The features and
benefits under National Pension System (NPS) and the old pension scheme are
independent. Under NPS, there is a provision for voluntary retirement/exit
prior to the age of superannuation, without linking it with the minimum number
of 20 years of service.
As per Pension Fund Regulatory and Development Authority (Exits
and Withdrawals under the National Pension System) Regulations, 2015, and
amendments there under, the provisions for voluntary retirement/exit and the
benefits available/ allowed under NPS to employees of Central Government who
voluntary retires are as follows:
“3(b) where the subscriber who, before attaining the age of
superannuation prescribed by the service rules applicable to him or her,
voluntarily retires or exits, then at least eighty per cent out of the
accumulated pension wealth of the subscriber shall mandatorily be utilized for
purchase of annuity and the balance of the accumulated pension wealth, after
such utilization, shall be paid to the subscriber in lump sum or he shall have
a choice to collect such remaining pension wealth in accordance with the other
options specified by the Authority from time to time, in the interest of the
subscribers”
Further, as informed by the Department of Pension and
Pensioners’ Welfare, the benefit of retirement gratuity and death gratuity has
been extended to Government employees covered under NPS on the same terms and
conditions as are applicable under CCS (Pension) Rules, 1972.
Recently, vide Gazette Notification dated 31.01.2019, the
mandatory contribution by the Central Government for its employees covered
under NPS Tier-I has been enhanced from the existing 10% of basic pay +DA to
14% of basic pay + DA. The employees’ contribution rate would remain at the
existing 10% of basic pay + DA. There is no proposal to increase the
contribution to 20 per cent from 14 per cent under NPS.
This was stated by Shri Anurag Singh Thakur, Minister of State
for Finance & Corporate Affairs in a written reply to a question in Rajya
Sabha today.
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DSM/RM/PD (Release ID :192138)
