The NPS was launched by the central authorities in December 2003
New Delhi:
The central authorities on Tuesday mentioned there is no such thing as a provision within the PFRDA Act for a refund of the accrued NPS corpus being sought by the 5 non-BJP states that wish to restart the Outdated Pension Scheme.
The state governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab, and Himachal Pradesh have knowledgeable the Centre about their resolution to revert to the OPS and have requested a refund of corpus accrued below the Nationwide Pension System (NPS).
“There isn’t any provision below Pension Fund Regulatory and Growth Authority Act, 2013 … vide which the accrued corpus of the subscribers viz Authorities contribution, Workers’ contribution in direction of NPS together with accruals, might be refunded and deposited again to the State Authorities,” Minister of State for Finance Bhagwat Karad mentioned in a written reply within the Rajya Sabha.
The minister additional mentioned that the central authorities will not be contemplating any proposal to revive the OPS in respect of the central authorities workers recruited after January 1, 2004.
The NPS was launched by the central authorities in December 2003 to interchange the outlined profit pension system with outlined contribution pension scheme to be able to present previous age earnings safety in a fiscally sustainable method and likewise to channelise small financial savings into productive sectors of the financial system by means of prudential investments.
It was made obligatory for all new recruits to the Authorities service (besides armed forces) with impact from January 1, 2004, and has additionally been rolled out for all residents with impact from Might 1,2009, on voluntary foundation.
In line with the PFRDA, 26 State Governments except Tamil Nadu and West Bengal, have notified and carried out NPS for his or her workers, the Minister mentioned, including “as such legal responsibility below OPS- an outlined profit pension system- is an unfunded legal responsibility of State Authorities, which will likely be met from their future revenues.” Replying to a different query on OPS, Karad quoted Reserve Financial institution’s report on ‘State Funds: A Examine of Budgets of 2022-23’, to say that by reverting to OPS “States threat the buildup of unfunded pension liabilities within the coming years.”
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