Tamil Nadu yet to make employer contribution under NPS: PFRDA

| Updated on: Dec 19, 2016

Tamil Nadu is yet to make contribution towards pension accounts of its employees even as it has adopted the New Pension System, PFRDA Chairman Hemant G Contractor said today.

“Tamil Nadu has adopted our pension scheme under National Pension System (NPS). Though it does not contribute towards the employees’ pension account under NPS. So, we have to take them on board to make contribution,” Contractor said.

NPS has been made mandatory by the central government for its employees who joined service after January 2014. Besides, private employees can also subscribe to the scheme.

Many state governments have also adopted the NPS for their employees who joined on or after the cut-off date.

It is a contributory pension system and contributions from a subscriber are collected and accumulated in an individual pension account called the Permanent Retirement Account Number.

For government employees, the monthly contribution by a subscriber under NPS has been set at 10 per cent of the salary and dearness allowance (DA) which is to be matched by the employer.

Contractor said the Pension Fund Regulatory and Development Authority (PFRDA) is in talks with the state government of Tamil Nadu for making a contributory payment to employees accounts under NPS.

Besides, West Bengal and Tripura have not adopted the NPS so far, and PFRDA is in discussion with both the states to take them on board, he said further.

Published on January 16, 2018

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