The Finance Ministry has ruled out proposals by a federation of central and state governments employees seeking modification in the National Pension Scheme, saying its corpus is invested in a prudential manner to ensure optimal returns and suggested that changes will be financially untenable.

The response comes following a petition to the Prime Minister”s Office (PMO) by Manjeet Singh Patel, president of Delhi unit of the National Movement for Old Pension Scheme (NMOPS), seeking revival of the old pension scheme on account of uncertain returns, besides raising other matters.

Patel demanded modification in the National Pension Scheme (NPS) so that a large part of the contributory fund, which is currently invested in the market, can be made available to governments to supplement their fight against COVID-19.

“Regarding uncertainty of returns in NPS, it is stated that, though NPS is market-linked, the investments of the accumulated corpus are made in a prudential manner so as ensuring optimal returns,” the Finance Ministry said in an order, a copy of which was shared with Patel. Further, the investments under NPS are very well diversified, the ministry said, which was responding to the reference made to it by the Ministry of Personnel, Public Grievances and Pensions seeking its comments.

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