Down with Contributory pension scheme, bring back old pension scheme: TJAC members

Under CPS, which was introduced in 2005, 10 per cent of the salary is deducted and the same amount (10 per cent) is contributed by government.

HYDERABAD: Blaming the Centre and State governments for doing gross injustice by replacing the earlier pension scheme with contributory pension scheme (CPS), members of Telangana Joint Action Committee (TJAC) on Thursday demanded the withdrawal of CPS and reintroduction of the old scheme. Currently, around 1.25 lakh employees are covered under CPS. Under the Old Pension Scheme, after retirement, an accumulated amount which was deducted every month, is handed over to the beneficiary. Besides, 50 per-cent of the last salary drawn is paid as the pension amount to retired employees.

Under CPS, which was introduced in 2005, 10 per cent of the salary is deducted and the same amount (10 per cent) is contributed by government. After retirement, 60 per-cent of the accumulated amount is handed over to the retired employee, and the remaining 40 per cent is invested in Life Insurance Corporation (LIC). The interest on this 40 per cent is paid every month to the retired employee.

At a press conference on Thursday, the JAC members alleged that State government did not hold any meetings with the employee to review the new pension scheme. Besides, they said that 2,000 employees from Telangana are working in Andhra Pradesh, and the TS government had failed to bring back the employees to work in Telangana.

Speaking to media, E Purushotham, Telangana Joint Action Committee (TJAC) convenor, said that: “TS government jobs were coveted because of financial security they offered as old pension scheme is more beneficial when compared to CPS. With the  new scheme, employees are losing their economic and social security. We demand the State government to withdraw the CPS and continue with the old scheme.” Further, he said that though it has been four-and-half-years that State has been formed, the government has failed to address the problems of employees, contract and outsourcing employees, teachers, pensioners and others.

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