Applicable to all new entrants to Central Government service except Armed Forces.
Will have two tiers-Tier-I and Tier-II.
Government servants have to make a mandatory contribution of 10% of (Basic Pay plus D.A.), and Government will make an equal matching contribution Tier 1.
Tier-I is non-withdrawable.
Separate Account for Tier-II which is optional and there is matching contribution by Government. Tier-II is withdrawable.
There will be Central Record Keeping Agency. Several Pension Fund Managers to offer 3 categories of Schemes A, B, C.
Statutory Pension Fund Regulatory and Development (PFRDA) will regulate and develop the pension market.
Government servant can exit at or after 60 years of age from Tier-I.
40% of pension wealth mandatory for investment in annuaties at exit.
This will provide for pension for lifetime and his/her dependant.
To leave the scheme before 60 years of age, 80% of pension wealth mandatory for annuatisation.
