The Pension Fund Regulatory and Development Authority (PFRDA) on Thursday asked States to remit contributions from their employees to the National Pension System (NPS) on time.
“We have been receiving a lot of grievances from State government employees of nil credit or delayed remittances by the State government in their pension accounts,” said PFRDA member RV Verma at a conference on NPS and its implementation by State governments.
Urging States to minimise such grievances, he pointed out that the PFRDA has now also notified a grievance redressal mechanism. The pension regulator considers State governments as the nodal authority for pension remittances as they are the intermediaries between their employees and the NPS.
PFRDA Chairman Hemant Contractor also asked States to remit pension contributions efficiently as this impacts the overall pension deposit of subscribers.
“Subscriber protection is very important and States should ensure that the money is handled in the most efficient manner. If there are delays in remittances or crediting, it impacts the ultimate pension that the subscriber gets,” he said, pointing out that subscribers would lose out on interest income due to such delays. Inadequate coverage of employees of State governments in the NPS, especially those in autonomous bodies, is another area of concern, he said.
At present, all States except West Bengal and Tripura have joined the NPS and so far ₹50,000 crore has come in States under NPS. Though Tamil Nadu has notified the scheme, it is yet to join it, Contractor said.