NAVODAYA VIDYALAYA SAMITI
(An Autonomous Organization under
Ministry of Human Resource Development,
Department of School Education & Literacy),
Government of India
NEW DELHI – 110 048
Email : Navodaya@ren02.nic.in
F.No. 18-1/2008-NVS (Admn.) Dated: 04.08.2009
The Ministry of Human Resource Development, Department of School Education & Literacy, vide letter No. F. 5-7/98-UT-1 dated 14th August 2008, has conveyed the approval of the Union Cabinet for introduction of the New Pension Scheme of Govt. of India to all regular Navodaya Vidyalaya Samiti (NVS) employees joining NVS after its notification by the Samiti and giving an option to the regular employees of NVS as on the date of notification to continue with the existing CPF Scheme or to join the New Pension Scheme. In the latter case, the amount accumulated in the CPF Account of the employee will be transferred to the pension fund under the New Pension Scheme.
Accordingly, it is hereby notified that the New Pension Scheme shall be applicable to all the regular employees of NVS and will come into force w.e.f. 01.04.2009. All regular employees of NVS joining on or after 1.4.09 shall become members of NPS. However those employees who had joined NVS on regular basis before 1.4.09 shall have the option either to continue with the existing CPF Scheme or to join the New Pension Scheme. In case of opting for the New Pension Scheme, the amount accumulated as on 1.4.2009, in the CPF Account of the employees, will be transferred to the pension fund under the New Pension Scheme. This option can be exercised within three months from the date of issue of this notification in the prescribed format (i.e. form of option) appended herewith.
New Pension Scheme notified by Department of Economic Affairs, Ministry of Finance on 22.12.2003 and introduced vide D/O Expenditure O.M. No. 1(7)(2)/2003 dated 7.1.2004, and as amended from time to time, will apply mutates mutendis in the NVS.
Some of the salient features of the New Pension Scheme are as under:
(1) (a) The New Pension Scheme will have two tiers – Tier-I and II.
(b) Contribution to Tier-I is mandatory, whereas contribution to Tier-II will be optional and at the discretion of employees.
(2) (i) In Tier-I, employees will have to make contribution of 10% of their basic pay plus Dearness Pay plus DA (Plus NPA, if any), in the pre-revised pay scales and / or Revised Pay plus Grade Pay plus DA admissible in the revised pay scales, which will be deducted from his salary bill every month by the PAO concerned. The Samiti will make an equal matching contribution.
(ii) The contributions payable by the employees and those paid by the Samiti shall be rounded off to the nearest rupee.
(iii) Any recovery in the subsequent date after 1.4.2009, on account of short receipt / deductions of the employees and Samiti’s contribution, etc. shall form part of the pension fund, under the New Pension Scheme. The outstanding CPF advances recovered after 1.4.2009 shall also form part of the pension fund.
(3) Recovery will commence from the month following the month of joining the service in NVS.
(4) No withdrawal is permissible from Tier-I account.
(5) (i) Tier-I contributions (and the investment returns) will be kept in a non-withdrawal Pension Tier-I Account.
(ii) Tier-II contributions will be kept in a separate account that will be withdrawable at the option of the employee.
(iii) The Samiti will not make any contribution to Tier-II account.
(6) Tire II is not operational as on date.
(7) A separate Cell will be set up at NVS (Hqrs.) to monitor and regulate the pension fund. This Cell will function as Central Record Keeping Agency for maintenance of the record, accounts etc. and also to undertake the works regarding implementation of New Pension Scheme in NVS.
(8) (i) Exit from the scheme will be normally on attaining the age of 60 years or after the age of 60 years from the Tier-I of the scheme.
(ii) At normal exit, it would be mandatory for the employees to invest 40 percent of pension wealth in an annuity (from an IRDA. Regulated Life Insurance Company) which will provide for pension for the lifetime of the Employees and their dependent parents / spouse.
(iii) In the case of employees who leave the scheme before attaining the age of 60 years, the mandatory annutization would be 80% of the pension wealth.
(9) The existing provisions of leave encashment will continue to be applicable to employees who join service in NVS on or after 1.4.2009, as the benefit of encashment of leave salary is not a part of retirement benefits admissible under the extent rules.
(10) Individuals will get an Annual statement containing the details of opening balance, monthly contributions, Samiti’s matching contribution and interest earned.
(11) Accumulations at the credit of subscribers to the New Pension Scheme for all the regular employees of NVS shall carry interest at the rate to be notified by the competent authority from time to time.
(12) As the New Pension Scheme is based on defined contribution, the length of qualifying service is not relevant. Thus, no credit of casual service shall be allowed to casual workers on their regularization against Group ‘D’ posts on or after 1.4.2009.
(13) It is further clarified that: -
(i) With effect from 1st June, 2008 National Securities Depository Ltd. (NSDL) has started functioning as the Central Record keeping Agency (CRA) for the NPS and it is they who shall be allotting the permanent Retirement Account Number (PRAN) and maintaining the accounts of individual NPS subscribers.
(ii) Once the pension corpus is transferred to the PFRDA regulated NPS architecture and invested therein, there would be no interest payable on the corpus so transferred. Returns thereon would, thereafter, be market determined. Further, investment of NPS contributions of subscribers shall take place in accordance with the investment guidelines of the Ministry of Finance for non-Government Provident Funds and Superannuation Funds. Ministry of Human Resource Development may, however, decide as regards the interest payable on the accumulated pension corpus (and to the underlying subscribers) prior to its actual transfer to the NPS architecture.
Joint Commissioner (Admn.)
1. All Jawahar Navodaya Vidyalayas
2. All Regional Offices of NVS.
3. All Navodaya Leadership Institutes.
4. All Officers at NVS (Hqrs.)
Copy to: -
1. PS to Hon’ble HRM & Chairman, NVS, Shastri Bhawan, New Delhi
Joint Secretary (SE), Ministry of HRD, Department of School Education & Literacy, Shastri Bhawan, New Delhi.
Joint Commissioner (Admn.)
FORM OF OPTION
In pursuance of the Navodaya Vidyalaya Samiti Notification No. F.18-1/2008-NVS(Admn.) dated 4th August 2009, regarding introduction of the New Pension Scheme of the Govt. of India, for all the regular employees of NVS who had joined before 01.04.2009, my option either to elect the New Pension Scheme or for continuing with the existing CPF Scheme is as under :-
*i) I, ____________________________________(Name) hereby elect the New Pension Scheme w.e.f. 01.04.2009.
*ii) I, ____________________________________(Name) hereby elect to continue under the existing CPF Scheme of NVS.
Name of Unit(viz. JNV/NLI/RO/NVS Hqrs.):____________________
CPF Account No:____________________
* To be scored out, if not applicable.
i) Option once exercise shall be considered as final.
ii) This option can be exercised only by those employees who have joined NVS on regular basis before 01.04.2009.
iii) If an employee does not exercise an option within three months from the date of notification i.e. 04.08.2009, it will be presumed that the employee is not willing to join the New Pension Scheme.