KSRTC diverts pension fund amid financial crisis, skips payment of Rs 275 cr to NPS trust

Ratheesh Ravi

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Kollam: Reeling under financial crisis, KSRTC is trying new ways for salary distribution. In a new move, KSRTC has started to divert the money deducted from employees under the contributory pension scheme to meet its expenditure. As per the official records, KSRTC has to make a payment of Rs 275 cr to the National Pension System (NPS) trust.

Under the contributory pension scheme, 10 per cent of the monthly salary is being deducted from 10,395 employees who joined service after April 1, 2013. As per the rule, KSRTC has to deposit the amount deducted from the staff along with the management’s 10 per cent share in the NPS trust. But to manage the financial issues, KSRTC was forced to divert this fund for other purposes like salary distribution.

A monthly share of Rs 142.68 cr was deducted from NPS members in KSRTC during the period from August 2014 to January 2022. Along with this amount and management share, KSRTC has to make a payment of Rs 285.35 cr to NPS trust. But it is learnt that KSRTC only paid Rs 81.8 cr during this period. The arrears to NPS touched Rs 275 cr by this November. As the salary distribution got interrupted continuously, the management decided to skip the payment to NPS and give priority to salary distribution.

At the same time, many KSRTC employees didn’t receive Permanent Retirement Account Number (PRAN), the official document of the contributory pension scheme. In 2026, employees registered under the contributory pension scheme will start retiring from service.

Meanwhile, KSRTC’s move will hit many employees who failed to join service before the implementation of the contributory pension scheme as the recruitment process got delayed.

On 2013, February 26, PSC sent an advice memo to the candidates who cleared the ground-road test and written exam under reserve driver notification in 2010. But as the contributory pension scheme came into force, the appointment order was given to these candidates only a few days before the expiry of the advice memo.

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