Implementation of National Pension System (NPS) in AP Model Schools

Subject-Implementation of National Pension System (NPS) in AP Model Schools-reg

The National Pension System (NPS) was adopted by the State Government of Andhra

Pradesh for all new entrants joining services of the State Govt. of Andhra Pradesh (including SABs

of Andhra Pradesh) on or after 01.09.2004; Further, as per notification issued by State Govt of

Andhra Pradesh dated 18.06.2012, the Director of Treasuries & Accounts (DTA) has been

designated as Nodal Officer for implementation of NPS in the State.

As you are aware, Andhra Pradesh Model Schools are registered as State Autonomous

Body under NPS with NSDL-CRA. However, in the recent past, PFRDA has received several RTI

applications and Grievances from the subscribers-enmployees of AP Model Schools, which have

highlighted the issue of non-remittance of NPS Contribution by Nodal offices to Trustee bank for

onward investment by Pension Funds. The non-remittance of the deducted NPS funds is not only

leading to loss of investment returns for the subscribers but is also building up unfunded liability

for the State by way of compensation payable to the employees for the period, the NPS

contribution remained with the nodal office, after its deduction.

t may be mentioned that, on seeking clarification from the O/o Director, Director of

Treasuries and Accounts, Government of Andhra Pradesh vide our letters dated 30.12.2019

(Annexure-1) and 09.04.2020 (Annexure -2), it has been informed that the matter has already

been referred to your office vide their letter dated 21.05.2020 (Annexure-3). Similarly, the matter

has also been referred by the 0/o Commissioner of School Education, AP Model Schools to your

office vide their letter dated 06.03.2020. (Annexure-4)

You are, therefore, requested to look into the matter on priority in order to ensure timely

deduction and remittance of both employee and employer NPS contributions to the NPS

architecture. The same shall protect the interest of the subscriber-employees and will lead to

smooth implementation of NPS in the A.P. Model Schools.