Grievance redressal policy under National pension System in r/o PC of A (Fys)

OFFICE OF THE PRINCIPAL CONTROLLER OF ACCOUNTS (FYS)
10-A, S K BOSE ROADM KOLKATA – 700 001
MINISTRY OF DEFENCE
Ph- 033-22488878/5077-5080(Ext-665), Fax-03322480991, e-mail cda-cal@nic.in

Grievance redressal policy under National pension System in r/o PC of A (Fys)

Introduction:-

Office of the principal controller of factories has been envisaged to control the functioning of forty one branch AO under 9 Group controllers. The following PAO comes under purview of this office as being pr.PAO so far as NPS is concerned. The main aim/objective behind the creation in factory organization is to render efficient, correct, prompt accounting and payment services besides financial/expertise services to factory management and OFB Authorities.

Government of India has introduced a New Pension Scheme replacing the defined benefit pension scheme. The New Pension Scheme comes into operation w.e.f from 01.01.2004 and applicabel to all new entrants of Central Government Service on or after 01.01.2004. The New Pension Scheme is working on defined contribution basis and will have two tiers-Tier-I and Tier-II. Tier-I is mandatory for all Govt. Servants/employees of autonomous institutes. In Tier-I government will have to make a contribution of 10% of the Basic pay, DP and DA which will be deducted from his salary bill every month. Government will make equal matching contribution and will deposit the same in non-withdrawal pension Tier-I account.

Scope:-

Under NPS system Branch Accounts Offices are termed as “Pay Accounts Offices (PAO)”, As a Central Govt. Office, the correct and timely deposit of contribution in Tier-I account by the respective Branch Accounts Offices (PAOs) is the prime concern. As a part of PFRDA (Redressal of Subscriber Grievance) Regulation, 2015, every intermediary is required to follow the Grievance Redressal policy. Accordingly, the below stated Grievance Redressal policy (GRP) is made for prompt redressal of the grievances arising out of various services offered by the Branch Accounts Offices in the capacity of intrmediary. The scope of this GRP is restricted to redressal of grievances raised against intermediary.

The term “Grievances”is defined as “Grievances of complaint”includes any communication that expresses dissatisfaction, in respect of the conduct or any act of omission or commission or deficiency of service on the part of Branch Accsilnts offices, an intermediary and in the nature of seeking a remedial action but do not incrude following:

(i) Complaints that are incomplete or not specific in nature;
(ii) communications in the nature of offering suggestions:
(iii) Communications seeking guidance or explanation.
(iv) complaints which are beyond the powers and functions of the PAOs/Pr.AO or beyond the provisions of the PFRDA Act and the rules regulations framed there under; and
(v) complaints that are subjudice (cases which are under consideration by court of law or quasi-judicial body) except matters within the exlusive domain of the PFRDA under the provisions of the Act.

Objectives:

The purpose of this policy is to set forth the policies and procedures to be followed in receiving, handling and responding to any grievance against the concerned PAOs in respect of the services offered by them. The following are broad objectives for handling the customer grievances.

1. To Provide fair and equal treatment to all employees of respective Factory/Branch Offices without bias at all times.
2. To ensure that all issues raised by employees are dealt with courtesy and resolved in stipulated timelines.
3. To develop an organizational framework to promptly address and resolve employees Grievances fairly and equitably.
4. To Provide enhanced level of satisfaction.
5. To provide easy accessibility to the employees of respective Factory/Branch offices for an immediate Grievance redressal.
6.To put in place a monitoring mechanism to oversee the functioning of the Grievance Handling Policy.

How to raise the grievance:- (Tier-I)

The subscribers can raise grievances through the following mode:

By raising a grievance in writing – in the specified format/letters/representation addressed to the Grievance Redressal Officer,PAO/Chief Grievance Redressal Officer, pr.AO.

Resolution mechanism for grievances:-

The grievance will be resolved by concerned PAO and then appropriate reply will be sent to the complainant by the PAO/Pr.AO.

