THIRUVANANTHAPURAM: The new pension scheme announced by Finance Minister KN Balagopal in the budget is the topic of discussion in government offices. Actually, the pension scheme cannot be said to be new. Contributory pension is proposed to be amended, made attractive and implemented. Kerala is considering a scheme similar to the one implemented by Andhra Pradesh.
It is a scheme which ensures the same benefits to the statutory pensioners as to the Contributory pensioners. The idea is to modify and implement it according to the situation of Kerala. Taking the permission from central government will be enough.
Reversion to the statutory pension is difficult for two reasons. The main factor is the huge financial liability. The second reason is that one joins the contributory pension by signing an agreement with the central government and therefore cannot opt out of it on one's own. It is not easy to get back the money invested in the National Pension Fund Scheme.
States like Rajasthan, Chhattisgarh, Tamil Nadu, Jharkhand, Punjab and Himachal Pradesh had decided to go back to statutory pension and informed the Centre, but did not receive approval. The contributory share is still being paid. The committee, chaired by retired judge S Satish Chandrababu and members P Marapandian and Prof D Narayana, has recommended the reform and implementation of contributory pension.
In the statutory pension, half of the last paid salary will be paid as pension. Dearness Allowance will also be revised from time to time. Pensioners will also get benefits like gratuity and ex gratia.
The only advantage of the contributory pension is that you can withdraw 60% of the amount invested in the National Pension Fund Scheme. Dearness Allowance is fixed and will not increase. Only one-fourth of the last paid salary is given as a monthly pension.
Dearness Allowance will be revised from time to time