2021 Central Civil Services (Implementation of National Pension System) Rules, Rule 8: Interest on Overdue Deposits

2021 Central Civil Services (Implementation of National Pension System) Rules, Rule 8: Interest on Overdue Deposits

Interest on delayed deposit of contributions- Rule 8 of Central Civil Services (Implementation of National Pension System) Rules, 2021

MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(Department of Pension and Pensioners’ Welfare)

NOTIFICATION

New Delhi, the 30th March, 2021

8. Interest on delayed deposit of contributions. – (1) In case of delay, due to factors not attributable to the Subscriber, in,-

(i) commencement of monthly contributions on account of delay in registration of the Subscriber in the National Pension System beyond the time limits prescribed in rule 4; or

(ii) deduction of monthly contribution from the salary of the Subscriber or crediting to his Individual Pension Account beyond the time limit prescribed in rule 6; or

(iii) crediting of the monthly contributions by the Government to the Individual Pension Account of the Subscriber beyond the time limit prescribed in rule 7,

the amount of contribution may be credited to the Individual Pension Account of the Subscriber along with interest for the delayed period. The interest shall be credited to the Individual Pension Account of the employee within a period of thirty days of the crediting of the amount of contribution. The rate of interest for this purpose would be the rate of interest, as decided by the Government from time to time, for the Public Provident Fund deposits :

Provided that the rate of interest applicable for the period from 1st January, 2004 to 31st December, 2012 shall be as notified by Department of Financial Services in its Notification F. No. 1/3/2016-PR dated 31st January, 2019 and by Department of Expenditure in its Office Memorandum No. 1(21)/EV/2018 dated 12th April, 2019.

(2)(i) Every case of delay in registration of the Subscriber in the National Pension System or commencement of contributions under rule 4 or deduction and crediting of monthly contribution of the Subscriber under rule 6 or crediting of monthly contribution by the Government in the Individual Pension Account of the Subscriber under rule 7 shall be examined by the Head of Department or Chief Controller of Accounts for fixation of responsibility;

(ii) If the Head of Department or Chief Controller of Accounts is satisfied that the delay is caused on account of administrative lapse, the delinquent official or officials shall be liable to pay the amount of pecuniary loss to the Government on account of payment of interest;

(iii) The responsibility and the amount of liability on the part of the delinquent official or officials shall be determined in the same manner as in the case of delayed deduction or remittance of Tax Deduction at Source under Section 201(IA) of the Income-tax Act, 1961. This will be without prejudice to any disciplinary action which the disciplinary authority may propose to take against the official or officials responsible for the administrative lapse in this respect.