GO.62 CPS Withdrawal Procedure for State Govt CPS Employees (Subscribers)

GO.No.62 Dated 7th Mar 2014-Contributory Pension Scheme- With Drawl Procedure and process for State Govt CPS Employees (Subscribers). Let us learn "How to submit and process CPS Withdrawal application". The PFRDA has issued Withdrawal Guidelines for New Pension Scheme Subscribers. As per the Letter from DTA to consider the Guidelines issued by PFRDA, Govt has issued CPS Exit guidelines and the procedures to be followed by the stake holders for submitting and forwarding exit / withdrawal proposals.
GO.62 CPS Withdrawal Guidelines and Procedure for CPS State Govt Employees

GO.62 CPS Withdrawal Procedure for State Govt CPS Employees (Subscribers)

We have already given detailed Exit Guidelines (Withdrawal) as per the Guidelines given by PFRDA-Let us remind the Guidelines once.
Withdrawal Guidelines for State Govt CPS Subscribers
The following Modes are prescribed for exiting the new pension scheme for State Govt Employees:
Upon Normal Superannuation
  1. On attaining the age of superannuation, at least 40% of the accumulated pension wealth should be utilized for purchase of an annuity providing for monthly pension in the PFRDA empanelled Annuity Service Provider as per terms and conditions of the Annuity Scheme chosen by the  Subscriber in his “With Drawal Form” prescribed (Form.101-GS). The balance is paid in lump sum or by deferred payment mode as chosen by the subscriber. For this the subscriber (retired employee) need to submit the following forms duly filled in through the Drawing and Disbursing Officer concerned and the Treasury Officer.
Upon Death:
  1.  In case of death before superannuation the entire accumulated pension wealth (100%) is paid to the nominee / legal heir of the subscriber. The legal heir needs to submit the following withdrawal form duly filled in along with prescribed Certificates from the competent authority through the Drawing and Disbursing Officer and the Treasury Officer concerned:
Exit from NPS before the age of Normal superannuation (irrespective of cause):
  1. In this case, the subscriber should utilize at least 80% of the accumulated pension wealth for purchase of annuity from the PFRDA empanelled Annuity Service Provider as per terms and conditions of the Annuity Scheme chosen by the Subscriber in his “With Drawal Form” prescribed (Form.102-GP). The balance is paid in lump sum or by deferred payment mode as chosen by the subscriber. For this the subscriber need to submit the following forms duly filled in through the Drawing and Disbursing Officer concerned and the Treasury Officer.

Mode of Deferred Payment: 
  1. A subscriber on superannuation or premature exit has an option to defer withdrawal of lump-sum amount payable (40% in case of superannuation and 20% in case of premature exit) till he attains the age of 70 years. He has choice to withdraw the accumulated amount at any time before that by submitting a withdrawal request. The amount will be credited automatically to the bank account upon attaining age of 70 years. Till then the amount continues to be invested with the Pension Fund Managers. 
Option to withdraw accumulated Pension Wealth ≤ `.2,00,000/-:
  1. The NPS provides for withdrawal of the entire accumulate Pension Wealth, in case it is less than or equal to `.2,00,000/- as on the date of superannuation. The subscriber has to submit the prescribed form viz., Form.101-GS duly filled in along with a specific request in a form prescribed.
Purchase of Annuity:
The NPS provides for purchase of annuity by a subscriber on his superannuation or premature exit by utilizing a proportion of the accumulated Pension Wealth from the empanelled Annuity Service providers. It is at least 40% on superannuation or 80% on pre-mature exit. However, it is exempted in case of accumulated Pension Wealth equal to or less than `.2,00,000/- at the time of superannuation.

Guidelines to Submit and Process withdrawal requests to CRA

  1. The withdrawal request should be in the form prescribed for the respective category of exit. 
  2. The Subscriber PRAN should be in active status in CRA system and the request for withdrawal should be processed through the DDO who deducts the last contribution of the subscriber and the corresponding Treasury Officer. 
  3. The application should be filled in all respects by the Claimant / Subscriber in black ink without any over write or corrections. All the mandatory fields should be filled in with correct postal address. It should be accompanied by the documents prescribed and detailed at the end of relevant application form, viz., Form.101-GS, 102-GP and 103-GD depending upon the type of withdrawal. 
  4. If the accumulated Pension Wealth on superannuation is equal to or less than `.2,00,000/- and the subscriber prefers to withdraw the entire amount, Form.101-GS should be accompanied by a specific request in the following proforma:- 
NEW PENSION SYSTEM 
Request for withdrawal of Total Pension Wealth upon Normal Superannuation (for Government employees) / Upon attaining the age of 58 / 60 Years and where the total Pension Wealth is equal to or less than `.2,00,000/-
I _________________________________________________ holding a Permanent Retirement Account with number (PRAN) ___________________ do hereby apply for the payment of the accumulated pension wealth in my NPS Account being the full and final benefits receivable by me.
Date:
Place:
Signature of the Subscriber
The PFRDA prescribes the following checks / guidelines for submission of withdrawal request.

