CONTRIBUTORY PENSION SCHEME (CPS) AND PRAN

About cps :

  • Employees (Teachers) who have recruited on or after 01.09.2004 have to come under the New Contributory Pension Scheme. 
  • 10% of Basic Pay and DA of an employee contribution and the same amount of Contribution by the State Government adjusted to this fund. The total amount adjusted to the Pension Fund. Now the government has been giving 8% of interest as per GO. Ms.No.226 Fin Dept Dated:29-09-2011.
  • Now our State Government has entered into an agreement with N S D L (National Security Depositories Limited), Bombay to maintain PRAN accounts as Central Record Keeping Agendy ( C R A). Now, all the employees coming under the C P S have to apply for  P R A N (Permanent Retirement Account Number) alloted & maintained by N S D L, Bombay. For this, N S D L has appointed KARVY Consultants as Facility Centre, and there are one Facility Centres 1. at Hyderabad and
  • Here, GOs, Memos, Proceedings and relevant informatin on C P S are provided.
Address of Karvy Consultants Hyderabad:
HYDERABAD - KARVY CENTRE
KARVY CENTRE,
8-2-609/K, Road #10, Banjara Hills
HYDERABAD
Andhra Pradesh
India
PIN CODE: 500034
PHONE : 
STD CODE 040
040-23312454
EMAIL : mailmanager@karvy.com
 Structure(CPS)
Under NPS, each subscriber would be allotted a unique 16 digit Permanent Retirement Account Number (PRAN). This number would be portable. The records of transactions and investor would be maintained by central record Keeping agency (CRA). At present NSDL is the CRA and in future the number of CRA would be increased. The subscriber has an option to invest with seven Pension Fund Manager (PFM). He also has the option to choose any one or multiple PFM to manage his contribution. these PFM will have 3 Kind of funds categorized as E for Equity fund, G for fund investing in Government Securities and C for Fixed income securities other than Government Securities.
Tire-I: The Tire-I account is the basic NPS account that is non -withdrawable till retirement on in the case of death of the subscriber. In this type of account, the total corpus at the retirement age is split, whereby a minimum of 40 percent of the final corpus has to be compulsorily used to buy an annuity while the subscriber is free to withdraw the remaining 60 percent as a lum sum or in installments .
Tire-II: The tire-II accounts available only for existing subscriber of Tire-I account. The money contributed into this account can be freely withdrawn when the subscriber wishes by maintaining minimum balance that need to maintained at the end of the financial year.
  1. Those who appointed in the job after 1-9-2004 are must join in the New Pension Scheme.(GO Ms No:653 Fin (Pen.I) Dept , Dt.22.9.2004)
  2. 10%of basic pay and DA is treated as contributory pension and rounded to nearest rupee.
  3. The deduction of 10% contribution from salary of an employee is purely responsible of Drawing and Disbursing Officer(HM’s/MEO).
  4. 10% amount deducted from the salary(B.Pay+DA), and the same amount contributed by the State Government for this NPS.
  5. Drawing Officer should annexure the schedule to the salary bill which is submitted to the treasury.
  6. The number which is allotted by the CRA should be enter in the SR of the individual.
  7. Concerned DTOs would give the annual slips of CPS .
  8. The employees who are eligible to this scheme , should not apply for ZPPF/GPF.



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CONTRIBUTORY PENSION SCHEME (CPS) AND PRAN CONTRIBUTORY PENSION SCHEME (CPS) AND PRAN Reviewed by Tteachers on Saturday, May 10, 2014 Rating: 5

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