SERVICE DISCHARGE BENEFIT SCHEME (SDBS),2011

 The scheme is recommended by GDS committee headed by Shri.R.S

Nataraja Murti, Rtd member of Postal Services board on Oct2008.
 It is based on NPS-Lite scheme 2010, introduced by PFRDA.
 The scheme shall utilize the platform of NPS-Lite scheme for the purpose of
registration, recordkeeping , funds management etc.,
Part-1 Introductory
1 .The Scheme
a) It shall be called as Service Discharge Benefit Scheme,2011 “SDBS”.
b) It came into effect w.e.f the 1st day of the month of April ,2011.
2. Definitions
B) Aggregator –cum-Accounts Office: Office of GM (PA &F) or DA(P)
E) Collection Centre (CC): -for the purpose of SDBS-office of Director or Head of
the Division.
F) CRA- Central Recordkeeping Agency-Appointed by PFRDA- At present NSDL,
Mumbai is the designed CRA.
J) Director General (Posts)- Chairperson of the Postal Service Board and Ex-Officio
Secretary of the Govt of India.
L) Facilitation Centre- facilitation center of CRA functioning anywhere in the
country.
O) NPS -Lite- means NPS-Lite pension Scheme,2010 for the benefit of Senior
citizens, small investors and workers in the unorganized sectors.
P ) NPS-Trust-means New Pension System Trust established by PFRDS under
Indian Trust Act,1862, which will administer the National Pension System.
Q) Oversight Office- means the office of DG (Dept of Posts)New Delhi.
S ) PFM: company and /or agency appointed by PFRDA to render fund manager
services for management of funds under various Pension Fund Schemes including
SDBS.
W) Severance amount: amount payable to the GDS at the end of their
engagement to the Dept subject to the terms &conditions.
X) Trustee Bank: means banks designated by NPS Trust/PFRDA.
Some abbreviations are
 CRA- Central Record Keeping Agency
 CC-Collection Centre
 SCIL-Stockholding Corporation of India
 SEBI-Securities and Exchange Board of India
 PFRDA-Pension Fund Regulatory and Development Authority
 PFM- Pension Fund Manager
 OO-Oversight Office
 PRAN-Permanent Retirement account number
 AO-Aggregator - cum - Accounts Office
 IMA-Investment Management Agreement
 IRDA-Insurance Regulatory and Development Authority
 CGMS-Central Grievance Management System
3 .Eligibility to Join
 All GDS selected as per GDS (conduct and Employment Rules) 2001 and
rendered at least one year satisfactory service.
 Due to be discharged from service within three years as on 01.01.2011-
shall not be eligible.
 Existing regularly engaged GDS as on the date of notification of SDBS shall
have the option of either to switchover to SDBS or to continue in the
existing severance amount scheme.
  Those who opted to join SDBS –the severance amount accrued till the date
of joining to the SDBS @ Rs.1500/- for every completed year of service.
 The amount of severance amount for the period less than a year shall be
calculated for the completed months on proportionate basis.
 Less than 15 days- shall be ignored, period of 15 days or more- shall be
treated as a complete month for the purpose.
 Newly appointed GDS shall mandatorily enrolled in this scheme, they don’t
have any other option and not entitled to severance amount scheme.
 Provisionally engaged GDS and substitutes for short term /Leave period are
not eligible for SDBS.
4) Subscription:
 DOP will subscribe Rs.200/- per month and the GDS will not required to
contribute anything in this scheme.
 No contribution/ subscription shall be made if any GDS placed on “Put off”
duty or remain unauthorizedly absent from duty.
5) Appointment / Permanent Absorption of a GDS in a regular Departmental
Post:
 On appointment/ absorption in a regular Dept post- they have to quit the
scheme immediately and they have to opt for the NPS.
 The funds accumulated so far shall be transferred to NPS.
6) Scheme Preference:
 The beneficiaries under the scheme will have the common scheme
preference chosen by DOP. The annuity provider will also selected by DOP.
At present DOP has opted for investment as per Central Govt schemes.

