The Local Fund Audit Department has raised serious concerns over delays in the transfer of National Pension Scheme (NPS) contributions for employees of the Kochi Municipal Corporation in its audit report for the year 2023–24. The report points out that the civic body deposited ₹2.11 crore as its share and dues from regular staff and ₹3.81 crore from contingent staff in the account of the Director of Urban Affairs during the fiscal year. However, the audit observed that these transfers were not made in a timely manner as mandated.
According to a 2014 circular, both the employee’s deducted contribution and the employer’s matching share must be transferred to a special pension account the day after the deduction is made. Details of the beneficiaries along with the transaction ID must then be forwarded to the NPS account. The audit report notes that Kochi Corporation has not adhered to this requirement and has sought an explanation for the delay.
In response, the corporation stated that more than 700 of its employees are enrolled in the NPS. It explained that while regular staff salaries are processed using SPARK software, the transfer of pension-related data to the NPS database requires processing through Sthapana software. Only after generating a supplementary salary bill can data be transferred to the Sthapana system. The corporation added that this technical requirement causes delays, and data is usually ported only at the end of each month.
The civic body also cited occasional shortages in its own funds as another reason for delays in transferring the NPS shares.
The audit wing has directed the corporation to urgently resolve these technical and procedural issues. It warned that the ongoing delays are resulting in financial losses to employees. The audit department emphasized that the NPS contributions of all eligible staff should be transferred promptly to the designated account maintained by the Director of Urban Affairs to ensure compliance and protect employee interests.
