pension

The mandatory contributory pension scheme continues as a problem in front of the Left Front government. A large majority of the employees have been against the idea of ​​contributory pension since its introduction in 2013. Statutory pension is the biggest attraction in government service and they want it to continue. One of the main election promises of the first Pinarayi government was the withdrawal of the contributory pension scheme. Despite coming to power with a huge majority, the government could not make a decision acceptable to the employees regarding the pension scheme. The service organizations held several strikes on this account.

The contributory pension scheme remains an unsolvable puzzle for the government even after the LDF came to power for the second time. When the pressure from the employees became strong, the government appointed a three-member committee to review the plan and give a report. The committee duly completed the work assigned to them and submitted a report to the government. However, the government has been silent on the report without releasing it for more than two years. The government was forced to release the report under the RTI Act when the General Secretary of the Joint Council approached the Supreme Court with a petition.

The committee report contains valuable suggestions for the government to solve the pension puzzle. It was widely spread that it was not possible to withdraw from the contributory pension scheme that was already implemented, but the committee found that the government can actually withdraw from the scheme. The government and employees will get back the money paid so far for the scheme as well. However, the report of the committee also warns that if the contributory pension scheme is terminated and the government returns to the statutory pension, the financial condition of the state, which is already weak, may worsen in the future. The assessment is that there is no big improvement for the employees by continuing the contributory pension scheme.

The main reason for this is that the service period of the employees in the state is relatively short. The committee has also suggested some fundamental changes if it is decided to continue the project. The main proposal is to increase the government contribution to the pension fund from ten to fourteen percent. Likewise, an increase of ten thousand rupees in the minimum pension should also be considered for those who have less than ten years of service. Many states have already raised the contribution to their pension fund to fourteen percent.

In the current situation, it does not seem possible for the government to completely turn its back on the employees on the pension issue. Therefore, the government should prepare for an open discussion with the service organizations by considering all aspects and taking the employees into confidence. It should be understood that even after two years have passed since the review committee submitted its report, no one has had time to even look at it.

Now that the report is out in full, public discussions have begun on it. How to pacify the employees should be considered. Central government came up with the new scheme when pensions became a big liability in not just in Kerala, but in other states and the Centre itself. The states were also forced to follow it. Some states are going ahead with the project without much opposition. Their model can be studied. In any case, it does not seem that the government will be able to remain silent on the pension issue for much longer.