Govt mulls paying retirement benefits in installments, to offer attractive interest by transferring money to treasury

THIRUVANANTHAPURAM: The government is planning to pay the pension benefits in installments to more than 16,000 employees retiring this month due to dire financial straits. The government is assuming that it can transfer the amount to the treasury and pay attractive interest and distribute it in installments to the needy.

Treasury transactions are currently restricted. A decision will be taken after the Chief Minister arrives on May 22 after his foreign trip. Another option is to increase the pension age. It is not possible due to the opposition of the youth. If the pension age is increased, huge financial liability can be avoided temporarily.

Freezing retirement benefits can lead to legal problems and paying in installments is the government's solution to this. Rs 22,500 crores dearness allowance arrears to the employees and Rs 15,000 crores as salary reform arrears have been frozen due to financial crisis.

The crisis was exacerbated by the central government's strict restrictions on the state's general credit availability. Till now, there is no notification regarding the loan that can be taken this year.

There is no project in front of the government to increase revenue. The state approached the Supreme Court seeking permission to take more loans but to no avail.

Two installments of social security pension were paid on the occasion of Vishu and Ramzan, but that was in the months of August and September last year. It wasn't given six months after that. The government told the court that social security pension is not a right of the people.

Rs 14 lakhs to Rs 1.25 crores to retirees

16,638: Retirees this month

Rs 9151.31 crores: Amount required to pay pension benefit