Turn Around time (TAT)

Every grievance has to be disposed – Off by the PAO within a period of thirty days of its receipt at both the redressal tiers.

Grievance Redressal Officer (GRO) and chief Grievance redressal Officer (CGRO):-

The details of respective Grievance Redressal Officer (GRO) at PAO level are:

Sl.No	Name and address
1	Shri Nabarun Dhar, IDAS Joint Controller of Accounts (Fys) Grienvance Redressal Officer (GRO), NPS O/O the PCA(Fys), AYUDH BHAVAN, 10-A S.K.Bose Road, Kolkara – 700 001. Phone No. (033) 22484341 Fax No. (033) 22480991. Email address: nabarundhar@gmail.com
2	Shri Abhiram Mandal, IDAS Deputy controller of Accounts (Fys) Grievance Redressal Officer (GRO), NPA O/O the PCA (Fys), AYUDH BHAVAN, 10-A S.K.Bose Road, Kolkata – 700 001. Phone No. (033) 22484341 Fax No. (033) 22480991.
3	Shri Vidhu Aggarwal, IDAS Assistant Controller of Accounts (Fys) Grievance Redressal Officer (GRO), NPS O/O the PCA(Fys), AYUDH BHAVAN, 10-A S.K.Bose Road, Kolkata – 700 001. Phone No. (033) 22484341 Fax No. (033) 22480991 Email address: vidhugupt @gmail.com
4	Shri Rajesh Kumar, Sr A.O. Grievance Redressal Officer (GRO), NPS O/O the AO OF NALANDA, Ordance Factory Nalanda(P), Rajgir 803121 Phone NO. (06112) 257105 Fax No. (06112) 257102. Email address: ao-ofn-bih@nic.in

If the complainant is not satisfied with the refressal of his grievances or if it has not been resolved by Grievance Redressal Officer, concerned PAO by the end of thirty days of the filing of the complaint, he/she may escalate the grievance to the chief Grievance Redressal Officer (CGRO).

The present chief Grievance Redressal Officer (CGRO) details are:-

Shri M.C.Chakrabortty, IDAS
Controller of Accounts (Fys),
Chief Grievance Redressal Officer (CGRO), NPS

O/O the PCA(Fys), AYUDH BHAVAN,
10-A S.K.Bose Road, Kolkata – 700 001.
Phone No. (033) 22484341 Fax No. (033) 22480991
Email address: moloycc.cgda@nic.in

The record of grievances will be maintained by the concerned Redressal Officer.

Sd/-
(Nabarun dhar)
Joint Controller of Accounts (Fys)

Signed copy-

Is NPS better than EPF?

The NPS is more complicated than EPF, but it may ensure a sufficient retirement kitty

If there’s one investment option that has received generous tax breaks in the Budget, it is the National Pension System (NPS). In a watershed move, the Finance Minister has also announced that employees in the organised sector will now be able to opt out of contributions to the Employees Provident Fund (EPF) and invest in the NPS instead. So, if given this choice, what should you do? Here’s how they compare.

Contributions

EPF contributions are mandatory for employees earning up to ₹15,000 a month in the organized sector. Many employers however insist on EPF contributions for all their employees. The contribution is pegged at 12 per cent of your pay (basic plus dearness allowance). Your statutory EPF contributions are matched by your employer. If you are an employee who usually struggles to save, the EPF is a good option for you as it forces you to save at least 12 per cent of your pay.

But if you are targeting a comfortable retirement, note that EPF alone won’t be enough as it is pegged only to your basic pay. The NPS is a voluntary account; you can contribute anything starting from ₹500 a month (₹6,000 a year).

To avail of the tax breaks on the investment, the maximum limit is ₹2 lakh a year. Unlike the EPF, the NPS allows you to skip contributions for a few months if you can’t afford it (investing once a year is mandatory).

So, the NPS scores over the EPF on two counts — you can save much more and do it with greater flexibility. But currently all your EPF contributions are matched by your employer. Not so for the NPS.

