Procedure for Accounting contributions of New Pension System
PROCEEDINGS OF GOVERNMENT OF KARNATAKA
Sub: Procedure for Accounting contributions of New Pension System.
Ref: 1. G.O.No.FD(SPL) 04 PET 2005, Dated 31.03.2006.
2. G.O.No.FD(SPL) 28 PEN 2009 Dated 19.01.2009.
3. G.O.No.FD(SPL) 28 PEN 2009 Dated 29.03.2010.
4. G.O.No.FD(SPL) 28 PEN 2009 Dated 12.010.2010.
5. G.O.No.FD(Spl) 01 PEN 2010 Dated 20.10.2010.
6. G.O.No.FD(Spl) 176 PEN 2014 Dated 05.05.2016.
7. G.O.No.FD(Spl) 203 PEN 2012 (P) Dated 18.05.2016.
8. Letter NO.DOT/NPS/09/2010-11, Dated 29.12.2015.
The State Government has approved a Defined Contribution Pension Scheme as a mandatory scheme for all new recruits to the State Government service joining on or after 1.4.2006 vide G.O. referred at (1) above and the New Pension System is made applicable for the members of the All India Services (Karnataka cadre) joining All India Services on or after 01.01.2004 in the G.O. read at (5) above. The monthly contribution under the scheme shall be 10% of the basic pay and dearness allowance thereon, to be paid by the employee and matched by the State Government in equal proportion. The contributions and returns have to be deposited in PRAN (Tier) 1 Account.
Since government has operationalised the NPS system from March 2010 there are cases of backlog contribution due for both employee and Government. Though, the Government has issued instructions regarding payment of backlog vide G.O. at ref.3 above, detailed accounting procedure has to be issued.
The New Pension System contributions include Regular Monthly contribution by subscriber and matching contribution from the Government. Backlog contribution by subscriber from 01.01.2004 and 01.04.2005 or his date of joining to the services, whichever is later till the commencement of regular contribution in case of AIS employees (Karnataka Cadre) and the State Government employees respectively. Government Backlog will be the contribution along with compound interest at 8% from 01.04.2006 or date of joining of the concerned employees, till the month prior to the commencement of regular contribution.
In the Government order referred at (2) above, it was indicated that separate orders will be issued regarding detailed guidelines and procedure for accounting contributions.
In the letter read at (8) above, the Director of Treasuries has sent a proposal for detailed accounting procedure to be issued.
After examining the proposal, Government has issued the following order:
GOVERNMENT ORDER NO. FD(SPL) 216 PEN 2012,
BENGALURU, DATED: 19.05.2017
1. Accounting Procedure to be followed by the Drawing and Disbursing Officers (DDOs):
i) DDOs shall effect regular deduction for employees covered under NPS from their salary,an amount equal to 10% of the Basic and DA in HRMS from the month the salary becomes due to the Government servant, consequent to his joining Government service. If the Government Servant has joined service on the first of the month, then deductions shall be effected from the same month itself. If the Government servant has joined the service after 1st of the month, the deductions shall be effected from next month’s salary.
ii) DDO shall generate the following schedules from HRMS:
a) SCHEDULE I – Regular contribution (Annexure E) enclosed.
b) SCHEDULE II – Employee backlog Contribution (Annexure F) enclosed.
c) SCHEDULE III – for Lump sum Employee Backlog Contribution outside the salary (if an employee has opted for lump sum backlog contribution). (Annexure G) enclosed.
d) SCHEDULE IV – monthly statement of backlog Contibution by Government for every employee covered under NPS and to whom backlog is due. (Annexure H) enclosed.
e) SCHEDULE V – DDO wise consolidated Government backlog contribution statement for all eligible employees covered under NPS. (Annexure I) enclosed.
iii) SCHEDULE I and II shall be sent to the tresury along with pay bill as enclosures.
iv) DDOs shall generate schedule III from HRMS when an employee chooses to pay the entire backlog in one lump sum outside the salary. Schedule III shall be verified and certified by the DDO who shall forward the DD submitted by the employee towards lump sum payment to the treasury officer along with SCHEDULE III.
v) DDO shall send duly verified and certified Schedules IV and V along with converting letter to the NPS cell.
vi) DDOs shall maintain the following Registers/documents:
1) Details of subscriber’s contributions shall be maintained in a register like any other deductions such as LIC, KGID, Group Insurance etc. as per Annexure A.
