GOVERNMENT OF PUDUCHERRY
LOCAL ADMINISTRATION SECRETARIAT
(G.O. Ms. No. 14/LAS/A4/2015, dated 3rd August 2015)
ORDER
The Government of India have introduced a New Defined Contribution
Pension Scheme replacing the existing system of Defined Benefit Pension System.
The said New Pension Scheme has come into operation with effect from 1-1-2004
and it is applicable to all new entrants to Central Government Service, except to
Armed Forces, joining Government service on or after 1-1-2004 vide Office
Memorandum No. l(7)(2)/2003/TA/11, dated 7-1-2004 and No. 1(7)(2)/TA/2003/67-74,
dated 4-2-2004 from Government of India, Ministry of Finance, Department of
Expenditure, Controller-General of Accounts, New Delhi and Notification
No. 5/7/2003-ECB&PR, dated 22-12-2003 from Government of India, Ministry of
Finance, Department of Economic Affairs, ECB and PR Division, New Delhi.
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9 {
No.
86
Poudouchéry
Vendredi
9
Octobre
2015
(17 Asvina 1937)
No.
Puducherry
Friday
9th
October
2015
544
LA GAZETTE DE L’ETAT
[ PART-I
2. In pursuance of the aforesaid Office Memoranda, the Government of
Puducherry has also adopted the said New Defined Contribution Pension Scheme
for its employees who have joined service on or after 1-1-2004 vide G.O. Ms. No. 137/
2004/F4, dated 12-11-2004 of the Finance Department, Puducherry.
3. As far as the employees of Local Bodies are concerned, they were
governed by the Central Civil Services (Pension) Rules, 1972 and orders, decisions
and instructions issued by the Government from time to time under the said rules
were mutatis mutandis made applicable to them vide the Puducherry Municipal
Subordinate Services (Retirement and Pension) Rules, 1976 and the Puducherry
Commune Panchayat Subordinate Services (Retirement and Pension) Rules, 1976.
4. On the basis of approval of the Government of Puducherry communicated
to the Pension Fund Regulatory and Development Authority (PFRDA) to extend the
Central Record Keeping Agency (CRA) facilities to cover the employees of the
Government and Autonomous Bodies/ Public Sector Undertakings under it, as well,
agreements have been already executed with CRA and NPS Trust on the condition
that each such Autonomous Bodies/Public Sector Undertakings shall bear the cost
of record keeping, etc., charged by the CRA for maintenance of accounts, etc.
5. The Secretary (Local Administration), Puducherry, in exercise of powers
conferred by sub-section (2) of section 114 of the Puducherry Municipalities
Act, 1973 and sub-section (2) of section 68 of the Puducherry Village and Commune
Panchayats Act, 1973 and all other powers enabling him in this behalf is pleased to
extend the New Defined Contribution Pension Scheme with necessary modifications
as follows, to the employees of Local Bodies who have joined service on or after
1-1-2004.
The salient features of the New Pension Scheme are as follows:—
1. The New Pension Scheme will work on defined contribution basis and
will have two tiers - Tier-I and Tier-II. Contribution to Tier-I is mandatory for all
employees working in the Local Bodies joining on or after 1-1-2004, whereas Tier-II
will be optional and at the discretion of the employees.
2. In Tier-I Local Bodies Employees will have to make a contribution of
10% of his Basic Pay plus Dearness Allowance, which will be deducted from his
salary bill every month by the PAO concerned. The Local Bodies will make an equal
matching contribution.
3. Tier-I contributions (and the investment returns) will be kept in a
non-withdrawable pension Tier-I Account. Tier-II contributions will be kept in a
separate account that will be withdrawable at the option of the Local Bodies
employees. The Local Bodies will not make any contribution to Tier-II account.
4. The existing provisions of Defined Benefit Pension and General
Provident Found would not be available to new Local Bodies employees joining
service on or after 1-1-2004.
