NPS Contributions: Guidelines for Central Government Employees – DOPPW O.M dt 07.10.2024
No. – 57/03/2022-P&PW(B)/8361(1)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners’ Welfare
3rd Floor, Lok Nayak Bhavan, Khan Market,
New Delhi, Dated the — 07th October, 2024
OFFICE MEMORANDUM
Subject: Contribution by the Government employee to the National Pension System in respect to Central Government employees covered under NPS.
The undersigned is directed to say that Department of Pension and Pensioners’ Welfare has notified the Central Civil Services (Implementation of National Pension System) Rules, 2021 to govern service related matters of Central Government civil employees covered under National Pension System. Rule 6 of these rules deals with contributions by the Central Government employee into the National Pension System.
2. In accordance with rule 6 of the Central Civil Services (Implementation of National Pension System) Rules, 2021, the National Pension System shall work on defined contribution basis. A Government employee shall make a contribution of ten per cent or such other percentage as may be notified from time to time, of his emoluments to the National Pension System every month. The amount of contribution payable shall be rounded off to the next higher rupee.
3. During the period of suspension, contribution may be made by the employee at his option. However, if in the final orders passed by the Government on conclusion of the inquiry, the period spent under suspension is treated as duty or leave for which leave salary is payable, contributions to the National Pension System shall be determined based on the emoluments which the employee becomes entitled to for the period of suspension. The difference of the amount of contribution to be deposited and the amount of contribution already deposited during the period of suspension, shall be credited to the Individual Pension Account of the Subscriber along with interest. The rate of interest for this purpose would be the rate of interest as decided by the Government from time to time for the Public Provident Fund deposits.
4. No contribution shall be made by the Subscriber during the period of absence from duty (whether on leave or otherwise) for which no pay or leave salary is payable.
5. During the period of transfer on deputation to a Department or organisation under the Central Government or the State Government, the Subscriber shall remain subject to these rules in the same manner, as if he was not so transferred or sent on deputation and will continue to contribute towards National Pension System based on emoluments worked out in accordance with rule 5 of these rules.
6. The Subscriber shall contribute toward National Pension System during the period spent under probation.
7. Deduction and crediting of contributions to the Individual Pension Account during foreign service in India or outside India, including deputation to United Nations’ Secretariat or other United Nations’ Bodies, the International Monetary Fund, the International Bank of Reconstruction and Development, or the Asian Development Bank or the Commonwealth Secretariat or any other International Organisation, shall be regulated in accordance with the instructions issued by the Department of Personnel and Training from time to time and the procedure laid down by the Pension Fund Regulatory and Development Authority (PFRDA).
8. The Drawing and Disbursing Officer shall deduct the contribution from the salary of the Government servant and send the bill to the Pay and Accounts Officer or Cheque Drawing and Disbursing Officer, as the case may be, along with details of contributions deducted in respect of each Subscriber on or before Twentieth day of each month.
9. (i) The Pay and Accounts Officer or the Cheque Drawing and Disbursing Officer, as the case may be, based on the details of contributions in respect of each Subscriber sent by the Drawing and Disbursing Officer to Pay and Accounts Officer or Cheque Drawing and Disbursing Officer under sub-rule (8), shall prepare and upload a Subscription Contribution File and generate a Transaction ID by twenty- fifth day of each month.
(ii) The Pay and Accounts Officer or the Cheque Drawing and Disbursing Officer, as the case may be, shall remit the contribution to the Trustee Bank through the Accredited Bank by the last working day of each month. However, the contribution for the month of March shall be remitted by the Pay and Accounts Officer or the Cheque Drawing and Disbursing Officer to the Trustee Bank through the Accredited Bank on the first working day of the month of April.
(iii) In case of delay in crediting of contribution to the Individual Pension Account of the Subscriber beyond the prescribed timeline due to factors not attributable to the Subscriber, the amount shall be credited to the Individual Pension Account of the Subscriber along with interest for the delayed period, as determined in accordance with rule 8 of these rules.
10. All Ministries/Departments are requested that the above provisions may be brought to the notice of the personnel dealing with the NPS matters of employees in the Ministry /Department and attached /subordinate offices thereunder, for strict implementation.
(S. Chakrabarti)
Under Secretary to the Govt. of India
To
All Ministries/Departments/Organisations,
(As per standard list).
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