Go to Top
icon

GOVERNMENT SECTOR- Central Government

The Central Government had introduced the National Pension System (NPS) with effect from January 1, 2004 (except for armed forces) replacing the existing system of Defined Benefit Pension System vide Government of India, Ministry of Finance, Department of Economic Affairs Notification, dated 22nd December 2003. The NPS came into operation with effect from 1st January 2004 and is applicable to all new employees of ‘Central Government service’ (except Armed Forces) and ‘Central Autonomous Bodies’, joining Government service on or after 1st January 2004.

Under the Central Government, three level hierarchy is followed:

Illustration
illustrations

Principal Account Office (PrAO): It plays a supervisory role and its main function is to monitor the performances of the Nodal Offices under its jurisdiction.

illustrations

Pay and Account Office (PAO): It provides the subscriber’s details to CRA and remits the funds to Trustee Bank which in turn transfers the funds to Pension Fund Mangers (PFMs) for investment. Units are allotted to the subscriber’s PRAN based on their contribution amount.

illustrations

Drawing and Disbursement Officer (DDO): They act as an interface between the PAO and the subscriber. DDO deducts the contribution from employee’s salaries and provides information to PAO about subscriber pension contribution.

The Central Government had introduced the National Pension System (NPS) with effect from January 1, 2004 (except for armed forces). Hence, all Central Government employees joining on or after 01-01-2004 are mandatorily covered under NPS.

Illustration

Registration of Principal Account Office (Pr.AO )

arrow
Flow Chart

Registration of Pay and Account Office (PAO) (after Registration of PrAO)

arrow
Flow Chart

Registration Of Drawing and Disbursement Officer (DDO) (After Registration of PAO):

arrow
Flow Chart

Entities involved and their roles under NPS Contribution(Pr.AO )

+
illustrations

What is Subscriber Contribution file?

+

Subscriber Contribution File (SCF) is a file containing the details of the contributions of Subscriber (Own and Co-Contribution if any) towards the pension fund. It is a standard format specified with contribution details of Subscribers which has to be uploaded in CRA system by Nodal Office.

SCF Format

+
Table

* Subscriber’s mandatory contribution amount- Amount may be provided in 2 decimals i.e: 500.50. Government and subscriber contribution has to be equally contributed

** Contribution Type- In case of arrears, month and year may be left blank.   C For Regular A for Arrears V for Voluntary

***  Remark- Remark is mandatory if contribution type is arrears

Contribution Model : Decentralized

+
illustrations

Fund Transfer

+

PAO/PAO’s bank transfers the total funds electronically to Trustee Bank within 12 working days. Information to be provided while transferring the funds i.e. PAOFIN . For example, PAOFIN10000011700000000001