After protests, TDP government forms panel to review contributory pension plan

VIJAYAWADA:  Bowing to the demand of employees to restore Old Pension Scheme (OPS) by abolishing Contributory Pension Scheme (CPS), the State government on Wednesday constituted an expert committee under the chairmanship of former Chief Secretary SP Tucker to review the CPC and examining the demand for continuation of OPS.

The term of the committee, comprising Tucker, Finance Secretary Peeyush Kumar (Member Secretary), Law Secretary D Venkata Ramana, Prof K Munirathnam Naidu and Prof Galab, will be of three months. 
It will submit a detailed report analysing the repercussions, both legal and financial, of reviewing the Contributory Pension Scheme in force as well as the impact of CPS on the State finances. 

In the united Andhra Pradesh, the then State government in September 2004 adopted the New Pension Scheme based on defined contributions for the government employees recruited on or after September 1, 2004.

However, with the employees opposing the CPS by organising protests and the same becoming one of the major issues ahead of the  coming polls after YSRC chief YS Jagan Mohan Reddy has announced to abolish CPS if YSRC comes to power, the TDP government constituted the committee to look into the issue.

It may noted here that Arvind Kejriwal government in Delhi had adopted a resolution abolishing the CPS recently and the employees working under CPS demanded a similar action from the TDP government as they feel appointment of committees only remain a time consuming affair.

Terms of reference for the committee

• Submit a detailed report analysing repercussions, both legal and financial of reviewing the CPS
• Submit a detailed report analysing the impact of CPS on the State’s finances
• Suggest propositions regarding liabilities and risks that may arise out of the agreements entered into with NPS trust and NSDL
• In case it is to withdraw CPS and in lieu of it to implement Statutory Pension Scheme, propositions be suggested for refund of contributions made by employees, employer?
• In case it is to withdraw the CPS and in lieu of it implement the Statutory Pension Scheme, what will be the legality of such a decision with respect to those who have already retired from service after serving under the CPS or have expired, while in service?
• Analyse the status of the scheme in detail and the experiences and current scenarios of other States that have implemented the CPS
• In case if the scheme is continued, what are the various steps that can be taken to make it more attractive/beneficial?
• Make suggestions in other matters that the committee finds relevant with regard to the review of the CPS