Odisha Govt Enhances Contribution Towards National Pension System To 14%

Bhubaneswar: In yet another significant decision, the Odisha Cabinet at its meeting here today approved a proposal to enhance the State government’s contribution from the existing 10 per cent to 14 per cent in respect of employees covered under the National Pension System (NPS) with retrospective effect from 1st of April 2019.

The move will bring parity between employees of  Central and State governments.

“In a very important decision taken by the Cabinet, the State government has enhanced its contribution towards NPS from existing 10 per cent to 14 per cent for all employees of the State government who are coming under NPS. It will come into effect retrospectively from April 1, 2019,” informed Chief Secretary Suresh Chandra Mahapatra addressing a presser here after the Cabinet meeting.

Mahapatra said that the enhancement of contribution will cost the State government an additional Rs 380 crore annually while it will bring parity between Central and State government employees.

The Chief Secretary stated that the State government will have to deposit an amount of around Rs 772 crore towards arrears.

Around 2.08 lakh employees of the State government will be benefitted, he added.

Further, the Cabinet has also approved a proposal to provide family pension to the family of a State government employee in the event of his/her in-service death, Mohapatra stated.

The Chief Secretary said that benefits of enhancement of contribution of the State government from 10% to 14% towards NPS will be applicable to all Group B, C, & D contractual employees and all eligible employees of Aided Educational Institutions.

 

Suresh Chandra Mahapatra, Chief Secretary, Odisha