Unified Pension

Scheme

For Central Government employees

UPS introduction
 DoE vide OM dated 06.04.2023 constituted a Committee under the Chairmanship of FS & Secy
( Exp) with Secy (DoPT), Sp. Secy ( Exp) and Chairman (PFRDA) as its members.

 To look into the issue of pension under the NPS in respect to Govt. employees and evolve an
approach with addresses the needs of the employees while maintaining fiscal prudence to protect the
common citizens.

 DoE obtained approval of the Cabinet on 24.08.2024 on recommendation of the Committee for
introduction of Unified Pension Scheme (UPS).

 Department of Financial Services notified UPS on 24.01.2025.

 PFRDA notified PFRDA ( Operationalisation of UPS under NPS) Regulations, 2025 on 19.03.2025 .
Introduction (Contd)
 UPS has been notified as a scheme under NPS w.e.f. 01.04.2025.
 Employees covered under NPS to submit one time option for inclusion
under UPS by 30.06.2025.
 Option once exercised shall be final and irrevocable.
 UPS is a contributory defined pension scheme.
 It has a minimum guaranteed pension after 10 years of service after
retirement.
 Not applicable in the case of resignation/ dismissal/removal from
service.
Benefits under UPS
• UPS is applicable to Central Govt employees covered under NPS who opts for UPS.
• Eligibility under the Scheme:
(i) Assured Payout shall be available : -
(a) in case of an employee superannuating after QS of 10 years, from the date of
superannuation;
(b) in case of the Government retiring an employee under FR 56 (j) (not as a penalty),
from the date of such retirement; and
(c) in case of VRS after a minimum QS of 25 years, from the date such employee would
have superannuated, if the service period had continued to superannuation.
Benefits (contd.)
(ii) Assured Payout shall not be available in case of removal / dismissal/ resignation from
service.
(iii) Assured pension: 50% of the average last 12 months BP prior to superannuation for a
minimum QS of 25 years. This pay is to be proportionate for lesser service period upto a
minimum of 10 years of service.
(iv) Assured family pension: @60% of pension of the employee immediately before her/his
demise.
(v) Assured minimum pension: @10,000 pm on superannuation after 10 years of service.
(vi) Dearness Relief (as DA in the case of serving employees).
(vii) additional lump sum payment at superannuation - 1/10th ( 10%) of monthly emoluments
(BP + DA) as on the date of superannuation for every completed six months of service.
Corpus under UPS
• Funds accumulated in two different Corpus under UPS :

Individual corpus and Pool corpus

• Individual corpus- Contribution of 10% of (BP+DA+NPA) by employee and Govt.

