AINPSEF writes to PM Modi to disband NPS Trust

Manjeet Singh Patel, president of All India New Pension Scheme Employees’ Federation (AINPSEF), a main civil servant body, in a letter to Prime Minister Narendra Modi today (Wednesday, October 14, 2026) has actually declared National Pension System (NPS) Trust of major monetary abnormalities, monetary carelessness, extending excessive advantages to personal entities and working versus the interests of workers.

Patel has actually looked for a top-level Comptroller and Auditor General of India (CAG) audit of NPS Trust, and repairing responsibility in the dispute of interest case in between the NPS Trust and the Pension Fund Regulatory and Development Authority (PFRDA).

In his letter, Patel likewise composed that the NPS corpus of numerous workers has actually turned unfavorable in the last one year since of the bad efficiency of the share market and for this reason, the federal government must guarantee a minimum return of 8.25% on the lines of the Employees’ Provident Fund Organisation (EPFO).

Here’s what Patel composes in his letter to PM in the letter-

Start-up financing concern

Patel states that on NPS Day (October 1, 2026), PFRDA and NPS Trust devoted to invest roughly Rs 17,000 crore in Alternative Investment Funds (AIF/private equity/venture capital) and start-ups (like Alteria Capital, Trifecta Capital) without customer authorization or assurance.

On that day, the NPS Trust likewise provided a symbolic check of Rs 400 crore to Trifecta and Anteria, composes Patel.

“The intentions of the Trust are also questioned because till date it has not guaranteed any returns to the employees on such a huge amount, then how can it commit to giving Rs 17000 crore to such a big high-risk startup?,” checks out the letter.

Major carelessness in fund management of 800 crore

Patel composes that Rs 800 crore transferred by the Ministry of Finance in the UPS swimming pool corpus on July 8, 2026, stayed uninvested since July 16, due to the laxity and carelessness of the NPS Trust.

“This inactiveness has actually led to a direct monetary loss of over Rs 2 crore in the type of interest to the NPS swimming pool corpus. Who will make up for this?,” composes Patel.

Preparation of Rs 17000 crore financial investment in high-risk Alternative Investment Funds (AIFs) and facilities

Dispute of interest of NPS Trust

Patel declares NPS Trust chairperson Dinesh Kumar Khara of associating with dispute of interest, stating he is an independent director on the board of CRISIL and the chairman of K-Fintech, the Central Recordkeeping Agency (CRA).

“This means that the same person setting benchmarks is also overseeing funds worth crores and handling subscriber transactions, a clear violation of the conflict of interest rule,” checks out the letter.

Charges of around Rs 2,500 crore annually, yet regularly unfavorable returns

Patel states every year, roughly Rs 50 crore is paid from staff members’ pension funds to NPS Trust, around Rs 2,000 crore to pension fund supervisors (PFMs), and around Rs 250 crore to CRAs.

Patel declares that fund supervisors are being paid inflated costs with no responsibility, at the threat of staff members, which is entirely careless and prohibited.

“Returns on equity schemes have consistently been negative, and returns on corporate debt and government securities have been significantly lower than the EPFO’s minimum interest rate of 8.25% or even bank FDs,” composes Patel.

Failure to carry out Minimum Assured Return Scheme

Patel composes that NPS Trust has actually stopped working to carry out any of the crucial necessary systems such as Minimum Assured Return Scheme (MARS) recommended by the CAG in the NPS report in the year 2020. He composes that the top-level job committee for MARS, formed by the PFRDA in January 2026, likewise stays concealed.

Failure in carrying out Unified Pension Scheme (UPS)

NPS Trusts and nodal workplaces have actually been returning files of UPS pension holders without factor, mentioning small shortages (such as PIN codes, e-mail addresses, and so on), triggering substantial psychological and monetary distress to workers. Hundreds of retired workers have actually not been able to get their pensions to date.

What AINPSEF desires PM Modi to do

In its list of ideas to the PM, the AINPSEF has actually raised 6 needs-

1. Immediate top-level examination and CAG audit

In the letter, the AINPSEF has the consultation of personal experts by NPS Trust and AIF financial investments need to be examined and investigated impartially by the CAG.

2. Dissolution of NPS Trust

The staff member association needs that the NPS Trust be liquified with instant result, and the duty for total tracking and management of the pension fund need to be turned over to the CAG or any statutory public body.

3. It has actually required instant payment for the loss to the UPS Pool corpus due to the hold-up in investing Rs 800 crore from the Trust.

4. Ensured minimum returns

Patel composes that a minimum return of 8.25% ought to be ensured on worker contributions, on the lines of EPFO.

5. Versatile Option to Employees

AINSPEF has actually required that staff members must be offered the versatile alternative to pick either NPS or UPS throughout their service duration.

6. Avoidance of dispute of interest

Patel states that the dispute of interest in between personal entities and people holding comparable positions in PFRDA and NPS Trust need to be right away removed, and responsibility of all authorities need to be repaired.