Panaji: While the state government has adopted the National Pension Scheme (NPS), it has sought a written undertaking from its employees that the government will not be held responsible for the risk of investing in market linked funds. The finance department has issued a circular to the employees of state government departments informing them that, under the provisions of the NPS, they have a choice to decide how their pension fund is invested by public sector banks and private fund managers.
Government employees can choose their pension fund management company and can also decide the investment pattern for the Tier I NPS account. The company that manages the pension fund can be changed once every financial year while the choices of investment pattern can be modified twice in a financial year. The default option for existing as well as new government employees is a public sector pension fund management company.
“The government of Goa has adopted the mentioned provisions provided an undertaking should be obtained from such subscriber stating that the entire risk will be borne by the subscriber and the state government will not bear any expense in case of loss,” said finance under secretary Pranab Bhat in the circular.
The state government employees will have to indicate their choice online through the National Securities Depository Ltd portal and this will have to be verified and authorised by the directorate of accounts.
Some state governments have made the decision to exit the National Pension Scheme and go back to the old defined pension benefit scheme due to the market risk.
Meanwhile, the state government has decided to constitute the NPS oversight and review committee for regular monitoring and review of NPS related processes. The committee is headed by the principal secretary-finance.
FacebookTwitterInstagramKOO APPYOUTUBE