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As we are aware that there is no Retirement Gratuity for CPS Employees till to date
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If unfortunately any CPS employee dies, then very disastrous position to his family members. Only 1000 Rupee as pension per month. How a family can survive with this amount. ?
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We have already designed a Software for CPS Pension Calculator previously. Click Here for Calculate Your CPS Pension
Enter Your Present Basic Pay:
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Enter Your Present Basic Pay of PRC 2015. Basing on Your Present Basic Pay, Our Software will calculate the estimated Basic Pay at your retirement age.
CPS Contribution per month:
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Enter Your CPS Contribution per month. Either You can enter your present CPS Contribution or Estimated Average CPS Contribution per month.
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Don't need to enter Govt Matching grant. Enter Only Your Contribution.
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Minimum CPS per month is Rs.500 per month
Enter Present Age:
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Enter Your Present Age. Minimum Age is 18 Years
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Maximum Age is 50 Years
Enter Retirement Age:
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Enter Your Retirement Age. Retirement age should not be 20 Years.
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Maximum age is 60 Years. Note that if the Retirement age is less than 60 Years, the CPS Employee have to contribute 80% of their retirement amount in pension fund.
Expected Growth Rate per Annum:
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Expected Growth Rate per Annum between 5-9%. This is the Annual Growth of Your CPS Fund or your CPS Contribution.
Expected Returns on Pension Amount
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Expected Returns on Pension Amount is the returns on the CPS Pension fund invested for Pension. Your 40% Pension Fund have to be invested into Pension Fund for Pension.
by apteachers
Online Links Useful for CPS/PRAN
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CPS Subscribers Login Using their User ID and Password-Click Here
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New Pension Scheme (NPS) Official Website-Click Here
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Have you applied for PRAN Number-Then Track the Status of PRAN Allotment Using your Acknowledge Number given at the time of Registration-Click Here
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Track the IRA Status of PRAN Using Your Treasury ID Click Here
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Latest Fund Values of CPS-Click Here
NPS FORMS :-
Nodal Office Registration
Subscriber Registration
Subscriber Registered Details Modification
Subscriber Grievances
State Autonomous Bodies (SABs)
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Withdrawal Forms
Contributory Pension Scheme-CPS and PRAN Complete Details
CONTRIBUTORY PENSION SCHEME (CPS). Employees (Teachers) who got recruitment on or after 01.09.2004 have to come under the New Contributory Pension Scheme CPS in both Telangana and Andhra Pradesh States. In this CPS Scheme employees have to deduct 10% of their Basic Pay & D.A towards their contribution and Government will add the same amount to their Contributory Pension Scheme Accounts (CPS acounts called PRAN). The Complete details of the CPS Scheme and the investment strategy is presented by apteachers.in is as follows::
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At present, there is only one default scheme for Tier I for Government employees. In the default scheme, the contribution is allocated to three PFMs, viz. SBI Pension Funds Private Limited, UTI Retirement Solutions Limited and LIC Pension Fund Limited in a predefined proportion. At present the allocation of funds to three PFMs is as follows: LIC Pension Fund 33%, SBI Pension Funds Pvt Ltd 33%, UTI Retirement Solutions 34%.
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Previousely On May 15, 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. On May 25, 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.
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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.
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. For this, N S D L has appointed KARVY Consultants as Facility Centre, and there are two Facility Centres 1. at Hyderabad and 2. at Visakhapatnam. These are the Address of Karvy at Hyderabad and Visakhapatnam.
Contributory Pension Scheme-CPS and PRAN Complete Details
STD CODE 040Address of Karvy Consultants Hyderabad:
HYDERABAD - KARVY CENTRE
KARVY CENTRE,
8-2-609/K, Road #10, Banjara Hills
HYDERABAD
Andhra Pradesh
India
PIN CODE: 500034
PHONE :
040-23312454
EMAIL : mailmanager@karvy.com
Address of Karvy Consultants - Visakhapatnam:VISHAKAPATNAM47-14-4, ESWAR PARADISE,DWARAKA NAGAR MAIN ROADVISHAKAPATNAMAndhra PradeshINDIAPIN CODE: 530 016PHONE : STD CODE : 0891-2752915 to 18EMAIL : ksblvizag@karvy.com
NPS National Pension System Tier-I Account in CPS Subscriptions
What is National Pension System? The Central Government has introduced the Defined Contribution based Pension System known as theNational Pension System (NPS) or Contributory Pension System (CPS) (but is popularly known as New Pension System/Scheme) replacing the existing system of Defined Benefit Pension with effect from January 01, 2004. This is the 1st Part of the our upcoming 3 Parts Series on NPS.
