Withdrawal process/Exit Guidelines for NPS employees.

Withdrawal process/Exit Guidelines for NPS employees. PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA               Sub:- Withdrawal process/Exit Guidelines for NPS employees.              Read:- 1. G.O. No.FD (Spl) 04 PET 2005, dated 31.03.2006                          2. G.O. No.FD (Spl) 28 PEN 2009, dated 29.03.2010                          3. G.O. No.FD (Spl) 01 PEN 2010, dated 20.10.2010                                                                          --- Preamble:-          Government of Karnataka has introduced a Defined Contribution Pension System known as New Pension system/scheme for its employees joining Government service on or after 1.4.2006 vide G.O. read at above (1) & (2) above.  This system/scheme is made operational from 1.4.2010 and the NPS is made applicable for the members of the All India Services (Karnataka cadre) joining the All India Service on or after 1.4.2004, in G.O. read at (3) above.          This G.O. is issued to detail the procedure for withdrawal of employees from the scheme before  attaining the age of superannuation and settlement of claims of the NPS employees in case of death while in service or on attaining the age of superannuation.                        GOVT. ORDER NO. FD (Spl)  203  PEN 2012                         BANGALORE,  DATED 16th January 2013        Government are pleased to  issue the following orders for the NPS employees:           a. Upon  Normal  Superannuation: At least 40%  of the accumulated  pension corpus of the subscriber needs to be utilized for purchase of an annuity providing for the monthly  pension  of  the subscriber and  the balance is paid as a lump sum to the subscriber.           b. Upon Death: The  entire accumulated  pension corpus (100%) would  be paid to the nominee/legal heir of the subscriber  and  there  would  not  be  any  purchase of annuity/monthly pension required.           c. Exist from NPS before the age of Normal Superannuation (irrespective of cause):  At  leaset  80% of  the  accumulated pension  corpus   of   the subscriber needs  to  be  utilized for purchase of an annuity providing  for the monthly pension of the  subscriber  and  the  balance is paid as a lump-sum to the subscriber.                                                      BY ORDER AND IN THE NAME OF THE                                                         GOVERNOR OF KARNATAKA                                                                                             sd/-                                                                     (PADMAVATHI)                                                                Special Officer & Ex-officio,                                                           Deputy Secretary to Government,                                                              Finance Department. (Pension) Source:http://www.kar.nic.in/finance/pension/FD(Spl)203PEN2012.pdf

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