Portfolio

The money you pay into EPF is invested in ultra-safe options — Central and State Government securities, bonds and deposits from PSUs and a special deposit scheme from the Government. Last we know, G-Secs made up 40 per cent of the portfolio, PSU debt 32 per cent, with the deposit making up the rest of the EPF kitty. The EPF doesn’t actively manage its portfolio — it mostly buys and holds till maturity. This makes for low but predictable returns.

The key differentiator with the NPS is that it allows you to add an equity component to your retirement kitty. You also get to flexibly allocate your money between equities (up to 50 per cent), liquid funds/bonds and Government Securities (G-Sec) in any proportion you like.

You also have the choice of deciding who, among the six pension fund managers, will manage your money. Their individual track records are available on their websites.

You can rejig allocations once a year and also change your fund manager. Both the equity and the debt portions of the NPS have delivered double-digit returns in the last one year. But because they are invested in market instruments, your returns will fluctuate from year to year.

The G-Sec portion, for instance, delivered negative returns during the rising rate scenario, but is faring well with falling rates. Given that you are looking at the NPS as a long-term option, you need not worry too much about shorter term losses in the debt portfolio. Due to its portfolio structure, the NPS is likely to earn higher returns but with greater variability.

Returns

The interest you earn on your EPF account is decided by the EPF trustees who announce the rate every year. In the last four years, interest rates have been 9.5, 8.25, 8.5 and 8.75 per cent, respectively.

The returns on NPS depend on your asset allocation as well as choice of fund manager. If you choose a 30-50 per cent equity component, returns are likely to be in the double-digits, even assuming equities manage only 15 per cent a year and debt securities 8 per cent.

Disclosures

The EPF’s portfolio is not made public. But it is a government-backed scheme and the presumption is that it will not default on any payments. Returns are also announced and well-publicised.

With the NPS, you know exactly where it invests, with all the managers regularly disclosing their portfolios. But unlike the EPF, gauging NPS returns is not easy. Returns earned by different plans/managers are not available at one location. You need to compile them individually from the historical NAVs put out by the different fund managers.

So, the EPS is your best bet if you like to know exactly what you’re earning. The NPS works if you don’t mind leaving it to market forces.

Liquidity

The EPF allows you to withdraw your money before retirement if you resign from one job and take up another, after a gap. You can also draw money from it for constructing/buying a home, illness, marriage or education of children. You can use the sums withdrawn for these purposes.

In the NPS, if you withdraw before the age of 60, you need to compulsorily use 80 per cent of the proceeds to buy an annuity plan from an insurer. Even withdrawals after the age of 60 require you to use 40 per cent to buy an annuity. Only 60 per cent will be available to you to deploy as you please.

The EPF is certainly more flexible than NPS on early withdrawals. But withdrawing too much or too often can leave you short of a retirement kitty when you most need it.

Taxability

Contributions to the EPF are tax-free under Section 80C. Interest earned and withdrawals aren’t taxed either, unless you do so within five years of starting the account.

Investments in the NPS, up to ₹2 lakh are tax-free. But the sums you withdraw at retirement are taxable at the prevailing income tax rates. 

Read more at: The Hindu Business Line

Facility for Modification/updation a Contact details directly by NPS subscribers in CRA System

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRD/20151/11/POP/01

Date: 26th February, 2015

To,
All Points of Presence (PoPs)

Subject: Facility for Modification /updation a Contact details directly by NPS subscribers in CRA System

It has been observed that a subscriber is not always able to furnish.’ update his latest email id & mobile number on the CRA system_ As a result, several communications and information meant for the subscribers do not reach them, In order to obviate such. obstruction in smooth and seamless flow of information, additional features have been introduced in !he CRA system. All the Points of Presence (PoPs)- are hereby informed that an additional feature for ‘Modification/Updation of contact details (Email address and Mobile number) has now been enabled for the subscribers in CRA system. This is in addition to the existing process of updation of contact details through submission of Annexure UOS-S2/CS-S2 at the PoPs

The e-mail address and mobile numbers that are registered in the GRA system are used for sending alerts for FRAN generation, dispatch / delivery of FRAN kits. credit to PRAN and generation of OTP (One Time Passwords) based etc PFRDA also sends various other communications to the subscriber through this mode.

