Section 24 of The Unified Pension Scheme
24. Intermediaries and Entities implementing UPS. – (1) UPS shall be implemented through NPS architecture, by such
of the intermediaries registered with the Authority, namely National Pension System Trust, Pension Fund, Central
Recordkeeping Agency, Trustee Bank and Custodian of Securities and the registration granted by the Authority under the
Act and in terms of specific regulations shall enable such intermediaries to undertake activities under UPS, during the
tenure of such registration. The nodal offices of the Central Government including Head of Office, PAO, DDO and CDDO
shall also be part of the implementation process. (2) The entities involved in implementation process shall perform their roles, duties, obligations and responsibilities in
accordance with the provisions of the Act, rules, regulations and any directives and instructions of the Central Government
and the Authority, as the case may be.
(3) The performance of various obligations towards subscribers in discharge of its functions and the observance of code
of conduct laid down under the specific regulations, under which such intermediary has been registered by the Authority
shall mutatis mutandis apply to them under these regulations.
(4) The intermediaries entrusted with payout of benefits to subscribers including withdrawals and who hold and provide
information and instructions for effecting such pay out, shall conduct its activities with utmost vigil and take measures to
prevent unauthorised transactions. It shall be the duty of such intermediaries to prevent any fraud or mismanagement,
causing any loss or prejudice to subscribers, in any manner. Towards this purpose, the intermediary shall deploy
appropriate technology and trained human resources. The Key Managerial Personnel shall have the overall responsibility
of discharging the obligation by the intermediary concerned.
Explanation: “Key Managerial Personnel” shall have the same meaning as defined under the Companies Act, 2013.
(5) An intermediary shall ensure appropriate measures and secure its systems, commensurate to its roles and
responsibilities, so as to prevent any fraud or mismanagement and avoid any loss to subscribers, either of monetary or
non-monetary nature. Towards this purpose, the intermediary shall conduct periodic checks and report to its management
and shall thereafter report to the Authority, through its compliance officer. Besides the intermediary concerned, other
entities involved with implementation of UPS shall also devise suitable systems and procedures to avoid any prejudice to
subscribers, and the Central Government. The intermediary shall submit a compliance certificate(s) to the Authority in
respect of its activities under UPS while submitting the compliances under NPS, as stipulated under the respective
intermediary regulations.
(6) The intermediaries and entities shall ensure seamless provision of services to subscriber by working in close
coordination with each other and sharing of such facilities and information as is required. The National Pension System
Trust shall be responsible to ensure such coordination as is required.
(7) Where any deviation or breach has been noticed by the Intermediary or the entity, it shall forthwith take corrective
measures and remove any prejudice caused to subscribers or any group of subscribers, including provision of suitable
restitution or compensation, as if such subscriber was not adversely affected, in any manner, notwithstanding any
proceedings that may be initiated by the Authority.
(8) The functions, roles, duties, obligations and responsibilities of the intermediary towards provision of services under
UPS, shall be in addition to and not in derogation of its functions, duties and responsibilities as laid down under the Act,
rules and other regulations notified by the Authority.
Section 25 of The Unified Pension Scheme
25. National Pension System Trust. – (1) The National Pension System Trust undertaking the activities under UPS shall
act in accordance with the trust deed and the Pension Fund Regulatory and Development Authority (National Pension
System Trust) Regulations, 2015, including the code of conduct.
(2) The National Pension System Trust shall perform its roles and responsibilities as provided under Chapter III of Pension
Fund Regulatory and Development Authority (National Pension System Trust) Regulations, 2015 as if the reference to
“National Pension System” in such regulations shall extend to “Unified Pension Scheme” option under NPS, as well.
(3) The power, functions and obligations of the Board of Trustees and Chief Executive Officer of the National Pension
System Trust, arising under Pension Fund Regulatory and Development Authority (National Pension System Trust)
Regulations, 2015 shall extend to activities under UPS, as provided under these regulations. The Chief Executive Officer
and the Board of Trustees shall have the overall responsibility of discharging obligation of the National Pension System
Trust under these regulations.
(4) The National Pension System Trust shall undertake activities for implementation of UPS in accordance with these
regulations, including: (i) authorise release of UPS benefits, after due verification of UPS Payout Order issued by the PAO of the Central
Government;
(ii) authorise release of monthly payout from the Pool Corpus to the bank account of the UPS Subscriber or the legally
wedded spouse, as the case may be, and periodic release of applicable dearness relief;
(iii) periodic instructions to CRA to release applicable Dearness Relief;
(iv) checking availability of valid life certificate in CRA system for release of monthly payouts;
(v) authorizing transition of assured payout to legally wedded spouse, upon demise of the UPS subscriber;
(vi) segregation of UPS scheme accounting;
(vii) concurrent audits of assured pay out from pool corpus and its monitoring for Asset-Liability Management;
(viii) ensure coordination among intermediaries and other entities implementing UPS and monitoring such activities;
(ix) ensure adequate and timely reporting to the Authority and the Central Government as may be required; and
(x) any other functions and activities instructed by the Authority.
Section 26 of The Unified Pension Scheme
26. Central Recordkeeping Agency. – (1) The CRA undertaking the activities under UPS shall comply with the terms
and conditions of registration as provided under the Pension Fund Regulatory and Development Authority (Central
Recordkeeping Agency) Regulations, 2015, including the code of conduct and fit and proper criteria.
(2) The CRA shall perform its roles and responsibilities as provided under Chapter III of Pension Fund Regulatory and
Development Authority (Central Recordkeeping Agency) Regulations, 2015 as if the reference to “National Pension
System” in such regulations shall extend to “Unified Pension Scheme” option under NPS, as well.
