PFRDA lens on irregular transfers to NPS by states

New Delhi: India’s pension regulator has raised concerns with the government over irregular contributions and a shortfall in transfers to the National Pension System by some state governments.

There are further irregularities in the registration of subscribers, first deduction of NPS contributions, and uploading of subscriber contribution files, according to the Pension Fund Regulatory and Development Authority (PFRDA).

A government official confirmed the development and said the finance ministry has shared these concerns with governments of states including Bihar and Assam.

“These lapses will not only impact the NPS corpus but also weaken the faith of the employees in the NPS ecosystem and may lead to litigation,” the official said, adding that PFRDA has been reviewing the performance of state governments and autonomous bodies.

Last year, an NPS performance audit by the Comptroller Auditor General (CAG) revealed that since 2004, the shortfall in government contribution was about Rs 3,573 crore and the shortfall in transfer of the consolidated amount was Rs 27,757 crore.

PFRDA, in its assessment, also indicated that one day’s delay in the transfer of funds erodes the terminal pension wealth of an employee by ₹40,000.