DETAILS OF NATIONAL PENSION SYSTEM (NPS / CPS)
NPS is applicable to all new employees of Central Government service, except Armed Forces, who have joined Government service on or after 1st January 2004.The person (employee/citizen) who joins the NPS will be known as ‘Subscriber’ in the NPS. Under the NPS, each Subscriber will open an account with Central Record keeping Agency (CRA) which will be identified through unique Permanent Retirement Account Number (PRAN).Under NPS, two types of account would be available to subscribers i.e., Tier I & Tier II;
Tier I account - where a subscriber contributes his / her savings for retirement in to a non-withdrawable account, and a Tier II account - a voluntary savings account from which subscribers are free to withdraw his / her savings whenever he/she wishes. The facility of Tier II account was made available from December 1, 2009 to all citizens of India including Govt. employees mandatorily covered under NPS. An active Tier I account will be a pre requisite for opening of a Tier II.
What are the benefits of NPS?
1. It is transparent - NPS is transparent and cost effective system wherein the pension contributions are invested in the pension fund schemes and the employee will be able to know the value of the investment on day to day basis.
2. It is portable - Each employee is identified by a unique number and has a separate Permanent Retirement Account which is portable i.e., will remain same even if an employee gets transferred to any other office.
3. It is simple - All the subscriber has to do, is to open an account with his/her nodal office and get a PRAN.
4. It is regulated - NPS is regulated by PFRDA, with transparent investment norms & regular monitoring and performance review of fund managers by NPS Trust.
What are the tax benefits of NPS?
At present, the tax treatment for contribution made in Tier I account is EET, "Exempted-Exempted-Taxed" i.e., the amount contributed is entitled for deduction from gross total income upto Rs. 1.00 lac (along with other prescribed investments) as per section 80C (as per the provisions of the Income Tax Act, 1961 as amended from time to time). The appreciation accrued on the contribution and the amount used by the subscriber to buy the annuity are not taxable, Only the amount withdrawn by the subscriber after the age of 60 is taxable.
As per the proposed Direct Tax Code, the tax treatment for contribution in Tier I account will be "Exempted-Exempted-Exempted" i.e. in addition to the existing benefit, the amount withdrawn by the subscriber after the age of 60 will be exempted from tax like PPF.
Can a subscriber get loan under NPS ?
No. At present, a subscriber cannot avail a loan against his / her NPS holdings.
Who can subscribe in NPS?
NPS is applicable to all new employees of Central Government service (except Armed Forces) and Central Autonomous Bodies joining Government service on or after 1st January 2004. For State Governments, State Autonomous Bodies and Corporates, the dates may vary. Any other government employee who is not mandatorily covered under NPS can also subscribe to NPS under "All Citizens of India" through a Point of Presence - Service Provider (POP-SP).
What is Tier-I Account. Relation between CPS Subscriptions to Tier-I. ?
How will I contribute in Tier I Account?
Under Tier I, mandatory contribution will be through a subscriber's nodal office. Every month, 10% of his / her salary (basic + DA) and equivalent government’s contribution will be invested in NPS (Contributory Pension Scheme CPS). For employees under corporate sector, the contribution amount depends on the agreement between the subscriber and the employer. No separate contribution can be made by the subscriber. Hence all the Amount deducted under CPS is nothing but Tier-I for State government Employees of AP.
What is the procedure for Registration of Subscribers in Tier-I Account
1. For the purpose of registration, (Tier I account)
2. Subscriber shall submit form S1 to the DDO (or equivalent offices).
3. The DDO shall provide and certify the employment details.
4. Subsequently, the DDO shall forward the form to the respective PAO / DTO.
5. The form should be submitted to CRA for registration
How much does a subscriber need to contribute in Tier I?
Contribution in Tier I, depends on the basic salary of the subscriber and there is no minimum amount.
Where do I submit my contribution for Tier I?
Tier I - contribution amount is deducted from the salary and remitted by the concerned Nodal Office.
When will the units be credited to my NPS account in Tier I?
In case of Tier I account, subscriber's associated nodal office will upload his / her monthly pension contribution details to CRA along with transfer of funds to the Trustee bank appointed for this purpose. CRA will match the contribution details uploaded by the nodal office and the amount confirmed to be received by Trustee Bank and instruct the Pension Fund Managers to invest the contribution as per your scheme setup preference. The units created will be credited by CRA to your Permanent Retirement account.
When and how can I withdraw the amount from Tier I account?
Withdrawal of Tier I account: As per the guidelines for withdrawal stipulated by Pension Fund Regulatory & Development Authority (PFRDA)/Ministry of Finance(MOF), the subscribers can exit form National Pension System (NPS) on his / her retirement, resignation or death.
