Kerala to introduce contributory pension scheme for government staff

The employees would be required to contribute 10 per cent of their pay and dearness allowance to the pension fund. The government would also make a contribution to the fund.

August 09, 2012 07:56 pm | Updated August 10, 2012 12:45 pm IST - Kochi

The government has issued orders approving, in principle, the proposed contributory pension plan for government employees. The plan is proposed to apply to new recruits joining service from next year.

The employees would be required to contribute 10 per cent of their pay and dearness allowance to the pension fund. The government would also make a contribution to the fund.

Pensions would be available to employees who contribute to the fund for a specified number of years. Payment of full pension by government would be discontinued.

Opposition Leader V. S. Achuthanandan, CPI State Secretary Pannian Raveendran and the Joint Council of State Service Organisations have decried the decision to introduce contributory pension scheme.

The Opposition Leader said in a statement here on Thursday that the order to undermine statutory pension and impose ban on appointments was a challenge to the people and demanded its withdrawal.

He recalled that the Chief Minister Oommen Chandy had promised in the Assembly that the contribution pension scheme would be implemented only after consultations with all concerned. The government was showing disrespect to the Assembly and democratic systems by dismantling the long-standing provision for statutory pensions through a government order.

Mr. Pannian Raveeendran said that order betrayed youth seeking employment in government service. The government was undermining statutory pensions following the economic policies of the Central government.

The Joint Council announced that t it would organise protests at district and taluk centres and office complex across the State on Friday demanding withdrawal of the order.

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