A pension fund will be set up in the Kerala State Road Transport Corporation with the government and the transport utility pitching in Rs.20 crore each every month to disburse pension of 37,000-odd retirees from the next financial year.
The Rs.1,100 crore provided by the government to the KSRTC over the years will be converted into equity and the Rs.1,400-crore loan taken from the Kerala Transport Development Finance Corporation converted as a long-term bank loan.
A meeting was chaired by Chief Minister Oommen Chandy at Cliff House here on Monday to sort out the financial crisis faced by the utility.
It was decided that the government would stand surety for an additional Rs.200-crore loan the KSRTC planned to take to clear its commitments.
All the retirees would be paid Rs.15,000 as pension before December 24 and the remaining two months’ arrears would be paid before February 15, Minister for Transport Thiruvanchoor Radhakrishnan said.
The balance amount due would be paid from July to September.
The pension for three months from January will be paid on the respective month but will be limited to Rs.15,000.
The balance amount of the pension will be disbursed during the three months from October, it was decided.