*Retirement : On attaining the age of 60 years, a subscriber would be required to invest minimum 40% of his / her accumulated savings (pension wealth) to purchase a life annuity from any IRDA (Insurance Regulatory and Development Authority) - regulated life insurance company.
A subscriber may choose to purchase an annuity for an amount greater than 40%. The remaining pension wealth can either be withdrawn in a lump sum on attaining the age of 60 or in a phased manner, between age 60 and 70, at the option of the subscriber.
*Resignation: On resignation of the subscriber, 80% of the corpus has to be annuitized and the subscriber can withdraw remaining wealth.
*Death : On death, the entire corpus of the subscriber will be handed over to the nominee of the subscriber.
However, the operational procedures for the withdrawal are yet to be finalized by PFRDA in consultation with MOF. Once they are finalized the offices will be intimated about the same. The withdrawal request should be routed through the associated PAO.
What is Annuity?
Annuity in the context of NPS refers to the monthly sum that will be received by the subscriber from the Annuity Service Provider after he attains the age of 60.
Who is the Annuity service provider?
Annuity Service Providers (ASPs) is the entity who will be responsible for managing the funds (allocated for buying annuity) and payment of the pension after a subscriber attains the age of 60. The ASPs will be the entities regulated by IRDA. At present, ASP is not appointed by PFRDA.
What happens if the subscriber dies after attaining the age of 60?
The mode and manner of payment of amount (if any available) will depend on the type of annuity plan / scheme selected by the subscriber while buying the annuity.
How can I exit from NPS?
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No employee/subscriber can exit from NPS till he is mandatorily covered under NPS.
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In case of death of the subscriber before the age of 60, the nominee will receive the entire sum. In case of resignation or voluntary retirement, please refer to the question on withdrawal.
What happens to my investments if I discontinue the scheme?
A subscriber who is mandatorily covered under NPS can not exit from NPS till he is employed.In case of resignation or voluntary retirement, please refer to the question on withdrawal.
What happens to the accumulated amount at the time of death of the employee?
In the event of death of the employee/subscriber, the nodal office will enter a withdrawal request in the CRA system. After the request is processed, a cheque is issued favouring the nominee and is despatched to the nodal office. In case no nominee is registered in the CRA system, the cheque is issued favouring the associated PAO. In case there are more than one nominee, the sum will be distributed to nominee in the ratio as recorded in the system.
What is the use of T-PIN ?
Subscribers can call at CRA's toll free number 1800 222 080 and access the Interactive Voice Response (IVR) or speak to our customer service executive using the T-PIN (Telephonic Personal identification Number).
What are the different options in the IVR available to the subscribers?
Subscribers have the following options in IVR
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Change of T-PIN
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Check holding details
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Check the status of any change request (such as change of address, nomination etc.)
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Check details of last contribution credit and last withdrawal request (for Tier II only).
How do subscribers check the status of the change request through IVR?
After accessing the IVR using the T-PIN, subscribers need to select the option of checking the status of the change request and input the acknowledgement number generated by the CRA system once the request is processed by the PAO. Subscribers can also speak to the call centre executive to check the status.
What happens in case a subscriber get transferred?
As the PRAN is portable, in case of transfer, PRAN remains the same. The subscriber's association with the new nodal office in the CRA system will happen once his / her contribution details are uploaded by his / her new nodal office in the CRA system.
How can I exit from NPS before the age of 60?
A government employee mandatorily covered under NPS cannot exit from NPS till he resigns or retires from the service. In case of resignation, at least 80% of the pension wealth to purchase a life annuity from any IRDA - regulated life insurance company. Remaining 20% of the pension wealth may be withdrawn as a lump sum
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Forms Documents for Withdrawal from National Pension Scheme (NPS) and CPS
Forms and Documents to be submitted along with the National Pension Scheme withdrawal application. Withdrawal Application Forms for NPS. PFRDA has proposed the Guidelines for Withdrawal from National Pension Scheme. Let us discuss the Required Documents and Forms for Withdrawal from CPS (Contributory Pension Scheme) or National Pension Scheme.
Documents to be submitted along with withdrawal application
The nature and type of documents required depends on the nature and cause of withdrawal being sought.The following are the complete details of the documents that are required for various types of permissible exits under NPS.
NPS Subscribers above 60 Years & other than Govt Employees
Documents to be submitted in case of: upon attaining the age of Normal superannuation (for govt. employees only) or upon attaining the age of 60 years (for all subscribers other than govt. employees) apart from the completely filled and signed application form for withdrawal of benefits.
1. PRAN card in original. If, PRAN card is not available, the subscriber needs to submit a duly notarized Affidavit as to the reasons of non-submission of the PRAN card.
