GO MS 62 Withdrawal procedures for Subscribers from New Pension System Andhra Pradesh


Government have introduced New Pension Scheme (CPS) to the AP Government employees who were appointed on or after 01.09.2004. In the G.O. 2nd read above, Government have issued operational guidelines. In the New Pension scheme each employee shall pay a monthly contribution of 10% basic Pay + DA from his salary and the Government will contribute an equal amount as its share.

Provident Fund Regulatory Development Authority (PFRDA) has proposed an interim procedure and accordingly the Government in the reference 4th read above, have issued instructions of interim procedure pending finalization of the Guidelines.

Director of Treasuries and Accounts (DTA) has requested to consider the guidelines as proposed by the PFRDA and requested to issue orders on withdrawal procedures consequent to instructions issued vide reference 4th read above.

4. Government, after careful consideration of the matter, hereby prescribe the Exit guidelines and the procedures to be followed by the stake holders for submitting and forwarding exit / withdrawal proposals as per the guidelines contained in Annexure-I and II enclosed herewith. Accordingly Government hereby withdraw the
instructions issued in the Circular Memo 4th read above. However, if any payments are made in the past, they have to be adjusted against
the accumulated funds in CPS.

5. All the Drawing and Disbursing Officers and Treasury Officers are requested to take necessary action immediately

ANNEXURE – I

EXIT/ WITHDRAWAL GUIDELINES UNDER THE NATIONAL PENSION SYSTEM

 01.)  The following modes are prescribed for exiting the New Pension System in case of Government Employee subscribers:-

a.) Upon Normal Superannuation:            On attaining the age of  superannuation,  at  least  40%  of  the  accumulated pension  wealth  should  be  utilized  for  purchase  of  an annuity providing for monthly pension in the PFRDA empanelled Annuity Service Provider as per terms and conditions   of  the   Annuity   Scheme   chosen   by   the Subscriber    in   his   “With   Drawal   Form”   prescribed (Form.101-GS).  The balance  is paid in lump sum or by deferred payment mode as chosen by the subscriber. For this the subscriber (retired employee) need to submit the following forms duly filled in through the Drawing and Disbursing Officer concerned and the Treasury Officer.

i.) Form  101-GS  –  Withdrawal  Form  for  Claim  of Accumulated Pension Wealth on Superannuation for Government Employees.

ii.) Annexurefor Nomination Details:

Form 101-GS – in case of single nominee.

Form 101-GS-N1 – in case of multiple nominees.

b.)  Upon Death:   In case of death before superannuation the entire accumulated pension wealth (100%) is paid to the nominee  / legal heir of the subscriber.   The   legal heir needs to submit the following  withdrawal form duly filled in along with prescribed Certificates from the competent authority through  the Drawing and Disbursing Officer and the Treasury Officer concerned:-

Form 103-GD – Withdrawal of Accumulated Pension Wealth   by  Claimant   due  to  the  death   of  the subscriber.

c.) Exit from NPS before the age of Normal superannuation (irrespective of cause):     In   this   case,   the   subscriber should  utilize  at least 80% of the accumulated  pension wealth for purchase of annuity from the PFRDA empanelled Annuity Service Provider as per terms and conditions of the Annuity Scheme chosen by the Subscriber in his “With Drawal Form” prescribed (Form.102-GP).   The balance is paid in lump sum or by deferred payment mode as chosen by the subscriber.  For this the subscriber need to submit the following forms duly filled in through the Drawing and Disbursing Officer concerned and the Treasury Officer:-

i.) Form  102-GP  –  Withdrawal   Form  for  Claim  of Accumulated  Pension Wealth on Exiting before the age of normal Superannuation for Government Employees.

ii.) Annexurefor Nomination Details:-

Form 102-GP – in case of single nominee. Form 401-AN – in case of multiple nominees.

02.)  Mode of Deferred Payment:   A subscriber on superannuation or premature exit has an option to defer withdrawal of lump-sum amount payable  (40%  in  case  of  superannuation  and  20%    in  case  of premature exit) till he attains the age of 70 years.  He has choice to withdraw  the  accumulated  amount  at  any  time  before  that  by submitting a withdrawal request.   The amount will be credited automatically to the bank account upon attaining age of 70 years.  Till then the amount continues to be invested with the Pension Fund Managers.

