State's contribution to NPS: Finance Ministry raps Assam government

STAFF REPORTER

GUWAHATI: Irregularity and "short transfer" of contribution to the 'National Pension System' (NPS) from the Assam government in respect of its employees to the designated banks has come to such a pass that the Ministry of Finance had to remind it of the consequences of such irregularities.

In a strongly worded letter to the State Chief Secretary on September 14, 2020, Union Joint Secretary of Finance Dr. Madnesh Kumar Mishra said, "These lapses will not only impact the NPS corpus but also weaken the fate of employees in the NPS echo-system and may lead to litigation. So take immediate steps to sort out the issue."

Citing the CAG report, Mishra further said, "The CAG has been highlighting the issue since 2004. The shortfall in government contribution is approximately Rs 3,573 crore and the shortfall in transfer of consolidated amount is approximately Rs 27,757 crore. The CAG has expressed deep concern on the issue as the shortfalls are humongous and would have an overall impact on the returns to the fund, and hence on the future pension payment."

In 'Permanent Retirement Account Number' (PRAN) also, there have been irregularities. The letter further mentioned, "During the last one-and-a-half years there have been a total of 1,286 cases wherein delay occurred in PRAN generation with 2,310 cases of delay of three years and above. There are various irregularities – delay in registration of subscribers, nil credit PRANS, irregular uploads of subscriber contribution files and delay in remittance of contributions etc.

"Monthly contribution transfer over 2019-20 varied from Rs 1.31 crore to Rs 5.47 crore showing irregularities in fund transfer. The Government of India has moved NPS for a defined contribution pension scheme linked to market reforms with effect from January 1, 2004. Hence discipline in deduction and remittance of contribution of both employer and employees is a critical imperative for ensuring timely investment in the market. Any delay shall adversely impact the corpus and the resultant pension payout."

The moot point is: At whose negligence has the situation come to such a pass? Will the government fix the responsibility? Didn't the departments concerned monitor the transfer of contributions to NPS? Now to pay such a huge amount, the State government will have to allocate special funds in the Budget. The shortfall is likely to rise as the Assembly election in the State is slated for 2021, and as such the government can't lay a full-fledged budget in the House. Thus, things will have to be sorted out by the government that will take over the reins of power after the Assembly elections.

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