Tamil Nadu incurred ₹797.12 crore expenditure by not joining National Pension Scheme
The Tamil Nadu government has incurred an avoidable additional expenditure of ₹797.12 crore by not joining the National Pension Scheme architecture, according to the State Finance Audit Report of the Comptroller and Auditor General (CAG) for the year ended March 2018.
The State government introduced the Defined Contributory Pension Scheme (CPS) for its employees from 1 April, 2003. Under the scheme, employees contributed 10% of their Basic Pay plus Dearness Allowance, and the State government made a matching contribution, the report said.
The employee contribution recovered from their salary and the government contribution debited from the Consolidated Fund were kept as a deposit in Public Accounts, it noted.
The Fund balance was invested in 91 days’ Treasury Bills (T Bills) and continued to be reinvested on maturity, the CAG said.
The Contributory Pension Scheme accounts of individual government employees were maintained by the Government Data Centre (GDC). “Every year, GDC calculates the interest due at the notified rates and credits the interest to the CPS account of individual government employees,” the CAG said.