The Ministry of Finance has directed all central government departments to ensure that National Pension System (NPS) contributions are remitted to the Pension Fund Regulatory and Development Authority (PFRDA) on time. The ministry said that interest will be levied in case of delayed remittance beyond the stipulated timelines and that the interest must be credited to the pension account of the employee within thirty days of crediting of the amount of contribution.
In an Office Memorandum (OM) dated July 10, 2026, the Ministry of Finance, Controller General of Accounts, Department of Expenditure, said that all offices must strictly follow the timelines laid down under the CCS (Implementation of NPS) Rules.
What is the issue of remittance of NPS contributions?
According to the Ministry of Finance, the remittance of NPS contributions to PFRDA are being delayed in many cases due to varied reasons. In this regard, attention has been invited to the provisions of CCS (Implementation of NPS) Rules which provides strict timelines for remittance of NPS contributions and further provides for levying of interest in case of delayed remittance beyond the stipulated timelines.
Interest to be paid for delayed remittance
The OM refers to Rule 8 of the CCS (Implementation of NPS) Rules which states that crediting of the monthly contributions by the government to the individual pension account of the subscriber beyond the time limit prescribed in rule 7, the amount of contribution should be credited to the individual pension account of the subscriber along with interest for the delayed period. The OM said that “the interest shall be credited to the individual pension account of the employee within a period of thirty days of the crediting of the amount of contribution.” The OM said that the rate of interest for this purpose would be the rate of interest as decided by the government from time to time for the Public Provident Fund deposits.
Delinquent officials to pay amount
The OM refers to Rule 8(2)(i) which states that every case of crediting of monthly contribution by the government in the individual pension account of the subscriber will be examined by the Head of Department or Chief Controller of Accounts for fixation of responsibility.
The OM said that if the Head of Department or Chief Controller of Accounts is satisfied that the delay is caused on account of an administrative lapse then the delinquent officials will be liable to pay the amount of pecuniary loss to the government on account of payment of interest.
The OM said that the disciplinary authority may suggest disciplinary action against the officials responsible for the administrative lapse in this respect.
Amounts lying under head 8342-117 to be cleared
The OM also said that amounts are lying under the head 8342-117. It asked all the Pr. CCAs/CCAs/CAs to ensure that the amount lying under this head is cleared and that “no other amount shall remain under this head.”
The ministry has asked departments to submit “a detailed report on the actions taken in this regard till date may be provided in this office by 31st July 2026.”