2) a) For non-Gazetted – From S1/CSRF 1 (Annexure B) – Two copies shall be generated for each employee. One copy along with coverting letter S5 (Annexure C) shall be submitted to the concerned treasury for onward submission to CRA -FC. One copy shall be maintained in the Service Register/Personal File of the concerned official. Annexure B enclosed.
b) For Gazetted Officers whose service particulars are maintained by the AG, DDOs shall send a copy of the S1/CSRF 1 and backlog option form submitted by the employee to the AG.
3) Backlog Recovery Option Form submitted by the Government Servant shall be maintained in the persobal file of the concerned official / officer.
4) Payment details of the Government servant at the time of exit (superannuation/death/registration) shall be maintained as prescribed in the Government order read at (7) above.
5) DDOs shall keep a certified copy of the Schedule IV & V which wa submitted to the NPS cell in the personal file of the employee.
2. Accounting Procedure to be followed by the Treasury Officers:
I. Treasury Officer shall the bill containing NPS deduction similar to any other deductions like KGID, GPF, LIC etc. The approval shall be subject to usual treasury checks.
II. Treasury Officers shall do the accounting work of NPS deductions of NPS employees and Government’s Contribution as they do in case of other deductions.
PROCEDURE UNDER KHAJANE-I
III. NPS transactions shall be accounted under separate depoist accounts opened for the purpose as follows:
Category and Head of Account
Employee Regular Contribution
Government Regular contribution
Employee Backlog Contribution
A. REGULAR CONTRIBUTION:-
i. Deductions towards NPS employee’s Regular contribution shall be adjusted through TTR and accounted under the Head of Account 8342-00-117-2-01 category 1 (Government).
ii. The Employees’ contribution towards NPS will be credited to Account Number 10000001 in depoist module of Khajane automatically as soon as ECS/cheques of Salary bill with NPS is delivered in the system.
iii. at the end of the day the Treasury Officer shall consolidate total subscriber contribution for the day.
iv. Treasury officer shall generate control file (which consisits of Date of NPS bill delivered, Token No, DDO code and amout) in ‘Khajane 1’ application, after which a unique number called NPS ID is generated.
v. Treasury officer shall then transfer equal matching contribution as that of the consolidated subscribers contribution for the day by generating a payees receipt in Khajane by debiting Government Head of Account 2071-01-117-0-01 – (object code 251) and crediting the Head of Account 8342-00-117-01 by transfer in ‘Khajane 1’ to account number 10000002 within next working day.
vi. The control file generated in ‘Khajane 1’ should be uploaded to HRMS. The SCF (Subscriber’s Contribution File) shall be generated in HRMS and validated through FVU (File Validation Utility) of CRA. Validated SCF should be uploaded to NPSCAN of CRA.
vii. On acceptance by the CRA system, a Transaction ID will be generated along with CSF (Contribution Submission Form) which will contain the details of SCF.
viii. Transaction ID will be updated in HRMS by generating Acknowledgement file and the Acknowledgement file is uploaded to Khajane Depoist Module for clearing NPS Regular contribution bill.
ix. A cheque for the consolidated amount of employee and Government contribution has to be generated and printed through the Khajane I. The cheque has to be drawn for the day in the name of the Manager of respective Agency Bank of the treasury which on receiving the same will trasnsfer the amount to Trustee Bank through RTGS or NEFT to the NPS Trust Account.
B. EMPLOYEE BACKLOG CONTRIBUTION:-
i. In case of Employee backlog contribution, an employee has an option to pay his backlog in one instalment at a time (every month) from salary along with regular monthly deductions or payment of multiple instalments at a time (every month) from salary.
ii. Deductions towards NPS employee backlog contribution shall be adjusted through TTR and accounted under the Head of Account 8342-00-117-2-03 Category 1 (Government).
iii. The Employees’ backlog contribution towards NPS will be credited to Account Number 10000003 in Deposit module automatically in the Khajane system as soon as ECS/cheque of the salary bill with NPS is delivered.
