Union Finance Minister Nirmala Sitharaman addresses a press convention on Union Budget 2023-24, in Jaipur, on February 20, 2023.
| Photo Credit: PTI
The Central authorities on February 20 once more clarified that the funds deposited for National Pension Scheme (NPS) cannot 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 can be returned to them then it’s not possible.
Citing the current crash in Adani group corporations’ shares, Rajasthan Chief Minister Ashok Gehlot had earlier mentioned that the workers of the State authorities cannot 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 staff deposited in NPS and mentioned that the State will transfer to the Supreme Court if the funds will not be 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 should be given to the States. If this is the expectation then no. Employees have the entitlement to the money. The deposited money is earning interest and there should be clarity that the money comes into the hand (employees) post-retirement. The money deposited will come into the hands of the government, it is impossible,” Ms. Sitharaman informed reporters.
She was right here to participate in a post-budget dialogue on numerous stakeholders at present.
Finance Secretary Joshi mentioned that it’s not an excellent pattern that some States have adopted the Old Pension Scheme (OPS) and different states are additionally demanding.
“Regarding this, I would like to say that this trend is not very good and only state governments are ‘postponing’ their liabilities. Employees feel that they are benefited or not, it is also a matter to be seen. As far as it is concerned that state governments are demanding their share back, I would like to say that the law is very clear. The state governments cannot get that money,” Mr. Joshi mentioned.
He mentioned that the cash within the new pension scheme is said to the workers 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 completely different guidelines.
According to this, 80% annuity and 20% lump-sum can be found.
“As far as the States are thinking that we will get back, I think it is not possible as per the existing rules,” he mentioned.