2. Cancelled cheque (containing Subscriber Name, Bank Account Number and IFS Code) or Bank Certificate Containing Name, Bank Account Number and IFSC code, for direct credit or electronic transfer.
3. Proof of Date of birth or Age evidence of the subscriber for purchase of annuity (Ex: Matriculation certificate or another educational qualification certificate clearly showing the date of birth )
4. Proof of Identity and Address to confirm with AML guidelines of the government.
NPS Subscribers before attaining 60 Years & Other than Govt Employees
Documents to be submitted in case of: before attaining the age of Normal superannuation (for govt. employees only) or before attaining the age of 60 years (for all subscribers other than govt. employees apart from the completely filled and signed application form for withdrawal of benefits.
1. PRAN card in original. In case PRAN card is not available, the subscriber needs to submit a duly notarized Affidavit as to the reasons of non-submission of the PRAN card.
2. Cancelled cheque (containing Subscriber Name, Bank Account Number and IFS Code) or Bank Certificate Containing Name, Bank Account Number and IFSC code, for direct credit or electronic transfer.
3. Proof of Date of birth or Age evidence of the subscriber for purchase of annuity (Ex: Matriculation certificate or another educational qualification certificate clearly showing the date of birth )
4. Proof of Identity and Address to confirm with AML guidelines of the government.
Documents required in case of Upon the Death of Subscribers
Documents to be submitted in case of: Upon the death of the subscriber (irrespective of cause) apart from the completely filled and signed application form for withdrawal of benefits.
1. PRAN card in original. In case PRAN card is not available, the subscriber needs to submit a duly notarized Affidavit as to the reasons of non-submission of the PRAN card.
2. Cancelled cheque (containing Claimants Name, Bank Account Number and IFS Code) or Bank Certificate Containing Name, Bank Account Number and IFSC code, for direct credit or electronic transfer.
3. Death certificate in original of the deceased subscriber. In case of NPS-Swavalamban account holders, a certified copy of the death certificate duly attested by the Aggregator/ POP (with the Aggregator/ POP having seen the original of death certificate and returning the same to the nominee/legal heirs) is also acceptable.
4. Legal heir certificate or Succession Certificate issued by a competent court of appropriate jurisdiction where there is no subsisting nomination is available.
5. Proof of Identity and Address of the claimants to confirm with AML guidelines of the government.
Withdrawal Application Forms for NPS (National Pension Scheme)-CPS
For submission of a claim for withdrawal under National Pension System, the subscribers need to submit their claim in the prescribed application only. The withdrawal application forms will be available for download from CRA & PFRDA websites. The forms can also be collected from the PAO/DTO/DDO/ POP/ POP-SP/AGGREGATOR. There are 3 sets of applications that are available and applicable to different sectors. They are
For Government sector
(Central, State, Central and State autonomous bodies etc): The following forms needs to be submitted along with the documents listed thereof in the application. .
1. Form 101 – GS: Withdrawal Form for Claim of Accumulated Pension Wealth on Superannuation for Government Employees
2. Form 102 – GP: Withdrawal Form for Claim of Accumulated Pension Wealth on exiting before the age of normal superannuation for Government Employees
3. Form 103 – GD: Withdrawal of Accumulated Pension Wealth by Claimant due to the death of the subscriber
For subscribers covered under all citizen model including corporate account subscribers:
The following forms needs to be submitted along with the documents listed thereof in the application
1. Form 301 – AS: Withdrawal Form for Claim of Accumulated Pension Wealth by subscriber on attaining 60 years of age
2. From 302 – AP: Withdrawal Form for Claim of Accumulated Pension Wealth by Subscriber before attaining 60 years of age
3. Form 303 – AD: Withdrawal of Accumulated Pension Wealth by Claimant due to the death of the subscriber
For subscribers falling under Swavalamban scheme
(irrespective of whether sourced/routed through a POP or an Aggregator:
All those NPS accounts which have been classified as “Swavalamban” accounts by CRA basing on the declaration provided by the subscriber would be deemed to fall under this category. Apart from these, all those accounts which have been opened under the NPS-Lite architecture would fall under this category.
1. Form – 501 SS: Withdrawal Form for Claim of Accumulated Pension Wealth by Subscriber on attaining 60 years of age
2. Form – 502 SP: Withdrawal Form for Claim of Accumulated Pension Wealth by Subscriber before attaining 60 years of age
3. Form – 503 SD: Withdrawal of Accumulated Pension Wealth by Claimant due to the death of the subscriber
Applicable to all the above sectors (A, B, and C): If the subscriber wishes to appoint multiple nominees, Form 401 – AN needs to be used
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