Contributory Pension Scheme (CPS)

• Q-1 Eligibility criteria:
    1. A new Contributory Pension Scheme based on Defined Contributions have been introduced to the newly recruited employees who are recruited on or after 1.4.2003 vide the Government Order No.259 Finance (Pension) Department dated 6/8/2003.
  
    2. In the Government Order No. 430 Finance (Pension) Department dated 6/8/2004, the Contribution Pension Scheme for Government Employees were entrusted to the Accountant General and the CPS No. of Government employees alone allotted and maintained by the Account General.
  
    3. In Government Order No.201, Finance (Pension) Department dated 21/5/2009, the Government have allotted the work of CPS Number allotment and accounts maintenance of the employees and Teachers of the following employees
  
      a. Teachers of Panchayat Union Schools
      b. Teachers of Aided Schools/Institutions
      c. Non-Teaching Staff of Panchayat Union Schools
      d. Municipal Corporation and Municipal Employees
      e. Non-Provisionalised Employees of Town Panchayats
      f. Non-Provisionalised Employees of Panchayat Unions
  
    4. In Government Order No. 463, Finance (PGC) Department dated 27/12/2013, the Government have revised the order of maintaining the accounts of CPS of Government Servants and transferred all the CPS related works of Government Servants to Government Data Centre. After transferring of all CPS works to this office, the CPS new Numbers to all the Government employees and Teachers and the non-provincialised employees of Local Bodies in the time scale are being allotted and the accounts are all maintained at Government Data Centre.
  
    Employees drawing consolidated pay are not eligible to join CPS. These employees are eligible only when their services are regularized and brought under time scale of pay.
• Q-2 Eligibility to join GPF/CPS in case of employees who are recruited prior to 01-04-2003, and joined on or after 01-04-2003?

    The Government in Letter No. 47286/Allowances/06-1 Dt. 07-09-2006, have clarified that candidates who have been selected by Tamil Nadu Public Service Commission prior to 01-04- 2003 and joined in service after 01-04-2003, should be brought under CPS only and cannot be allotted GPF account numbers.

• Q-3 How to join the CPS?

    For obtaining the CPS number, download the NSDL subscription form from the cps.tn.gov.in website and fill up the particulars along with applicant and DDO’s signature correctly. After filling up the physical copy, enter the same particulars in the online itself and upload the scanned copy of the filled in application form and forward the same to the Government Data Centre. In Government Data Centre, after verifying the correctness of the physical and online filled in application, the new CPS No. will be generated and the DDO can download the CPS Number by using their credentials. (Guidelines enclosed in Annexure “A”)

• Q-4 Deduction or Quantum of Contribution by the enrolled employee?

    In the Government Order No. 430 Finance (Pension) Department dated 6/8/2004, it has been mentioned that for each employee will pay a monthly contribuition of 10% Basic Pay and DA from his/her salary to the CPS from the first month of their salary itself. If not deducted in the first month, the arrears of subscription to the CPS will be deducted from the employee along with the current month subscription (i.e. One subsctiption for current month and one additional for previous subscription arrears)

• Q-5 Quantum of Contribution by the employer or the Government of Tamil Nadu?

    The Government of Tamil Nadu is also contributing the amount, which is equivalent to that of contribution made by employee, every month.

• Q-6 How to deduct the arrears amount?

    After the allotment of CPS Index Numbers, the arrear of subscription from the date of joining should be calculated by the DDO and to be recovered in instalment along with subscription amount.

• Q-7 Head of Account?

    The Head of Accounts for deducting the CPS subscription is as follows:
  
  

  Sl.No.	Description	Head of Account
  1	8342 Other Deposits 117 Defined Contribution Pension Scheme for Government Employees – AA Employee's Contribution	8342 00 117 AA 801 01
  2	8342 Other Deposits 117 Defined Contribution Pension Scheme for Aided Institutions – AC Employee's Contribution	8342 00 117 AC 801 01
  3	8342 Other Deposits 117 Defined Contribution Pension Scheme for Panchayat Union Schools – AG Employee's Contribution	8342 00 117 AG 801 01
  4	8342 Other Deposits 117 Defined Contribution Pension Scheme for Municipal Employees – Employee's Contribution	8342 00 117 AI 801 01
  5	8342 Other Deposits 117 Defined Contribution Pension Scheme for Non Provincialised Employees of Local Bodies – Employee's Contribution	8342 00 117 AK 801 01
  6	8342 Other Deposits 117 Defined Contribution Pension Scheme for Non Provincialised Employees of Local Bodies – Local Body's Contribution	8342 00 117 AL 801 01

• Q-8 Eligibility to join GPF, in case of the employee who already holds another PF account and joins the GOVERNMENT SERVICE on or after 1 st April, 2003 on transfer/Promotion/absorption/Up-gradation from Municipal/Panchayat/Aided/Corporation?