5. In order to implement the scheme, there will be Central Record
Keeping Agency and several Pension Fund Managers to offer three categories of
Schemes to Local Bodies employees, viz., options A, B and C based on the ratio of
investment in fixed income instruments and equities. An independent Pension Fund
Regulator and Development Authority (PFRDA) will regulate and develop the
pension market.
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545
6. As an interim arrangement, till such time, the Statutory PFRA is set
up, an interim PFRDA has been appointed by issuing and executive order
by Ministry of Finance Finance (DEA).
7. Till the regular Central Record Keeping Agency and Pension Fund
Managers are appointed and the accumulated balances under each individual
account are transferred to them, it has been decided that such amounts representing
the contributions made by the Local Body employees. The Local Body and the
matching contribution made by the Local Bodies will be kept in the Public Account
of India. This will be purely a temporary arrangement as announced by the Local
Bodies employees.
8. It has also been decided that Tier-II will not be made operative during
the interim period.
9. Local Bodies employees can exist at or after the age of 60 years from
the Tier-I of the scheme. At exist, it would be mandatory for him to invest 40 per cent
of pension wealth to purchase an annuity (from an IRDA, regulated Life Insurance
Company), which will provide for pension for the lifetime of the employee and his
dependent parents/spouse. In the case of Local Bodies employees who leave the
scheme before attaining the age of 60, the mandatory annuitisation would be 80%
of the pension wealth.
10. The following guidelines are issued for the implementation of
the New Pension Scheme during the interim arrangement for the guidance of
the PAOs/DDOs.
(a) The new pension scheme becomes operational with effect from 1-1-2004.
(b) Contributions payable by the Local Bodies employees towards the
Scheme under Tier-I, (i.e., 10% of the Basic Pay plus Dearness Allowance) will be
recovered from the salary bills every month.
(c) The scheme of voluntary contributions under Tier-II will not be made
operative during the period of interim arrangement and therefore, no recoveries will
be made from the salaries of the employees on this account.
(d) Recoveries towards Tier-I contribution will start from the salary of
the month following the month in which the Local Bodies employees has joined
service. Therefore, no recovery will be effected for the month of joining. For
example, for employees joining service in the month of January 2004, deductions
towards Tier-I contribution will start from the salary bill of February 2004.
No deduction will be made for his salary earned in January 2004. Similarly,
deductions for those joining service in the month of February 2004 will start from
the salary bill of March 2004 and so on.
(e) No deductions will be made towards General Provident Fund
contribution from the Local Bodies employees joining the service on or after
1-1-2004 as the General Provident Fund Scheme is not applicable to them.
(f) It has been decided that pending formation of regular Central Record
Keeping Agency, Central Pension Accounting Office will function as the Central
Record Keeping Agency for the above scheme.
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LA GAZETTE DE L’ETAT
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(g) Immediately on joining Local Bodies service, the Local Bodies
employees will be required to provide particulars such as his name, designation,
scale of pay, date of birth, nominee(s) for the fund, relationship of the nominee,
etc., in the prescribed form (Annexure-I). The DDO concerned will be responsible
for obtaining this information from all Local Bodies employees covered under the
New Pension Scheme. Consolidated information for all those who have joined
service during the month shall be submitted by the DDO concerned in the prescribed
format (Annexure-II) to his Pay and Accounts Officer by 7th of the following month.
Annexure-I will be retained by DDOs.
(h) On receipt of Annexure-II from the DDO, PAO will allot a unique
16 digit Permanent Pension Account Number (PPAN). The first four digits of this
number will indicate the calendar year of joining in the service of the Local Bodies
the next digit indicates whether is a Civil or a Non-Civil Ministry (for all Civil
Ministries this digit will be ''1"), the next six digits would represent the PAO code
(which is used for the purpose of compiling monthly accounts), the last four digits
will be the running Serial Number of the individual Local Bodies employee which will
be allotted by the PAO concened. PAO will allot the Serial Number pertaining.
(i) The first Local Bodies employee joining service under Ministry of
Civil Aviation under the accounting control of PAO (Sectt.), New Delhi in 2004, shall
be allotted the following PPAN:—
Calendar Year
Civil Pin
PAO Code
Serial No.
