Contributory Pension Scheme (CPS)

New Pension Scheme:: Central Record Keeping Agency (CRA)

CPS CRA NSDL Login

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As per Pension Regulatory and Development Authority bill (PFRDA) ,the New Pension Scheme was started by the Central Government from 1-1-2004 and by the A.P State Government from 1-9-2004 and it is called as CPS (Contributory Pension Scheme).

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10% of Basic Pay and Dearness Allowance (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.

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 The money contributed into this account can be freely withdrawn when the subscriber wishes by maintaining minimum balance that need to maintained at the end of the financial year.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.