• Pool corpus- Additional contribution by Govt. 8.5% of (BP+DA+NPA of the
employee) to PFRDA for supporting Assured pay- employee has no concern over
it.
• Individual choice of pension fund and investment option available under
Individual corpus similar to NPS.
• Option to change the choice of pension fund once in a financial year and
investment choice twice in a financial year.
Investment options under UPS
• Under the Individual corpus of UPS :
• Subscriber shall have choice of default pattern of pension fund(s) and default investment as
determined by PFRDA; or
• Subscriber may choose any one of the pension funds registered with PFRDA.
• Subscriber not exercising any choice of pension fund shall be deemed to have opted for default
pattern
• Subscriber exercising choice of pension fund other than default pattern, shall choose any one of
the following investment choices:
(i) option to invest 100% of the funds in Government securities (Scheme G); or
(ii) option of any one of the following Life Cycle based schemes:
(A) LC-25- Conservative Life Cycle Fund with maximum exposure to equity capped at 25%; or
(B) LC-50 - Moderate Life Cycle Fund with maximum exposure to equity capped at 50 %.
• Under the Pool corpus: No choice available to subscriber and investment decision rests with the
Govt.
Partial Withdrawal
• After completion of 03 years from the date of enrolment under UPS or NPS,
• Maximum of 03 times ( including number of withdrawals already made under NPS) during entire
tenure under UPS.
• Upto 25% of own contributions (excluding accretion thereon) , as on the date of application.
• Withdrawal for any of the following purposes only:
(a) for higher education of his or her children including a legally adopted child;
(b) for the marriage of his or her children, including a legally adopted child;
(c) for the purchase or construction of a residential house or flat in his/her own name or in a joint
name with his/her legally wedded spouse.
If already owns either individually or in the joint name a residential house or flat, except ancestral
property, partial withdrawal not permitted;
Partial Withdrawal (Contd.)
(d) for treatment of illnesses: if Subscriber, his legally wedded spouse, children, including a
legally adopted child or dependent parents suffer from any illness, which requires
hospitalization;
(e) to meet medical and incidental expenses arising out of the disability or incapacitation
suffered by Subscriber;
(f) towards meeting the expenses by Subscriber for skill development or reskilling or for
any other self-development activities.
• Where a Subscriber is suffering from any illness, the request for partial withdrawal may
be submitted, by any family member of the subscriber, as recorded and certified by the
nodal office.
• A subscriber who has made a partial withdrawal shall have an option to replenish such
amount before the date of superannuation or retirement.
Benchmark Corpus
• For each subscriber, a benchmark corpus (BC) value shall be computed by CRA for comparison with IC
based on the following assumptions:
• (i) regular and timely receipt of contributions of employer and employee, for each month of QS;
• (ii) contributions being invested as per default pattern determined by PFRDA ;
• (iii) no partial withdrawals made during accumulation phase;
• (iv) any voluntary contributions made shall not be considered; and
• (v) any contributions for the period before the commencement of the QS under the Central Govt shall not be
considered.
• BC value shall be based on the net asset value (NAV) of the default pattern, and corresponding units in BC.
• For missing contribution(s), in any period, the net asset value shall be based on last working day of the month
in which contribution(s) is to be received, for the period from 01.04.2025 and the same shall be declared for
each month by PFRDA.
Benchmark Corpus (contd.)
• If Default Pattern is managed by more than one PF, the weighted average NAV shall be considered based on the ratio of the
monthly average asset under management (AAUM) of UPS scheme managed by the PFs to the total AAUM of UPS Default
pattern managed by such multiple PFs

• Benchmark corpus shall be computed in the following manner:

• (i) Partial withdrawals made out of IC and voluntary contributions made into the IC shall not be considered in the
computation.

• (ii) For contributions received prior to 01.04.2025: monthly contributions shall be considered as and when they have been
received and be valued on default pattern.

• (iii) For contributions received on or after 01.04.2025:

• (a) monthly contributions which are to be received in that month, shall be considered as and when received during the
month and valued on default pattern.

• (b) In the event of any missing contribution in any month, value shall be based on the weighted average NAV of default
pattern as on the last working day of the month applied to monthly contributions of previous full month.

• (iv) Contributions arising from arrears, such as arrears of Dearness Allowance shall be considered and valued on the default
pattern as and when they are received.
Payouts under UPS
• Payout under UPS. -(1) Payout shall be computed and payable, in the following manner:
• (i) Assured payout: Assured payout shall be payable at 50% of the average of the last 12 Basic Pay
immediately prior to the date of superannuation or VRS or retirement under FR 56(j) subject to
completion of minimum 25 years of QS.
• (ii) Minimum Guaranteed Payout: Rs. 10,000 pm subject to completion of minimum 10 years of QS
• (iii) Proportionate Payout: In case of QS of 10 years or more, but less than 25 years, proportionate
payout shall be payable.
• (iv) Admissible Payout: Assured payout shall be proportionately reduced in any or both of the
following cases –
• (a) IC is less than the BC as on the date of superannuation or VRS or FR 56(j)
• (b) Final withdrawal not exceeding 60% of the IC or BC, whichever is lower, as opted by a subscriber.
• The assured payout so proportionately reduced shall be payable as admissible payout.
Final Withdrawal Percentage

• (i) Subscriber or the legally wedded spouse, as the case may be, shall have an option to
withdraw upto 60 % of IC or BC, whichever is lower, available in the PRAN of UPS
on the date of superannuation/VRS/retirement under FR 56(j). Proportionate reduction in
the AP payable to Subscriber

• If individual corpus is more than the BC on the date of superannuation/retirement, the

final withdrawal amount shall be calculated on the BC and the excess amount in the IC
shall be credited to bank account of Subscriber.

