CPS DETAILS 1


Mandatory to all the New Recruits who Joined in service on or after 01-09-2004
Contribution : 10% of Salary (B.Pay+DA) from the month of joining.
Equivalent amount will be contributed by the Govt.
The scheme offers investment Plans:

  • a: PLAN-I who imply predominant investment in fixed income instrument and some investment in equity. 
  • b: PLAN-II will imply greater investment in equity. 
  • c: PLAN-III will imply almost equal investment in fixed income and equity.
(As the PFRDA Bill is not passed, the exercise of options is not insisted upon as of now. Default option is PLAN-I)
The contribution of Employee and Govt. (10% + 10%) are to be deposited in a non-withdrawal pension Tier-I account.
The employees can normally exit at or after 58/60 years from the Tier-I of the pension system.
At the exit, the employee would be required to invest 40% of pension wealth (mandatory), to purchase an annuity from an Insurance Regulatory Development Authority (IRDA) approved Life Insurance firm and the Balance 60% will be paid in cash.
The annuity will provide pension for the life time of the employee and his dependent parents and his spouse at eh time of retirement.

Contritbution shall be credited to:
AP. State Govt. Employees Head of Accounts:
8342 - Other Deposits
117 - Defined Contributory Pension Scheme for Govt. Employees.
SH(04) - A.P.S. Govt. Employees Contributory Pension Scheme.
001 - Employee Contribution
002 - Govt. Contribution.
AP. State Aided Educational Intitution Employees Head of Accounts:
8342 - Other Deposits
117 - Defined Contributory Pension Scheme for Govt. Employees.
SH(05) - A.P. Aided Educational Intitution Employees Contributory Pension Scheme.
001 - Employee Contribution
002 - Govt. Contribution.
Existing GPF Rules, Pension Rules are not applicable to the members of the New Pension Scheme.
The AG is required to adjust the Government Contribution and Employee Contribution and transfer the same to hte Pension Funds Regulatory and Developement Authority or any Agency authorized for this purpose, on monthly basis.