Superannuation and  Premature Exit from CPS

Documents needed along with application of CPS Withdrawal Form for superannuation and premature exit from CPS
  1. 01.) Photograph needs to be duly attested by the subscriber. Lump-sum amount for withdrawal and annuity needs to be mentioned in percentage. 
  2. 02.) Cancelled Cheque / Bank Certificate on the bank letter head indicating the Bank name and address, Bank account number, IFS Code and MICR code. 
  3. 03.) Nominee details need to be completely filled along with the witness signature. 
  4. 04.) Withdrawal form needs to be duly stamped and signed by the mapped Nodal Office, i.e. the Drawing and Disbursing Officer concerned. 
  5. 01.) Advanced stamped receipt need to be duly filled along with the subscriber signature on the Revenue stamp. 
  6. 02.) Original PRAN card (or) affidavit in case of non submission of PRAN card. 
  7. 03.) KYC documents (address and Photo ID proof) should write with “verified with original” and attested by mapped Nodal Office, i.e., the Drawing and Disbursing Officer concerned. 
  8. 04.) Copy of Bank Passbook should be self attested by the Subscriber and mapped Nodal Office, i.e., the Drawing and Disbursing Officer concerned. 

CPS Withdrawal Process in case of Death of CPS Employee

Withdrawal request should be submitted by the Nominee provided in the CRA system. In case of Nominee not available on the CRA system, a legal heir certificate (or) a certified copy of family members certificate issued by Executive Magistrate is required indicating the relationship of the claimant as well with supporting documents to be provided.
Relinquishment deed from all the legal heirs on a Stamp paper of `.100/- is to be furnished, if they are not claiming the pension funds. KYC documents (Photo ID proof and Address proof) of all the legal heirs
duly attested by the mapped Nodal Office, i.e., the Drawing and Disbursing Officer concerned. The claimant need to furnish an Indemnity bond stating the responsibility for claiming on behalf of all the legal
heirs.
The application should be filled in all respects by the claimant under proper witness whose details need to be filled in. 

Documents Needed along with the CPS Withdrawal application
  • 01.) Advanced stamped receipt need to be duly filled along with the claimant signature on the Revenue stamp. 
  • 02.) Original PRAN Card (or) affidavit in case of non submission of PRAN Card. 
  • 03.) KYC documents (Address and Photo ID proof) of the claimant should be attested by mapped Nodal Office, i.e., the Drawing and Disbursing Officer concerned. 
  • 04.) Original Death Certificate issued by the local authority. 
  • 05.) Copy of Bank Passbook should be self attested by the claimant and mapped Nodal Office, the Drawing and Disbursing Officer concerned. 
  • 06.) Cancelled Cheque / Bank Certificate on the bank letter head indicating the Bank Name and address, Bank Account Number, Name of the Claimant, IFS Code and the MICR Code. 

Responsibilities of DDO/Treasury Officials on forwarding CPS Withdrawal Application

  1. The Drawing and Disbursing Officer on receiving the application should check it as per the instructions provided for in the relevant application form and attest it as provided for in the application duly affixing his / her stamp. 
  2. The application should be forwarded to the mapped treasury officer / PAO for further prescribed checks and attestation. The treasury officer / Pay and Accounts Officer shall verify the genuineness of the application by identifying the DDOs attestation and check the details with reference to Master data of the subscriber in the CRA website. The following other primary checks should be done before attesting and forwarding application. 
  • a.) Status of the PRAN in CRA system. It should be active. 
  • b.) The Subscriber details. 
  • c.) Full address of the Subscriber / Claimant. 
  • d.) Date of death of deceased subscriber / Date of exit (or) Date of Superannuation, as the case may be. 
  • e.) The percentage of allocation towards annuity and Pension Wealth noted in the application. 
  • f.) The bank details, i.e., Bank Account Number, Name of the Bank and Branch, MICR Code and IFS Code. 
The Treasury officer / PAO shall place an online request by login into www.cra-nsdl.com and simultaneously forward the application with a covering letter in a secured mode of delivery to the CRA at the following address:-
Exception Handling Cell,
Central Recordkeeping Agency,
NSDL e-Governance Infrastructure Limited,
10th Floor, Times Tower, Kamala Mills Compound,
Senapati Bapat Marg, Lower Parel, MUMBAI – 400 013
.

2 comments:

  1. it's too good......................

    ReplyDelete
  2. Hello, thi is karthik and I would like know whether it is possible to open a new CPS account as I already hold an account in tier1 when I've first joined the department and resigned the job after 7 months. Please let me know.

    ReplyDelete