PF regulator refuses return of deposits under new pension scheme to Chhattisgarh, Rajasthan, J'khand

The Centre has refused to return the deposits of three states including Jharkhand in the New Pension Scheme Fund.

The state government issued a notification last September to implement the old pension scheme for state employees and informed the Pension Fund Regulatory and Development Authority (PFRDA).

Under PFRDA's New Pension Scheme (NPS), the state government had deposited about Rs 18,000 crore as its employees' contribution. The state government wants the deposited money back since it has now reverted to the old pension scheme.

Despite Jharkhand, Chhattisgarh and Rajasthan seeking refund of the pension contribution deposits, citing the PFRDA Act - 2013 and PFRDA Regulation 2015, it has been made clear that there is no provision for refund of employee and government contribution deposits under the NPS.

The PFRDA has total deposits of Rs 17,930 crores of the Jharkhand government and employees' contribution. 

AIMIM MP Asaduddin Owaisi questioned the Centre on the old pension scheme in the Lok Sabha on Monday.

In a written reply, Union Minister of State for Finance, Bhagwat Karad said that the three state governments had informed the Centre about the restoration of the old pension scheme by issuing a notification.

There are about 1 lakh and 95 thousand permanent employees in the state, out of which the contribution amount of 1 lakh 25 thousand was deposited under the new pension scheme.

Experts believe that a problem in the payment of retirement benefits and workers' pension can be expected if the states' deposit is not returned.