iv. The contro file generated in ‘Khajane 1’ should be uploaded to HRMS. The SCF (Subscriber’s Contribution File) shall be generated in HRMS and validated through FVU (File Validation Utility) of CRA. Validated SCF should be uploaded to NPSCAN of CRA.
v. On acceptance by the CRA system, a Transaction ID will be generated along with CSF (Contribution Submission Form) which will contain the details of SCF.
vi. Transaction ID will be updated in HRMS by generating Acknowledgment file and the Acknowledgement file is uploaded to Khajane Deposit Module for clearing NPS Backlog contribution bill.
vii. A cheque has to be drawn for the day in the name of the Manager of respective Agency Bank of the treasury who upon receiving the same will transfer the amount to Trustee Bank through RTGS or NEFT to the NPS Trust Account.
viii. Lump sum payment outside salary: On receipt of DD and Schedule III from the DDO towards payment of employee backlog in one lump sum outside salary, the Treasury Officer shall generate SCF (Subscriber Contribution File) in HRMS and upload it to the CRA and forward DD to the Agency bank for onward transfer of funds to the Trustee Bank through RTGS/NEFT. This however shall not be accounted in the Treasury.
3. GOVERNMENT BACKLOG CONTRIBUTION:
i. DDO will prepare Schedule IV and Schedule V in the HRMS and will send the signed copies of Schedule IV and V to the NPS Cell after verification.
ii. On receipt at NPS cell, the Schedule IV and Schedule V’s will be verified. Schedules without any discrepancy will be processed after interest updation till the month of making payment of Government backlog contribution by generating Schedule VI in HRMS as per G.O. read at (3) above, payment of compound interest will be updated till 30.06.2016 only as per G.O. read at (6) above.
iii. PRAN wise consolidated list will be sent to CRA for providing Transactions IDs.
iv. On receipt of Transactions IDs, a bill will be prepared in NPS Cell by debiting HOA 2071-01-117-0-01 V Object code 251 and sent to State Huzur Treasury for payment towards Government Backlog contribution to be made to NPS Trust Account.
v. Compound interest on Government backlog contribution shall be debited against HOA 2071-01-117-0-01 which later will be adjusted to the interest HOA 0049 at the end of the March every year by the NPS Cell.
vi. A Cheque will be obtained in the name of Trustee Bank and will be sent to the Trustee Bank.
vii. Schedules with discrepancies will be returned back to the DDO concerned for resubmission after rectification.
4. Procedure under Khajane 2
Category and Head of Account
Employee Regular Contribution
Government Regular contribution
Employee Backlog Contribution
** Sub head is o1 to 30 i.e. each district is identified by the unique sub head.
A. REGULAR CONTRIBUTION:-
i. Deduction towards NPS employee’s Regular contribution shall be adjusted through TTR and accounted under the Head of Account 8342-00-117-0-** (** Sub head is 01 to 30 i.e. each district is identified by the unique sub head).
ii. The Employees’ contribution towards NPS will be credited to the HOA 8342-00-117-0-** (** Sub head is 01 to 30 unique to each district) under the Object code 508 automatically sa soon as Salary bill with NPS contribution is authoried for payment in the system.
iii. Salary Bills which have NPS deductions will be identified in the system and will be classified accordingly after payment is authorized in the system.
iv. The bills with NPS deductions will go to the Schedule Processor for separating the schedules from the bills submitted.
v. The NPS Schedules (Schedule I) will be separated and consolidated for the day to generate the Schedule VII (Consolidated Sheet for underlying Schedule I in the batch) with a unique ID i.e. NPS ID.
vi. Treasury Officer will prepare and submit the Bill for TTR towards the corresponding Government Contribution based on the Schedule VII generated by debiting Government Head of Account 2071-01-117-0-01 -Voted(object code 251) and crediting the Head of Account 8342-00-117-0-** by transfer in ‘Khajane II’ under object code 509.
vii. The SCF will be generated for the day after approval of TTR corresponding to the NPS ID.
viii. SCF file will be generated in Khajane II. The SCF will automatically run through the FVU software provided by the CRA and embedded in the Khajane-II system. A SCF Batch Id is generated for the SCF. CRA will provide a TRansaction ID as confirmation of SCF receipt to Khajane-II. Transaction ID will be stored against the SCF Batch ID.
ix. On receipt of Transaction ID, Treasury Officer will prepare a draft bill to debit the total amount from HOA 8342-00-117-0-** and forward it to “Bill Preparation and Submission” module for sending payment instruction to Agency bank.
x. Treasury officer will process the Bill and send the payment instruction to Agency Bank.
xi. The Agency Bank will effect the NEFT transaction to Trustee bank and send back to Khajane-II an UTR No. for the transaction. This UTR Number will be saved against the Transaction Id and SCF batch ID in the System/Database.
xii. Matched and Booked date will be sent by the CRA to Khajane II system on receipt of FRC (Fund Receipt Confirmation) from Trustee Bank.
