DCPS of State Govt. merging with NSP of Government of India.

Maharashtra Government has issued a resolution on 21.08.2014 for Merging the New ‘Defined Contributory Pension Scheme (DCPS) of State Government with the New Pension Scheme (NPS) of Government of India.  The detailed resolution are as under:

Government of Maharashtra
Finance Department

Government Resolution No.: CPS-2012/C.R.96/SER-4

Hutatma Rajguru Chowk, Madam Cama Road,

Mantralaya, Mumbai - 400 032.

Date: 21st August, 2014.

Read - 1. Government Resolution No.: No.CPS 1005/126/Ser-4 Dated 31.10.2005
            2. Government Resolution No.: CPS 1007/18/Ser-4 Dated 07.07.2007

Introduction-

State Government has implemented the New Defined Contributory Pension Scheme on the lines of Government of India, to the employees who are recruited on or after 1st November, 2005 vide Government Resolution referred at No.1. Government had also taken a decision to join Government of India’s scheme for the purpose of implementation.

2. State Government has already formed the State Record Keeping Agency (SRKA) vide Government Resolution referred at No.2 and is implementing the scheme through this Agency, pending formation of the Central Record Keeping Agency (CRKA) by Government of India Government Resolution No.: CPS-2012/C.R.965/SER-4

Resolution -

3. State Government is pleased to join the New Pension Scheme (NPS)of the Government of India w.r.t. the employees who are recruited on or after 1st November, 2005 in the State Government, the Zilla Parishadas, Recognized and Aided Educational Institutions, Non - Agricultural Universities and affiliated Non - Government Colleges and Agricultural Universities etc. Therefore the New “Defined Contributory Pension Scheme” which is implemented in the State will be henceforth called as the “New Pension Scheme” (NPS)

4. State Government has also decided to appoint the State Record Keeping Agency (SRKA) as the State Nodal office and the Director, Accounts and Treasuries, as the State Nodal Officer after joining Central Government’s New Pension Scheme.

5. Detailed instructions about the procedure of implementation will be issued separately after executing due agreement with the Central Record Keeping Agency (CRKA).

This Government resolution of Maharashtra Government is available at the web site www.maharashtra.gov.in. Reference no. for this is 201408211208270505

This order has been signed digitally. By order and in the name of the Governor of Maharashtra.

(N.B.Ringne)

Deputy Secretary to Government of Maharashtra

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Returns on NPS or DCPS Schems for Financial Year 2012-13.

The National Pension System (NPS) regulated by Pension Fund Regulatory and Development Authority (PFRDA) has delivered double digit returns for the financial year 2012-13 and has evidenced itself as not just being the cheapest retirement product but also as the highest returns generating scheme.

PFRDA advises that various NPS schemes have earned the following average annual returns during the financial year recently ended on 31st March, 2013 (Weighted Average):

Details are as under:

Sr. No.	Scheme	Average returns (in %)
1	Central Government	12.39
2	State Government	13.00
3	Swavlamban	13.40
4	Private: Equity	8.38
5	Private: Corporate Debt	14.19
6	Private: Government Debt	13.52

Last year PFRDA had issued revised guidelines for Registration of Pension Fund Managers to manage NPS for Private sector, under which eight Pension Fund Managers have been registered so far- SBI Pension Funds Pvt. Ltd., UTI Retirement Solutions Ltd., LIC Pension Fund Ltd., Kotak Mahindra Pension Fund Ltd., Reliance Capital Pension Fund Ltd., ICICI Prudential Pension Funds Management Co. Ltd., HDFC Pension Management Co. Ltd. and DSP Black Rock Pension Fund Managers Pvt. Ltd.

Pension Fund Managers are now allowed to prescribe their own fee subject to ceiling of 0.25% to enable an economically viable model for their operations.

PFRDA also recently revised its Investment Guidelines, with a view to improve performance of Pension Fund Managers by direct investment in equity & corporate debt and not through mutual funds etc. Further for better risk management prudential sectoral norms have also been introduced.

The National Pension System which was introduced by the Central Government in January 2004 for its new entrants and subsequently extended to the private sector in May 2009 has accumulated a corpus of Rs 33,000 crores contributed by 50 lakhs subscribers.

 

Source: www.90paisa.blogspot.in

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