Refund of CPS amount under New Pension Scheme: DFS Clarification dated 11-07-2012

Refund of CPS amount under New Pension Scheme: DFS Clarification dated 11-07-2012 

F.No. 11/20/2012-PR

Government of India

Ministry of Finance

Department of Financial Services

Jeevandeep Building, Sansad Marg, 

New Delhi dated the 11 July, 2012

OFFICE MEMORANDUM

Subject: Refund of CPS amount under New Pension Scheme — reg.

The undersigned is directed to refer to Ministry of Defence's O.M. No. 12(3)12010/D(Civ-II) dated 12.03.2012 on the above cited subject and to furnish the following exit provisions under New Pension System : -

a. Upon Normal superannuation: At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of a annuity providing for the monthly pension of the subscriber and the balance is paid as a lump sum payment ot the subscriber.

b. Upon death: The entire accumulated pension wealth (100%) woukl be paid to the nominee / legal heir of the subscriber and thee would not be Any purchase of anuity monthly pension.

c. Exit from NPS before the age of Normal superannuation (irrespective of cause): At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of an annuity providing for the monthly pension of the Subscriber and the balance e is paid as a lump sum payment to the subscriber.

d. In case of "technical resignation" of NPS subscribers, no withdrawal may be permitted and the balance outstanding in their personal retirement account along with PRAN may be carried forward, as the retirement account of NPS is portable amongst jobs.

(Surinder Kaur)

Under Secretary to the Govt. of India

Source [ click on image to download/view]

Via : http://karnmk.blogspot.in