While state governments have implemented the NPS for their employees through an agreement with the NPS Trust, a private trust with the PFRDA as its settlor, there is a lack of consensus among states. Unlike the Goods and Services Tax (GST) Council, which makes decisions through the consensus of both the central and state governments, the NPS and NPS Trust are independently regulated by the PFRDA. The PFRDA’s board members are appointed by the Central Government. Consequently, different state governments have adopted varying positions regarding the adoption date of the NPS, the percentage of contribution, and the coverage of autonomous bodies. This divergent approach by states leaves the regulator and market intermediaries perplexed, creating uncertainty surrounding the promotion, protection, and regulation of the NPS.
Source: Barandbench
