THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(DR BHAGWAT KARAD)
(a) and (b) The National Pension System (NPS) was introduced by the Government of India to replace the defined benefit pension system by defined contribution pension scheme in order to provide old age income security in a fiscally sustainable manner and to channelize the small savings into productive sectors of the economy through prudential investments. NPS was made mandatory for all new recruits to the Central Government service from 1st January, 2004, (except the armed forces in the first stage) and has also been rolled out for all citizens with effect from 1st May, 2009, on voluntary basis.
The Government of India has taken a number of steps for streamlining NPS for Central Government employees and is committed to protect the interests of the subscribers keeping in view the concerns of NPS subscribers. These include enhancement of Government''s contribution from the earlier 10% to 14%, freedom of choice for selection of Pension Funds and pattern of investment to subscribers, payment of compensation for non-deposit or delayed deposit of NPS contributions for any period during 2004-2012, tax exemption under Section 80C and increase in tax exemption limit for lump sum withdrawal on exit from earlier 40% to 60% of the amount due, making the entire withdrawal exempt from income tax.
As per information provided by the Pension Fund Regulatory and Development Authority (PFRDA) the State-wise number of persons enrolled under NPS since inception as on 31.10.2021 is given at Annexure A.
(c) All State Governments (except West Bengal) have notified NPS for their employees. However, as mentioned in reply to point (a) and (b) of the question, NPS has also been rolled out for all citizens with effect from 1st May, 2009, on voluntary basis. Further, as reported by PFRDA, a total of 6,61,387 subscribers from the State of Tamil Nadu and 15,12,223 subscribers from the State of Maharashtra have joined NPS as on 31.10.2021. The total Assets Under Management (AUM) for the State of Tamil Nadu and State of Maharashtra are Rs. 3964.35 cr and Rs. 89534.39 cr respectively.
(d) As mentioned in reply to part (a) and (b) of the question above, the Government of India has, inter alia, enhanced the monthly contribution of Government from 10% of Pay + DA to 14% of Pay + DA, for the Central Government employees covered under NPS.
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Annexure A
The State-wise number of persons enrolled under National Pension System (NPS) since inception as on 31.10.2021
S. No. Name of State Number of enrolments
1 Andaman & Nicobar Islands 14,416
2 Andhra Pradesh 9,05,228
3 Arunachal Pradesh 35,857
4 Assam 4,82,569
5 Bihar 6,69,988
6 Chandigarh 37,401
7 Chhattisgarh 5,99,943
8 Dadra and Nagar Haveli & Daman & Diu 4,819
9 Delhi 4,46,697
10 Goa 56,883
11 Gujarat 7,26,934
12 Haryana 4,68,979
13 Himachal Pradesh 1,71,954
14 Jammu & Kashmir 2,32,033
15 Jharkhand 3,60,299
16 Karnataka 13,69,961
17 Kerala 6,55,243
18 Ladakh 264
19 Lakhswadeep 2,189
20 Madhya Pradesh 8,96,692
21 Maharashtra 15,12,223
22 Manipur 68,089
23 Meghalaya 31,842
24 Mizoram 13,723
25 Nagaland 49,393
26 Odisha 4,89,128
27 Pondicherry 23,959
28 Punjab 3,43,413
29 Rajasthan 9,53,230
30 Sikkim 28,378
31 Tamil Nadu 6,61,387
32 Telangana 1,87,679
33 Tripura 54,156
34 Uttar Pradesh 16,73,404
35 Uttarakhand 1,79,131
36 West Bengal 6,18,200
37 Others* 41,198
Total 1,50,66,882
Source: PFRDA
*Others include Defence, Non Resident Indian subscribers, and Non Individual Retirement Account subscribers.
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