Ministries told to set up panel to ensure prompt crediting of NPS contributions
“It has been decided that a committee in each ministry/department shall be constituted to ensure oversight over the NPS contributions crediting," the finance ministry said.
Timely credit of contributions is of “paramount importance for availability of due and timely returns thereon towards generation of pension corpus,” the ministry said in a memorandum, which ET reviewed.
“It has been decided that a committee in each ministry/department shall be constituted to ensure oversight over the NPS contributions crediting.”
As per the memorandum, the five member committee to be set up in each ministry/department will be headed by a financial adviser and would meet every three months to review the progress and actions taken in case of slippages. The committee will send a status report to the Department of Pension and Pensioners’ Welfare every six months.
The committee will monitor the contributions of existing and new subscribers under NPS and would keep a watch on all attached and subordinate offices under the ministry/department.
While NPS is administered by the Pension Fund Regulatory and Development Authority under the finance ministry, the Employee Pension Scheme is administered by the Employees Provident Fund Organisation under the labour ministry.
NPS, a contributory pension scheme started by the Union government in January 2004, was made compulsory for all new government employees.
Private sector employees and those not working in any organised sector were invited to join from 2009.
As many as 750,400 subscribers joined NPS in the year ended March 2019, according to data released by the Ministry of Statistics & Programme Implementation. They included 110,555 Central government employees and 542,504 state government employees.
The total number of new subscribers to the Employees Provident Fund Organisation in FY19 was 13.9 million, while as many as 12.3 million left. However, of those who exited, 4.46 million returned, the data showed.