Subject to change with respect of time. This is purely my interpretation. Suggestion is most welcome. Figures are subject to change and specifically state specific.

1. NEW PENSION SYSTEM
Tamojyoti Bose

2. Salient Features:
 Came into force 1-01-04 (GoI)/1-2-05 (GoA)
 Two Tier I & Tier II
 Tier I Mandatory for regular State Government(Govt of
Assam) Servant joining on or after 01/02/2005 benefit
of prospective date. For All India Service employees
serving under Govt of Assam its 01/01/2004
 In Tier I: 10% deduction on Basic Pay, DA & NPA from
monthly pay bill following the month of joining
 Equal and matching share paid by the Govt
 Tier I Non withdrawable till 60 years of age

3. Salient Features
 Tier II: Voluntary, Withdrawable, No Matching Govt
Contribution, Separate Independent Account
 Investment up to 1 Lakh in Tier I account is exempted
u/s 80C of IT Act
 Minimum 40% of pension wealth to be invested on exit
at 60 years or 80% in case of exit before 60yrs
 This investment will provide for pension through
Annuity Service Provider
 GPF not applicable for new entrants

4. STATUS OF GoA ON NPS
IMPLEMENTATION
• GoA having 60 Treasuries through out the State
manage Pay disbursement through the
Treasuries Comprehensive Treasury
Management Information System (CTMIS)
• GoA has more than 9,200 DDOs managed by this
System monthly for more than 1,20,000 NPS
employees at present.
• Registered 82,541 nos. employees under NPS.
IRA Compliant: 76,488 Non IRA: 6,053
• NPS Fund transferred to NPS Trust through
Trustee Bank (Bank Of India/Axis Bank) Rs. 750
Crs up to June/2014(Regular)

5. GENERAL GUIDELINES ON NPS
• Contribution shall be recovered from salary
through pay bills
• For suspension, based on Subsistence Grant
• For HPL based on Leave Salary, for EOL
without pay no contribution
• For Foreign Service Borrower is to pay
individual & matching contribution on B/D by
10th of following month at DoAT.
• Contribution will begin from salary of the month
following the month of joining, no recovery for
month of joining

6. Registration Procedure:
 Submission of Annexure S1: Application for
Generation of PPAN and PRAN
 PPAN unique 16 digit number issued by
concerned Treasury after joining
 PRAN unique 12 digit number issued by NSDL
on receipt of Annexure S1 by NSDL FC.
 Both PPAN and PRAN are unique and should
not be issued twice
 PRAN Kits are issued by NSDL containing
PRAN Card, I-PIN & T-PIN for accessing
Statement from www.cra-nsdl.com

7. Maintenance of PPAN& PRAN:
 PPAN should be quoted in the schedule of NPS to be
submitted along with monthly paybill at treasury
 PPAN & PRAN should be recorded in Service book
 PPAN & PRAN should be quoted in LPC on Transfer
and to be submitted in treasury for Treasury & DDO
shifting in CTMIS
 PPAN & PRAN Register to be recorded at office
 Monthly Contribution Register to be recorded at DDO,
Separate Pay Bill and Pay Bill Register

8. Know PPAN:
22001111118855000000440000008877
First 4 Digits : Year of Joining Govt Service (2011)
Next 2 Digits : Treasury Code(18)
Next 2 Digits : Ministry Code(50)
Next 3 Digits : Department Code(004)
Last 5 Digits : Running Serial Number(00087)

9. PRAN structure
1 1 1 0 0 1 4 6 0 5 6 9

10. Benefits to IRA Compliant
Subscribers
• PRAN Card
• Annual statement at present address as
mentioned in Annexure S1
• SMS Alert & Email alert when contribution
credited in Account if opted for.
• Accessing Statement over Internet at www.cra-nsdl.
com using I-PIN and over telephone using
T-PIN
• Raising Grievances online and resolution
thereof
• Can activate Tier-II Account

