STOCK MARKET BSE NSE

Mani moots contributory pension, retirement age hike

Published: 17th July 2012 12:16 PM  |   Last Updated: 17th July 2012 12:16 PM   |  A+A-

Finance Minister K M Mani told the state assembly on Monday that the government was considering introducing a contributory pension scheme for new government employees and also raising the retirement age to 60.

While replying to the discussion on Kerala Appropriation (No.2) Bill, 2012, he said that all the states except Kerala, West Bengal and Tripura had already implemented the participatory pension scheme.

It will be inevitable to increase the pension age along with the participatory pension scheme, he said.

In 2002, the A K Antony Ministry had issued such an order but it was revoked by the V S Achuthanandan Govt in 2008, he pointed out.

Mani said that soon the state will be facing threat of spending more on pensioners than serving employees.

“Even IAS and IPS officials are part of the contributory pension scheme. Our state is on the verge of an explosion. Today we have 5.34 lakh government employees in the state. But the number of pensioners has reached 5.5 lakh. The burden of pension is already very heavy,” he said.

While life expectancy in Kerala is the highest in the country, retirement age is the lowest in the state.

The contributory pension scheme would be applicable only for new employees. However, they would also be given an increased retirement age, he said.

The Finance Minister noted that his was not the final word. “We cannot withdraw from the move like cowards. However, my word is not final on this. Let the Cabinet decide,” he said.

He said Chief Minister Oommen Chandy has asked him to take the youth and service organisations into confidence on the issue.

Youth Congress president P C Vishnunath MLA said any decision on the subject should be taken after holding talks with the youth organisation leaders as the issue was involving the life of the coming generations.

Mani had the comfort of presenting his scheme of things as the Opposition had boycotted the House on another issue.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp