Choice of Pension  funds and investment  pattern  in Tier-I of NPS for all the Govt. Employees with Central Autonomous Bodies

Choice of Pension  funds and investment  pattern  in Tier-I of NPS for all the Govt. Employees with Central Autonomous Bodies – NVS Important order F. No. 1-12/ 2020-NVS(F&A)/ NPS/155 dated 12.04.2021

नवोदय विद्यालय समिति
NAVODAYA VIDYALAYA SAMITI
शिक्षा मंत्रालय / Ministry 0f Education
(स्‍कूल शिक्षा एवं साक्षरता विभाग)
(Dept. of School Education & Literacy)
भारत सरकार / Govt. of India
बी-15, संस्‍थानिक क्षेत्र, सैक्‍टर-62 / B – 15, Sector – 62, Institutional Area
नोएडा – 201309 (उ.प्र.) / Noida – 201309 (UP)
वेबसाईट / Website – www.navodaya.gov.in

F. No. 1-12/ 2020-NVS(F&A)/ NPS/155  

Dated: 12.04.2021
IMPORTANT

To,

The Deputy Commissioner,
Navodaya Vidyalaya Samiti,
All RO’s & NLI’s.

Choice of Pension  funds and investment  pattern  in Tier-I of NPS for all the Govt. Employees with Central Autonomous Bodies.

Madam/ Sir,

This is in reference to the subject cited above. It is to inform you that NSDL e-Governance Infrastructure Limited vide their email letter dtd. Jan 29, 2021 has informed to NVS that:

1. Currently the subscribers of NVS are part  of default scheme where the contribution is allocated to three PFMs, viz. SBI Pension Funds Private Limited (SBI PFM), UTI Retirement Solutions Limited (UTI PFM) and LIC Pension Fund Limited (LIC PFM) in a predefined proportion and each of the PFMs would invest the funds in the proportion of  85% in  fixed  income  instruments  and 15% in equity and equity related instruments. Whereas, Subscribers under Central Government offices have option of selecting Pension fund manager and scheme of their choice. It may be noted that as per the scheme choice option available to Subscribers,  apart from default  scheme,  subscribers can select-
   1. Pension Fund manager of his/ her choice.
   2. Investment of their contribution in a life cycle fund where investment in equity can be at 50% under moderate life cycle  fund  whereas, equity is capped  at 25% under conservative life cycle fund.
   3. 100% investment in Government securities which is comparatively less risky scheme.
2. Besides the above, the Subscribers can also exercise change of scheme preference and Pension Fund Manager. The Subscribers also have option to select default scheme as available currently. We would like to mention that, the option of scheme choice at Subscriber level offers greater autonomy to Subscribers and hence, they get greater opportunity to enhance their corpus in the long run.
3. Based on above guidelines, the competent authority of NVS has approved, the option of scheme choice of NPS at Subscriber level and for this purpose formal request has already been sent to NSDL so as to provide the option of choice to subscribers of NVS and now the scheme of choice preference of NPS will be at the Subscriber level.
4. The   guidelines   have    been    issued    by    PFRDA    vide    circular no.PFRDA/ 17/08/ 11/0031/ 2017-SUP-SG  dt. lst  June  2020  under  point  no. B (iii) (copy enclosed) where in it is also mentioned that:
   1. Choice of Pension Fund: The Govt. Subscriber shall be allowed to choose any one of the pension funds including private  sector funds.
      The option can be changed once in a year.

   2. Choice of Investment Pattern: Three options are offered to subscribers viz. Default scheme, Scheme G and auto choice life cycle funds.
      The  govt.     Subscribers       can    exercise      one    of    the above     choices      of investment pattern twice in a financial year.
5. It   is   further   to   mention    that    in    accordance    to    circular    no. PFRDA/ 17/08/ 11/0031/ 2017-SUP-SG dtd. 1st June 2020 under  point  no. B (i), the 14% of monthly Central Govt. contribution is not applicable to NVS at present, hence same has to be continued as 10% of Monthly Contribution of the Basic pay plus DA.

   Both the letter and circular are enclosed herewith for further necessary action at respective ROs/ NLis and JNVs having NPS subscribers. It is the duty of concerned officer of RO/ NLI / JNV to bring into the knowledge of NPS Subscribers about the option available.

   1. A copy of this letter along with circular of PFRDA dtd. 1st June 2020 is to be given to individual NPS subscribers and acknowledgement be kept in P.F.
   2. As and when New NPS Subscriber is registered, a copy of said letter with enclosed circular should invariably be given to them with proper acknowledgement.

All the JNVs may be informed accordingly by ROs to enable the subscribers to utilise the option voluntarily.

This issues with the approval of the competent authority.

Yours Faithfully

(K.  Maheshwari)
Asst. Commisssioner (Finance)

Encl: As above

Copy to:

1. DDO, NVS Hqrs., Noida, for similar action
2. AC(IT), NVS Hqrs., Noida, for publishing on website.

Asst. Commisssioner

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