GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
QUESTION NO 3404
ANSWERED ON 23.07.2019
MINISTRY OF FINANCE
RAJYA SABHA
QUESTION NO 3404
ANSWERED ON 23.07.2019
Pensionary benefits under NPS on voluntary retirement
3404 Shri Ravi Prakash Verma
Will the Minister of FINANCE be pleased to state :-
(a) whether voluntary retirement is
allowed to employees of Central Government covered under NPS after
completion of 20 years of service on the lines of old pension scheme;
(b) if so, the details thereof;
(c) the details of pensionary benefits and other retirement benefits available/ allowed under NPS to employees who voluntarily retire;
(d) whether Government would increase its contribution to 20 per cent from 14 per cent under NPS in view of dismal returns on NPS fund to make it more attractive;
(e) if so, the details thereof; and
(f) if not, the reasons therefor?
(b) if so, the details thereof;
(c) the details of pensionary benefits and other retirement benefits available/ allowed under NPS to employees who voluntarily retire;
(d) whether Government would increase its contribution to 20 per cent from 14 per cent under NPS in view of dismal returns on NPS fund to make it more attractive;
(e) if so, the details thereof; and
(f) if not, the reasons therefor?
ANSWER
The Minister of State (Finance)
(a) and (b) 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.
(c) 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.
(d) to (f) (d) to (f) 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
percent from 14 percent under NPS.
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