Government Rules — Questions & Answers
622 common questions answered with rule citations. Can't find your answer? Search rules or ask Niti AI.
Is there a penalty for not contributing to Tier-II in a year?
There is no penalty, but the account requires at least one contribution per financial year to remain active. If it becomes dormant, there may be procedural...
What happens if there is no eligible family member at the time of a subscriber's death?
If no eligible family member is available to receive benefits, the option given by the subscriber becomes infructuous. Benefits then pass to the legal heir...
What if my appointment order was dated December 2003 but I joined in February 2004 — which scheme applies?
You remain under the old CCS (Pension) Rules, 1972, because your selection was finalized before 1 January 2004. The date of selection, not the date of phys...
Is the NPS corpus guaranteed?
The contributions are guaranteed, but the final corpus depends on investment returns. PFRDA regulates the investment norms to ensure a reasonable balance b...
Why is 40% of the corpus locked into an annuity?
Parliament designed this rule so that retired government servants receive a regular monthly income throughout retirement, rather than spending the entire c...
Is the option irrevocable once the employee dies?
Yes. The last option exercised before death is treated as final. The surviving family has no power to alter it....
Why was the old scheme called 'Defined Benefit'?
Because the pension amount was pre-defined — typically 50% of last drawn pay — regardless of how much was contributed or saved during service. The governme...
Who regulates NPS?
The Pension Fund Regulatory and Development Authority (PFRDA), established in 2003, regulates and develops the pension sector. It sets investment norms, mo...
Who are the Pension Fund Managers under NPS?
Three Pension Fund Managers are empanelled under the government sector NPS: subsidiaries of SBI (SBI Pension Funds Pvt. Ltd.), UTI (UTI Retirement Solution...
What is the default option if the subscriber dies before completing 15 years of service without submitting Form-1?
Family pension and invalid pension are provided under CCS (Pension) Rules, 1972, and extraordinary pension under CCS (EOP) Rules, 1939 — the traditional sa...
What is the difference in NPS benefits between voluntary retirement and resignation?
Voluntary retirement (after 20 years): full NPS exit benefits — 60% lump sum and 40% annuity (or deferral). Resignation: only 20% as lump sum; 80% must go ...
What is a technical resignation?
A technical resignation is used when a government servant applies for and is selected to a different post within the government. They resign from their cur...
Can I withdraw from NPS to buy a second home?
No. The withdrawal for housing is restricted to purchase or construction of a residential house — it does not include commercial property or a second resid...
What is a PRAN and who issues it?
PRAN stands for Permanent Retirement Account Number. It is a unique 12-digit number assigned to each NPS subscriber. It is issued by the Central Recordkeep...
Can an invalided employee re-exercise their option?
Yes. An invalided or discharged subscriber can submit a fresh option. If no fresh option is given, the previous option on record remains operative....
Can I check my NPS balance online?
Yes. Subscribers can view their account balance, contributions, and investment returns on the CRA portal on a day-to-day basis....
What is Form-1 in the CCS (NPS) Rules, 2021?
Form-1 is the option form that every NPS subscriber must submit to declare whether they want their retirement benefits calculated under NPS Rules (PFRDA re...
How did the pension burden grow so fast?
Two factors combined: (1) the number of retired government servants grew as old recruits retired en masse, and (2) retirees lived longer, extending the per...
How does increased life expectancy affect pension costs?
Each additional year of life expectancy means the government (or the pension fund) must pay monthly pension for one more year per retiree. Multiplied acros...
How can a subscriber raise a grievance with PFRDA?
Subscribers can raise grievances through the CRA portal, through their Nodal Office, or directly to PFRDA through its grievance redressal mechanism....
What is the difference between Tier-I and Tier-II accounts?
Tier-I is the mandatory pension account — contributions are locked until exit from government service. Tier-II is an optional savings account — funds can b...
Is there any documentation required to prove pre-2004 selection?
Yes. The appointment order, offer letter, or selection letter — all pre-dated to before 1 January 2004 — would serve as documentary evidence that the selec...
What happens if I make three withdrawals and then face another emergency?
Once all three permitted partial withdrawals have been exhausted, no further partial withdrawal is allowed before exit from NPS. You would need to explore ...
Does a government servant who previously served under the old pension scheme but switches departments face NPS?
If the employee originally joined government service before 1 January 2004 and their past service is counted for pension (technical resignation route), the...
Can the option under Form-1 be changed after submission?
Yes, during the subscriber's lifetime the option and family details can be changed. However, after the subscriber's death, the family cannot alter the opti...