Last updated: February 20, 2023, 4:48 PM IST
The central government again clarified on Monday that the funds deposited for the National Pension Scheme (NPS) cannot be given to state governments under current law.
Both Finance Minister Nirmala Sitharaman and Finance Minister Vivek Joshi said that if a state expects the money deposited for NPS to be returned to them, it is impossible.
Referring to the recent crash of shares of Adani group companies, the chief minister of Rajasthan Ashok Gehlot had earlier said that the employees of the state government cannot be left at the mercy of the stock market where the funds of the National Pension Scheme ( NPS) are invested.
He had also urged the Center to deposit the state government employees’ money into NPS and said the state will go to the Supreme Court if the money is not transferred to the old pension plan (OPS) operated by the state government. implemented.
If a state expects the funds deposited with the EPFO to be given to the states. If this is the expectation, no. Employees are entitled to the money. The deposited money earns interest and there must be clarity that the money will be in the hands (employees) after retirement. The deposited money goes into the hands of the government, that is impossible,” Sitharaman told reporters.
She was here today to participate in a post-budget discussion on various stakeholders.
Finance Minister Joshi said it is not a very good trend that some states have adopted the old pension scheme (OPS) and other states are also demanding.
In this regard, I would like to say that this trend is not very good and only state governments are ‘postponing’ their obligations. Employees feel benefited or not, it is also a matter of looking. As for the state governments demanding their share back, I would say the law is very clear. The state governments can’t get that money,” Joshi said.
He said the money in the new pension plan is related to the employees and is in an agreement between the employee and the NPS Trust. If the employee retires early before reaching retirement age, different rules apply.
According to this, 80 percent annuity and 20 percent surrender are available.
“As far as the states think we’ll come back, I don’t think it’s possible under the existing rules,” he said.
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(This story has not been edited by News18 staff and was published from a syndicated news agency feed)