G.O.Ms.No. 62,Dt: 07.03.2014 :: New Pension System – Exit Policy – Withdrawal procedures for Subscribers from New Pension System
References:
1 G.O.Ms.No.653, Finance (Pen.I) Department, dt. 22.09.2004.
2 G.O.Ms.No.655, Finance (Pen-I) Department, dt. 22.09.2004.
3 F.No.8/97/2010-PFRDA, Dt.17.04.2012 of PFRDA, New Delhi.
4 Govt Circular Memo No.30857/422/Pen.I/A2/2010,
Dt.08.03.2010.
5 Lr.No.D(II)1/3058/2013, Dt.04.02.2014 of the DTA, AP, Hyd.
O R D E R:
In the G.O. 1st read above, Government have introduced New Pension Scheme (CPS) to the AP Government employees who were appointed on or after 01.09.2004. In the G.O. 2
nd read above, Government have issued operational guidelines. In the New Pension scheme each employee shall pay a monthly contribution of 10% basic Pay + DA from his salary and the Government will contribute an equal amount as its share.
2. In the reference 3rd read above the Provident Fund Regulatory Development Authority (PFRDA) has proposed an interim procedure and accordingly the Government in the reference 4th read above, have issued instructions of interim procedure pending finalization of the Guidelines.
3. In the reference 5th read above the Director of Treasuries and Accounts (DTA) has requested to consider the guidelines as proposed by the PFRDA and requested to issue orders on withdrawal procedures
consequent to instructions issued vide reference 4th read above.
4. Government, after careful consideration of the matter hereby prescribe the Exit guidelines and the procedures to be followed by the stake holders for submitting and forwarding exit / withdrawal proposals as per the guidelines contained in Annexure-I and II enclosed herewith. Accordingly Government hereby withdraw the
instructions issued in the Circular Memo 4th read above. However, if any payments are made in the past, they have to be adjusted against the accumulated funds in CPS.
5. All the Drawing and Disbursing Officers and Treasury Officers are
requested to take necessary action immediately.
ANNEXURE – I
EXIT / WITHDRAWAL GUIDELINES UNDER THE NATIONAL PENSION
SYSTEM
01) The following modes are prescribed for exiting the New Pension System in case of Government Employee subscribers:-
a) Upon Normal Superannuation: On attaining the age of superannuation, at least 40% of the accumulated pension wealth should be utilized for purchase of an annuity providing for monthly pension in the PFRDA empanelled Annuity Service Provider as per terms and conditions of the Annuity Scheme chosen by the
Subscriber in his “With Drawal Form” prescribed (Form.101-GS). The balance is paid in lump sum or by deferred payment mode as chosen by the subscriber. For
this the subscriber (retired employee) need to submit the
following forms duly filled in through the Drawing and
Disbursing Officer concerned and the Treasury Officer.
i.) Form 101-GS - Withdrawal Form for Claim of Accumulated Pension Wealth on Superannuation for Government Employees.
ii.) Annexure for Nomination Details:
Form 101-GS - in case of single nominee.
Form 101-GS-N1 - in case of multiple nominees.
b) Upon Death: In case of death before superannuation the
entire accumulated pension wealth (100%) is paid to the
nominee / legal heir of the subscriber. The legal heir
needs to submit the following withdrawal form duly filled
in along with prescribed Certificates from the competent
authority through the Drawing and Disbursing Officer and
the Treasury Officer concerned:-
Form 103-GD - Withdrawal of Accumulated Pension Wealth by Claimant due to the death of the
subscriber.
c) Exit from NPS before the age of Normal superannuation (irrespective of cause): In this case, the subscriber should utilize at least 80% of the accumulated pension wealth for purchase of annuity from the PFRDA empanelled Annuity Service Provider as per terms and conditions of the Annuity Scheme chosen by the Subscriber in his “With Drawal Form” prescribed (Form.102-GP). The balance is paid in lump sum or by deferred payment mode as chosen by the subscriber. For this the subscriber need to submit
the following forms duly filled in through the Drawing and Disbursing Officer concerned and the Treasury Officer:-
i) Form 102-GP - Withdrawal Form for Claim of Accumulated Pension Wealth on Exiting before the age of normal Superannuation for Government Employees.
ii.) Annexure for Nomination Details:-
Form 102-GP - in case of single nominee.
