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CPS Scheme Complete Information
1. Introduction:Vide G.O.Ms.No.653
Finance (Pen-I) Dept. Dt:22.09.2004, State Government have introduced
CPS to all the employeesrecruited on or after 01.09.2004 on the same
lines of Government of India’s New Pension System. The scheme
isapplicable to all the organizations covered under A.P. Revised Pension
Rules, 1980. Accordingly, each employee who is recruited on or after
01.09.2004 shall pay a monthly contribution of 10% of the basic pay and
DA from the salary and State Government will make a matching
contribution foreach employee who contributes to the scheme.
2. PFRDA
:The Central Government has constituted the Pension Fund Regulatory and
Development Authority (PFRDA) to act as regulator for the pension sector
of the entire Nation and also to protect the interest of the
subscribers of pension fund and for matters connected herewith or
incidental thereto.
3. NSDL (CRA) :The PFRDA has appointed the National
Securities Depository Limited (NSDL), Mumbai as the Central Record
Keeping Agency (CRA) to maintain the records of Contribution and its
deployment in various pension fund schemes for the employees.
4. Pension
Fund Managers (PFMs) :The SBI, LIC and UTI have been selected as Pension
Fund Managers (PFMs)for investing the CPS funds at the rates of40%,31%
and 29% respectively. NPS Trust has been set up as Trustee for CPS funds
and the Bank of India has been appointed as Trustee Bank
.5. Final
payment procedure :At the time of retirement, the employee would be
required to invest 40% of the pension wealth to purchase an annuity
which will provide pension for life time to the employees and in the
event of his death to his dependent parents/spouse. The remaining 60%
pension wealth would be paid to the employee at the time of his
retirement to utilize in any manner.
6. Clarification regarding payment
of Family pension to the spouse of CPS employee while in service :Family
pension under New Pension Scheme shall be paid in death cases
provisionally pending framing of rules regulating such cases and the
payment made on such a provisional basis shall be adjusted against the
payment to be made in accordance with the new rules to be framed. Thus,
the adjustment of the payment arises only after Government announces the
Rules regulating such cases under New Pension Scheme.
7. Role of DTA
:The DTA, AP, Hyderabad on behalf of Govt. of A.P. entered into an
agreement with the CRA i.e. NSDL on 21.11.2008 and NPS Trust on
15.09.2009. Nodal officers such as DDOshave to deduct CPS contribution
from the monthly pay bills of employees. The treasuty Officer have to
upload the CPS contributions to the CRA i.e. NSDL and the corresponding
amounts have to be transferred to Trustee bank i.e Bank of India. From
the Pension Trust, the funds transferred to the Pension Fund Managers
for investing the funds in various schemes.
8. Registration Procedure :As
per NSDL norms, the employees and the nodal officers of the state who
have to make transactions of CPS are necessarily be registered with NSDL
by submitting relevant forms. Initially, DTA by submitting N1 form has
got registered with NSDL and subsequently registered all the DTOs/PAOs
with NSDL by submitting N2 forms. Subsequently, DDOs were registered
with NSDL by submitting N3 forms. For employees registration with
NSDL,each employee has to submit S1 form to NSDL.
9. CPS applicability to
State Autonomous Bodies:Government vide Circular Memo
No.41/01/A2/Pen.I/2012 Dt:18.06.2012 have issued operational guidelines
for implementation of CPS for the State Autonomous bodies and all other
institutions whose pay and allowances were drawn form Consolidated fund
of the State or not but covered under A.P.R.P.Rules, 1980. The DTA will
function as facilitator and the organizations have to be registered with
NSDL through DTA by forwarding N2 and N3 forms. After this each DDO
under the treasury has to be registered with NSDL by submitting N5 and
N6 forms.
Click below link to Download CPS Guidelines
Download G.O.Ms.No.62
Download G.O.Ms.No.62
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