Commission to review contributory pension scheme soon

Thiruvananthapuram: A commission headed by a judge would soon be tasked to review the contributory pension scheme for employees and teachers. The scheme has been implemented in the State since April 1, 2013.

The Left Democratif Front had committed to review the scheme on coming to power and Finance Minister TM Thomas Isaac had assured the Assembly that a review panel headed by a judge would soon be appointed.

Service organisations, irrespective of the alliances, have welcomed Dr. Isaac's announcement to review the scheme.

However, it is learnt that the government would have to clear too many hurdles for repealing the scheme.

Clearing the knots would not be easy for the government and the commission would have to seriously review the legal ramifications for moving over to the statutory pension scheme once again.

The government would have to furnish adequate reasons for unilaterally retracting from the contract with the national pension system. A settlement should be evolved for adjusting the subscription paid by the government as well as the employees for the scheme.

A decision to return to the old scheme would also call for an amendment to the Kerala Service Rules. Moreover, due caution should be exercised while reversing a policy decision that was hailed as one of the major achievements of the previous government.

The rising financial commitment for pension payment was cited as the prime reason to switch over to the contributory scheme. Interest and pension payments are considered to consuming a lion's share of the revenue receipts of the State.

According to the latest Comptroller and Auditor General report on State finances says that interest and pension payments drew 16% and 20% respectively of the revenue receipts and says that it is a matter of concern.

According to Kerala NGO Union general secretary TC Mathewkutty, almost all welfare pensions were modelled on the pension scheme of State government employees and teachers. The State's tradition in supporting various sections in the dusk of their life had set a model for others and hence the decision to review the scheme is a welcome step.

NGO Association leader Benny too welcomed the decision and said the government was bound to honour its commitment.