2
0
0
4
0
1
0
4
0
8
6
6
0
0
0
1
(j) The Pay and Accounts Officer will maintain an Index Register for the
purpose of allotment of PPAN to new entrants to the Local Bodies service. Format
of the Index register is given in Annexure-VII.
(k) The PAO will return to the DDO concerned, a copy of the statement
duly indicating therein the Account Numbers allotted to each individual by
10th instant. DDO in turn will intimate the account number to the individuals
concerned and also note in the pay bill register.
(l) The particulars of the Local Bodies employees received from the
various DDOs will be consolidated by the PAO in the format (Annexure-II A) and
sent to the Principal Accounts Office by the 12th of every month.
(m) The Principal Accounts Office in turn will consolidate the particulars
in the prescribed format (Annexure-II B) and forward the same to Central Pension
Accounting Office by 15th instant. The CPAO will feed this information in their
computer database.
(n) The DDOs/CDDOs will prepare separate Pay Bill Registers in respect
of the Local Bodies employees joining in service on or after 1-1-2004. The DDOs/
CDDOs will have to prepare separate pay bills in respect of these Local Bodies
employees and will sent the same with all the schedules to the PAO on or before
20th of the month to which the bills relate. Cheque Drawing DDOs may note that
hereafter in respect of Local Bodies employees joining service on or 1-1-2004, they
will only prepare pay bills and not make payments. Such bills will be sent by them
to the Pay and Accounts Officers for pre-check and payment.
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547
(o) The DDO/CDDO will prepare a recovery schedule in duplicate in the
prescribed form (Annexure-III) for the contributions under Tier-I and attach them
with the pay bills. The amount of the contributions under Tier-I should tally
with the total amount of recoveries shown under the corresponding column in
the pay bill.
(p) The accounting procedure for these deductions is being financial
and shall be notified shortly.
(q) It may be noted that alongwith the salary bill for the Local Bodies
employees who join service on or after 1-1-2004, the DDO/CDDO shall also prepare
a separate bill for drawal of matching contributions to be paid by the Local Bodies
and creditable to pension account.
(r) The bill for drawal of matching contribution should also be
supported by schedules or recoveries in Form (Annexure-IV).
(s) On receipt of the salary bills in respect of the employees working in
the Local Bodies joining service after 1-1-2004, PAO will exercise usual checks and
pass the bill and make the payment. After the payment is made and posting done
in the Detailed Posting Register, one set of schedules relating to pension
contributions will be detached from the bills as done in the case of other schedules
such as General Provident Fund, long-term advances. The schedules will then be
utilised for posting the credits of contribution in the Detailed Ledger Account of
the individual.
(t)
The employee's contributions under Tier-I and Tier-II and Local
Bodies employees contribution should be posted in different columns of the
individual Ledger Account to be maintained in the format in (Annexure-V) and
Broadsheet and tallied with the accounts figures as being done in the case of General
Provident Fund.
(u) These accounts should not be mixed with General Provident Fund
accounts and these records/ledger accounts should be independent of General
Provident Fund accounts maintained in the case of pre 1-1-2004 entrants.
(v) The PAO will consolidate the information available in the New Scheme
schedules received from the various DDOs and forward the same in a floppy in the
prescribed Form (Annexure-VI) to Principal Accounts Office by 12th of the month
following the months in which the credit pertains Principal Accounts Office in turn
will consolidate the information and send the same in electronic Form to the Central
Pension Accounting Office by 15th.
(w) CPAO on receipt of this information from all the Principal
Accounting Offices (including the Non-Civil Ministries) will update its database
and generate exception reports for missing credits, mismatches, etc., which will be
sent back to the PAOs concerned through the Principal Accounts Offices for further
action.
(x) Whenever any Local Bodies employee is transferred from one office
to another either within the same accounting circle or to another accounting circle,
balances will not be transferred by the PAO to the other Accounts Office. However,
the DDO should clearly indicate in the LPC of the individual the unique account
number, the month up to which Local Bodies employees contribution and Local
Body's contribution have been transferred to the pension fund.