7) Nodal Agency:
 PFRDA is the nodal agency.
  CRA (appointed by PFRDA) will maintain data /records and upload /transmit
to the Trustee Bank
 Trustee bank will transfer the fund to the PFM.
8) Operating Procedure: Enrollment and assigning PRAN number:
 GDS will apply in the prescribed form (NS s1).
 CC will consolidate and forward them to relevant facilitation center of CRA.
 CRA shall enroll the applicant under SDBS, open a PRA and issue digitized
PRAN card.
 GDS has to open basic POSB account.
 CC shall maintain a register (SDBS-2) containing the details of the GDS who
are enrolled in SDBS. This register is a permanent record.
 The CC shall also prepare a list for the first time in the format SDBS-3 and
send it to HPO/HRO and copy to AO.-- The CC shall continue to send
supplementary list every month by 5th of the following month with the
details of newly enrolled GDS.--- If no GDS means, ‘Nil’ report has to be
sent.
 HPO/HRO/AO shall parallel maintain SDBS-2 and keep it update with list/
supplementary list received from CC.
 Duplicate PRAN card can be issued with the fee of Rs.20/- for first time and
Rs.30/- for subsequent occasions.
 CRA will issue duplicate PRAN card through its facilitation center.
9) HPO/HRO shall prepare a list (SDBS-4) containing subscription list and send
it to AO by 5th of the following month. The AO on authorization by CRA shall
upload the soft data into CRA’s profile.
 The HPO/HRO will also send monthly cash account return.
 The AO will consolidate (SDBS-5) the details from SDBS-4 received from all
HPOs/HROs and prepare a cheque for total amount and remit the cheque
along with the list to the designated Trustee Bank. A copy of this list shall
be given to CRA.
  On authorization from CRA, the Trustee Bank will transfer the fund to PFM.
 Any kind of error noticed by CC/HPO/HRO/AO in any of the list/bill shall be
noted in the register of error and same have to be corrected within the
reasonable time. The errors/irregularity pending more than a month should
be reported to Head of the Circle.
10) Management and Utilization of fund:
 The funds shall be administered by NPS trust and invested by PFM as per
IMA entered b/w NPS Trust and PFM.
Rule No. 11-13)

Sl.No Type of Exit Percentage of Percentage

Lumpsum for the
payment to GDS purchase of
Life annuity
1. Normal exit 60 % Min of 40%.
The GDS
can invest
more than
40% also.
2. Premature exit(after attaining 58 yrs) 20% 80%
3. Resignation 15% 85%
4. Death while in service (nominee/legal
heir have the option of either to
receive the amount accumulated in
lump sum or to continue SDBS .
In case of continuance, the receiver
has the liability of making further
contribution till the normal discharge
age of 65 yrs
5. Dismissal/removal from service GDS will have no option to
 claim and the amount will be
credited to Central Govt
account
6. Reinstatement (in case of completely The GDS shall be deemed to
exonerated of the charges) have been continued the
scheme and for the period
which is treated as duty shall
be contributed/paid by the
Department at normal rate

14) Registration: Registration of CC/AO &OO:

 CC –all Head of the Divisions shall enroll themselves by sending applications
(NL N3) to AO FOR attestation and necessary action.
 Similarly AO shall register themselves by sending application (NLN2) along
with (NLN3) to OO for attestation and necessary action.
 OO will register itself by sending application (NLN1) to CRA along with
NSN2, NSN3.
 Director (HQ) in CO/RO shall function as Nodal Officer – to coordinate
between collection center, HPO/HRO, CRA and its facilitation centers as
well as OO.
15) Payment of various charges:
 The cost of enrollment/preparation of digitized cards, annual servicing
charges/subscriber servicing/grievance handling and settlement/uploading
of subscriber’s data /MIS etc shall be borne by Department.
 CRA shall raise necessary claim bills and AO after carrying out necessary
checks and verification of the bills – shall make payments.
16) Inspection of various records:
 All the accounts, records, documents maintained by all the officers are
subject to verification, internal audit, statutory audit prescribed by Central
Govt & CAG.
17) Failure to submit option:
 A GDS fails to submit option by the specified date- deemed to have opted
to continue in existing Severance amount scheme.
 But newly appointed GDS on or after 01.01.2011 shall have no option to
continue under Severance Scheme and they shall be enrolled under SDBS
mandatorily on completion of one year’s satisfactory service.
18) & 19) Enrollment and issue of Digitized cards:
 The application from GDS (NL S1) after authentication and verification to be
sent to concerned facilitation center of the CRA who will assign PRAN and
issue digitized card to the enrolled GDS.
20) Nomination:
 The nomination facility is available (SDBS-7)
21) Grievance Redressal:
 The CRA shall maintain Central Grievance Management System (CGMS) in
which all the complaints received from the GDS, directly or through any
other authority will be posted in the CGMS.
 In case complaints received at CC, directly or through sub divisions, the
same shall be uploaded in the CGMS of CRA
 The CRA shall forward copies of the complaints, who are competent to
redress the same.

 The grievances shall normally be redressed within 7 days.

 No complaint or grievance should remain unsettled for over a month’s

period.
 The issues not settled within a month’s time shall be reported to OO.
 The OO shall take up with appropriate levels with CRA ,PFRDA, NPS Trust
etc for amicable settlement within a reasonable time.