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Monday, March 24, 2014

Karnataka Order - Operationalisation of New Pension System for State Government Employees in the Office of Resident Commissioner and Karnataka Bhavan, New Delhi

Operationalisation of New Pension System for State Government Employees in the Office of Resident Commissioner and Karnataka Bhavan, New Delhi


Subject: Operationalisation of New Pension System for State Government Employees in the Office of Resident Commissioner and Karnataka Bhavan, New Delhi.

Reference: 1) G.O. No. FD (SPL) 04 PET 2005 Bangalore, Dt:31.3.2006.
       2) G.O. No. FD (SPL) 28 PEN 2009 Bangalore, Dt:19.1.2010.
       3) G.O. No. FD (SPL) 28 PEN 2009 Bangalore, Dt:29.3.2010.
       4) G.O. No. FD (SPL) 01 PEN 2010 Bangalore, Dt:20.10.2010.
       5) Govt. Circular No:FD (SPL) 1 PEN 10 Dt:10.1.2012.


 Government of Karnataka has approved New Defined Contribution Pension System known as New Pension System (NPS) as per G.O. at ref (1) for all State Government employees joining the government service on or after 01.04.2006. NPS is implemented and made operational for such State Government employees working in State Government offices and drawing salaries through Treasuries as per G.O.s referred to at ref (2) & (3). NPS is also made operational for All-India service officers borne on the cadre of Karnataka with effect from 1.1.2004.

Karnataka Bhavan, New Delhi, which is an establishment of the State Government offering hospitality services, comes under direct control of Department of Personnel and Administrative Reforms (DPAR). Karnataka Bhavan has two establishments namely office of the Resident Commissioner and Karnataka Bhavan, Hospitality Establishment. The expenditure of the Office of Resident Commissioner is met through the budgetary provisions under HOA 2052-00-092-0-06 and that of Karnataka Bhavan, Hospitality Organisation through HOA 2070-00-115-1-01. Karnataka Bhavan is not linked to Treasury Network System of the State and hence carries out all its financial transaction through a zero balance current account it has with Canara Bank, Delhi. Primarily the expenditure is on establishment expenses including that of salary of staff in Karnataka Bhavan. Karnataka Bhavan issues cheques on Canara Bank along with Salary Schedule of it’s employees for crediting salary to the concerned employees’ accounts as per the salary schedule sent. As an end of the day activity, the total amount paid to the Karnataka Bhavan, is reimbursed to Canara Bank out of State Government’s account with RBI, Bangalore through the Public Accounts Department.

 As the State Government employees and the All India service officers of Karnataka cadre working in Karnataka Bhavan are not receiving their salaries through Treasury, NPS was initially not made operational for them. However since state government employees and AIS officers are covered under NPS, specific order needs to be issued to detail the operationalisation of NPS for all eligible employees serving in Karnataka Bhavan, New Delhi. Hence this order.

Govt. Order No. FD (SPL) 35 PEN 2013, Dated:29-1-2014.

1. New Pension System is made applicable and operational for all eligible State Government employees and All India Service Officers working in Karnataka Bhavan, New Delhi i.e, in the Office of the Resident Commissioner and Karnataka Bhavan, Hospitality Establishment, New Delhi.

2. The NPS operationalisation procedure:


The HRMS shall provide login credentials to Karnataka Bhavan, New Delhi, to facilitate Employee Registration, Salary Bill Generation, deduction of NPS Contribution, Subscriber Contribution File (SCF) generation, maintenance of Employee details and other NPS related activities equating them with any other Drawing Disbursing officer in HRMS.

B. Registration with Central Recordkeeping Agency (CRA) of NPS:

i) The Director of Treasuries, has been registered with CRA as the Principal Nodal Officer for NPS in the State. Therefore, Director of Treasuries will also be the Principal Nodal Officer for Karnataka Bhavan, New Delhi.

ii) Drawing and Disbursing Officer (DDO) of Karnataka Bhavan shall register with CRA, as both the Treasury Officer and the DDO for operationalising NPS and shall be referred to as Pay & Accounts Officer (PAO) for the purpose of NPS.

iii) PAO, Karnataka Bhavan shall submit prescribed registration form N2 to CRA through the Director of Treasuries. On registration with CRA, a unique number shall be allotted to PAO and shall be recognized as Nodal Officer for NPS to perform roles of both DDO and Treasury Officer as listed in G.O. at ref. (3).

 iv) On registration, CRA shall share File Preparation Utility (FPU) and File Validation Utility (FVU) with Karnataka Bhavan, New Delhi.

v) The PAO shall ensure that all eligible employees who have not been registered under NPS with CRA, shall register with CRA by submitting Annexure S1 as detailed in circular at ref. (5).