The system now provides that the subscribers can modify I update their contact details directly using the login credentials of CRA system (email address & mobile number). An e-mail as well as SUS will be sent to the updaled as well as existing mobile/email address of the subscriber with an intimation of the changes in contact details. The steps to be followed by the subscribers for changing the contact details are provided in Annexure.

All the Points of Presence (PoPs) are advised to disseminate the information among the concerned subscribers so that they may update the correct contact details.

In case, any further clarification is required in this regard, you may contact Mr. Saurabh Das at 022- 24994277 (E-mail ID-saurabhd@nsdl.co.in) or Mr. Sagar Flarab al 022-245994778 (E-mail ID sagarp@nsdl.co.in),

sd/-
Ashish Kumar
General Manager

Annexure

The NPS Subscribers can now login the CRA system and update their Contact details by going through the following steps:

a, The Subscriber has to login to the CRA system (www.cra-nsdl.com) with his/her User ID and IPIN

b. On successful login, under Update Details menu the subscriber is required to click on Update Contact Details.

c. The subscriber is required to click on ‘Edit’ for modifying his/her contact details.

d. The existing details if available in CRA system will be pre-populated. The subscriber will be required to enter new mobile number and e-mail address and click on Submit

e. Subscriber can also update his /her mobile number and e-mail address in case same was not provided earlier.

f..The subscriber is required to Confirm the changes in the next screen. An Acknowledgement number will be displayed on the screen.

g- The subscriber shall take note of Acknowledgement number for the changes in contact details,

h On successful update, the following message will be shown to the subscriber. ‘Details have been updated successfully. Please view changes through Subscriber Details View’.

i. SMS as well as an e-mail will be sent to the updated as well as existing mobile..email ID of the subscriber intimating him/her that the details have undergone a change.

source-http://pfrda.org.in/MyAuth/Admin/showimg.cshtml?ID=584

New Website of National Pension System Trust Launched:

Press Information Bureau

Government of India

Ministry of Finance

23-February-2015

New Website of National Pension System Trust Launched; To Provide Proper and Effective Information Dissemination to the Stakeholders and Provide Ease of Access to Various Beneficiaries Under NPS

The National Pension System Trust has been set-up and constituted by Pension Fund Regulatory Development Authority (PFRDA) for taking care of the assets and funds under the National Pension System (NPS) in the interest of the beneficiaries (subscribers).

The National Pension System Trust has launched its new website www.npstrust.org.in here today.. The website was launched by Shri G. N. Bajpai, Chairman & Trustee of the Board of NPS Trust. The website is aimed to provide proper and effective information dissemination to the stakeholders and provide ease of access to various beneficiaries under NPS.

Clarification on Revision of Investment Guidelines for NPS Scheme issued on 29.01.2014

CIRCULAR

PFRDA/2015/05/PFM/03

To,
All Pension Funds,

Date: 22nd Jan. 2015

Subject: Clarification on Revision of Investment Guidelines for NPS Scheme issued on 29.01.2014

This is with reference to the Circular No. PFRDA/2014/02/PFM/1 for Revision of Investment Guidelines for NPS Schemes issued by PFRDA on 29.01.2014.

2. Pursuant to above mentioned circular, the Pension Funds were expected to realign their portfolios in accordance with the revised guidelines.

3. However in the interest of the subscribers the following was stipulated in clause 5.

“Pension Funds to ensure that the interest of the subscribers is safeguarded and that they should not incur any loss while exiting the existing investments to comply with the revised guidelines. However, all future investments should be made strictly in compliance with the above guidelines’

4. It is to clarify that the above clause was only intended to protect the subscriber any loss on exiting any existing security merely to comply with revised investment pattern

5. However this does not imply that Pension Funds cannot exit from existing investments at a loss, if it is so required as a measure of portfolio management by the Pension Funds within the parameters of their internal Investment Management/Risk Management/ Stop loss policy and within the overall framework of guidelines issued by PFRDA.

