There is much confusion when it comes to CPS(Contributory Pension Scheme) and CSS(Compulsory Savings Scheme). Both are different, not the same. If you fail to distinguish between these two, your savings will be jeopardized. When ever you get a arrear, viz., D.A. ARREARS or any other arrear, you need to keep this in mind which amount should go to C.P.S and which amount should go to C.S.S.

Contributory Pension Scheme was introduced by the Government in the year 2003 by the Central Government. Government of Andhra Pradesh implemented this scheme from September, 2004. The employees who joined service after September, 2004 will fall under this scheme. As soon as you are eligible for regular time scale, 10% of your basic pay and D.A. will be credited to Contributory Pension Scheme. An equal amount will be credited your account by the Government. The Contribution of the employee and Government are to be deposited in a non-withdrawal pension Tier-1 account. The employees can normally exit at or after 58/60 years from the Tier-1 of the pension system. At exit the employee required to invest 40% of pension wealth which is mandatory to purchase an annuity from an Insurance Regulatory Development Authority(IRDA) approved Life Insurance Firm and the balance 60% will be paid in cash. 
Existing rules G.P.F. rules/pension rules are not applicable to the members of New Pension Scheme. The Accountant General is responsible for Government Contribution and Employee Contribution and transfer the same to the Pension Funds Regulatory and Development Authority or any agency.

To join the scheme, the employee should forward an application form through his Drawing Drawing Officer to the Address application below.





The savings to the employee who do not have a G.P.F number will be credited to this account. Keep in mind that employees who come under C.P.S. do not have a G.P.F. Account Number. As you know that 10% of your Basic Pay and D.A. will be credited to CPS.

Whenever you get an arrear such D.A.Arrear, you must not credit all the amount to C.P.S. Only 10% of any arrear should be credited to CPS. The remaining 90% of the amount must be credited to the Compulsory Savings Scheme which is maintained by Accountant General, Hyderabad. It is advised to keep a copy of such schedule, with Treasury I.D. Number with you so as to claimed all the amount from A.G, Hyderabad. I have seen many incidences crediting all the arrear amount raised from Notional Arrears, P. R. C arrears to the C.P.S. account. All the amount will go fruitless and unaccounted. I will give an example.

D.A. arrear for the period from 1/7/2010 to 30/11/2010


Amount to C.P.S. Rs.518.00

Amount to C.S.S. Rs. 4657.00

If you prepare your arrear bill using Pay Roll on D D O request, it will automatically, distribute the amount to each accounts correctly. If you are preparing the bill manually, please distribute the amount as shown above to avoid any panic to the contributor.