PENSION FUND REGULATORY

AND DEVELOPMENT AUTHORITY

B-14A,Chhartrapati Shivaji Bhavan,
Qutab Industrial Area,
Katwaria Sarai, New Delhi-11016.
Ph:011-26517501,26517503,26133730
Fax:011-26517507
VENKATESWARALU PERI Website:www.pfrda.org.in
General Manager

PFRDA/24/EXIT/10 Dated:21 st March,2020

Subject: Clarification on Exits and Withdrawals from National Pension System on

account of suspension,removal,dismissal-Reg...

Shri. K.Praveen Kumar

Chairman & Board of Directors,
A.P.Grameena Vikas Bank
Head Office :: Wranagal.

Dear Sir,

This has reference Letter no. PFRDA/2020/CGRO/30 Dated. 14-03-2020 from Shri.
G.V.S.Santosh Kumar, reference the OM.No.38/41/06/P&PW(A) , Governement of India Dated 5 th
May,2009 on the subject cited above.

In this Regard we wish to inform you that the Authority has notified the PFRDA (Exits and
Withdrawals from National Pension System) Regulations, 2015 on 11 th May, 2015 and is in force.
Reference is drawn to Regulation 4 pertaining to Exit from National Pension System by Citizens,
including Corporate sector subscribers/Government Subscribers and more particularly sub-regulation(a).
Thus, for the convenience of the subscriber clarificatory guidelines are issued.

we wish to inform you that as per the directive issued by Department of Financial Services,
Ministry of Finance, Govt. of India vide its letter F. No. 8/20/2010-RRB dated 23rd October 2018 have
communicated the approval of the following regulations after consultation with NABARD and State Bank
of India being the Sponsor Bank, in terms of Andhra Pradesh Grameena Vikas Bank (Employees’)
Pension Regulations, 2018 (Refer Chapter II, Regulation 3(3) reads with Notwithstanding anything
contained in this regulation, any employee who joined the service of the Bank on or after the 1st April,
2010 shall have an option either to be covered by the National Pension System or to continue to be
governed under the Employees’ Pension Scheme, 1995. In connection of above, IBA has finalized the
policy with Circular No.CIR/HR&IR/G2665/90/2010-11/999 dated August10,2010 reads with
Officers/Workmen employees,joining services of banks on or after 1st April 2010 shall be eligible for
Defined Contributory Pension Scheme on the lines of New Pension Scheme introduced for employees of
Central Government.Therefore the employees who were in services of the bank prior to 1st April,2018 in
case of Regional Rural Banks shall be covered with New Pension System on par with Nationalized Banks
and Assiociate banks of State bank of India.So, the Subscriber Shi.G.V.S.Santosh Kumar is Eligible for
New Pension Scheme and Shall be covered by New Pension System Regulated by PFRDA.

In Connection of above We wish to inform you that Shift the Subscribers PRAN to Bank and
enter the subscriber employment details by nodal office and arrange to pay the difference of Employer
NPS Contribution to Subscribers PRAN and direct the Subscriber to pay the remaining Employer
contribution and Employee Contribution to subscribers PRAN through online mode and request the
subscriber to acknowlege the receipit to your Head Office for Future Reference.
 In this regard we wish to inform you that as per Notification dated 22-12-2003 has stipulated
subscribers would have felxibility to exit to leave pension system prior to age of 60 irrespective of the
cause, However in this the mandatory annuitization would be 80% of the Pension wealth. Hence the
present Provisions will continue. No change has been made.

The Authority has examined the matter and Authority in exercise of its powers under section 14 of
the Pension Fund Regulatory and Development Authority Act,2013 read with Regulation 39 of the
PFRDA(Exits and Withdrawals from National Pension System) Regulations, 2015.

2. For any further clarification on the DPPW OM dated 05th May 2009, Bank may kindly get in touch
with the DPPW itself.

3. This issues with approval of Joint Secretary, Department of Financial services, Ministry of Finance.

Yours Sincerely,

VENKATESWARALU PERI
General Manager