• final withdrawal shall be admissible on the date of superannuation/ VRS/ retirement under
FR 56(j), as may be applicable.
Family Payout
• Upon demise of a Subscriber who was receiving payout, the legally wedded spouse of deceased subscriber
shall receive for life, family pay out of 60% of the payout drawn by the subscriber immediately prior to
demise.
• In case of a deceased employee under NPS who has superannuated or retired on or before 31.03.2025, and
was eligible to receive benefits under UPS, the legally wedded spouse, shall receive the difference of 60% of
the admissible payout to Subscriber and 60% of representative annuity amount, as family payout after the
date of demise.
• She shall get also get following benefits that shall become vested in the deceased employee, on the date of
superannuation or retirement under FR 56(j), until the date of demise and be payable to the legally wedded
spouse:
• (i) lumpsum payment payable to such deceased employee;
• (ii) monthly top-up amount payable to such deceased employee after the date of superannuation or retirement,
until the date of demise;
• (iii) applicable DR; and
Family payout ( contd)
• Simple interest at applicable Public Provident Fund rates on arrears with respect to above
benefits for the past period, which interest shall become due from the following month after
superannuation / retirement up to the month preceding the submission of claim Forms.

• No interest shall be payable where the UPS option form is submitted beyond the stipulated time
period, for the period of such delay.

• Family pension to legally wedded wife on the date of superannuation, VRS or compulsory
retirement under FR 56(j)

• Provisions for family pension in case of death during service not made so far.

• No provision for Nomination has been made.

Payment of Benefits

• Payment of benefits to Subscriber be made as per Notification/ regulations/ guidelines/circulars/

instructions/ directions issued by PFRDA or Central Government.
• Application for payment to be made in the applicable Forms in Schedule I to HOO / DDO.
• For employees serving under NPS or joined on or after 01.04.2025:
• Subscriber shall submit Form B1, at the time of superannuation /VRS/retirement under FR 56(j); or
• legally wedded spouse to submit Form B3, in case the deceased UPS subscriber has availed
benefits under UPS or Form B5 in case the deceased UPS subscriber was eligible for UPS benefits
but had not yet availed UPS benefits, to avail family payout after death of an employee.
• In case of employees retired under NPS before 01.04.2025:
• The past retiree shall submit Form B2.
• The legally wedded spouse shall submit Form B4, in case the deceased subscriber has availed
benefits of UPS or Form B6 in case the deceased subscriber has not exercised the option of UPS as
applicable, within the time specified for the purpose.
Payment of Benefits (contd)

• The UPS Subscriber, at superannuation /VRS/ retirement under FR 56(j), shall authorize transfer
of the value of units in the IC to the PC, upto the value of BC.

• In respect of employee who has superannuated/ retired before 01.04.2025, No transfer of

individual corpus to the pool corpus is required. Benefits under UPS to such employees shall be
paid out of the PC.

• Surplus amount (i.e., the excess of individual corpus over BC), if any, computed on the date of
superannuation / retirement, as may be applicable, shall be paid to the subscriber after issuance of
the UPS Payout order.

• Shortfall amount (i.e., the deficit of IC as compared to BC ), if any, may be replenished by

subscriber at any point of time before or on superannuation / retirement and not later than
submission of Form B1.

