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Sushil Modi orders search for missing pension funds

HT Correspondent, Hindustan Times  Patna, October 09, 2012
First Published: 12:01 IST(9/10/2012) | Last Updated: 12:05 IST(9/10/2012)

Deputy chief minister Sushil Kumar Modi, who also holds the finance portfolio, on Monday directed officers of finance department to locate the 50% missing amount of pension fund of 65,814 government employees who have been registered for investment in the market.


The issue came up during a review of the new pension scheme at a meeting over which Modi presided. Officers informed him only 50% of the amount was with Bank of India, with which the state government had entered into an agreement for investment of pension fund, which includes10% deduction from employees’ salary and 10% contribution of the state government.

The problem arose due to the fact that though the new pension scheme was launched on September 1, 2005, the government’s agreement with Bank of India was signed on April 1, 2010 for management, distribution and control of pension fund, sources said.

In an effort to wriggle out of the awkward situation, Modi directed officers to locate the remaining 50% of the pension fund from drawing and disbursing officers so that Bank of India could invest the fund, sources added.

Modi said, the state government has submitted for Centre’s approval a new exit policy for government employees’ in case of retirement, death or resignation under the new pension scheme.

In the intervening period, the finance department has made an arrangement with Pension Fund Regulatory and Development Authority for payment of pension to newly appointed government employees, he added.

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