6. A case in the point is when there is downgrade of any security, it is for the Pension Funds to determine the point of exit from it. The guidelines do not bar any such exit even if there is a loss, if the exit is so determined by the policy of Pension Funds within the overall framework of PFRDA guidelines.

sd/-

Sumeet Maur Kapoor
(General Manager)

source-http://www.pfrda.org.in/MyAuth/Admin/showimg.cshtml?ID=575

NPS is far beneficial than Government Pension

NPS is far beneficial than Government Pension – Comparison of New Pension Scheme (National Pension Scheme) and Central Government Pension

The Central Government employees who have joined after 1/1/2004 and are put under National Pension Scheme (NPS) have been demanding abolition of NPS and have been persuading the Central Government to make the government pension scheme applicable to them.

This only exhibits their ignorance of the fact that the New Pension Scheme is highly lucrative and make the government employees who joined after 1/1/2004 far richer than the government employees who enjoy government pension scheme. By doing so they are in the process of ruining the great fortunes that lies in store under New Pension Scheme. Let me compare both the scheme:

Benefits under NPS

Let me take a case of Upper Division Clerk(UDC) who joins government service in 2014 at the age of 25 and renders 35 years of service till attaining 60 years of age. He / She gets 3% annual increment every year and gets one promotion every 10 year under M.A.C.P. Although he / she is likely to get 14 to 20% increase in D.A every year as per Consumer Price Index I just take 12%(assuming 6 + 6%) 2 times D.A in a year

YEAR	D.A. assumed @ 12% Per annum	PAY + GRADE PAY with 3% annual increment	D.A	TOTAL	Total Monthly Subscription (employee and Govt)	Annual Subscription	AnnualAppreciationof Investments @ 8.7% Only	TOTAL PENSION WEALTH
2014	107%	9910	10604	20514	4102	49224	2320	51,544
2015	119%	10210	12150	22360	4471	53652	7012	1,12,208
2016	131%	10520	13781	24301	4860	58320	12511	183039
2017	143%	10840	15501	26341	5268	63216	18903	265158
2018	155%	11170	17314	28484	5696	68352	26290	359800
2019	167%	11510	19222	30732	6146	73752	34779	468331
2020	179%	11860	21229	33089	6618	79416	44487	592234
2021	191%	12220	23340	35560	7112	85344	55546	733124
2022	203%	12590	25558	38148	7630	91560	68097	892781
2023	215%	12970	27886	40856	8172	98064	82293	1073138
2024*	227%	14130	32075	46205	9240	110880	98589	1282607
2025	239%	14560	34798	49358	9872	118464	117170	1518241
2026	251%	15000	37650	52650	10530	126360	138041	1782642
2027	263%	15450	40634	56084	11216	134592	161433	2078667
2028	275%	15920	43780	59700	11940	143280	187596	2409543
2029	287%	16400	47068	63468	12694	152328	216809	2778680
2030	299%	16900	50531	67431	13486	161832	249371	3189883
2031	311%	17410	54145	71555	14312	171744	285614	3647241
2032	323%	17940	57946	75886	15178	182136	325893	4155270
2033	335%	18480	61908	80388	16078	192936	370601	4718807
2034*	347%	21060	73078	94138	18828	225936	421184	5365927
2035	359%	21700	77903	99603	19920	239040	478101	6083068
2036	371%	22360	82956	105316	21064	252768	541139	6876975
2037	383%	23030	88205	111235	22248	266976	610878	7754829
2038	395%	23730	93734	117464	23492	281904	687954	8724687
2039	407%	24450	99512	123962	24792	297504	773068	9795259
2040	419%	25190	105546	130736	26148	313776	866975	10976010
2041	431%	25950	111845	137795	27560	330720	970498	12277228
2042	443%	26730	118414	145144	29028	348336	1084535	13710099
2043	455%	27540	125307	152847	30570	366840	1210066	15287005
2044*	467%	29640	138419	168059	33612	403344	1348977	17039326
2045	479%	30530	146239	176769	35354	424248	1501283	18940857
2046	491%	31450	154420	185870	37174	446088	1668876	21055821
2047	503%	32400	162972	195372	39074	468888	1853953	23378662
2048	515%	33380	171907	205287	41058	492696	2057162	25928520
2049	527%	34390	181235	215625	43126	517512	2280169	28726201

