New Pension Scheme (NPS) of Government of India was introduced in Navodaya Vidyalaya Samiti on 01.04.2009 as per notification of Ministry of Human Resource Development, Department of School Education & Literacy, vide letter No.F.5-7/98-UT-1 dated 14th August,2008.
New Pension Scheme was made applicable to all the regular employees of NVS w.e.f., 01.04.2009. All regular employees of NVS joining on or after 01.04.09 shall become members of NPS. However, those employees who had joined NVS on regular basis before 01.04.09 had the option either to continue with the existing CPF scheme or to join the New Pension Scheme. This option could be exercised within three months from the date of issue of the notification i.e. 04.08.2009.
The New Pension Scheme have two tiers- Tier – I and II. Contribution to Tier –I is mandatory, whereas contribution to Tier –II is optional and at the discretion of employees. In Tier – I, employees will have to make contribution of 10% of their basic pay plus DA, which is deducted from salary bill every month by PAO concerned. The Samiti make an equal matching contribution. No withdrawal is permissible from Tier – I account.
Under 7th CPC, deduction on account of NPS as may be applicable will have to be made on the basis of revised pay w.e.f. date of an employee opt to revised pay structure.