Setting up of National Pension System oversight mechanism
Government of India
Ministry of Finance
Department of Expenditure
New Delhi, the 2nd July, 2019
Subject : Setting up of NPS oversight mechanism
The undersigned is directed to say that the Committee, as set-up by Department of Financial Services in terms of their OM No. 1/3/2016-PR dt. 21.10.2016 under the Chairmanship of Secretary (Pension) and comprising Secretary, Department of Financial Services and Secretary (Department of Personnel and Training), had submitted its report on 28.2.2018, containing its recommendations for streamlining implementation of the National Pension System (NPS).
2. One of the recommendations contained in Para 8.7.1 of its report relating to grievance redressal is as under:
“Three-tiered NPS oversight mechanism of the DDO/Head of Office, Joint Secretary (Admin)/Chief Controller of Accounts and the Financial Advisor set up vide Department of Expenditure’s OM No.1(2)/EV/2008, dated 03.02.209 may be strengthened/streamlined to monitor grievances as well as timely registration and credit of contributions to subscribes’ accounts. Fresh instructions to this effect and for strict compliance of instructions may be issued by Department of Expenditure.”
3. In the OM of this Department No. 1(2)/EV/2008 dated 3.2.2009, it was provided, inter-alia, that Ministries/Departments may constitute a Committee headed by JS (Admn) and Principal CCA/CCA to monitor registration/regular upload of data and transfer of NPS contributions in respect of Central Government employees to ensure that no delay therein occurs. Subsequently, in terms of instructions of this Department vide OM No. 1(5)/EV/2011 dated 10.7.2011 the Committee was broad-based to include the concerned Financial Advisors and the said instructions dt. 10.7.2011 also provided, inter-alia, that the implementation of NPS, with its various attendant parameters, in each Central Ministry/Department, shall be a “key performance area” of the Financial Advisors.
4. The Department of Pension and Pensioners’ Welfare, which is the nodal Department in respect of pension related matters of Central Government employees, is separately in the process of framing statutory rules to regulate the matters of National Pension System in case of Central Government employees. These Rules would also cover the issue relating to timely credit of contributions of Central Government employees and the Central Government, as deducted from the salaries of the concerned Government employee, to NPS architecture.
5. However, since timely credit of deduction made from the salary of Central Government employees towards their contribution to NP5, as also the applicable contribution of the Central Government, to the NPS financial architecture is of paramount importance for availability of due and timely returns thereon towards generation of pension corpus, it has been decided that a Committee in each Ministry/Department shall be constituted as under to ensure oversight over the NPS contributions crediting:
(i) Financial Advisor – Head of the Committee
(ii) Joint Secretary (Administration)
(iii) Principal CCA/CCA
(iv) The concerned Head of the office
(v) The concerned DDO
6. The Committee shall be responsible for the following actions:
(i) Ensuring that the contribution of employees and the Government are credited without delay to the NPS financial architecture both in case of existing employees and employees newly recruited from time to time and the existing system and procedure being followed for the purpose shall be monitored effectively to ensure that no delay in credit of the contributions takes place.
(ii) Ensuring that in case any grievance by any employee is received in regard to delay in credit of contribution, either directly from the employee or through PFRDA, the same has been looked into and disposed of in a manner to the satisfaction of the concerned employee.
(iii) Any other matter as having a bearing on the issue of crediting/remittance of NPS contributions.
(iv) The Committee shall devise its own mechanism as also appropriate checks & balances to ensure that NPS contributions are credited on time in respect of all employees under NPS system.
(v) The Committee shall meet at least once in 3 months to review the progress and in case any slippages are noticed, it shall take immediate corrective action. However, the concerned Principal CCA/ CCA shall keep a watch over the progress on a regular basis.
7. While the above Committee shall be set-up in each Ministry/Department, appropriate mechanism for keeping a watch in respect of attached and subordinate offices under that Ministry/Department shall be put in place by the concerned Financial Advisor, so that the overall oversight in respect of the entire Ministry/Department as a whole is exercised by the Committee as mentioned in para 5 above.
8. The concerned Financial Advisor shall send a status report every six month to the Department of Pension and Pensioners’ Welfare about the result of the monitoring carried out through the above oversight mechanism with concluding remarks whether the NPS contributions are being credited on time and in case of any slippages, the details of the action taken.
(Amar Nath Singh)