Chhattisgarh Chief Minister Bhupesh Baghel on Friday urged Prime Minister Narendra Modi to tell the Pension Fund Regulatory and Development Authority (PFRDA) to refund to the state Rs 17,240 crores deposited with the National Securities Depository Ltd (NSDL).
This would help implement the state government’s decision to restore the old pension scheme to support the retirement security of state government employees, an official communication said.
The letter said: “There is no such specific provision in the agreement made by the state government with National Pension Scheme (NPS) Trust and NSDL, which stops the state government from restoring the Old Pension Scheme.”
Citing data, the letter states a total of Rs 11,850 crore (employer and employee contribution) has been transferred to NSDL from November 1, 2004 to March 31, 2022. The market value of the deposit at present is at Rs 17,240 crore.
The state government had already approached PFRDA to return the deposit through a letter on May 20.
PFRDA in its reply on May 26 stated that there was no such provision in the PFRDA and other relevant rules in which the deposited amount can be returned.
Baghel's letter highlighted that the restoration of the old pension scheme was announced in the state budget 2022-23 for all state government employees on or after November 1, 2004. It was approved in the cabinet on May 1 this year and notified.
With effect from April 1, 2022, the monthly deduction and contribution from the salary of state government employees to the NSDL as a part of the New Pension Scheme has been abolished.
Baghel said that the total amount deposited as contribution of employees be transferred to their respective General Provident Fund accounts. The state government contribution’s can be kept in a separate pension fund under the Public Account.