CGDA : Procedure for Allotment of PPAN

Organization : Controller General of Defence Accounts
Facility : Procedure for Allotment of PPAN Permanent Pension Account Number

Home Page : http://cgda.nic.in/

Procedure for allotment of Permanent Pension Account Number (PPAN) :
** Immediately on joining Govt. service, the Govt. servant will be required to provide particulars such as his name, designation, scale of pay, date of birth, nominee(s) for the fund, relationship of the nominee etc. in the prescribed for (Annexure I).** The DDO concerned will be responsible for obtaining this information from all Govt. servants covered under the New Pension Scheme.
** The PAO concerned will allot a unique 16 digit Permanent Pension Account Number (PPAN). The first four digits of this number will indicate the calendar year of joining Govt. service
** The particulars of the Govt. servants received from the various DDOs will be consolidated by the Nodal Office identified in each Ministry/Department/Office and sent to the CPAO. The CPAO will keep this information in their computer database.
** The accounting heads involved in the operation of the new pension scheme will be intimated in due course.
** The first salary bill of the new entrant will be passed
** CPAO on receipt of this information will update its database and generate exception reports for missing credits, mismatches etc.
** No withdrawal of any amount will be allowed during the interim arrangements.
** At the end of each financial year the CPAO will prepare
** After the close of each financial year, CPAO will have to report the details of the balances (PAO-wise) to each PAO for the purpose of reconciliation.** The PAO will reconcile the figures of contributions with figures as per the books of CPAO.

New Pension Scheme
Govt. of India, Ministry of Finance, Deptt. Of Expenditure vide their OM No.F.No.1)T)(2)/2003/TA/19 dt.14.1.2004 & 4.2.04 have introduced a New Defined Contribution Pension Scheme replacing the existing System of Defined benefit Pension System. The New Pension Scheme comes into operation w.e.f. 1.1.2004 and is applicable to all new entrants to Central Govt. service except to Armed Forces joining Govt. service on or after 1.1.2004.

Features :
** The New Pension Scheme will work on defined contribution basis and will have two tiers – Tier I and Tier II.
** Tier-I is mandatory for all Govt. servants joining Govt. service on or after 1.1.2004. In Tier I, Govt. servants will have to make a contribution of 10% of his Basic Pay, DP and DA which will be deducted from his salary bill every month by the PAO concerned. The Govt. will make an equal matching contribution. Tier I contribution will be kept in a non withdrawal Pension Tier I account.
** Tier II will be optional and at the discretion of Govt. servants
** The existing provisions of Defined Benefit Pension and GPF would not be available to new Govt. servants joining Govt. service on or after 1.1.2004.
** An independent Pension Fund Regulatory and Development and Authority (PFRDA) will regulate and develop the pension market.