NPS vs GPF: GPF Facility for National Pension Scheme Gov. Employees
The proposal suggests an extension of the General Provident Fund (GPF) facility to the National Pension System (NPS) governed employees, giving them the option to choose between the two schemes. This move comes as a result of the government’s efforts to provide more flexibility and better retirement benefits to its employees. The extension of the GPF facility to the NPS governed employees will provide them with an opportunity to have control over their investments and ensure a secure financial future.
Shiva Gopal Mishra
Secretary
Ph:23382286
National Council (Staff side)
Joint consultative Machinery
For central government employees
13-C, Ferozshah Road, New Delhi – 110 001
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No.NC-JCM-2019/Pension(NPS)
September 26, 2019
The Secretary,
Government of India,
Department of Pension and Pensioners Welfare,
3rd floor, Lok Nayak Bhawan,
Khan Market, New Delhi – 110 003
Dear Sir,
Sub: Extension of GPF facility to the NPS Governed Employees on optional basis.
The above subject matter was discussed as Item No.7 of the Standing committee meeting of the National council (JCM) held on 7-3-2019. The extract from the minutes of the above meeting is given below for your kind ready reference
Staff Side told that they reiterate their stand in that, the National Pension Scheme (NPS) should be scraped and the Defined Guaranteed Pension under the CCS (Pension) Rules 1972 should be restored to the employees, who were recruited on or after 1-1-2004.
Check also: NPS to OPS
They also demanded that General Provident Fund (GPF) facility may be provided to the NPS governed employees on an optional basis.
‘Chairman desired that the Dept. of Pension may consider the demand in reference to GPF of the staff side.’
Inspite of the above decision taken in the meeting no formal orders have been issued for extending the GPF facility to the NPS governed employee on optional basis. Since the NPS governed employees are pressing hard it is requested that the issue for which no financial implication is involved for the Government, necessary orders may please be issued at earliest.
Read also: GPF to be introduced to willing NPS employees – AIDEF Circular
Thanking you,
Yours sincerely,
sd/-
(SHIVA GOPAL MISHRA)
Secretary
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What is GPF?
GPF stands for General Provident Fund. It is a retirement savings facility for government employees.
What is NPS?
NPS stands for National Pension Scheme. It is a government-promoted pension scheme for employees.
What is the difference between GPF and NPS?
GPF is a savings scheme where employees contribute a portion of their salary, and the government matches the contribution. NPS is a pension scheme where employees and the government contribute towards a pension fund.
Can NPS governed employees opt for the GPF facility?
Yes, NPS governed employees have the option to extend their provident fund facility and participate in the GPF scheme.
Is the extension of GPF facility to NPS governed employees mandatory?
No, it is not mandatory. The extension of GPF facility to NPS governed employees is optional.
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