Lok Sabha Question No. 2455 (UNSTARRED), answered on 2022-08-01
Subject: National Pension Scheme
Ministry: FINANCE
Asked by: Vinayak Bhaurao Raut, Arvind Ganpat Sawant, Ranjanben Dhananjay Bhatt

## Ministry of Finance

## Department of Expenditure

## LOK SABHA

## UNSTARRED QUESTION NO.2455

## TO BE ANSWERED ON; 01* AUGUST, 2022/SRAVANA 10 1944 (SAKA)

National Pension Scheme

## QUESTION

## 2435: Shri Vinayak Raut:

Shri Arvind Ganpat Sawant:

Shrimati Ranjanben Dhananjay Bhatt:

## Will the Minister of FINANCE be pleased to state:

- (b) the details of the percentage of monthly contributions of Government in National Pension Scheme (NPS) for all the employees of Union Government;
- whether the pensioners of Employees' Pension Scheme 1995 (EPS-95) are being the (a facility of new pension at present; provided
- the details of the percentage of monthly contribution in the NPS by the Government for all the employees of Central autonomous bodies under various central Ministries;
- whether the Government is considering to make NPS easier and if so. the details thereof and if not. the reasons therefor?
- the appropriate steps taken by the Government to provide suitable and other facilities t0 the pensioners under EPS-95; and pension

## ANSWER

## MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHOUDHARY)

- Pension Scheme EPS); 1995 is a Defined Contribution-Defined Benefit" Social  Security Scheme managed by the Ministry of Labour and Employment The corpus of the Employees Pension Fund is made up of (i) contribution by the employer 8.33 per cent of wages: and (ii) contribution from Central Government through budgetary support 1.16 per cent of wages t0 are out of" such up an accumulations The fund is valued annually as mandated under paragraph 32 of the EPS, 1995 and aS per the valuation of the fund as on 31.03.2019, there is an actuarial deficit: paid

under the Scheme is determined taking into account the pensionable Amount of member' $ of service and pensionable salary as per following formula: pension period

Pensionable Service X Pensionable Salary/ 70

the Government; for the first time, in the year 2014, provided a minimum However; Rs. 1.000/ pensioners under the EPS, 1995 by providing budgetary support; which per of 1.16% of wages annually towards EPS was in  addition to the budgetary support Employees Provident Fund Organisation (EPFO) pension provided

National Pension System (NPS) is a contributory   pension   system which was Further; introduced by the Government of India to replace the defined benefit pension system (Old Pension F. No.5/7/2003-ECB&PR, dated 22nd December; 2003 The NPS Scheme) . vide notification number the PFRDA Act;, 2013. NPS was is administered under service from Ist January, 2004, (except the forces). Central Government non-resident) between 18 and 70 years with effect fron Is rolled out for all citizens (resident O 2009, on voluntary basis: armed aged May;

- The monthly contribution of Government in NPS for all the employees of Union Goverment (b) 10 of the Basic plus Dearness Allowance we.f 01.01.2004 which has been enhanced was percent to 14 percent of Basic plus Dearness Allowance We.f: 01.04.2019. Pay Pay
- contribution of Government in NPS for all the employees of Central autonomous (c) The monthly bodies under various Central Ministries was 10 of the Basic we.f 01.01.2004 which has been enhanced to 14 percent of Basic plus Dearness Allowance 01.04.2019. Pay percent Pay
- Earlier there was no provision   under EPS, 1995 for   restoration alicr (d) the Government vide G.SR 132 (E) dated 20.02.2020 notified decision f commutation. However; after completion of fifteen from the date of such commutalion in restoration of normal pension members who availed the benefit of commutation of under the erstu hil' respect of those paragraph 12A ofthe EPS, 1995,0n or before 25.09.2008 pension years pension

- for   streamlining NPS for   Central of India has taken a number of steps (e) Government S contribution from the earlier These include enhancement of Government" Government employees. for selection of Pension Funds and paltern + DA to 14% of + DA, freedom of choice 10%/ of or delayed deposit of NPS to subscribers; payment of compensation for non-deposit of investment under Section 8OC of the Income Tax contributions for any during 2004-2012, tax exemption withdrawal on exit from earlier 40% to 1961, and increase in tax exemption limit for lump sum Act; income tax. The contribution b! due; making the entire withdrawal exempt from 60%/ of the amount 8OC of the Income Tax under Tier-II of NPS is under Section the Government employees that there is & to Rs. 1.50 lakh for the purpose of income tax; Act; 1961, for deduction up lock-in of 3 Pay Pay period covered provided period years.

Authority (PFRDA) is making constant subscribers, for all transactional vities under NPS including efforts to make on-boarding of NPS superannuation; a easier &nd comforlable experience through digitization Exit from the system upon the NPS (D-Remit) Facility for ease of contributions by of the activities like Direct  Remittance on boarding experience; Offline Aadhar subscribers, OTP based authentication to Annuity Literacy Programs to create awareness of exit based K YC and regularly conducting and annuity schemes. paperless provide process

*******