National Pension System: Kerala to reclaim Rs 8,000 cr with exit plan

Thiruvananthapuram: It is known that Kerala has paid Rs 8,000 crores towards the National Pension System (NPS) ever since the contributory pension scheme was introduced in 2013. Now with its decision to pull out of the scheme, Kerala will demand the money back. The action towards retrieving the money shall be initiated as per the recommendations of a previously appointed committee chaired by the chief secretary.

So far, states that have withdrawn from the scheme, have not received their money back. The central government is of the opinion that it can’t pay the money back to the states.    

Meanwhile, the committee that was appointed by the state government to review the contributory pension scheme had opined that there are no legal hassles whatsoever in withdrawing the paid money so far. However after the report surfaced, the union government made it clear in Lok Sabha that it won’t sanction the move to pull out of the scheme taking back the money paid so far. Hence, state officials are currently mulling the possibility of taking legal action.

If the money is not received, the Kerala government will find it difficult to implement the latest pension scheme proposed in the state budget. A meeting of the committee concerned is yet to be held in this regard. The government will be able to step into the new scheme at the beginning of the next financial year only and the proceedings need to be expedited for the same.