Homenew pension scheme

GPF for those who have been recruited on or after 1.1.2004: Agenda Item 47th NC(JCM) Meeting – Discussion & Govt Reply

GPF for those who have been recruited on or after 1.1.2004: Agenda Item 47th NC(JCM) Meeting – Discussion & Govt Reply

[Part of the Minutes of the 47th Meeting of National Council (JCM) held on 13th April, 2019 issued by DoPT vide OM No. 3/1/2019-JCA dated 13.06.2019]
6.5 D/o Pension & Pensioners Welfare & D/o Financial Services:

6.5.1 Item No. 5/19/NC-47 – GPF for those who have been recruited on or after 1.1.2004.

Staff Side stated that employees who have been appointed on or after 01.01.2004 are covered by NPS, and while doing so, GPF deductions in respect of these employees have been abolished.
The contribution made under NPS is fully locked for the entire tenure of the service. During the service, employees may require advances or final payments to meet social obligations like marriages etc. It is, therefore, necessary that employees may be allowed to contribute to GPF.
Staff Side further said that their demand was for the re-introduction of GPF, where the Government has no liability except paying interest, and added that the saine may be made optional unlike in earlier days. The benefit accrued from Tier II contribution under NPS and GPF is not one and the same.
Reply of the Official Side :
All new recruits, after 01.01.2004, have been given the option of opening Tier II account under NPS in lieu of GPF and there is no restriction on the withdrawals from Tier-II. NPS provides complete flexibility with respect to contributions and withdrawal. PFRDA Regulations allow a partial withdrawal from NPS Tier-I upto 25% of the contributions made by the subscriber, at any time-before exit from NPS. Such partial withdrawal from NPS is allowed if the subscriber has been in the NPS for at least three years and is allowed for maximum three times for certain specified purposes such as marriage of children, purchase of house, medical treatment etc. Pursuant to the recommendations of Committee to suggest measures for streamlining the implementation of the NPS, a number of steps have been taken. After discussions, the official side agreed to examine whether the existing ceiling of withdrawal of 25% from NPS Tier- I could be further increased.
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