Haryana Introduces New Pension Scheme

Financial Express

August 19, 2008

India

The Haryana government on Monday decided to introduce a new pension scheme for its all government servants who have joined service on or after January 1, 2006. A decision to this effect was taken in a meeting of the state Cabinet, which met under the chairmanship of chief minister, Bhupinder Singh Hooda, on Monday. 

The new pension scheme known as the Haryana New Pension Scheme, 2008 will be implemented on the pattern of the central government. It will work on defined contribution basis and would have two tiers that is Tier-I and Tier-II. Contribution to Tier-I is mandatory for all government servants who have joined service on January 1, 2006 or afterwards. 

Under Tier-I, a government servant shall have to make a contribution of 10% of his basic pay plus dearness pay and dearness allowance, which would be deducted from his salary bill every month by the drawing and disbursing officer. A matching contribution shall be made by the state government for each government servant who contributes to the scheme. 

The Tier-II of the new pension scheme shall not be operational at present and no recoveries would be made from the salaries of the government servants on this account. No deduction shall be made towards general provident fund contribution from the government servants joining the service on or after January 1, 2006 as the general provident fund scheme is not applicable to them. 

The account of new pension scheme shall not be mixed up with general provident fund accounts and their records or ledger accounts shall be independent of general provident fund accounts. 

No withdrawal of any amount shall be allowed from the deposits under Tier-I. The accountant general (accounts and entitlement) shall maintain the accounts for the contributory pension scheme. Permanent pension account number (PPAN) of the government servants, who join the contributory pension scheme shall be allotted by accountant general (accounts and entitlement) on receipt of applications from the heads of the departments or heads of offices in form-I. 

Nomination shall be filled at the time of admission to the new pension scheme and shall be revised immediately as and when required (that is marriage by the subscriber) and thereafter once in every five years. Necessary entry to the effect of filling up nomination along with name of nominee shall be noted in the service book of the government servant concerned. 

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