THIRUVANANTHAPURAM: It has been alleged that the government is implementing the Jeevanandam scheme to take a good portion of the salary when it is to pay Rs 9,000 crore to the employees as six instalments of DA arrears.
Jeevanandam is an annuity scheme announced by the government that charges a fixed amount every month and returns a fixed amount along with interest every month for life after retirement. In contributory pensions, the employees and the government share ten percent of the amount. It is indicated that there will be no share of the government in the new scheme. It will become a scheme to collect employees' salaries into the exchequer.
The question of the employees is what is the need for a new scheme when there is a statutory pension for those who joined the service before 2013 and a participation pension for those who joined the service later.
Although the new scheme is intended to be implemented through the state insurance department, there are no other coverages. At present, contributions are levied to four insurance schemes. It is also applicable to employees of semi-government, public sector, boards, corporations, aided educational institutions, cooperative societies, universities and other self-governing institutions.
Protests against the project have gotten strong. The order was burned under the leadership of the Secretariat Action Council.
Liability to future government
If Jeevanandam is implemented, the government can use the employees' money as a loan. At the time of repayment of the investment, Governments in rule at that time will incur huge liabilities including interest.
Insurance premium will go up
Up to Rs 5700 is taken from the employees of the Secretariat in four insurance plans. The amount will rise again.
End of Statutory Pension?
Finance Minister KN Balagopal has already stated that the participation pension applied to those who joined service after 2013 will not be cancelled and the statutory pension will not be restored. It has been decided to apply the Jeevanandam scheme to all government employees. It is assessed that this is a precursor to stopping the statutory pension.
Current insurance plans and premiums
(The amount may vary depending on the pay slab).
"We will not accept any arrangement that will lead to holding the salary. a new plan is not needed."
- MS Irshad
Convener, Secretariat Action Council
"Jeevanandam will not be made compulsory for all government employees. You can deposit any amount you want. This will provide an opportunity for a steady income after retirement"
-KN Balagopal, Finance Minister