• If shortfall is not replenished by the subscriber, he shall be entitled to proportionately reduced

payout.
UPS Payout Order
• Benefits payable to Subscriber shall be recorded by PAO in a UPS Payout Order and sent to
NPS Trust through CRA.
• A copy of Payout Order shall also be given to Subscriber or spouse, as the case may be.
• UPS Payout Order shall include the following details:
• requisite details of Subscriber including particulars of legally wedded spouse as on the date
of superannuation /VRS /retirement under FR 56(j);
• Period of qualifying service determined by the HoO,
• Details of joint bank account of Subscriber and spouse;
• Percentage of final withdrawal upto 60 % of IC opted by subscriber;
• Details of benefits applicable under UPS, such as: lumpsum payment; value of IC and BC
as computed by CRA; assured payout; admissible payout; family payout; applicable DR.
• Date of commencement of admissible payout to subscriber;
• In case of VRS, Payout order shall mention date of commencement of admissible payout,
being the next day after the date, employee would have superannuated if continued in
service.
Filing of claim of UPS benefit from 01.04.2025
• Every HoO to prepare a list on the 1st January, 1st April, 1st July and 1 st October of every year of
all the Govt. employees who are due to retire within the next 12 months.
• A copy of such list to be provided to the PAO concerned within one month
• CRA shall make available to DDO and PAO in their CRA system login the details of partial
withdrawals made if any, by superannuated or retired employee and value of IC and BC as on the
date of superannuation/ retirement.
• DDO shall update the records in CRA system after obtaining necessary details from HoO and
forward it to PAO for its authorisation in the system.
• Based on the verification of subscriber details by HoO, PAO to issue UPS Payout order
• On receipt of Payout Order by NPS Trust together with option of final withdrawal if any by the
subscriber, the Trust shall authorise the release of UPS benefits and transfer of the balance in IC to
PC and also transfer of remaining IC value to subscriber.
• NPS Trust to ensure payment of monthly payout from the PC to the bank account of subscriber
and periodic release of applicable DR.
Qualifying Service (QS)
• For UPS benefits, QS shall be the completed months for which subscriber has rendered regular service
under the Central Govt, to be determined by the HoO, where such subscriber was employed at the time
of superannuation/retirement.

• An employee covered under NPS, QS shall commence on such date from which such person was
eligible to be enrolled under NPS in Central Government;

• for New recruits after 01.04.2025, QS shall commence on such date from which such person is eligible
to be enrolled under UPS.

• the end date of QS in above cases shall be the date of superannuation / retirement.

• In case of unauthorised absence from service, the QS shall exclude the entire past service, if the same
is not condoned by the competent authority.
• If unauthorised absence is condoned, entire past service shall be counted towards QS except period of
such absence which shall not be counted.
• If any unauthorised absence is regularised by the competent authority through leave due and admissible
to such employee, the entire past period and such regularised leave period shall be counted.
Qualifying Service (contd)
• Period spent by employee on deputation or foreign service for which contribution has not been received under IC and PC shall not
count as QS. The applicable contribution share shall be determined by PFRDA in consultation with Central Govt.

• Period of suspension pending inquiry shall count as QS where, on conclusion of such inquiry, he has been fully exonerated or only
a minor penalty is imposed and the suspension is held to be wholly unjustified.

• In other cases, period of suspension shall not count unless competent authority expressly declares that it shall count to such extent
as he may declare. In all cases of suspension, the authority shall pass an order specifying the extent to which, the period of
suspension shall count as QS and a definite entry shall be made in the service book of the employee.

• In case of EOL other than EOL granted on MC, the appointing authority may, at the time of granting such leave, allow the period of
that leave to count as QS i such leave is granted to employee –

• (i) due to his inability to join or re-join duty on account of civil commotion; or

• (ii) for prosecuting higher scientific and technical studies.

• In case of EoL other than EoL granted on MC and EoL allowed to be counted as QS as above, at the time of grant of such leave, a
definite entry shall be made in the service book of the employee to the effect that the period of EoL shall not be treated as QS and
such an entry in the service book, if not made at the time of grant of leave, can be made subsequently but not later than six months
before the date of superannuation of employee.

• if no such entry is made in the service book, the period of EoL shall be treated as QS.
National Pension System
( NPS )

For Central Government Employees

22
Introduction
 New Pension Scheme was introduced for Central Govt.
employees vide notification dated 22.12.2003 of MOF(DEA).