B. EMPLOYEE BACKLOG CONTRIBUTION:-
i. Deductions towards NPS employee backlog contribution shall be adjusted through TTR and accounted under the Head of Account 8342-00-117-0-01 to 8342-00-117-0-30 Object code 510 Category 1 (Government).
ii. The Employees’ backlog contribution towards NPS will be credited to 8342-000-117-0-01 to 8342-00-117-0-30 Object code 510 automatically in the Khajane II systems as soon as NPS salary bill payment is authorised.
iii. The NPS Schedules (Schedule II) will be separated and consolidated for the day to generate the Schedule VIII (Consolidated Sheet for underlying Schedule II s in the batch) with a unique ID i.e. NPS ID.
iv. SCF file will be generated automatically be fetching data from the consolidated list of Schedule-IIs i.e. Schedule VIII. The SCF will automatically run through the FVU software provided by the CRA and embedded in the Khajane-II system. A SCF Batch Id is generated for the SCF. CRA will provide a Transaction ID as confirmation of SCF receipt to Khajane-II. Transaction Id will be stored against the SCF Batch ID.
v. On receipt of Transaction ID, Treasury Officer will prepare a draft bill to debit the total amlunt from HOA 8342-00-117-0-** object code 510 and forward it to Bill Preparation and Submission module for sending payment instruction to Agency bank.
vi. The Agency Bank will effect the RTGS/NEFT transaction to Trustee bank and send back to Khajane-II an UTR No. for the transaction. This UTR Number will be saved against the Transaction Id and SCF batch ID in the System/Database.
vii. Matched and Booked date will be sent by the CRA to Khajane-II system on receipt of FRC (Fund Receipt Confirmation) from Trustee Bank.
viii. In case of Employee backlog contribution in one lump sum outside the salary, the Treasury Officeer shall generate SCF, upload it to the CRA and forward DD/e-payment for lump sum amount submitted by the DDO to the Agency Bank for onward transfer to the Trustee Bank. This amount however shall not be accounted in the Treasury.
ix. The Treasury Officers shall send a copy of the Schedule of Receipts (SOR) for NPS receipts along with regular monthly accounts to the Accountant General.
C. GOVERNMENT BACKLOG CONTRIBUTION
1. DDO will prepare Schedule-IV and Schedule-V in the HRMS and will send the digitally signed schedules to Khajane-II system through online integration and the physical copies of schedules to NPS cell as per Government Order referrred at 3 above.
2. In NPS cell, after receiving Schedule-IV and V in Khajane-II system as well as physically, the same will be verified if there is any difference in the online received copies and the physically received copies.
3. If discrepancies are found on comparison between the physical copies and online copies, the schedules will be rejected by the NPS Cell through online and physical copies will be sent back to the DDO concerned.
4. When schedule IV and V are approved in NPS cell, the same will be stored in the Khajane-II system and physical copies will also be stored in the NPS cell.
5. Interest amount will be updated in Schedule-VI till the month of making payment of Government Backlog contribution as per G.O. read at (3) above. Payment of compound interest will be updated by the NPS Cell upto 30.06.2016 only as per G.O. read at (6) above.
6. Schedule-VI and PRAN wise consolidated list will be generated by using the link provided for the same and will be sent CRA for SCF generation. Schedule-VI and PRAN wise consolidated list will be stored in the Khajane-II system. Transaction IDs will be generated by CRA.
7. On receipt of Transaction IDs from CRA, Separate Draft bill request will be prepared in Khajane II system.
8. The Government Backlog contribution will be debited to the HOA 2071 – 01-117-0-01 NP V Object code 251.
9. Validation with NPS Employee Ledger will be done in system that Government Backlog Contribution has not been paid already for any Employee.
