Modify NPS to mop up fund in fight against Covid-19: Employees’ federation

Tribune News Service

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New Delhi, April 16

Suggesting modification in the National Pension Scheme (NPS), an employees’ federation has asked the government to use a large part of the contributory fund, which is currently invested in the market, in its fight against COVID-19.

Talking to the Tribune, president of the National Movement for Old Pension Scheme’s (NMOPS) Delhi unit Manjeet Singh Patel said, since January 2004, the Centre and state governments have implemented a share-market based pension system for their employees, including the ones in autonomous organisations.

Patel said the Pension Fund Regulatory and Development Authority (PFRDA) had Rs 3.41 lakh crore assets under management in form of contributions from the central and state government, and their employees as on January 31, 2020.

There are around 67.76 lakh subscribers of the NPS, 20.82 lakh in the central government and 46.93 lakh in state governments, Patel said quoting the PFRDA data.

He said his organisation demands that the central and the state governments should come out with relevant legislations to modify this NPS, where both the employees and employer contribute certain sum of money, close on the lines of the Old Pension Scheme.

The old scheme allows contribution of a definite amount of basic salary of the employees into the government’s treasury by declaring it as general provident fund (GPF), he said.

The GPF, which would be in many crores of rupees, can then be used by the central and state governments to supplement their fight against COVID 19, as the amount will be with their respective treasuries which are under their control and free from the risk of the stock market, said Patel, who works with the Delhi government.

The NMOPS, formed to oppose the NPS system, is working actively in more than 16 states and union territories, including Delhi, Uttar Pradesh, Bihar, Rajasthan, Haryana, Punjab, Himachal Pradesh, Madhya Pradesh, Maharashtra, Kerala and Andhra Pradesh, among others.