Sitharaman Refuses to Provide NPS Funds for Old Pension Scheme

Union Finance Minister Nirmala Sitharaman on Monday refused denied giving the money kept aside for the New Pension Scheme (NPS) to the state governments for the Old Pension Scheme (OPS).

Sitharaman said, "If any state takes a decision for some reason that the funds of NPS can be collected from the Centre, then it will not be available.”

It is to be mentioned that Rajasthan recently announced the OPS for its state employees. In fact, the Congress government has also announced OPS in Himachal Pradesh. This Old Pension Scheme will receive a setback due to the fresh announcement by the Finance Minister. Sitharaman said that it is the employee's money and that money will come into the hands of the employee at the time of retirement or whenever it is required by the employee.

"The collected money will not come into the hands of the state government. When the right time comes, only then will this money be given to the employee," said Sitharaman.

The Finance Minister further said, "To bring such schemes, the states should raise funds from their own resources and earn from taxes. For free schemes, the states are putting their burden on someone else... it is wrong."

On being asked about stopping the work of Barmer Petro Chemicals Hub on political grounds, Sitharaman said: "Congress leaders having a heart like stone have no right to accuse the Narendra Modi-led government. The Congress has no right to blame the Modi government as it stopped the water of Narmada to reach the people of Gujarat."

At present, there are 7 pension fund managers in India. Recently, Axis Asset Management, TATA Asset Management, and Max Life Insurance have also received the necessary approvals to establish a pension fund company. So, the number of fund managers will increase to 10 in India.

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