Government introduced National Pension System (NPS), with effect from 01 January 2004, for new entrants to Central Government service (except Armed Forces), replacing the old pension system. Subsequently, State Governments also adopted NPS for their employees.
As on 31 January 2020, total Assets Under Management (AUM) of NPS was Rs 3,99,245.04 crore (of 1,31,72,762 Subscribers), wherein AUM of Rs 1,36,078.63 crore (of 20,82,941 Subscribers) pertains to Central Government sector and AUM of Rs 2,05,737.24 crore (of 46,93,933 Subscribers) pertains to State Government sector.
Performance Audit was undertaken to get an assurance that NPS was established as envisaged; all eligible Government Sector employees had been covered; and due contributions (subscribers’ and employers’) were deducted and remitted timely to Trustee Bank to enable the retirees get their due social security benefits post retirement.
Audit observed that despite 15 years since introduction of NPS, the system still suffers from following deficiencies:
Audit recommended the government to initiate steps even at this belated stage after 15 years of scheme’s implementation, by rectifying the problems reported and take initiatives in the interest of the subscribers.