    Any person, who already holds a GPF account and in pensionable service prior to 1-04-2003, and join the new post without any break in service, can continue in the pension scheme or GPF as the case may be. To continue in the pension scheme an employee should have entered in the pensionable government service before 01-04-2003 and should have entered in to another pensionable Government service on or after 01-04-03 without any break in service(Vide Letter 12473/Finance(Pension)/2009, dt.27/05/2009. Intervening government holidays and closed holidays such as Saturdays/Sundays, are not considered as break in service. http://www.tn.gov.in/gosdb/gorders/finance/fin_e_34911_2009.pdf.

• Q-9 Eligibility to join GPF/CPS in case of 10 (a) (1) candidates who were ousted and reinstated in to service by the Tamil Nadu Administrative Tribunal Orders/Court Orders with retrospective effect?

    10(a)(1) candidates regularly appointed before 01-04-2003 are eligible for old pension scheme. If they are not regularly appointed on or after 01/04/2003, will come under CPS even though they have been allotted GPF number temporarily. (Vide Letter 12473/Finance (Pension)/2009, Dt. 27/05/2009.

• Q-10 How to know about the balance at credit in a CPS account?

    Government Data Centre is processing and hosting the account slip through online after processing the account slips. The employees can view their accountslip in http://cps.tn.gov.in/public using their credentials.

• Q-11 What is the rate of interest for CPS credits?

    Interest will be given as per the rate of interest sanctioned by the Government then and there like GPF Interest rates.

• Q-12 How adjustment of Missing Credits, shown in the Account slip?

    The DDO has to provide the Missing Credit particulars in the cps.tn.gov.in Missing credit portal and forward the same to the respective District Treasury Office for authorizing and forward it to the Government Data Centre. Those missing credits will be automatically included in the subsequent account slips. (Guidelines enclosed in the Annexure “B”)

• Q-13 Whether any Advances or Withdrawals are allowed in CPS?

    At present, there is no Government Order permitting any advance or withdrawal from the CPS accounts.

• Q-14 Whether Final Closure of CPS Account holder is made now?

    The Government of Tamil Nadu, has clarified that CPS account may be closed on the retirement / resignation /Death / removal of service of the employers. As per the Government of Tamil Nadu, G O No. 59 Finance (PGC) department, dated :22.02.2016 with a direction that the employees contribution along with Government contribution and interest thereon upto the date of final authorization may be settled to the subscriber or the legal heirs of the deceased employee. In G O No.288 Finance (PGC) Department dated 10/11/2016, there is an order to transfer the CPs amount to the GPF account for the employees who have again transferred to the GPF scheme and the employer’s contribution again transferred to the respective Government Account.

• Q-15 Current status of Credit postings under CPS?

    The CPS Account slips for for the year 2020-21, have already been hosted online. Credit postings for 2021-22, is in progress.

• Q-16 How to correct the basic particulars in the CPS Accounts?

    Guidelines enclosed in Annexure “C”.

• Q-17 How to transfer the CPS amounts for the employees who have two CPS Number?

    Guidelines enclosed in Annexure “D”.

• Q-18 How to change the suffix in the CPS Number?

    There is no need for change the Suffix in the CPS Number. Annexure “E” enclosed.

• Q-19 What is the procedure for CPS Employees in Foreign Serivce?

    In the G O (Ms) No.316, Finance (PGC-I) Department dated 12/8/2020, instructions have been issued to all Undertakings to remit the Matching Contribution in the Head of Account. The above Government Order is attached in Annexure “F”.

• Q-20 What is the procedure if the CPS Contribution recovered for 10(a)(1) Temporary employees and Special Time Scale employees(Grade Pay 300)?

    Employees who are all getting the pay in the Time Scale only eligible for Contributory Pension Scheme. CPS recovered wrongly for 10(a)(1) temporary employees vide Government Letter No.42789/Finance (PGC) Dept. dt.24/12/2021 and for Special Time Scale employees too only the employee’s contribution along with Interest will be sanctioned to the employees vide Government Letter No.57113/Fin (PGC1) 2017-3 dated 31/10/2020.