The local fund audit department, in its report for 2023-24, has flagged lapses in the timely transfer of the National Pension Scheme (NPS) share of employees of the Kochi city corporation. The report notes that in 2023-24, Kochi corporation deposited ₹2.11 crore as civic body share and dues from regular staff and ₹3.81 crore from the contingent staff in the account of the Director of Urban Affairs. In November 2024, the audit sent a query to the corporation seeking details of the transfer of this amount. 

The report noted that the corporation failed to comply with the circular issued in 2014 regarding the transfer of pension shares. As per the circular, the pension amount, which includes the amount deducted from the employee and equal share of the employer, shall be transferred to the special pension account on the very next day of deducting the pension sum and that the amount with details of beneficiaries and transaction ID number shall be transferred to the NPS account. The audit sought an explanation from Kochi corporation for not complying with this circular. 

The civic body replied that over 700 of its staff members are members of the NPS. "The salary of the regular staff is processed using SPARK software. In order to record the deducted pension sum on NPS database, the salary has to be processed on the Sthapana software and only when a supplementary salary bill is generated, all data regarding NPS can be transferred to Sthapana software," the reply said. It was cited that if the information is not uploaded on Sthapana software, NPS data won't be available and that it cannot be sent to the Director of Urban affairs. Data porting is done only by the month-end to bypass these hurdles, corporation said in the reply. It was also cited that during some months, insufficient own fund causes a delay in the transfer of the NPS share of the employees. 

The audit wing has directed that the technical issues regarding the timely transfer of NPS shares should be addressed soon. It said that employees suffer financial loss due to delay in transfer of NPS share to the account of the Director of Urban Affairs. The audit wing also directed that NPS share of over 700 staff shall be sent to the account maintained by the Director of Urban Affairs in a timely manner and prevent financial loss to employees.