Our Correspondent
Kohima | September 23
The expenditure during the year on ‘Pension and other Retirement Benefits’ to state government employees recruited on or before December 31, 2009 was Rs 1,764.17 crore which was 15.96% of total revenue expenditure of Rs 11,052.06 crore.
This was stated in the State Finances Audit Report of the Comptroller and Auditor General of India for the year ended March 31, 2021, tabled at the 12th session of 13th Nagaland Legislative Assembly in Kohima on September 22.
State Government employees appointed on or after January 1, 2010 are covered under the National Pension System (NPS), which is a defined contributory pension scheme.
This is the Report No 1 of the year 2022.
All India Service officers are covered under the scheme with effect from January 1, 2004.
In terms of the Scheme, employees contribute 10 per cent of their basic pay plus dearness allowances which the State Government is required to match with 14 per cent of the basic pay plus dearness allowances (with effect from April 1, 2019).
Both the employees and government contributions are transferred to the designated fund manager through the National Securities Depository Limited (NSDL)/ Trustee Bank.
The report stated that the subscription received from employees is credited to MH-8342-117 'Defined Contributory Pension Scheme (DCPS)' for Government servants. The State Government follows the accounting procedure while providing the employer's matching contribution towards the fund (MH-8342-117 employer contribution) by debiting to MH-2071 Pensions and Other Retirement Benefits.
Total number of employees under NPS as of March 31, 2020 was 26,395 which increased to 27,432 as of March 31, 2021.
Out of these 27,432 employees under NPS, 1,540 employees have been allotted Permanent Retirement Account Number (PRAM as of March 31, 2021).
During the year 2020-21, total subscription received from NPS Employees was Rs 157.41 crore, the report stated.
Against this, the State Government contributed Rs 82.44 crore and credited Rs 239.85 crore (Employees' contribution Rs 157.41 crore and Government contribution Rs 78.14 crore and interest of Rs 4.30 crore) to MH-8342-117 DCPS.
Thus, short-contribution by the State Government of Rs 142.23 crore towards DCPS has understated fiscal deficit and overstated revenue surplus to that extent.
The report stated that the State Government transferred only Rs 224.59 crore to NSDL/ Trustee Bank resulting in shortfall of Rs157.49 crore (short Government contribution of Rs 142.23 crore and less transfer of Rs 15.26 crore of deposit already collected).
As on March 31, 2021, Rs 185.61 crore is outstanding under the MH-8342-117 DCPS which had not been transferred to NSDL.
Thus, uncollected, unmatched and un-transferred amounts, with accrued interest represent outstanding liabilities under the Scheme, the report stated.
