Sunday, 16 July 2017

G.O.Ms.No.196, Dated: 24.07.2012. Contributory Pension Scheme –Implementation of New Pension System (NPS) in the State – Uploading of contributions of both Subscriber and Government simultaneously


GOVERNMENT  OF ANDHRA PRADESH
 ABSTRACT 

NEW  PENSION  SYSTEM  -  Contributory  Pension  Scheme  –Implementation  of New  Pension  System  (NPS)  in  the  State  –  Uploading  of  contributions  of  both Subscriber  and  Government  simultaneously  –  Release  of  Budget  towards Government contribution  –  Exemption  from  Budget  control  –  Orders  –  Issued.

FINANCE  (PENSION-I)  DEPARTMENT 
G.O.Ms.No.196           Dated:    24.07.2012 

Read  the  following:-
1.  G.O.Ms.No.653,  Finance  (Pension.I)  Department,  dated  22-092004.
2.  G.O.Ms.No.655, Finance  (Pen.I)  Department, dated  22-09-2004.
3.  GO Ms No. 151,  Fin  (pension)  Dept,  Dt:02.07.2007
4.  DTA  Lr.  No  D  II/10393/  2012,      Dt  :28-06-2012

                                                 @@@

ORDER:
The  State  Government have  introduced  Contributory  Pension  Scheme  to the  employees  recruited  on  or  after  1.9.2004  vide  reference  1st  read  above  on the  same  lines  of  Government  of  India’s  New  Pension  System.  Government have  issued  instructions  for  implementation  of  the  scheme  vide  reference  2nd read  above.    As  per  these  instructions,  it  is  mandatory  for  each  employee,  who has  been  recruited  on  or  after     01-09-2004,  to  become  member  of  the Scheme.  Each  employee  shall  pay  a  monthly  contribution  of  10%  of  Basic  Pay and  Dearness  Allowance  from  his  salary  to  the  Contributory  Pension Scheme(CPS).    The  contribution  shall  be  recovered  from  the  salary  of  the employee  every  month.  An  equal  contribution  will  be  made  by  the  employer. The  Pension  Fund  Regulation  &  Depository  Authority  (PFRDA)  has  appointed the  National  Securities  Depository  Limited  (NSDL)  Mumbai,  as  the  Central Record  Keeping  Agency  (CRA)  to  maintain  the  records  of  contribution  and  its deployment  in  various  pension  fund  schemes  for  the  employees.  The  SBI,  LIC, and  UTI  have  been  selected  as  Pension  Fund  Managers  (PFMs)  for  investing the  CPS  funds.    Bank  of  India  has  been  appointed  as  CPS  Trustee  bank.    NPS Trust  has  been  set  up  as  Trustee  for  CPS  funds.

 2. The  Director  of  Treasuries  and  Accounts,  AP,  Hyderabad  (DTA)  on behalf  of  Government  of  Andhra  Pradesh  entered  into  agreements  with  the CRA  i.e.  NSDL  on    21.11.2008    and  NPS  Trust  on  15.09.2009.    Nodal  Officers such  as  DDOs  have  to  deduct  CPS  contributions  from  the  monthly  pay  bills  of employees.  The  Treasury  Officers  (DTOs/STOs)  have  to  upload  the  CPS contributions  to  the  CRA  i.e.,  NSDL  and  corresponding  amounts  have  to  be transferred  to  Trustee  Bank.  From  the  Pension  Trust,  the  funds  are  transferred to  the  Pension  Fund  Managers  for  investing  the  funds  in  various  schemes.

3.   The  DTA  in  the  reference  4th  read  above  has  informed  that  as  per  the procedures  prescribed  in  the  G.O.  Ms  No.  655,  Finance  (Pen.I)  Dept, Dt:22.09.2004  and  G.O.Ms.No.151,  Finance  (Pen.I)  Dept.,  Dt.02.07.2007 Employee  contributions  and  Government  contributions  under  CPS  Scheme shall  be  credited  to  the  following  head  of accounts:

8342-  Other  Deposits 
117  -  Defined  Contribution  Pension  Scheme  for                                  Government    Employees. 
SH  (04)  –  AP  State  Government  Employees  Contributory                       Pension  Scheme
 001  –  Employees  Contribution  &  
 002  –  Government  Contribution 

4. In  the  clause  xi  of  the  G.O.  Ms  No.  655,  Finance  (Pen.I)  Dept, Dt:  22.09.2004,  it  was  stated  that  the  Accountant  General  would  adjust  the Employee  contribution  and  Government  contribution  every  month  and  transfer those  amounts  to  the  PFRDA  or  any  agency  authorized  by  it.  It  was  also  stated therein  that  the  Government  contribution  to  the  Scheme  shall  be  debited  to  the following  head  of account:

2071-  Pension  and  other  retirement  benefits 
01  –  Civil 
117  –  Government  contribution  for  defined  contribution  pension scheme 
SH  (04)  –  Contribution  to  Contribution  Pension  Scheme  of  Andhra Pradesh  State  Government  Employees   
320  –  Contributions   

5. Consequent  on  entrustment  and  operationalization  of  the  scheme,  the DTA  has  taken  action  to  adjust  the  Employee  and  Employer  contributions under  8342-117-SH  (04)-001  and  8342-117-  SH  (04)-002  and  upload  the  data of  both  monthly  contributions  to  the  NSDL  (CRA)  and  transfer  the  funds  to  the   Trustee  Bank.  In  this  process  every  Treasury  officer  prefers  an  adjustment  bill in  ‘Form  –  40’  under  the  former  head  of  account  for  the  amounts  equal  to  the Employees’  contribution  required  to  be  uploaded,  adjusts  amount  to  the  latter head  of  account  and  takes  action  for  transfer  of  both  the  amounts  from  the latter  head  of  account  by  issuing  a  cheque  or  RTGS  for  transfer  of  the  amount to  the  Trustee  Bank.