(3) The CRA shall develop appropriate, adequate and dynamic technology, infrastructure, systems, procedures and
processes for facilitating the activities under UPS by the concerned intermediaries and subscribers, including:
(i) enrolment and identifiable UPS account to UPS Subscribers;
(ii) enabling permissible choices to UPS Subscribers;
(iii) providing systems and forms to intermediaries and entities to implement UPS;
(iv) designing and providing UPS calculator;
(v) disseminating information to UPS Subscriber, intermediaries and other entities involved in implementation of UPS;
(vi) enabling National Pension System Trust to compute and authorise release of UPS benefits in terms of UPS Payout
Order;
(vii) undertaking activities for assured payout;
(viii) obtaining valid life certificate of the payee on an annual basis and report the same to NPS Trust;
(ix) periodic reporting to National Pension System Trust and Authority;
(x) comparison of individual corpus with benchmark corpus;
(xi) reconciliation of Pool Corpus;
(xii) recordkeeping of UPS Payout Order;
(xiii) recordkeeping of dearness relief and its application on assured payout;
(xiv) providing UPS Subscribers’ data on an aggregate basis to pension fund for managing Asset-Liability Management; (xv) authenticating partial withdrawals in accordance with regulation 18; and
(xvi) any other functions and activities instructed by the Authority.
(4) The CRA shall develop necessary system design and functionalities in its system and maintain adequate technological
platform for operationalising the UPS, end to end, within the timelines laid down by the Authority.
(5) The obligations of the management of CRA, Compliance Officer and Principal Officer, appointed by CRA, arising
under Pension Fund Regulatory and Development Authority (Central Recordkeeping Agency) Regulations, 2015 shall
ipso facto extend to activities under UPS, as provided under these regulations.
(6) The CRA shall abide by the provisions of Schedule III of the Pension Fund Regulatory and Development Authority
(Central Recordkeeping Agency) Regulations, 2015, pertaining to infrastructure requirements with such modifications as
are required to undertake its activities under UPS.
Section 27 of The Unified Pension Scheme
27. Pension Fund. – (1) The pension fund undertaking the activities under UPS shall comply with the terms and conditions
of registration as provided under the Pension Fund Regulatory and Development Authority (Pension Fund) Regulations,
2015.
(2) The pension fund shall perform its roles and responsibilities as provided under Chapter III and Chapter IV of Pension
Fund Regulatory and Development Authority (Pension Fund) Regulations, 2015, as if the reference to “National Pension
System” in such regulations shall extend to “Unified Pension Scheme” option under NPS, as well.
(3) The obligations of the management of pension fund, compliance officer and key personnel arising under Pension Fund
Regulatory and Development Authority (Pension Fund) Regulations, 2015 shall ipso facto extend to activities under UPS,
as provided under these regulations.
(4) The pension fund shall abide by the provisions of Schedule VI of the Pension Fund Regulatory and Development
Authority (Pension Fund) Regulations, 2015 with such modifications as are required to undertake its activities under UPS.
(5) The pension fund shall undertake activities for implementation of UPS, including:
(i) maintenance of separate scheme and books of account for UPS;
(ii)executing assured pay out from pool corpus based on instructions from CRA;
(iii) liquidity management of Pool Corpus;
(iv) managing the Pool Corpus with the portfolio objective; and
(v) any other functions and activities instructed by the Authority.
Section 28 of The Unified Pension Scheme
28. Trustee Bank. – (1) The trustee bank undertaking the activities under UPS shall comply with the terms and conditions
of registration as provided under the Pension Fund Regulatory and Development Authority (Trustee Bank) Regulations,
2015, including the code of conduct and fit and proper criteria.
(2) The trustee bank shall perform its roles and responsibilities as provided under Chapter III of Pension Fund Regulatory
and Development Authority (Trustee Bank) Regulations, 2015, as if the reference to “National Pension System” in such
regulations shall extend to “Unified Pension Scheme” option under NPS as well.
(3) The obligations of the management of the trustee bank, compliance officer and principal officer, appointed by Trustee
Bank, arising under Pension Fund Regulatory and Development Authority (Trustee Bank) Regulations, 2015 shall ipso
facto extend to activities under UPS, as provided under these regulations.
(4) The trustee bank shall abide by its obligation pertaining to infrastructure requirements with such modifications as are
required to undertake its activities under UPS.
Section 29 of The Unified Pension Scheme
29. Custodian of Securities. – (1) The custodian of securities undertaking the activities under UPS shall comply with the
terms and conditions of registration as provided under the Pension Fund Regulatory and Development Authority
(Custodian of Securities) Regulations, 2015, including the code of conduct and fit and proper criteria.
(2) The custodian of securities shall perform its roles and responsibilities as provided under Chapter III of Pension Fund
Regulatory and Development Authority (Custodian of Securities) Regulations, 2015, as if the reference to “National
Pension System” in such regulations shall extend to “Unified Pension Scheme” option under NPS as well.
(3) The obligations of the management of the custodian of securities, compliance officer and principal officer, appointed
by custodian of securities, arising under Pension Fund Regulatory and Development Authority (Custodian of Securities)
Regulations, 2015, shall ipso facto extend to activities under UPS, as provided under these regulations.
(4) The custodian of securities shall abide by the provision of Schedule IV of the Pension Fund Regulatory and
Development Authority (Custodian of Securities) Regulations, 2015, pertaining to infrastructure requirements with such
modifications as are required to undertake its activities under UPS.