Goa government delayed credit of pension contribution: CAG

PANAJI: The state government may have short-changed pensioners of good returns on their investments by delaying the transfer of their New Contributory Pension Scheme (NPS) contribution, the Comptroller and Auditor General (CAG) stated in its report relea-sed recently.
According to the CAG, the state government collected Rs 417 crore as contribution towards the National Pension Scheme in 2017-18, but deposited just Rs 290 crore with the National Securities Depository Ltd (NSDL).
The funds were transferred much later in four instalments in 2018-19, the state government said.
“The state government needs to ensure that the entire contribution is transferred to NSDL in a timely manner to avoid interest liability on the state exchequer as well as provide an assurance to pensioners about returns on their investment,” the CAG said.
‘Government paid interest liability of ₹11 crore for late transfer’
As per NPS guidelines, every employee has to contribute 10% of the basic pay and dearness allowance every month. This amount is matched by the state government. The funds are invested by NSDL, the designated fund manager for the NPS, to generate returns for the employee.
In 2017-18, the Goa government collected Rs 120 crore from government employees as contribution towards NPS and contributed an equal amount as its share towards the scheme. A total of Rs 417 crore was collected in that financial year, which also included the balance contribution for 2016-17.
According to the CAG, the Goa government transferred only Rs 290 crore to NSDL. Rs 127 crore was not paid to the NSDL for further investments, as per the scheme’s provisions.
“The current liability of 2017-18, together with an interest liability of Rs 11 crore for late transfer, was discharged during 2018-19 in four instalments between April and September 2018,” the report said.
Expenditure on pension and other retirement benefits to state government employees formed 11% of the state’s total revenue expenditure.