11. Standard Forms for NPS
• Annexure S1: Application for allotment of PRAN
• Annexure S2: Subscriber Detail change request
• Annexure S5: DDO Covering Letter(for S1)
• Annexure S7: Change in Signature or Photograph
• Annexure S8: DDO Covering Letter(for S7)
• Annexure S10 & S11: For activation of Tier II
• Form 101-GS: Withdrawal after superannuation
• Form 102-GP: Withdrawal before attaining
superannuation(premature due to resignation, termination etc)
• Form 103-GD: Withdrawal due to death of the subscriber.
• Form 101-GS-N1: Annexure for Nominee Details

12. Entities of NPS
 PFRDA(Pension Fund Regulatory Development
Authority) Regulator a statutory body of MoF
 NSDL (National Security Depository Limited)
Central Record keeping Agency
 Trustee Bank: Axis Bank(Initially Bank of India)
 PFM (Pension Fund Manager) SBI(35%),
UTI(31%), LIC(34%) for Govt employees
(change annually)
 Custodian (Stock Holding Corporation India
Ltd)
 ASP(Annuity Service Provider)

13. Entities in NPS
Nodal Office Regulator Trustee Bank
Annuity Service Providers
Pension Fund Managers
Subscribers Central Recordkeeping Agency
13
Directorate of Accounts &
Treasuries,
Assam(SNO)/Treasury
Offices(NO)

14. Deduction to Investment:
 Monthly deductions collected centrally from
CTMIS and the Govt share is added
 Total contribution PRAN wise is uploaded in
CRA system
 Money is transferred to trustee bank through
cheque by DoAT
 Individual accounts gets credited with the
investment in 3 PFM in allocated proportion
 SBI: 35%, LIC: 34% and UTI: 31%

15. NPS Architecture
Information (Blue line) & Fund ( Green dotted line) Flow Chart
Custodian
PFRDA NPS TRUST
Directorate of
Treasuries &
Accounts
District
Treasury
Office
Drawing &
Disbursement
Officer
Subscriber
Trustee Bank
PFM’s
Fund
Receipt
Confirmation
NAV
Annuity Service Providers
15

16. Exit from NPS
 At 60 years maximum 60% can be withdrawn in lump
sum and 40 % to be invested through ASP for
monthly pension & family pension : Form 101GS
 Incase of exit before 60 years maximum 20% can be
withdrawn and 80% to be invested(irrespective of
cause Resignation /Termination etc) : Form 102GP
 Death Case during service period(Refund of whole
amount). The annuity provision is under
consideration : Form 103GD

17. Exit due to Super annuation(Age 60)
Documents to be submitted with Form 101GS and
Credit Contribution Certificate signed by DDO & TO
• Original PRAN Card / Notarised Affidavit, if original PRAN
card is not available
• Proof of Identification (refer Annexure B): Photo Identification
of the subscriber with name of the subscriber as per the CRA
records and proof duly verified and attested by mapped
Nodal Office. If there is difference in name, Nodal Office to
provide the confirmation for the same.
• Proof of Address (refer Annexure B): Address Proof in the
name of the subscriber duly verified and attested by mapped
Nodal Office. If there is difference in name, Nodal Office to
provide the confirmation for the same.

18. Contd…
• Bank Details Proof: Cancelled cheque/ Bank Certificate on
the Bank Letter head/Self-Attested Copy of Bank Passbook
alongwith the subscriber photograph indicating the Bank
Name and Address, Bank account number, Name of the
Subscriber, IFS and MICR code. If there is difference in
name, Nodal Office to provide the confirmation for the same.
• Covering Letter from the mapped Nodal Office with
Subscriber Name, PRAN and Date of retirement/ attaining 60
years of age.
• If the subscriber is non-IRA compliant, subscriber is required
to fill the Subscriber Registration Form (S1 form)
• Nodal Office: Treasury Officer

