J&K Government has acknowledged that employees under New Pension Scheme were facing "lot of problems" in timely release of their salaries owing to faults of respective administrative departments to come up with clear picture about financial requirements under the scheme.
Under the NPS which was implemented in 2010, the Government employees recruited January 2010 onwards, are not entitled to post-retirement pension.
"It has been observed over a period of time that the employees engaged post January 1, 2010 are facing lot of problems in timely drawl of their salaries due to the non-availability of funds under (Pensionary Charges)…," reads a circular issued by Finance Department to all administrative departments, asking them to give clear picture about the requirements.
The Commissioner/Secretary Finance Department Navin K Choudhary said for last two years the departments were "faulting on providing clear picture" about the issue.
"They don't come up with correct figures when they ran out of NPS money," said Choudhary. "They don't do proper calculation about need of NPS and then they run out of money to provide salary."
Sources said when the matter was examined it was also found that problems arise due to joining, posting and transfer of officers/officials to offices where either no provision for the NPS was available due to entire existing non-NPS staff or due to NPS provision projection for lesser number of posts before joining of the new incumbents.
In view of the problem all the treasury officers have been directed to entertain bills presented at treasuries even without sufficient provisions under "Pensionary Charges" provided salary budget was available.
"The provisions for NPS shall be deemed as available for the purpose to the extent amount is required for clearance of the salary bill so presented at the respective treasury so as to facilitate timely drawl of the salary of the employees covered under the New Pension Scheme," reads the circular.
The Finance Department has also asked the Drawing and Disbursing Officers (DDO) to ensure that the NPS details were fully shared and reconciled at the revised estimate stage.
"Should there be any liability beyond the revised estimate stage in any financial year, the same should be drawn in April after the salary funds are made available to the DDOs," reads the circular.
An official, however, said the problem of fluctuation in budget estimates due to joining and transfer post-January 1, 2010, shall persist till entire manpower was covered under the NPS.
Under the NPS an employee contributes at least 10 percent from his/her salary and an equal amount is contributed by the government and deposited in the employee's account with Pension Fund Development and Regulatory Authority (PFDRA).
The NPS envisages two tiers of contribution—Tier I and Tier II. Contribution to the former is mandatory for all the government employees appointed on or after January 1, 2010 while it is optional under Tier-II and at their (employees) discretion.