* MACP / Promotion Years

(A) Therefore, the total pension wealth of a government servant who joined in 2014 and retiring under New Pension Scheme shall at the time of his retirement be Rs. 2,87,26,201/-

(B) 60% of the lump-sum pension wealth which he / she will be getting on retirement:
Rs.1,72,35.720

(C) 40% invested in an annuity scheme which he / she can receive before 70 years:
Rs.1,14,90,481

(D) Earned Leave Encashment: Rs. 215625 x 10 months : Rs. 21,56,250

TOTAL of (A) (B) (C) and (D) will be Rs. 3,08,82,451

Death Gratuity:

Although not entitled for retirement gratuity, but eligible for Death Gratuity If died during the service

Monthly Pension:

At the assumed Interest at the rate of 8.7% per annum on the other 40% of pension wealth of Rs.1,14,90,481 invested in annuity shall fetch
monthly pension of at least : Rs.83,306/ –

Not only this, before he / she attains the age of 70 he / she can withdraw the remaining 40% of his pension wealth of Rs. 1,14,90,481/- which if invested in Fixed Deposit of a nationalised bank can fetch interest and take care of not only of his wife and children but his descendants also for generations to come.

This is just a tip of the iceberg. If we consider the other 4 pay commission benefits that materialize on 1/1/2016, 1/1/2026, 1/1/2036 and 1/1/2046 which a NPS pensioner who joins as UDC shall be getting before his retirement in 2049,his total pension wealth will be undoubtedly double the above amount which comes to more than Rs.5 crores. While a person who joins as U.D.C. gets this much, one will be rocked out of stupor to know what a Group A officer who renders 35 years of service may get – undoubtedly his total pension wealth will be more than Rs.10 crores.

Benefits under Central Government Pension Scheme

Now let us see what will be the retirement benefits of the above person if he / she is put in government pension scheme:

1.Gratuity for 16.5 months :

Rs.2,15,625 x 16.5 months = Rs.35,57,812/- Restricted to Rs.10,00,000

2. Earned Leave Encashment:

Rs. 215625 x 10 months : Rs.21,56,250

3. Pension Commutation:

Rs.17195 x 40% = Rs.6878 x 12 x 8.194 years Rs 6,76,300

Total Benefits under Central Government Pension Scheme: Rs.38,32,550

4. GPF Balance:

As it is a general tendency of the government servants to withdraw from GPF frequently, there will be very little left at the time of retirement

5. Monthly pension

i) Rs.34390 / 2 = Rs.17195 (basic pension being 50% of pay and grade pay Less 40% of basic pension towards commutation (Rs 6878) which will be restored after 15 years

Balance basic pension is Rs. 10317

ii) DA @ 527% of basic pension of Rs.17195 = Rs. 90617 (subject to increase in DA every 6 months based on consumer price index)

Total pension is Rs.1,00,934 per month.

After the death of government servant say after 67 years, spouse can take only 60% of the basic pension i.e.Rs.17195 x 60% = Rs.10317 plus D.A.at the prevailing rates. After spouse’s death children are unlikely to draw the pension as they would have already crossed the age limit. Thus, unlike the dependents of NPS pensioners, there will be nothing left for financial security of the dependents of the government pensioners .

Thus it is unwise on the part of government servants who have joined after 1/1/2004 to demand for abolition of NPS scheme and grant of government pension.

Mr.M.Dorai
Deputy Director
ESIC Model Hospital,
Bangalore (Ministry of Labour, Government of India) is the author of this Article.