Pension fund order will be revoked, govt to continue distribution of university pension

THIRUVANANTHAPURAM: The government will not stop giving the pension and retirement benefits of university employees and teachers. The order issued by the Finance Ministry to set up a pension fund board in universities will be revoked.

Minister R Bindu said the pension distribution would be done by the government. Finance Minister KN Balagopal also said that a policy decision was needed and the order would be reconsidered. The ministers also gave assurances to employees, teachers, pensioners and union leaders.

The government's order was that 25 percent of the salaries of the employees should be transferred to the pension fund within the 10th of every month, of which 10 percent should come from the state grant and the remaining 15 percent should be borne by the universities from their own funds. There were fears that this would put universities in debt and increase fees for services. Protests had also started in the universities.

The government had suggested opening a treasury account for the pension fund and depositing the money in banks or financial institutions with higher interest rates. There were suggestions to take low-interest loans from banks or government financial institutions if there isn't enough money for pensions. The order to pay pension, dearness allowance, dearness arrears, DCRG, remorse allowance, pension commutation, term surrender, family pension and pension reform arrears from the pension found will be withdrawn.