Rajasthan and Chhattisgarh Exit from National Pension System

The National Pension System (NPS), which is managed by the Pension Fund Regulatory and Development Authority (PFRDA) and designed to free the central government and state governments from future heavy pension liabilities, has been implemented in two states, Rajasthan and A setback has been received in the form of Chhattisgarh. Got out of the system after participating in it for the last few years.

Sources confirmed that both the Congress-ruled states have stopped giving any funds to the NPS from April 1. “Yes, both the governments have stopped payments. Now, whatever amount they had contributed earlier, it will be taken care of by us,” said an official, adding that there is no legal way through which PFRDA can refund the money contributed by these two states.

Except Tamil Nadu and West Bengal, all other states participated in the NPS and Tripura was the last state to join the NPS.

Chhattisgarh Chief Minister Bhupesh Baghel had urged Prime Minister Narendra Modi Issue of directions to PFRDA to refund the money deposited in NPS by the State Government with accrual from November 2004. Baghel made this demand after PFRDA rejected the state government’s request to withdraw Rs 17,240 crore earned under NPS.

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The state government has decided to restore the Old Pension Scheme (OPS) “in the interest of government officials and employees”. Meanwhile, while talking to the media, Supratim Bandyopadhyay, Chairman, PFRDA said that the total assets under NPS has reached Rs 35 trillion and currently Rs 7.4 trillion with 5.33 crore subscribers in the Central and State government corporates and retail customers. The AUM of Rs.

Bandyopadhyay said equity schemes have given a return of 11.92 per cent under NPAs while corporate bonds have given a return of 9.21 per cent. Three new players, Tata Asset Management, Axis Bank and Max Financial have recently joined as the new pension fund managers and will start their operations soon.

Bandyopadhyay indicated that PFRDA is planning to launch a guaranteed pension scheme, which can be linked to government securities and can also be made floating and can be launched by September.