(y) No withdrawable of any will be allowed during the interim
arrangements provisions regarding terminal payments in the event of untimely death
of an employee or in the event of his leaving the service during the interim period
shall be notified in due course.
(z) Detailed instructions on the interest payable on Tier-I balances shall
be issued in due course.
548
LA GAZETTE DE L’ETAT
[ PART-I
(aa) At the end of each financial year, the CPAO will prepare Annual
Account Statements for each employee showing the opening balance, details of
monthly deductions and Local Body's matching contributions, interest earned, if
any, and the closing balance. CPAO will send these statements to the Principal
Accounts Offices for onward transmission to the DDO through the PAO.
(bb) After the close of each financial year, CPAO will have to report the
details of the balances (PAO-wise) to each Principal Accounts Offices, who will
forward the information to each PAO for the purpose of reconciliation. The PAO will
reconcile the figures of contributions posted in the ledger account of the individuals
as per their ledger with figures as per the books of CPAO.
(cc) After the appointment of CRA and Fund Managers, this office will
issue detailed instructions on transfer of balances to CRA. A copy of the
Notification No.5/7/2003-ECB&PR, dated 22-12-2003 of the Government of India,
Ministry of Finance, Department of Economic Affairs, ECB & PR Division, New Delhi
and No.5/7/2003-ECB & PR of the Government approved on 23rd August 2003 the
proposal to implement the budget announcement of 2003-04 relating to introducing
a new restructured Defined Contribution Pension System for new entrants to Central
Government service, except to Armed Forces, in the first stage, replacing the existing
system of Defined Benefit Pension System.
(i) The system would be mandatory for all new recruits to the Local
Bodies employees service from 1st of January 2004. The monthly
contribution would be 10 per cent of the salary and dearness allowance to
be paid by the employee and matched by the Local Bodies. However, there
will be no contribution from the Local Bodies in respect of individuals who
are not Local Bodies Employees. The contributions and investment returns
would be deposited in a non-withdrawable pension Tier-I account. The
existing provisions of Defined Benefit Pension and General Provident Fund
would not be available to the new recruits in the Local Bodies employees.
(ii) In addition to the above pension account each individual may also
have a voluntary Tier-II withdrawable account at his option. This option is
given as General Provident Fund will be withdrawn for new recruits in Local
Bodies Employees. The Local Bodies make no contribution into this
account. These assets would be managed through exactly the above
procedures. However, the employee would be free to withdraw part or all of
the 'second tier' of his money at any time. This withrawable account does not
constitute pension investment, and would attract no special tax treatment.
(iii) Individual, can normally exist at or after age 60 years for Tier-I of
the pension system. At exit the individual would be mandatory required to
invest 40 per cent of pension wealth to purchase an annuity (from an IRDA-
regulated Life Insurance Company). In case of the Local Bodies employees
the annuity should provide for pension for the lifetime of the employee and
his dependent parents and his spouse at the time of retirement. The
individual would receive a lump sum of the remaining pension wealth, which
he would be free to utilise in any manner. Individual would have the
flexibility to leave the pension system prior to age 60. However, in this case
the mandatory annuitisation would be 80% of the pension wealth.
(iv) Architecture of the New Pension System : It will have a Central
Record Keeping and Accounting (CRA) Infrastructure, several Pension
Fund Managers (PFMs) to offer three categories of scheme viz.,
option A, B and C.
PART-I ]
LA GAZETTE DE L’ETAT
549
(v) The participating entries (PFMs and CRA) would give out easily
understood information about past performance, so that the individual
would able to make interned choices about which scheme to choose.
2. The effective date for operationalisation of the new pension system shall
be from 1st January 2004.
3. Architecture of the scheme.— The Government of India has constituted
the Pension Fund Regulatory and Development Authority (PFRDA) to implement
the New Pension Scheme which in turn has appointed the following five
intermediaries with their functions indicated against each :
Sl. No.
Institution
Functions
1
New Pension Scheme (NP) Trust
Responsible for security and management
of individuals assets.
