Nagpur: The Nagpur Municipal Corporation (NMC) allegedly deprived its employees of nearly 9 crore in pension contributions in 2024-25 alone by failing to implement a state govt order increasing the employer’s contribution under the Defined Contribution Pension Scheme (DCPS) from 10% to 14%, according to an audit by the Office of the Principal Accountant General.The audit flagged the civic body’s failure to comply with a govt resolution that came into effect retrospectively from April 1, 2019. This could translate into crores of rupees in unpaid pension benefits accumulated over six years.The observations form part of the inspection report for 2024-25, which contains 14 audit findings against NMC. Inspection report (OBS-2223609) states the Maharashtra govt enhanced the employer’s contribution from 10% to 14% through a Finance Department resolution in August 2019.Municipal corporations were issued specific instructions in Feb 2022, to implement GR retrospectively. Yet, NMC continued deducting contributions at the old rate.Ex-corporator Vedprakash Arya alleged that the audit report remained undisclosed for months and surfaced only after he pursued the matter through the RTI Act. He demanded immediate payment of arrears from 2019 with interest and action against officials responsible for the delay, warning of a public agitation if the dues are not cleared.The audit found that NMC contributed 22.46 crore towards employees’ pension accounts during 2024-25, against the Rs31.45 crore it should have deposited.The proposal to implement the revised contribution reached the municipal commissioner as early as August 2021, but remained unapproved for years, the audit observed.When confronted during the audit, NMC’s chief accounts and finance officer stated that approval was granted by the municipal commissioner and administrator to increase the employer’s contribution to 14% and shift employees from DCPS to the National Pension System (NPS), but only with effect from April 1, 2025.The auditors questioned why the revised rate was not implemented retrospectively from April 1, 2019. The report sought an explanation from the civic administration for the delay.
