APCPSEA ELECTED BODY AT NELLORE

APCPSEA ELECTED BODY AT NELLORE
STATE BODY MEMBERS

Wednesday, 18 May 2016

question & answers

Entities in NPS
Entities in the System
NPS Architecture for All Citizens of India Sector
Pension Fund Managers
Pension Fund Managers are appointed by PFRDA to maintain the Pension contribution of all subscribers through various schemes offered by PFM. Subscribers will have the option to invest their contributions into one or more schemes of the PFMs. The PFMs will responsible for providing the Net Asset Value of the Schemes offered to the CRA. PFMs will allot units based on NAV as applicable.
Trustee Bank
NPS Trust formed by PFRDA would be responsible for taking care of the funds under the NPS. The Trust would hold an account with the Trustee Bank appointed by PFRDA. The Trustee Bank upon receiving credits from Nodal offices would transmit the information to CRA for reconciliation. The Trustee Bank shall remit fund to the entities viz. PFMs, ASPs and subscribers on receipt of instructions from CRA.

For details : click here
Annuity Service Providers
Annuity Service Providers (ASPs) are be appointed by PFRDA to maintain the annuity contribution of subscribers through their various schemes. Subscribers will have the option to invest their amount into one annuity scheme upon retirement/resignation. ASPs would be responsible for delivering a regular monthly pension (annuity) to the subscriber for the rest of his/her life.
Currently, 07 Annuity Service Providers have been appointed :
  1. Bajaj Allianz Life Insurance Co. Ltd.
  2. HDFC Life Insurance Co. Limited
  3. ICICI Prudential Life Insurance Co. Ltd.
  4. Life Insurance Corporation of India
  5. Reliance Life Insurance Co. Ltd.
  6. SBI Life Insurance Co. Ltd.
  7. Star Union Dai-ichi Life Insurance Co. Ltd.
for details click here...


Scheme Information
"As per the present guidelines of Pension Fund Regulatory and Development Authority(PFRDA), contribution towards pension will be invested in the default schemes of three Pension Fund Managers (PFMs), viz, LIC Pension Fund Limited, SBI Pension Funds Pvt. Limited and UTI Retirement Solutions Limited in a predefined proportion, which is mentioned in the Statement of Transaction. Each of the PFMs will invest the funds in the proportion of 85% in fixed income instruments and 15% in equity and equity linked mutual funds. Hence, the employees of Central Government and Central Autonomous Bodies need not mention the details of the schemes while filling up the application form."
In NPS, a government employee contributes towards pension from monthly salary along with matching contribution from the employer. The funds are then invested in earmarked investment schemes through Pension Fund Managers.

Subscriber Registration

Subscriber is the employee of Central Government (excluding Armed Forces), and Central Autonomous bodies who have joined service on or after 1 January 2004 and is part of National Pension System.
Many State Governments have adopted NPS architecture and implemented NPS mandatorily through Gazette Notifications for their employees joining on or after a cut-off date.
Following conditions have to be met for a Subscriber to be registered with CRA;
  1. Subscriber is covered under the National Pension System.
  2. The Nodal Offices i.e. the respective Pr.AO, PAO and DDO have been registered in CRA and have been allotted registration number by CRA.
Subscriber shall submit duly filled application for allotment of PRAN as per Annexure S1 to the DDO in duplicate. Only those Subscribers of a DDO who are registered with CRA can apply for allotment of PRAN. If the DDO is not registered, it has to first register itself with CRA.
Application form for registration of Subscribers can be downloaded from the CRA websitewww.npscra.nsdl.co.in
Government employees (Central & State) can join NPS irrespective of their age at the time of entry i.e. 60 years and above, subject to the condition that the total period of contribution to NPS account shall not be more than 42 years. The procedure for registration remains the same.
Yes. PRAN can be generated online. For details on the procedure to generate PRAN online the PAO/PrAO needs to contact CRA.
Existing Subscriber who have been allotted PPAN/Employee ID have to be registered afresh in CRA system by submitting Annexure S1. Fresh registration is required to enable CRA to issue Permanent Retirement Account Number (PRAN) card to the Subscriber containing PRAN, photograph and signature of the Subscriber. Annexure S1
The following details have to be provided in the application for allotment of PRAN.
  • Section A - Subscriber Personal Details
  • Section B - Subscriber Employment Details
  • Section C - Subscriber Nomination Details
  • Section D - Subscriber Scheme details
  • Section E - Declaration for I-PIN & T - PIN
The Employment details (Section B) will be provided by the respective DDO whereas all other details will have to be provided by the Subscriber. In case of existing Subscribers who have been allotted PPAN, the same needs to be provided in the form.
For Scheme details (Section C) - as per the present guidelines of Pension Fund Regulatory and Development Authority (PFRDA), contribution towards pension will be invested in the default Schemes termed Scheme of various Pension Fund Managers in the proportion of 55% in Government Securities, upto 40% in Debt Securities, upto 15% in Equity and 5% in Money Market Instruments. Hence, in the application form for PRAN, the details of the schemes need not be mentioned. Subscriber shall also submit a latest color photograph and his signature/Thumb impression (duly attested by Gazetted Officer). The Subscriber can refer to the instructions given in the form for filling the form.
The section of Personaland employment details are mandatory. Bank details are also mandatory.In case, Bank details are not available at the time of filling the form, Subscriber can provide a declaration for providing the Bank details within six months or on opening of Bank account whichever is earlier. However, some of the fields in these sections are not mandatory e.g. details of PAN. Nomination and scheme preference details are optional and can be provided any time after registration. If the Subscriber does not provide any scheme preference details, his contribution will be invested in the default scheme as specified by PFRDA. As per the present guidelines of Pension Fund Regulatory and Development Authority (PFRDA), contribution towards pension will be invested in the default Schemes termed Scheme of various Pension Fund Managers in the proportion 55% in Government Securities, upto 40% in Debt Securities, upto 15% in Equity and 5% in Money Market Instruments. Hence, in the application form for PRAN, the details of the schemes need not be mentioned.
Only those Subscribers of a PAO and DDO who are already registered with CRA can apply for Allotment of PRAN. If the PAO/DDO is not registered, it has to first register itself with CRA. On receipt of the Subscriber application forms in duplicate from the associated DDO, PAO shall verify the forms. PAO shall forward the forms along with a covering letter to the CRA-FC as per Annexure S6. The format of covering letter and list of CRA-FCs are available at CRA website www.npscra.nsdl.co.in
The Subscriber shall submit Annexure S1 to the DDO in duplicate. Immediately on joining service, the DDO should get the form duly filled by the Subscriber. On receipt of the application, DDO shall provide the employment details of the Subscriber (Section B) and attest the other details mentioned in the form. DDO shall collect and consolidate all such applications received from the associated Subscribers and forward the same to the PAO along with a covering letter as per Annexure S5. The covering letter can be downloaded from the CRA website. PAO should note that unless PRAN has been allotted, the PAO can not upload the contribution details of the Subscriber.
Checklist for DDOs is as follows:
  • All the mandatory fields are filled.
  • Photograph and Signature provided by the Subscriber. In case of thumb impression, it should be duly attested by a Gazzeted Officer (If DDO is Gazzeted officer, attestation can be done by the DDO also).
  • Provide Employment details of the Subscriber.
  • Provide Stamp and Signature of Authorized Signatory.
  • Provide the DDOs covering letter with not more than 999 Subscriber Registration forms.
Checklist for PAOs is as follows:
  • Employment details have been provided by DDO
  • DDOs covering letter i.e. Annexure S5 enclosed with the Subscriber Registration forms (not more than 999 in a batch).
  • PAO Covering letter i.e. Annexure S6 enclosed for the DDOs letter.
PAO/DDO can check the status of the Subscriber's application from CRA, by quoting the PRN or the acknowledgement number from the option "Subscriber Registration Status View" in the CRA website www.cra-nsdl.com.
Alternately, if the PAO has entered the details of forms submitted in "S1 Form submission details", the status of applications can be viewed using this functionality.
DDO shall prepare a batch of maximum 999 Subscriber applications and prepare a covering letter as per Annexure S5 for each batch and forward it to the PAO. DDO should note that number of applications covered in a single batch/covering letter should not exceed 999. e.g. if there are 1100 Subscriber applications, DDO shall prepare two batches with covering letter each - one for 999 applications and another for next 101 applications.
CRA-FC is the facilitation center appointed by CRA for accepting Subscriber Registration forms. The CRA-FC shall digitize the applications and upload the details to CRA system. The list of CRA-FCs across India is available at CRA website www.npscra.nsdl.co.in
CRA-FC can reject an application form either at the time of acceptance or during digitization if any discrepancies are noticed by it. CRA-FC shall issue a rejection memo to the PAO with the reason(s) for rejection. For such cases, a fresh application shall be submitted by the Subscriber after rectifying the discrepancies. The PAO can also view scanned copies of the S1 Forms and rejection memos by logging intowww.cra-nsdl.com using the User ID and I-PIN.
On acceptance of Subscriber application forms, CRA-FC shall issue a DDO wise Provisional Receipt containing the Provisional Receipt number (PRN), details of number of forms submitted by PAO, number of forms accepted by the CRA-FC and number of forms rejected by CRA-FC. The PRAN will be issued for each batch of application forms submitted (i.e. each DDO covering letter). Under each batch, CRA-FC shall also mention an acknowledgement number for each application contained in the batch. The acknowledgement number will be the PRN plus two digit-running serial numbers for individual forms. For e.g. the PRN can be 101877300000066, if the CRA-FC receives 45 forms the acknowledgment numbers generated for the forms will be 10187730000006601 - 10187730000006645. The Provisional Receipt (PR) will be handed over to the PAO along with the duplicate copy of Subscriber application forms containing the acknowledgement numbers.
Provisional Receipt Number
PAO/PrAO can view a report of the complete rejection memo by logging into the CRA website. This report helps the PAO/PrAO understand the common reasons for which S1 Forms are rejected.
CRA has introduced a functionality wherein the PAO/ PrAO can view the S1 Form submitted to the CRA-FC using the login ID and I-PIN provided by CRA. Subscriber registration (S1) Forms either accepted or rejected can be viewed by the PAO/PrAO.
There is no restriction on the mode of delivery of subsciber registration forms to the CRA-FC. The same can be submitted by post, courier or hand delivery.
CRA has provided a functionality called "S1 Submission Details" in the CRA system to track the movement of Subscriber Registration forms from Nodal Office to CRA-FC. PAO can login into the CRA System with the User ID and password and enter the details of S1 forms submitted. CRA-FC acknowledges the receipt of forms in the CRA system along with remarks. PAO can track the status of the forms with the acknowledgement number generated and also view the details updated by the CRA-FC.
CRA shall forward the PRAN kit containing PRAN card and Subscriber Master Report along with I-PIN and T-PIN to the associated PAO for onward forwarding to DDO. The DDO on receipt of the PRAN kits from the PAO shall reconcile the PRAN kits received against the application made and hand over the PRAN kits to the respective Subscriber.The Subscriber will also receive an SMS and the PAO will receive an email on generation of PRAN.
CRA has introduced a functionality of 'e-PRAN' which allows the Nodal Offices to view the and print the 'e-PRAN' for a Subscriber. The 'e-PRAN' is similar to the physical PRAN Card and will display the core details along with photograph and signature of the Subscriber.

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