2
M/s. National Securities Depositories
Responsible for record keeping.
Limited (NSDL) (Central Record Keeping
Agency) (CRA).
3
Pension Fund Managers:
(5) State Bank of India
Responsible for investment.
(6) Union Trust of India
(7) LIC
4
Bank of India, New Delhi.
To receive funds and distribute it to the
(Trustee Bank)
Pension Fund Managers (Responsible
for financial transaction).
5
M/s. Stock Holding Company of India
Responsible for holding stock.
Limited (Custodian of Pension Fund).
4. The roles of local functionaries.— For the purpose of this scheme,
Pay and Accounts Officer (PAO), Nodal Officer and Drawing and Disbursing
Officer (DDO) shall be as follows :
(i) “Pay and Accounts Officer” means the Director of Accounts and
Treasuries, Puducherry.
(ii) “Nodal Officer” means the officer appointed in the Directorate of
Local Administration having a role in the implementation of New Pension
Scheme.
(iii) “Drawing and Disbursing Officer” means either the Commissioner of
the Local Body concerned or any officer in the Local Body declared as
Drawing and Disbursing Officer.
The role of Pay and Accounts Officer, Nodal Officer and the Drawing and
Disbursing Officers (DDOs) is as indicated against each :
Local functionaries
Role(s)
(1)
(2)
Pay and Accounts Officer,
The role(s) assigned to the Pay and
(Directorate of Accounts and Treasuries).
Accounts Officers in the guidelines
issued by Government.
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LA GAZETTE DE L’ETAT
[ PART-I
Nodal Officers in the Directorate of
(i) A common fund shall be constituted
Local Administration.
by collecting the employee's contribution
and the employee's matching contribution
under the New Pension Scheme.
(ii) He shall open two separate bank
accounts (one for maintaining employee's
contribution and another for maintaining
employer's equal matching contribution)
in the Bank of India, Puducherry Branch
or State Bank of India, Puducherry.
(iii) An amount equal to at least two
months contribution payable by the
employees
and
the
matching
contribution payable by employer shall
be credited in advance into the Bank
account.
(iv) Every month before the date of
salary payment, the total contribution
payable by the employees and the
matching contribution payable by the
Local Body concerned shall be assessed
and two separate cheques shall be
drawn out of the above said account
(i.e. one for employee’s contribution and
another for employer's contribution) and
it shall be forwarded to the Directorate
of Accounts and Treasuries, Puducherry,
alongwith the full details of employee’s
contribution
and
the
employer's
contribution
(both
print
and
electronically) in the pro forma enclosed
for onwards transmission to Bank of
India, New Delhi (Trustee Bank), in time
to ensure its timely investment.
(v) Amount in the common bank
account shall be got replenished by
remittance of separate cheques/demand
drafts after pay bills are duly passed for
payment for the month.
(vi) He shall coordinate with the
Deputy Director of Accounts and
Treasuries, in-charge of New Pension
Scheme and arrange to send the
consolidated contribution every month
through the Directorate of Accounts and
Treasuries to the Trustee Bank (Bank of
India, New Delhi).
Drawing and Disbursing Officer of the
The role(s) assigned to the Drawing and
Local Bodies.
Disbursing Officer in the guidelines
under para (2).
(1)
(2)
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551
5. Recovery of arrears of employee’s contribution and matching
contribution of Local Bodies.— As the New Pension Scheme has been introduced
with effect from 1-1-2004, the backlog of employee's contribution shall be recovered
in monthly instalments alongwith the recovery for current month. For this purpose,
one month recovery towards the past period shall be recovered in the regular salary
bills of the employees. As regards the employer's (Local Body) contribution payable
for the past periods, the entire arrears shall be paid in one or two instalments.
6. Application of Government orders, decisions, instalments, clarification, etc.—
All orders, decisions, instructions and clarifications issued by the Government from
time to time under the New Pension Scheme shall mutatis mutandis be applicable
to the employees of Local Bodies who have joined on or after 1-1-2004.
(By order)
K. SARANGAPANI,
Under Secretary to Government (LA).
————
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