clarification on new pension scheme

Employees' State Insurance Corporation

Sub: Clarification regarding various queries relating to New Pension Scheme.

Sir/Madam,

The references seeking clarification pensionary benefits in case of death of an employee covered under New Pension Scheme and refund/ transfer of NPS contribution in case of premature exit/technical resignation are being received from various quarters. 

In this connection, the following is informed for necessary action at your end:-

1. In case of death of an employee coyered under NPS: The family/pensioner is entitled to benefits (on provisional basis) payable under rules 38 49, 50, 54 of CCS(Pension) Rules, 1972, in case of death/disability of Govt. servant covered under NPS, as conveyed vide Govt. of India OM dated 5.5.09, circulated vide this Office Memo dated 29.5.09. In the said OM, it had, inter alia, been mentioned that in cases where the amount of accumulated funds in the NPS Account have been paid to the employee/family, the amount of monthly/annuitized pension from the date of discharge/death will be worked out in accordance with the rules/regulations to be notified by Govt./PFRDA and will be adjusted against the payment of benefits/relief.

2. In case of premature exit: The guidelines for withdrawal of NPS contribution in the event of premature exit have not yet been finalized by Ministry of Finance, to",. of India. Hence, no withdrawal has yet been authorized byPension Fund Requlatory & Development Authority.

3. In case of resignation to join another deptt.: All the PAOs, vide this office letter dated 19.5.2011, were, inter alia, directed to transfer the NPS contribution, along with interest accrued, to Permanent Retirement Account Number (PRAN) in respect of employees, who have resigned from the services of ESIC and obtained PRAN through new/present employer.

http://www.esic.nic.in/CIRCULARS/cir-ad-181213.pdf