Form 401-AN - in case of multiple nominees.
02.) Mode of Deferred Payment: A subscriber on superannuation or premature exit has an option to defer withdrawal of lump-sum amount payable (40% in case of superannuation and 20% in case of premature exit) till he attains the age of 70 years. He has choice to withdraw the accumulated amount at any time before that by submitting a withdrawal request. The amount will be credited automatically to the bank account upon attaining age of 70 years. Till then the amount continues to be invested with the Pension Fund
Managers.
03) Option to withdraw accumulated Pension Wealth ≤ 2,00,000/-:
The NPS provides for withdrawal of the entire accumulate Pension
Wealth, in case it is less than or equal to `.2,00,000/- as on the date of superannuation. The subscriber has to submit the prescribed form viz., Form.101-GS duly filled in along with a specific request in a form
prescribed.
04) Purchase of Annuity: The NPS provides for purchase of annuity
by a subscriber on his superannuation or premature exit by utilizing a proportion of the accumulated Pension Wealth from the empanelled Annuity Service providers. It is at least 40% on superannuation or 80% on pre-mature exit. However, it is exempted in case of accumulated Pension Wealth equal to or less than 2,00,000/- at the time of superannuation. The PFRDA has empanelled the following
service providers as of now:-
a.) Life Insurance Corporation of India,
b.) SBI Life Insurance Co. Ltd.,
c.) ICICI Prudential Life Insurance Co. Ltd.,
d.) HDFC Standard Life Insurance Co. Ltd.,
e.) Bajaj Allianz Life Insurance Co. Ltd.,
f.) Reliance Life Insurance Co. Ltd., and
g.) Star Union Dai-ichi Life Insurance Co. Ltd.
The subscriber can choose the scheme and the annuity provider
according to his choice at the time his withdrawal request. The NPS
also provides for the following default option in the interest of
subscribers to avoid delay in claim processing:-
a.) Default Annuity Service Provider: Life Insurance
Corporation of India.
b.) Default Annuity Scheme: Annuity for life with a provision
of 100% of the annuity payable to spouse during his / her
life on death of annuitant. Payment of monthly annuity
ceases on the death of the annuitant and the spouse.
c.) If the corpus is not adequate to buy default annuity variant, the subscriber has to compulsorily choose Annuity Service Provider which offers it at the available corpus.
05) Procedure for withdrawal: The subscriber or the claimant, in
case of death has to submit a withdrawal application in a proforma prescribed for the respective purpose to the CRA through the Drawing and Disbursing Officer and the Treasury Officer / PAO concerned. The CRA processes such requests as per the scheme procedures and authorizes the payment for crediting to bank account of the subscriber / claimant.
ANNEXURE – II
GUIDELINES TO SUBMIT AND PROCESS WITHDRAWAL
REQUESTS TO THE CRA
The withdrawal request should be in the form prescribed for the respective category of exit.
The Subscriber PRAN should be in active status in CRA system and the request for withdrawal should be processed through the DDO who deducts the last contribution of the subscriber and the corresponding Treasury Officer.
The application should be filled in all respects by the
Claimant / Subscriber in black ink without any over write or
corrections. All the mandatory fields should be filled in with
correct postal address. It should be accompanied by the documents prescribed and detailed at the end of relevant
application form, viz., Form.101-GS, 102-GP and 103-GD
depending upon the type of withdrawal.
If the accumulated Pension Wealth on superannuation is
equal to or less than `.2,00,000/- and the subscriber prefers to
withdraw the entire amount, Form.101-GS should be
accompanied by a specific request in the following proforma:-
NEW PENSION SYSTEM
Request for withdrawal of Total Pension Wealth upon Normal
Superannuation (for Government employees) / Upon attaining the
age of 58 / 60 Years and where the total Pension Wealth is equal to or less than 2,00,000/-
I_____________________________________________ holding a Permanent Retirement Account with number (PRAN) ___________________ do hereby apply for the payment of the accumulated pension wealth in my NPS Account being the full
and final benefits receivable by me.