03.)   Option to withdraw accumulated Pension Wealth ? `.2,00,000/-: The  NPS  provides  for  withdrawal  of the  entire  accumulate  Pension Wealth, in case it is less than or equal to `.2,00,000/- as on the date of superannuation.  The subscriber has to submit the prescribed form viz., Form.101-GS duly filled in along with a specific request in a form prescribed.

04.)  Purchase of Annuity:    The NPS provides for purchase of annuity by a subscriber on his superannuation or premature exit by utilizing a proportion  of the accumulated  Pension Wealth from the empanelled Annuity Service providers.   It is at least 40% on superannuation  or 80%  on  pre-mature   exit.  However,  it  is  exempted  in  case  of accumulated Pension Wealth equal to or less than `.2,00,000/- at the time  of superannuation.    The  PFRDA  has empanelled  the  following service providers as of now:-

a.)  Life Insurance Corporation of India,

b.)    SBI Life Insurance Co. Ltd.,

c.)   ICICI Prudential Life Insurance Co. Ltd., d.)   HDFC Standard Life Insurance Co. Ltd., e.)   Bajaj Allianz Life Insurance Co. Ltd.,

f.)     Reliance Life Insurance Co. Ltd., and

g.)    Star Union Dai-ichi Life Insurance Co. Ltd.

The subscriber can choose the scheme and the annuity provider according to his choice at the time his withdrawal request. The NPS also  provides  for  the  following  default  option  in  the  interest  of subscribers to avoid delay in claim processing:-

a.) Default    Annuity    Service    Provider:    Life    Insurance Corporation of India.

b.) Default Annuity Scheme:  Annuity for life with a provision of 100% of the annuity payable to spouse during his / her life on death of annuitant.  Payment of monthly annuity ceases on the death of the annuitant and the spouse.

c.) If  the  corpus  is  not  adequate  to  buy  default  annuity variant, the subscriber has to compulsorily choose Annuity

Service Provider which offers it at the available corpus.

05.)  Procedure for withdrawal:      The subscriber or the claimant, in case of death has to submit a withdrawal application in a proforma prescribed for the respective purpose to the CRA through the Drawing and Disbursing Officer and the Treasury Officer / PAO concerned.  The CRA processes such requests as per the scheme procedures and authorizes the payment for crediting to bank account of the subscriber / claimant.

ANNEXURE – II

GUIDELINES TO SUBMIT AND PROCESS WITHDRAWAL REQUESTS TO THE CRA

The withdrawal  request  should  be in the  form  prescribed for the respective category of exit.

The  Subscriber  PRAN  should  be  in  active  status  in  CRA system  and  the  request  for  withdrawal  should  be  processed through  the  DDO  who  deducts  the  last  contribution  of  the subscriber and the corresponding Treasury Officer.

The  application  should  be  filled  in  all  respects  by  the Claimant / Subscriber in black ink without any over write or corrections.  All  the  mandatory  fields  should  be  filled  in  with correct  postal  address.     It  should  be  accompanied  by  the documents prescribed and detailed at the end of relevant application   form,   viz.,   Form.101-GS,   102-GP   and  103-GD depending upon the type of withdrawal.

If  the  accumulated  Pension  Wealth  on  superannuation  is equal to or less than `.2,00,000/- and the subscriber prefers to withdraw  the  entire  amount,  Form.101-GS  should  be accompanied by a specific request in the following proforma:-

NEW PENSION SYSTEM
Request for withdrawal of Total Pension Wealth upon Normal Superannuation   (for  Government  employees)  /  Upon  attaining  the age of 58 / 60 Years and where the total Pension Wealth is equal to or less than `.2,00,000/-
I     _________________________________________________

holding  a  Permanent  Retirement  Account  with  number  (PRAN)

___________________  do hereby apply for the payment of the accumulated  pension  wealth  in my  NPS  Account  being  the  full and final benefits receivable by me.

Date:  
Place:
Signature of the Subscriber

The PFRDA prescribes the following checks / guidelines for submission of withdrawal request.

Superannuation & Premature exit:

01.) Photograph   needs   to   be   duly   attested   by   the subscriber. Lump-sum amount for withdrawal and annuity needs to be mentioned in percentage.

02.)Cancelled Cheque / Bank Certificate on the bank letter head  indicating  the  Bank  name  and  address,  Bank account number, IFS Code and MICR code.

03.) Nominee details need to be completely filled along with the witness signature.

04.) Withdrawal   form  needs  to  be  duly  stamped  and signed by the mapped Nodal Office, i.e. the Drawing and Disbursing Officer concerned.

01.)  Advanced stamped receipt need to be duly filled along with the subscriber signature on the Revenue stamp.

02.) Original PRAN card (or) affidavit in case of non submission of PRAN card.

03.)  KYC documents (address and Photo ID proof) should write with “verified with original” and attested by mapped  Nodal  Office,  i.e.,  the  Drawing  and Disbursing Officer concerned.

04.)  Copy of Bank Passbook should be self attested by the Subscriber   and  mapped   Nodal   Office,   i.e.,   the Drawing and Disbursing Officer concerned.

Death:

Withdrawal request should be submitted by the Nominee provided in  the  CRA  system.    In  case  of  Nominee  not  available  on  the  CRA system, a legal heir certificate (or) a certified copy of family members certificate  issued  by Executive  Magistrate  is required  indicating  the relationship  of the claimant as well with supporting documents to be provided.

 

Relinquishment deed from all the legal heirs on a Stamp paper of

`.100/- is to be furnished, if they are not claiming the pension funds. KYC documents (Photo ID proof and Address proof) of all the legal heirs duly  attested  by  the  mapped  Nodal  Office,  i.e.,  the  Drawing  and Disbursing Officer concerned.  The claimant need to furnish an Indemnity bond  stating  the responsibility  for claiming  on behalf  of all the  legal heirs.

The application should be filled in all respects by the claimant under proper witness whose details need to be filled in.

01.) Advanced  stamped  receipt  need  to  be  duly  filled along with the claimant signature on the Revenue stamp.

02.)Original PRAN Card (or) affidavit in case of non submission of PRAN Card.

03.) KYC  documents  (Address  and  Photo  ID  proof)  of the claimant  should  be attested  by  mapped  Nodal  Office, i.e., the Drawing and Disbursing Officer concerned.

04.) Original Death Certificate issued by the local authority.

05.) Copy of Bank Passbook should be self attested by the claimant and mapped Nodal Office, the Drawing and Disbursing Officer concerned.

06.) Cancelled Cheque / Bank Certificate on the bank letter head  indicating  the  Bank  Name  and  address,  Bank Account Number, Name of the Claimant, IFS Code and the MICR Code.

The Drawing and Disbursing Officer on receiving the application should check it as per the instructions provided for in the relevant application form and attest it as provided for in the application duly affixing his / her stamp.

The   application   should   be   forwarded   to  the   mapped treasury   officer   /  PAO   for   further   prescribed   checks   and attestation.    The  treasury  officer  /  Pay  and  Accounts  Officer shall  verify  the  genuineness  of  the  application  by  identifying the  DDOs  attestation  and  check  the  details  with  reference  to Master   data   of  the  subscriber   in  the  CRA  website.     The following other primary checks should be done before attesting and forwarding application.

New Pension System – Exit Policy – Withdrawal procedures  for  Subscribers

a.)  Status  of  the  PRAN  in  CRA  system.    It  should  be active.

b.)    The Subscriber details.

c.)  Full address of the Subscriber / Claimant.

d.)  Date of death of deceased subscriber / Date of exit

(or) Date of Superannuation, as the case may be.

e.)  The  percentage  of  allocation  towards  annuity  and

Pension Wealth noted in the application.

f. )    The bank details, i.e., Bank Account Number, Name of the Bank and Branch, MICR Code and IFS Code.

The Treasury  officer  / PAO  shall place  an online  request by login into  www.cra-nsdl.com and simultaneously forward the application with a covering letter in a secured mode of delivery to the CRA at the following address:-

Exception Handling Cell,

Central Recordkeeping Agency,

NSDL e-Governance Infrastructure Limited,

10th Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, MUMBAI – 400 013.

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