Rajasthan to amend notification for return of govt’s contributions to NPS
The state government is considering approaching the Pension Fund Regulatory and Development Authority, which regulates the NPS, for the return of its contribution of about ₹14,000 crore
Rajasthan is planning to amend a notification issued after the restoration of the Old Pension Scheme (OPS) in the poll-bound state in May last year under which employees were to return the government’s contributions to the National Pension System (NPS) along with the interest, officials aware of the matter said.
Employees contribute 10% of their salary monthly to NPS while the government makes a matching contribution. The Rajasthan government planned to take its contribution as well as the employees to NPS and deposit it under the general revenue head.
Officials said the state government is now planning to amend the notification to preempt the possibility of the Union government’s objection to the diversion of NPS funds under the general revenue head. “Since the money belongs to the employees, technically the state cannot show it under its revenue head,” said a finance department official, requesting anonymity.
The official said the state government is considering approaching the Pension Fund Regulatory and Development Authority, which regulates the NPS, for the return of its contribution of about ₹14,000 crore.
The government plans to deposit the money into General Provident Fund opened in 2021. The Union government has maintained that states will not get back NPS funds.
{{/usCountry}}The government plans to deposit the money into General Provident Fund opened in 2021. The Union government has maintained that states will not get back NPS funds.
{{/usCountry}}Vinod Kumar, the coordinator of the New Pension Scheme Employees’ Federation of Rajasthan, said the state has the right to get back the funds. “Pension is a state subject and the Centre should allow the release of funds to states which have restored the OPS.”
{{/usCountry}}Vinod Kumar, the coordinator of the New Pension Scheme Employees’ Federation of Rajasthan, said the state has the right to get back the funds. “Pension is a state subject and the Centre should allow the release of funds to states which have restored the OPS.”
{{/usCountry}}The ruling Congress plans to make OPS a major poll plank given its resonance among government employees also in other states headed for elections this year.
{{/usCountry}}The ruling Congress plans to make OPS a major poll plank given its resonance among government employees also in other states headed for elections this year.
{{/usCountry}}Chief minister Ashok Gehlot-led Rajasthan government was the first to restore OPS in April 2022 before another Congress-ruled state Chattisgarh followed suit. Employee organisations in other states have been seeking OPS restoration as well.
{{/usCountry}}Chief minister Ashok Gehlot-led Rajasthan government was the first to restore OPS in April 2022 before another Congress-ruled state Chattisgarh followed suit. Employee organisations in other states have been seeking OPS restoration as well.
{{/usCountry}}The promise of the restoration of OPS is believed to have been among the reasons for Congress’s return to power in Himachal Pradesh last year.
The Union government has appointed a committee to review the NPS and to make it more employee-friendly.
