Background Information
New Pension Schemehave been made in applicable on Government servants appointed
in civil services of the state on or after 1.1.2004. The new pension system is based
on defined contributions. The system is mandatory for new recruits to the Central
Government service (except the armed forces). Government of Rajasthan introduced
NPS for State Government employees/Panchayat Samities/ Zila Parishad/ State autonomous
bodies appointed on or after 1.1.2004.
The monthly contribution is 10 percent of the Pay and DA to be paid by the employee
and matching contribution by the state Government. The contributions and returns
thereon would be deposited in a non-withdrawable pension account. The SIPF Deparment
is maintaining the scheme as interim arrangement till transfer of data to PFRDA.
Individuals can normally exit at or after age 60 years from the pension system.
At exit, the individual would be required to invest at least 40 percent of pension
wealth to purchase an annuity. In case of Government employees, the annuity should
provide for pension for the lifetime of the employee and his dependent parents and
his spouse at the time of retirement. The individual would receive a lump-sum of
the remaining pension wealth, which the subscriber would be free to utilize in any
manner. Individuals would have the flexibility to leave the pension system prior
to age 60. However, in this case, the mandatory annuitisation would be 80% of the
pension wealth.
State Insurance & Provident Department (GoRj) is the State Nodal Agency for execution
of New Pension Scheme in Rajasthan. The Department has been maintaining records
for the above scheme.
After notification by Government of Rajasthan on 27.12.2010 regarding adoption of
NPS Architecture(PFRDA) in toto, agreements have been signed by Director SIPF with
National Securities Depository Ltd.(NSDL as central record keeping agency) and NPS
Trust. Unique & Portable Permanent Retirement Account Number (PRAN) will be issued
to all Rajasthan Government servants on whom above scheme is applicable.
NSDL (CRA) will serve for record keeping; reconciliation; netting and funds transfer;
interconnectivity and access to PFRDA,pension fund managers (PFMs) to choose from
which will offer different categories of schemes.At present choice of PFMs has not
been provided.
The participating entities (PFMs, CRA etc.) would give out easily understood information
about past performance & regular NAVs, so that the individual would able to make
informed choices about which scheme to choose.
In compliance with order no. F.12(2)FD/Rules/2022 Jaipur dated 19-05-2022 and F.12(3)FD/Rules/2022 Jaipur dated 19-05-2022, OPS is implemented in place of NPS from 01-04-2022.