6. The  Treasury  officer  is  to  debit  the  required  Government  contribution every  month  from  the  relevant  head  of  account.  Since  this  is  a  regular  monthly process,  it  is  essential  that  this  process  be  free  from  both  treasury  controls  and regulations.  During  the  review  meeting  held  on  05.06.2012  with  regard  to implementation  of  CPS,  proposals  from  the  DTA/PAO/DWA  were  called  for,  to streamline  this  process,  so  that  the  Government  matching  contribution  of  10% of  Pay  +  DA  would  be  paid  along  with  the  Pay  plus  DA  of  the  employee  and transmitted  to  the  trustee  Bank.

7.  Accordingly,  the  DTA  has  sent  a  proposal  for  issue  of  necessary  orders by  the  Government.

 8. After  careful  consideration,  Government  hereby  exempt  from  budgetary control  and  quarterly  regulations  for  all  drawals  from  the  head  of  account    2071 –  Pension  and  other  Retirement  benefits–  01.Civil  -  117.Government contribution  for  defined  contribution  pension  scheme  -  SH  (04)  – Contribution  to  the  Contribution  Pension  Scheme  of  Andhra    Pradesh State  Government  Employees  -  320  –  Contributions  only  in  so  far  as  they relate  to  Government  contributions  matching  to  Employee  contributions  under the  NPS.      Both  the  Employees’  and  Government  contribution  should  be uploaded  into  the  Subscriber’s  accounts  simultaneously  and  transferred  to  the PD  Account  8342  –  Other  Deposits  -  117  -  Defined  Contribution  Pension Scheme  for  Government  Employees  -  SH  (04)  –  AP  State  Government Employees  Contributory  Pension  Scheme  -  002  –  Government Contribution.   

9. The  procedure  shall  be  followed  by  the  Treasury  Officers  (TO)  with effect from  01.08.2012.

      (i) On  receipt  of  details  of  Employee  contributions  through  pay  bill schedule,  the  Treasury  Officer  shall  upload  the  Subscriber Contribution  File  (SCF)  containing  the  details  of  employee contributions  and  Government  contributions  to  the  CRA  and obtain  Transaction  Number(TN).

     (ii) He  shall  post  the  amount  equivalent  to  the  employee contributions   in  the  PD  Account:  8342-117-SH(04)-001  and prefer  an  adjustment  bill  for  transferring  it    to  the  HOA:8342-117(04)-002.

    (iii)  Then  he  shall  transfer  equivalent  amount  from  2071  –01  –  117SH  (04)  –320  –  Contributions  to  the  PD  Account:  8342-117SH(04)-002  towards  Government  Contribution.

     (iv)  Then  he  shall  prepare  a  consolidated  cheque  for  the  amount equivalent  to  both  the  Employee  contributions  and  matching Government  contributions  and  transfer  that  amount  through RTGS  to  the  Trustee  Bank  duly  quoting  the  transaction  number  of SCF  uploaded,  received  from  the  NSDL.

      (v)   The  Treasury  Officer  shall  watch  the  transactions  till  the  SCFs  are matched  and  booked  and  reconcile  the  funds  transferred.

10. As  per  the  Scheme,  it  is  envisaged  that  the  Trustee  Bank  will  transfer funds  to  the  Fund  Managers  who  invest  through  SBI,  UTI,  LIC  at  the  rates  of 40%,  31%  &  29%  respectively.    The  subscribers  can  view  the  Net  Asset  Value (NAV)  of  their  investments  from  the  web  site  www.npscra.nsdl.co.in by  their individual  Logins  and  passwords.    The  subscribers  can  get  the  information  of NAV every  month  through  SMS  / email.

11. The  Director  of  Treasuries  and  Accounts  (DTA)  /  Pay  &  Accounts  Officer (PAO)/  Director  of  Works  Accounts  (DWA)  shall  take  necessary  further  action in  the  matter  accordingly.    Further,  the  DTA/PAO/DWA  shall  workout  the requirement  of  funds  to  upload  the  contributions  for  the  legacy  period  from 01.09.2004  and  furnish  necessary  proposals  to  the  Government immediately.

12.   The  DTA  shall  issue  comprehensive  rules,  specifying  detailed administrative  procedure  to  be  followed  by  the  Treasury  /  subscriber  for accessing  NSDL,  incorporation  of  Transaction  Number  in  file,  transfer  of  funds etc.    These  instructions  shall  be  issued  before  July  31st,  2012,  so  that  the transfer  procedure  outlined  above  is  put  into  effect  by  01.08.2012.

(BY  ORDER  AND  IN  THE  NAME  OF  THE  GOVERNOR  OF  ANDHRA  PRADESH



                                             V. BHASKAR 
PRINCIPAL  SECRETARY  TO  GOVERNMENT 




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