Tripura may join NPS, only Bengal left

Left parties have traditionally preferred the defined benefit pension scheme and have opposed the NPS as well as the PFRDA on the grounds that it did not provide a government guarantee on pension, invests in equities. Apart from Tripura, erstwhile Left ruled states of Kerala and West Bengal too had opposed the scheme.

However, under the Oommen Chandy-led UDF government, Kerala finally agreed to join the NPS from 2013-14 despite state-wide strikes and protests by employees. But Trinamool Congress-ruled West Bengal is still not in favour of joining the scheme.

“We have not been able to get West Bengal on board. But we are still trying to meet them,” Contractor told The Indian Express. The NPS was launched on January 1, 2004, for all new entrants to the Central government services, except those in the Armed Forces. 28 states and Union Territories have joined the scheme since then.

Such a system helps to reduce the government’s liabilities on pensions of its employees. The employees contribute to the NPS, which are invested in a range of instruments including equities, government paper and corporate bonds.

At present, the NPS for state government employees has assets under management to the tune of Rs 34,971.58 crore and 25,61,307 subscribers. Similarly, the NPS for Central government workers has an AUM of Rs 36,050.59 crore and 14,95,832 members.

Significantly, Tripura had also opposed the PFRDA Bill when it was passed by Parliament in 2013.