Date:
Place:
Signature of the Subscriber
The PFRDA prescribes the following checks / guidelines for
submission of withdrawal request.
Superannuation & Premature exit:
01) Photograph needs to be duly attested by the subscriber. Lump-sum amount for withdrawal and
annuity needs to be mentioned in percentage.
02.) Cancelled Cheque / Bank Certificate on the bank letter
head indicating the Bank name and address, Bank account number, IFS Code and MICR code.
03.) Nominee details need to be completely filled along with the witness signature.
04.) Withdrawal form needs to be duly stamped and signed by the mapped Nodal Office, i.e. the Drawing and Disbursing Officer concerned.
01.) Advanced stamped receipt need to be duly filled along
with the subscriber signature on the Revenue stamp.
02.) Original PRAN card (or) affidavit in case of non
submission of PRAN card.
03.) KYC documents (address and Photo ID proof) should
write with “verified with original” and attested by mapped Nodal Office, i.e., the Drawing and
Disbursing Officer concerned.
04.) Copy of Bank Passbook should be self attested by the
Subscriber and mapped Nodal Office, i.e., the Drawing and Disbursing Officer concerned.
Death:-
Withdrawal request should be submitted by the Nominee provided in the CRA system. In case of Nominee not available on the CRA system, a legal heir certificate (or) a certified copy of family members certificate issued by Executive Magistrate is required indicating the relationship of the claimant as well with supporting documents to be provided.
Relinquishment deed from all the legal heirs on a Stamp paper of 100/- is to be furnished, if they are not claiming the pension funds. KYC documents (Photo ID proof and Address proof) of all the legal heirs duly attested by the mapped Nodal Office, i.e., the Drawing and Disbursing Officer concerned. The claimant need to furnish an Indemnity bond stating the responsibility for claiming on behalf of all the legal heirs.
The application should be filled in all respects by the claimant
under proper witness whose details need to be filled in.
01) Advanced stamped receipt need to be duly filled
along with the claimant signature on the Revenue stamp.
02) Original PRAN Card (or) affidavit in case of non submission of PRAN Card.
03.) KYC documents (Address and Photo ID proof) of the
claimant should be attested by mapped Nodal Office, i.e., the Drawing and Disbursing Officer concerned.
04.) Original Death Certificate issued by the local authority.
05.) Copy of Bank Passbook should be self attested by the
claimant and mapped Nodal Office, the Drawing and
Disbursing Officer concerned.
06.) Cancelled Cheque / Bank Certificate on the bank letter
head indicating the Bank Name and address, Bank Account Number, Name of the Claimant, IFS Code and the MICR Code.
The Drawing and Disbursing Officer on receiving the
application should check it as per the instructions provided for
in the relevant application form and attest it as provided for in
the application duly affixing his / her stamp.
The application should be forwarded to the mapped
treasury officer / PAO for further prescribed checks and
attestation. The treasury officer / Pay and Accounts Officer
shall verify the genuineness of the application by identifying
the DDOs attestation and check the details with reference to
Master data of the subscriber in the CRA website. The following other primary checks should be done before attesting
and forwarding application.
a.) Status of the PRAN in CRA system. It should be
active.
b.) The Subscriber details.
c.) Full address of the Subscriber / Claimant.
d.) Date of death of deceased subscriber / Date of exit
(or) Date of Superannuation, as the case may be.
e.) The percentage of allocation towards annuity and
Pension Wealth noted in the application.
f.) The bank details, i.e., Bank Account Number, Name
of the Bank and Branch, MICR Code and IFS Code.
The Treasury officer / PAO shall place an online request by login into www.cra-nsdl.com and simultaneously forward the
application with a covering letter in a secured mode of delivery
to the CRA at the following address:-
Exception Handling Cell,
Central Recordkeeping Agency,
NSDL e-Governance Infrastructure Limited,
10th Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, MUMBAI – 400 013.
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