Departure from ‘Defined Benefit’ to ‘Defined Contribution

System

All new entrants and (except armed forces personnel) on or

after 1.1.2004 are covered under NPS.

 CCS(Pension)Rules, CCS(EoP) Rules and GPF Rules were

amended on 30.12.2003 thereby making it applicable for those
joined on or before 31.12.2003.

However, NPS employees are eligible for other benefits like

leave encashment, CGEGIS, Medical facilities, TA etc as
available to employees joined before 01.01.2004.
23
PFRDA ACT, 2013
• PFRDA Act was promulgated in September, 2013.

• The scheme notified by DEA on 22.12.2003 is the National

Pension System(NPS) under the Act (Section 20(1) of the Act).

• PFRDA shall be established for this purpose (Section 3(1) of the

Act)

• Amendment of Act by regulations ( Section 20)

• Power to frame regulation with PFRDA (Section 52)

Pension Fund Regulatory and
Development authority (PFRDA)
• An interim Pension Fund Regulatory and Development Authority (PFRDA)
was established by MOF (DEA) vide Resolution dated 10th October, 2003.

• PFRDA under the Department of Financial Services administers and

regulates NPS.

• There are financial institutions ( intermediaries) like Pension Fund

Managers, Annuity Service providers ( insurance companies), Central
Record Keeping agency, i.e. NSDL, NPS Trust, Point of Presence,
Retirement advisors, trustee bank etc. to perform different functions under
NPS.

• PFRDA makes regulations for their registration and roles/ responsibilities.

Applicability of NPS
• Office of CGA issued instruction vide OM dated 02.09.2008 laying down the role and
responsibilities of PAOs etc. and timelines for preparation and uploading of NPS
contributions.

• DoPT circulated detailed guidelines to States vide letter dated 8th September 2009 for
applicability of NPS to All India Services personnel.

• Most of the State Governments have adopted NPS for their employees from different
dates.

• DOE vide OM dated 13.11.2003 issued instructions on applicability of NPS to employees

of all Central Autonomous Bodies

• The scheme was extended to the private sector including the unorganized sector on
voluntary basis with effect from 1st May 2009.
NPS Architecture
• The CRA issues unique PRAN (Permanent Retirement Account
Number) to each subscriber and keeps record of transactions
pertaining to each PRAN and is the operational interface between
PFRDA and other NPS intermediaries: Govt. Nodal Offices, PAOs,
DDOs, PoPs, Trustee Bank, Pension Fund Managers, Annuity
Service Providers and Subscribers

• The DDOs/PAOs of the Govt interact with the CRA through the
CRA Facilitation Centres (CRA-FC) for opening of NPS Accounts

• The PAOs upload subscriber contribution file on to the CRA system

and electronically remit matching funds to the trustee bank.
27
 NPS Architecture
PFRDA

Oversight
Mechanism
NPS Trust

Fund Flow
Trustee Bank Custodian
AXIS BANK (SHCIL)
N
P PFM (SBI)
PAO/CDDO S CRA NAV PFM (UTI)
C (NSDL) PFM (LIC)
A
DDO N

Annuity Service
Subscriber Providers
Over Information Flow
Internet
Funds
 HOW NPS WORKS

Pension

Pensi
on
Corpu
s
(NAV X
Units)

/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Elements of the scheme
• PRAN
• Employee contribution
• Government contribution
• Tier I
• Tier II - optional
• Investment
• Accumulated Pension Wealth / corpus
• Partial Withdrawal
• Lump sum payment
• Annuity
Features of NPS
 NPS has two tiers, Tier-I and Tier-II

Tier I Account- Mandatory Pension Account

 Employees monthly contribution at 10% of BP and DA mandatory deduction;

 Government monthly contribution @ 10% of BP and DA till 31.03.2019 and
at 14% w.e.f. 01.04.2019;
 Employee may contribute more than 10% however, there would be no
matching contribution by Government.
 Processing through DDO and PAO;
 Online Access of the account/ web page access to subscriber;
 The Unique 12 digit individual PRAN - Permanent Retirement Account
Number portable across jobs & locations.
 Annuity from registered Annuity Service providers at the time of exit.
 Minimum one contribution during the year of Rs. 1000/-
Features of NPS

Tier II Account – Voluntary account

 No limit on number of deposits & withdrawals;

 Minimum one transaction every year of Rs. 250;

 No Annual maintenance charges;

 Option to choose investment pattern;

 Not through DDO / PAO;

 Through PoPs or e-NPS.