19. Premature for Exit (Age below 60)
Documents to be submitted with Form 102GP and
Credit Contribution Certificate signed by DDO & TO
• Original PRAN Card / Notarised Affidavit, if original PRAN
card is not available
• Proof of Identification (refer Annexure B): Photo
Identification of the subscriber with name of the subscriber as
per the CRA records and proof duly verified and attested by
mapped Nodal Office. If there is difference in name, Nodal
Office to provide the confirmation for the same.
• Proof of Address (refer Annexure B): Address Proof in the
name of the subscriber duly verified and attested by mapped
Nodal Office. If there is difference in name, Nodal Office to
provide the confirmation for the same.

20. Contd…
• Bank Details Proof: Cancelled cheque/ Bank Certificate on
the Bank Letter head/Self-Attested Copy of Bank Passbook
alongwith the subscriber photograph indicating the Bank
Name and Address, Bank account number, Name of the
Subscriber, IFS and MICR code. If there is difference in
name, Nodal Office to provide the confirmation for the same.
• Covering Letter from the mapped Nodal Office with
Subscriber Name, PRAN and Date of resignation/exit.
• If the subscriber is non-IRA compliant, subscriber is required
to fill the Subscriber Registration Form (S1 form).

21. Exit due to Death
Documents to be submitted with Form 103GD and
Credit Contribution Certificate signed by DDO & TO
• Original PRAN Card of the deceased subscriber/ Notarised
affidavit, if original PRAN card is not available
• If the subscriber is non-IRA compliant, Nodal Office is
required to fill the IRA Compliance Certificate form
• Proof of Identification (refer Annexure B): Photo Identification
of the claimant with name of the claimant as per the CRA
records and proof duly verified and attested by mapped
Nodal Office. If there is difference in name, Nodal Office to
provide the confirmation for the same.
• Proof of Address (refer Annexure B): Address Proof in the
name of the claimant duly verified and attested by mapped
Nodal Office. If there is difference in name, Nodal Office to
provide the confirmation for the same.

22. Contd…
• Bank Details Proof: Cancelled cheque/ Bank Certificate on
the Bank Letter head/Self-Attested Copy of Bank Passbook
alongwith the claimant photograph indicating the Bank Name
and Address, Bank account number, Name of the claimant,
IFS and MICR code. If there is difference in name, Nodal
Office to provide the confirmation for the same.
• Covering Letter from the mapped Nodal Office with
Subscriber Name, PRAN and Date of Death
• Original Death Certificate in English/Hindi. If there is
difference in name, Nodal Office to provide the confirmation
for the same. If the Death certificate is in language other than
English/Hindi, certificate issued by Nodal Office is required.

23. Contd...
• No Objection from the mapped Nodal Office that no family
pension/disability pension has been paid to the family
member of the deceased subscriber and that they have no
objection for release of the accumulated NPS wealth in
favour of the Claimant(s) (Annexure NOC_D).
• Legal heir certificate / Succession certificate, if nomination is
not registered in the CRA records (if all the legal heir are not
claiming the NPS funds, then an Indemnity bond to be
submitted by the claimant on a stamp paper of Rs.100. A
Relinquishment Deed from all the legal heirs (those who are
not claiming) on a Stamp paper of Rs. 100/- is required
alongwith the KYC documents (Photo ID Proof and Address
Proof) of all the legal heirs duly attested by the mapped
Nodal Office.)

24. Annexure B(Documents for
Identification & Address Proof)
The documents that can be provided as identification and address proof are as
mentioned below:
a) Ration Card with photograph and residential address
b) Bank Passbook with photograph and residential address
c) Credit Card with photograph, any other address proof like latest telephone bill,
electricity bill in the name of the subscriber.
d) Passport
e) Voter’s Photo Identity Card with residential address
f) Driving license with photograph and residential address
g) PAN card and any other address proof like latest telephone bill, electricity bill in the
name of the subscriber.
h) Certificate of identity with photograph signed by a Member of Parliament or Member of
Legislative Assembly or Municipal Councilor or a Gazetted Officer and any other
address proof like latest telephone bill, electricity bill in the name of the subscriber
• In case if the address is not present on any of the above documents or differs with
address provided in this form, proof in respect of current residential address like latest
telephone bill, electricity bill in the name of the subscriber should be submitted.

