Punjab Newsline Network
Tuesday, 09 December 2008

CHANDIGARH: Haryana Finance Department has issued revised guidelines for implementation of Defined Contributory Pension Scheme in the state. The deductions towards New Pension Scheme would start from the pay bill of January 2009.

While stating this here Tuesday, a spokesman of the Finance Department said that the Pension Scheme would be called the Haryana New Pension Scheme 2008 and it would cover all regular Government employees joining service on or after January 1, 2006. The Pension Scheme would work on defined contributory basis and would have two tiers. Contribution to Tier-I was mandatory for the Government servants joining Government service on or after January 1, 2006.

He said that in Tier-I, Government servant would have to make a contribution of 10 percent 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 would be made by the State Government for each Government servant who contributes to the scheme.

The spokesman said that Tier-II of the New Pension Scheme would not be operational at present and no recoveries would be made from the salaries of the Government Servants on this account. No deduction would be made towards General Provident Fund contribution from the Government servants joining regular Government service on or after January 1, 2006, as the General Provident Fund Scheme was not applicable to them. The deductions towards New Pension Scheme would start from the month following the month of joining service and no deduction would be made for the month in which the employees joins service.

He said that no withdrawal of any account would be allowed from the deposits under Tier-I. The existing provisions of defined benefit pension and GPF would not be available to the Government Servants joining service on or after January 1, 2006. The National Security Depositary Limited had been appointed as Central Record Keeping Agency in respect of New Pension Scheme. In, addition there would be three Pension Fund Managers such as LIC, SBI and UTI. The Bank of India would work as the Trustee Bank in respect of funds under the New Pension Scheme.

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