Last Update: February 20, 2023, 16:48 IST
Finance Minister Nirmala Sitharaman. (Photo: PIB YouTube)
Rajasthan Chief Minister Ashok Gehlot had earlier said that state government employees cannot be left at the mercy of the stock market, where National Pension Scheme (NPS) funds are invested.
The central government on Monday again clarified that deposits for the National Pension Scheme (NPS) cannot be given to state governments as per existing laws.
Both Finance Minister Nirmala Sitharaman and Finance Secretary Vivek Joshi said that if a state is expecting that the money deposited for NPS can be returned to it, then it is impossible.
Citing the recent fall in shares of Adani group companies, Rajasthan Chief Minister Ashok Gehlot had earlier said that state government employees cannot be left at the mercy of the stock market where National Pension Scheme (NPS) funds are invested. goes.
He also urged the Center to release the funds of the state government employees deposited in the NPS and said that the state will move the Supreme Court if the funds are not transferred to the Old Pension Scheme (OPS) being implemented by the state government. .
”If a state expects that the amount deposited in EPFO should be given to the states. If that’s the expectation then no. Employees have a right to money. The money deposited is getting interest and there should be clarity that the money comes into the hands of (employees) after retirement. The money deposited will come into the hands of the government, it is impossible,” Sitharaman told reporters.
She was here today to participate in the post-budget discussion on various stakeholders.
Finance Secretary Joshi said that it is not a very good trend that some states have adopted Old Pension Scheme (OPS) and other states are also demanding.
In this regard, I would like to say that this trend is not very good and only the State Governments are ‘postponing’ their liabilities. Whether the employees feel they are benefited or not remains to be seen. As far as the state governments are seeking their share back, I would like to say that the law is very clear. State governments cannot get that money,” Joshi said.
He said that the money in the new pension scheme is linked to the employees and it is in an agreement between the employee and the NPS Trust. If the employee leaves prematurely, before reaching the age of superannuation, there are different rules.
According to this, 80 percent annuity and 20 percent lump sum is available.
“As far as the states are thinking that we will make a comeback, I think it is not possible as per the current rules,” he said.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)