG, NPS Lite and APY} and subsequent amendments made thereto shall apply.

4. This circular is issued in exercise of powers of the Authority under sub-clause (b) of sub-section (2) of Section 14 read with Section 23 of the PFRDA Act, 2013 and sub­ regulation (1) of Regulation 14 of the PFRDA (Pension Fund) Regulations, 2015.
The above arrangements are applicable w.e.f. 1st April, 2019.
sd/-
(A. G. Das)
Executive Director

choice-of-pension-funds-in-tier-1-of-nps-page-01

choice-of-pension-funds-in-tier-1-of-nps-page-01



Source: PFRDA (click here to view/download pdf)
[https://www.pfrda.org.in/WriteReadData/Links/Circular%20dated7fbe1b15-bc44-474f-86dd-180487431e3e.pdf]

Comments

Post a Comment

Popular posts from this blog

Approval of the Government of India for extending the benefits of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) to all senior citizens aged 70 years and above.National Health Authority L.S. CHANGSAN (I.A.S.) Chief Executive Officer D. O. No. S-12018/395/2022-NHA 20th September, 2024

-
Image
  National Health Authority This is to inform you of the approval of the Government of India for extending the benefits of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) to all senior citizens aged 70 years and above. 2. Salient features of the approval are as below: a. The benefits of AB PM-JAY would now be available to all senior citizens of the age 70 years and above irrespective of their socio-economic status. These benefits will be available to senior citizens of 70 years and above in families already covered under AB PM-JAY (hereinafter referred to as ‘existing families’), as well as in families which are not covered under the AB PM-JAY, (hereinafter referred to as ‘new families’). b. The only eligibility criteria for availing benefits under the scheme would be attainment of age of 70 years or above by the individual. This would be determined on the basis of age recorded in Aadhaar. As per prevailing practice, Aadhaar would be the only document requi
Read more

Grant of notional increment on 1st July I 1st January to the employees who retired from Central Govt, service on 30th June / 31st December respectively for the purpose of calculating their pensionary benefits - regarding.

-
Image
  Grant of notional increment on 1st July/1st January to the employees who retired from Central Govt. service on 30th June / 31st December respectively for the purpose of calculating their pensionary benefits – Implementation Order by DoP&T O.M. dated 14.10.2024 No.19/116/2024-Pers.Pol.(Pay)(Pt) Government of India Ministry of Personnel, Public Grievances & Pensions Department of Personnel & Training North Block, New Delhi Dated the 14th October, 2024. OFFICE MEMORANDUM Subject: Grant of notional increment on 1st July/1st January to the employees who retired from Central Govt.service on 30th June / 31st December respectively for the purpose of calculating their pensionary benefits – regarding. The undersigned is directed to say that in terms of Rule 10 of the Central Civil Services (Revise Pay) Rules, 2006, notified by D/o Expenditure vide Notification No.G.S.R.622 (E) dated 29.08.2008, date of annual increment was made uniform viz. 1st July of every year with effect from 0
Read more