Which government employees can have both GPF and NPS accounts together?
Pension System (NPS) to save for their retirement. NPS is a market-linked pension scheme where money accumulated at retirement will depend on the returns earned by the scheme.
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The question arises as to whether government rules allow government employees to also contribute to the General Provident Fund (GPF) to save more for retirement.
ET Wealth online asked experts if a government employee can deposit money in NPS and also in GPF accounts at the same time.
Can a government employee have both NPS and GPF together?
Vinay Joy, Partner at Khaitan & Co — a law firm, says, «Government employees used to be beneficiaries of the GPF earlier, but the introduction of the NPS in 2004 changed this. As a result of the introduction of the NPS from January 1, 2004, amendments were made to the Central Civil Services (Pension) Rules, the General Provident Fund Rules, and the Contributory Provident Fund Rules. The amendments state that the GPF would not apply to government employees appointed on or after January 1, 2004, who were to be covered under the NPS. Hence, a government employee can be part of NPS or GPF but not have both together. If the government employee's appointment was made on or after January 1, 2004, then the employee will be part of NPS. If the appointment was made on or before December 31, 2003, a government employee would have GPF, and old pension rules would apply
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