NEW DELHI: The amendment in the pension scheme that came into effect from September 1, 2014, is against the spirit of Sabka Saath, Sabka Vikas, a parliamentary panel is likely to state in a report. The report is likely to be tabled in Parliament next week.
Sabka Saath, Sabka Vikas (With all, development for all) is the slogan of the Modi government. But the Parliamentary Standing Committee on Subordinate Legislation is not impressed with the government’s handling of employee’s pensions where calculation of pensions will take into account the average monthly pay of 60 months instead of 12 months.
Sources said the panel felt that calculating the pension of a person who joined the 1995 scheme based on 12 months’ average salary amounted to retrospective application of the amendments, affecting the subscriber’s interests.
Employee unions had argued that the amendments will drastically reduce the pension an employee is supposed to take home after retirement. Some unions argued that pension of those who joined the scheme way back in 1996 will be reduced by almost 25 per cent.
However, the panel is likely to recommend a middle ground, recommending only those who joined the Employees Provident Fund Organisation after 01.09.2014 be given pension based on 60 months’ average pay.