C. NPS Contributions:

The contributions to be made under NPS i.e payment of Regular contribution, payment of Employee Backlog & payment of Government Backlog shall all be as detailed in G.O at ref. (3) and to the extent of amendments made to the G.O at ref. (3).

D. PAO shall perform the role of DDO in NPS as listed in para 7 of G.O at ref. (3).

E. Role of PAO (Treasury Officer’s Role):

PAO is designated as the Nodal Officer for NPS and will work as interface between the CRA and employees of Karnataka Bhavan. He shall perform the dual role of both Treasury Officer and DDO in NPS. Following are the specific duties of PAO:

i) Registration and subscriber details management:

a) The PAO shall receive and forward employees’ NPS registration applications-Annexure S1 to CRA and maintain the Registered Employees Details.

 b) The PAO shall manage requests for changes in subscriber details and investment options received from the employees, through NPSCAN and forward grievances received from the employees to the CRA.

ii) Salary Bill Generation and upload of Regular NPS Contribution:

 a) Generate and approve Salary Bills in HRMS after effecting required NPS deductions wherever necessary.

b) On approval of the salary Bills, ensure deduction of the Regular employee contribution from the employee’s salary drawn from the Salary Head of Account and the same is transferred to Head of Account “8342-00-120-2-01” by book adjustments. The PAO shall issue cheque to designated bank (at present Canara Bank) along with Salary Schedule of its employees for making only the net salary payment (after NPS deduction) to the concerned employees.

 c) Prepare a bill for drawing matching Regular government contribution from Head of Account “2071-01-117-3-01- State Government Pension, Non-Plan, Voted, 251,” and transfer the amount to “8342-00-120-2-01” by book adjustments.

d) Generate a Control file for the total amount (Regular employee contribution and Government contribution)..

e) Upload the soft copy of the Control file in the HRMS and generate the Subscriber Contribution File (SCF)-Soft copy format of details of Employee and Government Contribution.

 f) Validate the SCF by using the File Validation Utility (FVU) of the CRA.

g) Upload the validated SCF to the NPSCAN system of the CRA and generate Contribution Submission Form (CSF). CSF shall be used
to make payment to the Trustee Bank.

h) Prepare a bill for CSF amount and draw the amount from HOA 8342-00-120-2-01 for the total contribution (employee contribution & government contribution). And issue a cheque for total contribution amount & submit to designated bank (at present Canara Bank) for remitting the contribution amount to the NPS Trust account of the State Government with Trustee Bank, as per CSF generated in NPSCAN of CRA.

iii) Generation of NPS related Schedules in HRMS shall be as in G.O. at ref (3).

iv) Employee Backlog NPS Contribution & Government Backlog Contribution shall be as in G.O at ref (3).

v) Maintenance of mandatory records and other duties of PAO shall be as in G.O at ref (3).

vi) PAO shall submit detailed accounts of Head of Accounts operated as per the provisions of the Karnataka Financial Code, Karnataka Treasury Code and any other government orders issued from time to time. 5 

F. Role of Employee, NPS implementation Cell & Director of Treasuries in NPS is as listed in G.O at ref. (3) will be applicable to this G.O. also.

G. Government of Karnataka authorizes DDO, Karnataka Bhavan, New Delhi (Known as PAO) to operate HOA 2071 & 8342.

H. All NPS related orders issued and that may be issued by State Government shall be applicable to employees of Office of Karnataka Bhavan, New Delhi.

By Order and in the name of the
Governor of Karnataka.

Special Officer & Ex-Officio
Deputy Secretary to Government (Pension),
Finance Department.

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