rajasthan: Rajasthan’s transfer to shift to outdated pension hits PFRDA hurdle

The Rajasthan authorities’s transfer to revive the outdated pension scheme from this monetary yr to offer assured revenue to staff after retirement has run into tough climate, with the Centre rejecting the state’s request to withdraw ₹39,000 crore accrued below the market-driven Nationwide Pension System (NPS) since 2004.

The Pension Fund Regulatory and Growth Authority (PFRDA) has rejected the Congress authorities’s demand to withdraw funds accrued via the Rajasthan authorities’s and staff’ contributions.

The event comes within the run-up to the meeting election within the state, the place chief minister Ashok Gehlot had introduced in his February 23 Price range speech that Rajasthan would shift again to the outdated pension scheme from April 1.

The Centre had scrapped the outdated pension scheme from April 1, 2004, and changed it with NPS.

The Rajasthan authorities had additionally introduced that it will withdraw funds accrued as contribution since 2004 and shift the funds below normal provident fund. This could permit authorities staff to entry the funds on the time of retirement.


‘No Provision to Return Funds’

The choice impacted 300,000-350,000 authorities staff within the state, permitting the Gehlot authorities to handle a piece of the voters forward of the polls slated for November 2023. On April 21, the Rajasthan authorities wrote to the PFRDA, conveying its choice to modify to the outdated pension scheme and that it had not deducted contribution from the salaries of staff in March and April. “Due to this fact, it’s requested that the funds, which have already accrued each in type of authorities contribution and staff’ contribution together with accruals to be deposited again to the state authorities as income receipt,” Naresh Kumar Thakral, secretary, finance (expenditure) division, Rajasthan authorities, wrote in a letter to the PFRDA.

The state authorities obtained a letter on Could 2, rejecting its request. Prodeepto Chatterjee, assistant normal supervisor, PFRDA, wrote that “there isn’t any provision accessible vide which the funds, that are already deposited each within the type of authorities contribution and staff contribution in direction of NPS, together with accruals may be refunded and deposited again to the state authorities as a income receipt”.

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