10. The bill will be sent to State Huzur Treasury through online as well as physical copy of the bill for making payment to Trustee Bank.
11. Treasury officer will approve the bill and make payment authorization and system will communicate the Payment ID to NPS module after sending payment instruction to Agency Bank.
D. The District Treasury Officers shall send the following schedules to the NPS cell:
i. TTR Schedules:
1. TTR schedule along with Schedules I & II received in the pay bills.
2. TTR abstract major head wise and category wise.
3. Date wise NPS abstract district wise.
4. Consolidated NPS abstract district wise.
5. Consolidated NPS status report for the Month.
6. NPS Schedule III (Annexure F) enclosed.
ii. NPS Balance Sheet (KTC 31):
1. The Individual balance sheets of Sub-treasuries
2. The balance sheet of the District Treasuries.
E. Treasury Officers shall maintain the following records related to NPS:
1. Annexure S6 – Treasury officer’s coverting letter to Annexure S1/CSRF 1 (Annexure D) enclosed.
2. CSF (Contribution Submission Form). Annexure J enclosed.
3. NPS transaction status report (contribution Register).
4. Control sheet report generated through FVU for Regular and backlog payment.
5. NPS balance sheet (KTC 31).
6. Acknowledgement/Counterfoil given by Banks after NEFT/RTGS transactions with UTR number.
7. Record of Lump sum amount made for dependents of Expired NPS employees while in service as per G.O. at ref. 4 shall be maintained at Treasury.
8. Records of withdrawal of NPS amount on account of resignation/retirement due to superannuation or otherwise.
9. Annexure S7 and S8 (covering letter) received from employees through their DDOs for making changes in Signature & Photograph and forwarded to CRA-FC.
Annexure L enclosed.
10. Annexure S2 forms received by the employees for updation of personal details through the concerned DDOs. Annexure K enclosed.
F. Accounting Procedure to be followed by the NPS Cell:
i. Payment of Government Backlog contributions: NPS Cell shall receive schedule IV and V generated by DDO and make payment of Government backlog to the eligible employees, by generating schedule VI in HRMS from DDNPS login. NPS Cell shall draw the Government backlog contribution from SHT and the amount shall be debited to HOA 2071.
ii. Monitoring NPS contributions monthly and co-ordinating with the CRA regarding contributions from the subscribers and Government as and when need arise.
iii. The NPS cell has to carryout reconciliation of schedules and challans received from all the district treasuries for month and matching the totals with the figures booked by AG on a monthly basis. Discrepancies if any have to be reconciled (figures to be matched with CRA, Treasuries and AG).
iv. Verification and making payment of service charges to CRA as per demand.
G. Maintenance of Masters and Records in NPS cell.
a) Treasury Officers master – PAO/DTO registration numbers allotted by CRA to all the Treasury Officers for carrying out NPS transactions.
b) DDOs Master – DDO Registration numbers allotted to all the DDOs by CRA.
c) Subscribers master – PRAN numbers allotted by CRA to individual subscribers.
d) Keeping Records which are received from the Treasuries (as mentioned in Para 3(VIII) and DDOs. These Records shall be maintained Treasury Wise-DDO Wise in NPS Cell.
H. NPS Cell will generate following reports every month and keep them as record:
MIS 1 – Non IRA Compliant Subscribers list.
MIS 2 – Non NPS employees registered with CRA.
MIS 3 – Subscriber contribution File (SCF) Not Matched & Not Booked.
MIS 4 – (a) List of DDOs registered.
(b) List of Active Subscribers.
(c) Salary Drawn Statement.
(d) SCF status.
(e) I-Pin Reissue
(f) Register for watching subscriber registation with CRA
MIS 5 – Statement showing DDO wise missing entries (Missing Credits).
MIS 6 – Government Backlog Credit Statement (PRAN wise).
MIS 7 – Ledger Posting (PRAN wise & Year wise).
NPS cell will inspect all the Treasuries and random test check of DDO office in respect of NPS records to be maintained at their end i.e. subscriber registration, NPS contribution deductions and other subscriber related records, as and when required.
By Order and in the name of the
Governor of Karnataka,
Additional Secretary to Government,