THIRUVANANTHAPURAM: The contributory pension review committee has recommended that the state government increase its share in the pension scheme from the existing 10% to 14%. In its report, the committee, however, does not favour any kind of reversal of the Contributory Pension Scheme (CPS). The report observed that the government will reap financial benefits from the scheme, by only around 2040.
The report of the contributory pension committee appointed by the previous government, came out on Monday, after more than two years. The government, which had initially refused to release the report, was forced to give it to CPI-affiliated Joint Council, after a recent Supreme Court directive.
Curiously, the government released the report, just days after it had formed a committee to look into the recommendations. In its general recommendations, the committee observed that there’s no apparent error, illegality or impropriety regarding the government order regarding CPS. With this, it’s almost certain that the government is taking the contributory pension scheme forward. Contrary to various claims, the committee observed that continuing the scheme would result in a reduction of the pension-outgo share of total revenue receipts of the government, by 2040.
The report recommended that the government’s contribution to the pension scheme be increased from the existing 10 % of salary and dearness allowance to 14 %, as is being done by the Centre. Similarly, the committee recommended that ex-gratia pension be paid to those under CPS, with less than 10 years of service.
Like statutory pensioners, those opting for ex-gratia pension will have to forego service gratuity.
The committee recommended that death-cum-retirement gratuity be given to employees under CPS. Another significant recommendation by the committee is that those employees whose recruitment had been finalized on or before 01 April 2013, but whose joining date was delayed due to administrative reasons, should be given the option of joining the statutory pension scheme.
The Joint Council of State Service Organisations that had moved the apex court, citing the government’s refusal to issue the report under RTI, welcomed the government’s move to release the report. The Joint Council is currently on a state-wide march demanding that the contributory pension scheme be withdrawn. It was council general secretary Jayachandran Kallingal who had approached the government seeking the report under RTI.
In a statement, the Joint Council said the committee had pointed out that there are no legal impediments to the withdrawal of the scheme. “The report clearly says the state government has the power to revoke the order. The agreements signed by the government with the NPS (National Pension Scheme) trust do not entail obligation of any sort. There are no legal impediments to abrogate the agreements,” the Joint Council pointed out. Seen in this backdrop, the report comes as a setback to the stance that the CPS cannot be withdrawn.
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