The Consortium of Cooperative Societies has stepped in again at the initiative of the government to help the cash-strapped Kerala State Road Transport Corporation (KSRTC) to pay pension to 38,500-odd retired persons.
The pension, paid on the first working day of every month, had not been paid for July even after 18 days.
The delay in signing a Memorandum of Understanding (MoU) among the Consortium of Cooperative Societies, government and KSRTC is cited as the reason for the delay.
The validity of the last MoU signed with the consortium to disburse the pension had ended in June.
As the consortium was not willing to further continue with the special arrangement for the disbursement of pension from July, Chief Minister Pinarayi Vijayan had to intervene to resolve the issue.
CM’s intervention
With the Chief Minister’s meeting with the stakeholders, the consortium has agreed to a special arrangement to pay pension for three months from July to September this year.
The government has cleared the MoU forwarded through the Transport Department and the consortium would arrange the funds. As per the terms and conditions, the KSRTC will repay the entire amount with 10% interest within six months of each withdrawal.
