Delay in upload of SCF files by Construction Offices

Delay in upload of SCF files by Construction Offices

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INTRODUCTION TO NEW PENSION SCHEME

All employees who have joined Railways on or after 1.1.2004 come under the purview of the New Pension scheme. The Ministry of Finance has appointed PFDRA i.e Pension Fund Regulatory and Development Authority to regulate the New Pension Scheme.

There are basically two entities under this scheme.

The Central Record Keeping Agency (CRA) which maintains the records of the employees and

The Trustee Bank

Presently NSDL i.e. (National Securities Depositories Limited) is appointed as the CRA and the Axiss Bank as the Trustee bank.

The Scheme is segregated into Tier-I and Tier-II. The operation Tier-I is done by Railway Administration and Tier-II is operated directly by the subscriber and the POP i.e Point of Presence, which are nominated Banks appointed by PFDRA.

Under Tier-I, 10 % of the employees (Basic Pay + Grade Pay+ DA) is recovered under employee subscription and an equal amount is contributed by the government every month. The details of the employee and government contribution are uploaded each month to NSDL and the amount is remitted to the trustee bank.

The amount remitted is thereafter invested into various schemes as decided by PFDRA (Pension Fund Regulatory and Development Authority). Presently, no amount under Tier-I, can be withdrawn by the employee, except on superannuation on death in terms of Railway Boards Letter No RBA 21/2013 dated 16.08.2013.

On superannuation 60% of the amount will be provided as lump sum benefit and 40% will be invested as per the option exercised by the employee. The details of the Options are as under:

Option A, major amount is invested under Government securities and a part is invested in equity.

Option B, major amount is invested in equity market and a small part is invested in Government securities.

Option C, this is a balanced scheme, under which the amount under NPS account is invested equally between Government and Equity market

Option D-Default Scheme: In case of employees who are unable to choose from the above three options, Government offers a default scheme in which the standing amount is invested only in Government securities, which would fetch a stable rate of return.

The employee under the New Pension Scheme is allotted a Permanent Retirement Account Number (PRAN) .This is a unique number, by which the amount invested by the employee can be identified.

Tier-II: Tier-II is a pension saving account with a facility for withdrawal to meet financial contingencies .It is a voluntary saving scheme and can be participated by an employee who has been allotted PRAN. This facility can be availed through the various banks and financial institutes appointed as Points of Presence appointed by PFDRA. The list of POP’s are available on www.npscra.nsdl.co. A subscriber can make unlimited withdrawals subject to maintaining a minimum balance of Rs 2000/-The minimum contribution which can be made is Rs 250/- and minimum 4 contributions to be made in a financial year.