Last Updated: February 20, 2023, 16:48 IST
Finance Minister Nirmala Sitharaman. (Photo: PIB YouTube)
Rajasthan chief minister Ashok Gehlot had earlier mentioned that the staff of the state authorities can’t be left on the mercy of the share market the place National Pension Scheme (NPS) funds are invested
The central authorities on Monday once more clarified that the funds deposited for National Pension Scheme (NPS) can’t be given to state governments as per the present legal guidelines.
Both finance minister Nirmala Sitharaman and finance secretary Vivek Joshi mentioned that if any state is anticipating that the funds deposited for NPS may be returned to them then it’s unimaginable.
Citing the current crash in Adani group corporations’ shares, Rajasthan chief minister Ashok Gehlot had earlier mentioned that the staff of the state authorities can’t be left on the mercy of the share market the place National Pension Scheme (NPS) funds are invested.
He had additionally urged the Centre to give the funds of the state authorities workers deposited in NPS and mentioned that the state will transfer to the Supreme Court if the funds should not transferred to the Old Pension Scheme (OPS) being carried out by the state authorities.
”If one state expects that the funds deposited with the EPFO needs to be given to the states. If that is the expectation then no. Employees have the entitlement to the cash. The deposited cash is incomes curiosity and there needs to be readability that the cash comes into the hand (workers) post-retirement. The cash deposited will come into the fingers of the federal government, it’s unimaginable,” Sitharaman instructed reporters.
She was right here to participate in a post-budget dialogue on varied stakeholders at present.
Finance secretary Joshi mentioned that it isn’t an excellent pattern that some states have adopted the Old Pension Scheme (OPS) and different states are additionally demanding.
”Regarding this, I would love to say that this pattern will not be excellent and solely state governments are ’suspending’ their liabilities. Employees really feel that they’re benefited or not, it is usually a matter to be seen. As far as it’s involved that state governments are demanding their share again, I would love to say that the legislation may be very clear. The state governments can not get that cash,” Joshi mentioned.
He mentioned that the cash within the new pension scheme is said to the staff and it’s in an settlement between the worker and the NPS Trust. If the worker quits earlier than maturity, earlier than reaching retirement age, then there are totally different guidelines.
According to this, 80 per cent annuity and 20 per cent lump-sum can be found.
”As far because the states are considering that we’ll get again, I feel it isn’t doable as per the prevailing guidelines,” he mentioned.
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