Many States have raised demand to the Government to return National Pension Scheme (NPS) money to start OPS

Restoration of old pension scheme

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA
UNSTARRED QUESTION NO. 854
TO BE ANSWERED ON 12th DECEMBER, 2022 (MONDAY)/
AGRAHAYANA 21, 1944 (SAKA)

OLD PENSION SCHEME

854. Shri Asaduddin Owaisi
Will the Minister of Finance be pleased to state:

(a) whether many States have restarted Old Pension Scheme (OPS) to their respective Government employees and if so, the details thereof;

(b) whether many States have raised demand to the Government to return National Pension Scheme (NPS) money to start OPS;

(c) if so, the details thereof and the reaction of the Government thereto;

(d) the decision taken or being taken by the Government to return NPS money to those States who have started OPS;

(e) whether the Government proposes to return to OPS in near future; and

(f) if so, the details thereof?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR. BHAGWAT KARAD)

(a) to (f) The State Governments of Rajasthan, Chhattisgarh, and Jharkhand have informed the Central Government/Pension Fund Regulatory and Development Authority (PFRDA) about their decision to restart Old Pension Scheme (OPS) for their State Government employees.

The State Government of Punjab on 18.11.2022 has issued notification regarding implementation of OPS to the government employees who are presently being covered under the National Pension System (NPS).

The State Governments of Rajasthan, Chhattisgarh, and Jharkhand, have sent proposals to the Central Government/PFRDA to return the accumulated corpus of subscribers under NPS to respective State Governments. No such proposal has been received from the State Government of Punjab.

In response to the proposals of the State Governments of Rajasthan Chhattisgarh, and Jharkhand, PFRDA has informed the respective State Governments that there is no provision under Pension Fund Regulatory and Development Authority Act, 2013 read along with PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015, and other relevant Regulations, as amended from time to time, vide which the funds, which are already deposited both in the form of Government contribution and Employees’ contribution towards NPS, along with accruals, can be refunded and deposited back to the State Government.

There is no proposal under consideration of Government of India for restoration of old pension scheme.