Assured pension scheme of Kerala; amount allocation, mandatory contribution and other details still in question

THIRUVANANTHAPURAM: Although assured pension scheme has announced in the state budget that it will implement a new assured pension scheme for employees, the amount has not been allocated. The government has not clarified how much money will be required for the new pension scheme. Many things are yet to be decided. Details will be clear only after the regulations are notified.

There are indications that the assured pension scheme, like the participatory pension scheme, will require 10% contribution from the employees. The amount will be transferred to the newly started pension fund along with the government contribution. The government contribution has not been decided.

Out of the 5.2 lakh employees, about three lakh people who joined the service before 2013 are eligible for statutory pension. The remaining 2.22 lakh employees are on the new pension scheme. The promise is that half of the average salary of the last 12 months will be ensured as a pension. Dearness Relief matching the Dearness Allowance of employees has also been allowed for pensioners. Therefore, the pension will also increase along with the dearness allowance.

About 6,000 people who were appointed after 2013 and have already retired are receiving only a meagre pension under the Contributory Pension Scheme. It has not been decided how to include them in the assured pension scheme and how much they will receive. Only when that is decided will it be clear how many people will be in the new pension scheme and how much financial liability the government will have.

Service organisations are demanding a complete withdrawal of NPS. Tamil Nadu, which has implemented assured pension, has retained NPS. Currently, employees can decide which scheme they want. The money paid into NPS will not be withdrawn. A proposal is being considered to transfer a portion of the money they receive based on their contributions into NPS to the state's pension fund when employees retire. The NPS retirement age is 60. It will remain 60 in the new scheme as well.