25. Pattern of Investment
Each PFM would invest the fund in proportion of 85% in fixed
income instruments & 15% in equity and equity related
instruments
1. Central Govt. Securities = 25%
2. State Govt. Securities =15%
3. Bonds/securities of Public Financial Institute
=25%
4. Investment any above 3 categories =30%
5. Share of Companies =5%
Total: =100%
 1/3 rd of 4 above can be invested in Private Sector
security/equity

26. Process Flow

27. CRA (NSDL) SERVICE CHARGE
Parameter Charges (Excusive Service
Tax)
PRA Opening Rs.50 each subscriber
Annual PRA
Rs.190 per year
Maintenance
Transaction
Charge
Rs.4 for each transaction
Plus : 12.36 % Service charge
3 % Education cess.

28. Employees under NPS
 No GPF
 No Gratuity(Gratuity might be paid under
consideration)
 No advance in NPS in Tier-I

29. Tier II
Pre requisites:
1. Already in Tier I
2. IRA Compliant subscriber with PRAN Card
Features:
1. Voluntary Savings
2. Free to withdraw at their will
3. No matching contribution

30. Scheme preference choice
 CRA operationalised from Dec/2009
 No separate AMC & Charge by CRA(paid by
Govt of Assam)
 All entered into Tier I is eligible with Minimum
contribution of Rs.1000
 Unlimited number of withdrawals with Minimum
balance Rs.2000
The NPS offers two approaches to invest
subscriber’s money:
Active choice - Individual Funds (Asset class E,
Asset Class C, and Asset Class G )
Auto choice - Lifecycle Fund

32. Investment Scheme:
Asset class E (equity market instruments) – The
investment in this asset class would be subject
to a cap of 50%. This asset class will be
invested in index funds that replicate the
portfolio of a particular index such as BSE
Sensitive index and NSE Nifty 50 index. These
schemes invest in securities in the same
weightage as comprised in an index.
Asset class G (Government Securities) – This
asset class will be invested in central
government bonds and state government
bonds.

33. Contd..
Asset class C (credit risk bearing fixed income
instruments) – This asset class will be
invested in the following instruments

34. NPS for different sectors
• NPS for State Autonomous Bodies & Local
Bodies notified by Govt of Assam vide
No.DA.08/2011/127 dtd 15/11/2012. At present
7 nos of SABs registered and adopted NPS
• NPS Lite: Applicable for all unorganised working
groups: Anganwadi workers, Dairy Farmers,
Fisherman, Weavers, other wage Earners of
Govt. Implementation through Aggregator.
Implemented for Anganwadi workers/helpers
under Social Welfare Dept under Govt of Assam

35. NPS for State Autonomous Bodies
Forms to be submitted to DoAT
• Letter of Consent(LOC)
• Master Creation Form(MCF)
• Annexure N2
• Annexure N3
• Minutes/Resolution of meeting of Autonomous
bodies wherein decision of adoption of NPS by
the body have been taken

36. Latest Developments
• The long awaited PFRDA Bill passed on 6/9/2013
• Payment of Death Gratuity/Family pension is under
Consideration
• The draft proposal for exit have maximum 3
withdrawals during the contribution period(Criteria:
10 years of service, 25% of amount contributed by
employee(not on Govt share) and on pre
determined conditions only)
• Now in case of Death of the subscriber, claimant
/nominee may annuitise the pension wealth

37. Important Links
https://www.npscra.nsdl.co.in
https://www.cra-nsdl.com
http://npscan-cra.com
http://pfrda.org.in
https://www.npscra.nsdl.co.in/state-forms.php