 Tier I account is must

List of Pension Funds
1. Govt. Sector PFs

i. LIC Pension Funds Ltd.

ii. SBI Pension Funds Pvt. Ltd.
iii. UTI Retirement Solutions Ltd.

2. Private Sector PFs

i. HDFC Pension Management Co. Ltd.

ii. ICICI Prudential Pension Fund Management Comparny Ltd.
iii. Kotak Mahindra Pension Fund Ltd.
iv. Aditya Birla Sun Life Pension Management Ltd.
v. Tata Pension Fund Management Private Limited
vi. Max Life Pension Fund Management Ltd
vii. Axis Pension Fund Management Ltd
viii. DSP Pension Fund Managers Private Limited
33
Choice of PFs for Govt. subscriber
 Before 01.04.2019 Govt. subscriber had no choice of pension funds and
funds were allocated by PFRDA to three Govt. section PFs as per their
last years’ performance.

 After 01.04.2019, Government subscriber can choose any one PF.

 PF Choice can be changed once in a financial year.

 If no choice given by the subscriber, then existing arrangement of

distribution by PFRDA to three Govt. PFs would be the default option.
Investment Pattern for Government Sector
The investment pattern existed for Govt. subscriber ( Active Choice)

Particulars Exposure Limits

Government Securities & related
Upto 50%
investments

Debt Instruments & related investments Upto 45%

Short term debt instruments & related

Upto 5%
investments

Equity & related investments Upto 15%

Asset backed,trust structured &

Upto 5%
Miscellaneous investments
Choice of Investment pattern
 Before 01.04.2019 Govt. subscriber had to choose investment
pattern on the basis of maximum limit prescribed by PFRDA;

 After 01.04.2019, Government subscriber have options to choose

any of the following scheme:

a) Moderate Life Cycle fund LC-50 with maximum exposure to equity

capped at 50%
b) Conservative Life Cycle fund LC-25 with maximum exposure to
equity capped at 25%;
c) Scheme G, where 100% of the funds shall be invested in Govt.
Securities
d) Existing choice of CG/SG scheme being the default scheme for both
existing and new subscriber will continue.
• Subscribers can change investment options four times a year.
Conservative Life Cycle Fund LC-25
Moderate Life Cycle Fund: LC- 50
Partial Withdrawal from NPS
Tier I
 Partial withdrawal from Tier-I after three years from
the date of enrolment under NPS;

 For specified purposes like education of children,

treatment of specified illness of family members,
construction of house, marriage of children, setting up
of MSME;

 not exceeding 25% of the contribution made by

subscriber;

 maximum three withdrawals

Final withdrawal (Tier-I)
On exit on superannuation/ VRS

 At least 40% accumulated wealth for monthly annuity from

Annuity Service providers registered with PFRDA.
 Remaining 60% as lumpsum
 Option to defer lump sum payment and annuity till 75 years by
submitting application 15 days before superannuation or thereafter
with reasons for such delay
 lumpsum withdrawal of pension wealth if less than five lakhs

On exit before superannuation ( Resignation, Death etc.)

