Press Information Bureau

Government of India

Ministry of Finance

16-December-2011 18:57 IST

A total amount of Rs. 971.48 crore, collected towards contribution for Government employees, from 2004 to March 2008, under the New Pension System (NPS), was credited to the Public Account of India.

The institutional architecture for NPS could not be operationalised by the Interim Pension Fund Regulatory and Development Authority (PFRDA). Therefore, the contribution for the Government employees under the NPS could not be invested in the market.

The funds were credited to Public Account and interest @ 8% p.a. was paid on the contribution.

The establishment of institutional architecture by the PFRDA, based on objective and financial criteria, took some time, therefore, the question of conducting an enquiry does not arise.

The interest @ 8% p.a. was paid on the contribution by the Government.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to an Unstarred Question in Lok Sabha today.

DSM/Hb

Non-investment of pension contributions: amounts credited to public account and interest provided pending regulator operationalisation. Amounts collected from Government employees under the New Pension System were credited to the Public Account because the interim regulator could not operationalise the institutional architecture to invest those contributions; consequently the contributions were not invested and the Government paid interest at 8% p.a. while the regulator established required arrangements.