Contributory Pension Scheme(CPS) Details, CPS to AP and Telangana Employees

CONTRIBUTORY PENSION SCHEME (CPS) Details
INTRODUCTION: The Contributory Pension Scheme defined as a New Pension Scheme  for all Government servants joining Government service on or after 1-1-2004 (central Govt employees).The existing provisions of Defined Benefit Pension and GPF would not be  available to  the new recruits in the central Government service, i.e. to the Government servants joining Government service on or after 1-1-2004.

This will have two tiers i.e. Tier-I and II:
 I) TIER-I: 
1.A Government servant will have to make a contribution of 10% of his basic pay plus DA, which will be deducted from his salary bill every month by the PAO concerned.
2.The Government will make an equal matching contribution.
3.There will be no contribution from the Government in respect of individuals who are not Government employees
4.Tier-I contributions (and the investment returns) will be kept in a non-withdrawable Pension  Account.

II) TIER-II:
1.contributions will be kept in a separate account that will be withdrawable at the option of the Government servant.
2. Government will not make any contribution to Tier-II account.


In order to implement the Scheme, there will be a Central Record Keeping Agency (CRA) and
several Pension Fund Managers (PFM) to offer three categories of Schemes to Government servants,
viz., options A,B and C based on the ratio of investment in fixed income instruments and equities.

The participating entities (PFMs and CRA) would give out easily understood information about past performance,  so that the individual would be able to make informed choices about which scheme to choose.

CONTRIBUTORY PENSION SCHEME (CPS) in AP and Telangana States: 
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).

1. Those who appointed in the joining Government service on or after 1-9-2004 have to come under New Pension Scheme.(GO Ms No:653 Fin (Pen.I) Dept , Dt.22.9.2004) CPS
 in both Telangana and Andhra Pradesh States
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).
5. The Government will add the same amount to their Contributory Pension Scheme Accounts (CPS acounts called PRAN).
6. Drawing Officer should annexure the schedule to the salary bill which is submitted to the treasury.
7. The number which is allotted by the CRA should be enter in the SR of the individual.
8. Concerned DTOs would give the annual slips of CPS .
9. The employees who are eligible to this scheme , should not apply for ZPPF/GPF.

STRUCTURE OF CPS:
1. Under NPS, each subscriber would be allotted a unique 16 digit Permanent Retirement Account Number (PRAN).
2. This number would be portable. The records of transactions and investor would be maintained by central record Keeping agency (CRA).
3. At present NSDL is the CRA and in future the number of CRA would be increased.
4. The subscriber has an option to invest with seven Pension Fund Manager (PFM).
5.  He also has the option to choose any one or multiple PFM to manage his contribution.
6.  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.

INVESTMENT STRATEGY BY  TeachersBadi.in
The Complete details of the CPS Scheme and the investment strategy as follows

1. At present, there is only one default scheme for Tier I for Government employees.
2. In the default scheme, the contribution is allocated to three Pension Fund Managers (PFM)
a)SBI Pension Funds Private Limited.
b)UTI Retirement Solutions Limited.
c)LIC Pension Fund Limited.

3. On 25-05- 2012, Government has revised the allocation ratio of funds (contribution remitted by the DTA/DTOs) from 31:35.5:33.5 to 35:31:34  for the three PFMs - SBI, UTI and LIC respectively.
4. On 15-05- 2013, Government has revised the allocation ratio of funds (Contribution remitted by the DTA/ DTOs) from 35:31:34 to 33:34:33 for the three PFMs - SBI, UTI and LIC respectively.

5. At present the  allocation of funds to three PFMs is as follows
a) LIC Pension Fund 33%
b) SBI Pension Funds Pvt Ltd 33%
c) UTI Retirement Solutions 34%

6. Each of the PFMs will invest the funds in the proportion of upto 55% in Government securities, upto 40% in Debt securities, upto 15% in Equity and upto 5% in Money Market instruments.


NEW PENSION SCHEME - MAINTAINANCE AGENCY
1.State Government has entered into an agreement with N S D L (National Security Depositories Limited), Bombay to maintain PRAN accounts as Central Record Keeping Agendy ( C R A). Now, all the employees coming under the C P S (Contributory Pension Scheme) have to apply for  P R A N (Permanent Retirement Account Number)alloted & maintained by N S D L, Bombay.

2. For this, N S D L has appointed KARVY  Consultants as Facility Centres,

3.  There are two Facility Centres
i) at Hyderabad and
ii) at Visakhapatnam.

4. Address of Karvy at Hyderabad and Visakhapatnam.

i)
Address of Karvy Consultants Hyderabad:
HYDERABAD - KARVY CENTRE
KARVY CENTRE,
8-2-609/K, Road #10, Banjara Hills
HYDERABAD
Telangana State
India
PIN CODE: 500034
PHONE :
STD CODE 040
040-23312454
EMAIL : mailmanager@karvy.com

ii)
Address of Karvy Consultants - Visakhapatnam:
VISHAKAPATNAM KARVY CENTRE
47-14-4, ESWAR PARADISE,
DWARAKA NAGAR MAIN ROAD
VISHAKAPATNAM
Andhra Pradesh
INDIA
PIN CODE: 530 016
PHONE :
STD CODE : 0891-2752915 to 18
EMAIL : ksblvizag@karvy.com

CONTRIBUTORY PENSION SCHEME (CPS) CREDIT HEAD OF ACCOUNTS
Head of Account Andhra Pradesh& Telangana State Govt.Employees
8342 Other Deposites
117-Defined Contribution Pension Scheme for Govt.Employees.
04-State Govt.Employees Contributory Pension Scheme.
001 - Employees Contribution.
N-V-N

Important links:
1. Know your CPS Fund Value
2. How to Reset CPS/PRAN Password or I-PIN @ NSDL CRA Website
3. How to Update CPS Holders Personal Details by Submitting S2 Form 

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6 comments:

  1. Sir,Does Andhrapradesh State Government employees under new pension scheme have DEATH CUM RETIREMENT GRATUITY facility?(I have came to know that Central governemnt employees have DCRG facility)

    ReplyDelete
  2. how to ger the amount of cps holder of death

    ReplyDelete
  3. sir, my pran account is locked. how will get my pran acount reopen, plese send on subhanisuni@gmail.com

    ReplyDelete
  4. Sir,
    Please Provide NSDL Contact No for State Govt Employees CPS number allotment purpose

    ReplyDelete
  5. sir, please solve my dought , is cps no is same to that of pran no

    ReplyDelete
  6. How to get CPS ammount if we resignation for our job

    ReplyDelete