 80% accumulated wealth for annuity from ASPs registered with

PFRDA
 Upto 20% of pension wealth as lump sum
 Lumpsum withdrawal of pension wealth if less than two lakh fifty
thousand for Resignation etc and five lakhs for death
Provision for Missing employees
• based on the
(i) First Investigation Report (FIR) lodged with the
concerned police station and a report from the police that the subscriber
has not been traced despite all efforts made by the police and
(ii) Indemnity bond from the nominee(s) or the legal heirs(s) in favour of
NPS Trust that all payments will be adjusted against the payment due to
the subscriber in case he or she appears on the scene and makes any
claim,
• 20% of the accumulated pension wealth shall be paid in lump sum to
the nominee(s) or legal heir(s), and
• 80% of the accumulated pension wealth of the subscriber shall be
mandatorily utilized for purchase of annuity after determination of
subscriber as missing and presumed dead, as per the provisions of the
Indian Evidence Act 1872 and amendments thereto.
Tax incentives under NPS
Tier-I
 Employee contribution of Up to 10% of salary Exempted
upto 1.50 lakhs ( Section 80CCD of the IT Act) plus
50,000 ( Section 80CCD(1B))
 No tax on amount used for Annuity (Section 80CCD (5) )
 No tax on 60% final withdrawals ( Section 10(12A) )
 No tax on 25% partial withdrawal (Section 10(12B))
 No service tax on purchase of Annuity ( Finance Act 2016-
17).

Tier-II
 Contribution upto Rs. 1.50 lakh exempted from income
tax under Section 80(C)
Annuity service providers
At present, 15 Annuity Service providers are registered
with PFRDA:

1. Life Insurance Corporation of India

2. SBI Life Insurance Co. Ltd.
3. ICICI Prudential Life Insurance Co. Ltd.
4. HDFC Standard Life Insurance Co Ltd
5. Star Union Dai-ichi Life Insurance Co. Ltd
6. Kotak Mahindra Life Insurance Co. Ltd.
7. India First Life Insurance Company Limited
8. Max Life Insurance Co. Ltd
9. Bajaj Allianz Life Insurance Co. Ltd.
10. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.
11. TATA AIA Life Insurance Co. Ltd.
12. Edelweiss Tokio Life Insurance Company Limited
13. PNB MetLife India Insurance Co. Ltd
14. Aditya Birla Sun Life Insurance Company Limited
15. Shriram Life insurance company Ltd.
Annuity on Exit from NPS
 Subscriber on exit from NPS has to purchase an annuity
from any ASP registered with PFRDA.
 Subscriber would also choose the type of annuity;
 If no annuity selected, then there would be default
annuity;

Default Annuity :
• Anuity for life of the subscriber and his or her spouse (if any) with provision for return
of purchase price of the annuity and upon the demise of such subscriber, the annuity be
re-issued to the family members in the order specified hereunder at a premium rate
prevalent at the time of purchase of such annuity by utilizing the purchase price required
to be returned under the annuity contract (until all the family members in the order
specified below are covered) :
• (a) living dependent mother of the deceased subscriber;
• (b) living dependent father of the deceased subscriber.

• After the coverage of all the family members specified above, the purchase price shall be
returned to the surviving children of the subscriber and in the absence of children, the
legal heirs of the subscriber, as may be applicable.
Other types of Annuities
The subscriber who wishes to opt out of the default option, shall be
required to specifically opt for an option of his choice out of options
offered by ASPs.
The following are the most common variants that are available:
i. Annuity for life without return of purchase price -- payment of
annuity ceases on death.
ii. Annuity for life with return of purchase price after annuity ceases
on death
iii. Annuity for life of subscriber and spouse with return of purchase
price on death -payment of annuity ceases and the purchase
price ( amount given to annuity service provider) is returned to
the nominee
iv. Annuity for life of subscriber and spouse without return of
purchase price
Nomination

 Nomination mandatorily conferring on one or more persons

the right to receive the amount.

 Family : for male-

legally wedded wife, children (married or unmarried), his dependent

parents and his deceased son’s widow and children:

 For Female:

legally wedded husband, children (married or unmarried), her dependent

parent, her husband’s parents, and her deceased son’s widow and
children:

 On marriage fresh nomination is required and existing

nomination would be invalid.

 Nomination can be changed any number of times.

