TS delays pension deposit

Old staff contribution lies unused as TS seeks to delay its share ■

The amounts deducted from the salary of the state government employees for Contributory Pension Scheme (CPS) between 2004 and 2010 have not been credited with the Central government’s Pension Trust.

The state government had deducted 10 per cent of salary from its employees every month under the new CPS, which came into force in 2004. The government also needs to contribute an equal amount towards its share.

However, no details are available with the treasury department over the deductions made from 2004 to 2010 and the details are available only after 2010.

Nearly 1.25 lakh employees in Telangana are part of the CPS.

According to Telangana Udyogula Sangham president A. Padma Chary, the state government had deducted `600 crore from their salaries between 2004 and 2010 and the amount remains untraceable.

He asked the government to clarify where these funds were parked and whether the government had contributed its share.

Employees have demanded scrapping of CPS and revival of the old pension system. The government in undivided Andhra Pradesh had adopted CPS in 2004. But the agreement with Pension Trust happened only in 2010.

After its 2010 agreement, the state government provided permanent retirement account numbers to its staff.

Since 2010, the amount deducted from salaries and government’s contribution are being regularly credited into their accounts. But the employees have no clarity over the amount deducted between 2004 to 2010.

The finance department, however, said funds are lying under Miscellaneous Account Head. “Since there were no guidelines over crediting the amount till 2010, these funds are lying unutilised. The Telangana State government has to take a call on its contribution,” said sources in the finance department.

However, the government is going slow because it needs to contribute an equal amount of `600 crore at one-go if it credits these funds with the Pension Trust and it could not afford to do so in the current financial condition.