 If no nomination under NPS, nomination made under pension

rules would be applied.
REDRESSAL OF SUBSCRIBER GRIEVANCE

• A Centralized Grievance Management System

(CGMS) for redressal of grievance with respect to
NPS.
• Grievance redressal System is under the control
of NPS Trust
• Unique Grievance Number
• There is turn around time for each level of
authority.
• Disposal within 30 days of its receipt
• If grievance not resolved in 30 days, facility to
appeal with NPS Trust
• Second appeal may be filed with Ombudsman
Benefits on death /discharge on disability
• Benefits under CCS(Pension) Rules, 1972 or CCS(EOP) Rules, 1939
were extended to Govt. employees covered under NPS vide DoPPW
OM dated 05.05.2009 in the event of in-service death of
Government servant or his discharge from Government service on
account of invalidation or disablement.

• This provision has now been included in the CCS(Implementation

of NPS) Rules, 2021.

• On availing benefits under OPS, the Government contribution and

returns thereon in the accumulated pension fund of the
Government servant under NPS would be surrendered into the
Government account and employees contribution with return
thereon would be returned to the Government servant or his family.

48
Retirement gratuity and death gratuity
• Retirement gratuity and death gratuity to Government employees
covered under NPS extended vide O.M dated 26.08.2016 on the same
terms and conditions as per old pension scheme under CCS(Pension)
Rule, 1972.

• The benefit of gratuity has now been extended under the separate
service rules namely the CCS(Payment of Gratuity under NPS ) Rules,
2021

• Instructions have been issued on 12.02.2020 regarding counting of

service for the purpose of grant of gratuity or grant of pro-rata gratuity
in case of mobility of a Central Government employee covered under
NPS to other organizations through proper channel.
49
 Option for missing employees
• Option for availing benefits under OPS in respect to Central Government civil
employees covered under NPS have been extended vide OM dated
28.04.2022.
• Family would get benefit of OPS in case the option or default option in this
regard is available as per CCS(INPS) Rules,
• Benefits would be granted as per DoPPW OM dated 25.06.2013
• Benefits would be granted on submission of claim by family after six months
of filing of report in Police in this regard and submission of non-tracebility
certificate.
• Indemnity bond would be submitted.
• NPS accounts would be freeze till the employees returns or is declared dead as
per law.
• On return of employee, same account would be re-activated.
Grant of disability element

• Instructions have been issued vide DoPPW OM dated

01.01.2021 for grant of lump sum compensation computed in
terms of rule 9(3) of CCS(Extraordinary Pension) Rules, to
Government servants covered under NPS, if the disablement is
attributable to Government service and the Government
employee is retained in service in spite of such disablement.
Provisions on Technical resignation

• DoPT vide their O.M. No. 28020/1/2010-Estt.(C) dated

17.08.2016 has issued consolidated guidelines for NPS
employees on transfer of leave, LTC, lien, pay protection
etc. on mobility to other organisation through technical
resignation.
CGHS for NPS employees
• Ministry of Health and Family Welfare OM No. S.11011/10/2012-CGHS
(P)/EHS dated 28.03.2021 –extended benefit of CGHS to Government
employees covered under NPS subject to following conditions:

(i) Minimum years of qualifying service for eligibility of CGHS membership

after retirement- 10 years.

(ii) No minimum qualifying years of service for availing CGHS facilities in

case of death/disability.

(iii) Other conditions such as definition of family, CGHS contributions,

conditions of dependency etc will be applicable as per existing rules.
FMA for NPS employees
• DoPPW OM No. 4/27/2009-P&PW(D) dated 24.05.2011- extended the
benefit of FMA to Government servant covered under NPS and their families
in the case of their availing benefits under ops in accordance with DoPPW
OM dated 05.05.2009.
• DoPPW OM No. 04/07/2020-P&PW(D) dated 06.12.2023 - FMA has been
extended to retired Central Government employees covered under NPS and
their family members through banks.
• effective from the date of issue of order
• Employees who fulfills the conditions of availing CGHS facilities after
retirement as per OM dt 28.03.2021,
• Family members who are eligible for family pension under the
CCS(Pension) Rules, 2021 would also be eligible for FMA
• Forms to be submitted to HOO at the time of retirement in triplicate
( application, undertaking, family details and nomination of arrears)
Thank you