CM rules out reverting to old pension scheme

‘State cannot bear the burden given its financial position’

October 21, 2018 12:19 am | Updated 12:19 am IST - SALEM

Salem, Tamil Nadu 20/10/2018: Edappadi K. Palaniswami, Chief Minister, addressing media persons at Omalur in Salem district, on Saturday October 20, 2018. Photo: E.Lakshmi Narayanan / The Hindu

Salem, Tamil Nadu 20/10/2018: Edappadi K. Palaniswami, Chief Minister, addressing media persons at Omalur in Salem district, on Saturday October 20, 2018. Photo: E.Lakshmi Narayanan / The Hindu

With the Joint Action Council of Tamil Nadu Teachers Organisations and Government Employees Organisations (Jactto-Geo) announcing an indefinite strike from November 27 to press for the implementation of its charter of demands, Chief Minister Edappadi K. Palaniswami categorically stated on Saturday that the government will not be able to revert to the old pension scheme — the organisation’s main demand — due to its tight financial position.

Addressing mediapersons at Omalur town, Mr. Palaniswami said the State government gave a bonanza to the government employees and teachers by revising wages in line with the Seventh Pay Commission’s recommendations. As a result of the move, the government would be incurring additional expenditure of ₹14,719 crore a year.

Moreover, an increase in the dearness allowance, which amounted to an additional annual expenditure of ₹1,200 crore, was also sanctioned.

Jaya’s assurance

Referring to Jactto-Geo’s demand for reverting to the old pension scheme, the CM said the contributory (new) pension scheme was in force in a majority of the States. “The government will not be able to agree to this demand due to the present critical financial position,” he said.

When asked about Jactto-Geo’s complaint that the government was not taking the initiative to solve the problem by calling its representatives to the negotiation table, Mr. Palaniswami said the Minister and officials concerned had already held talks with them on various occasions. The Minister and the secretary would hold negotiations once again if need be, he added. When his attention was drawn to former CM Jayalalithaa’s assurance to government employees and teachers on reverting to the old pension scheme, Mr. Palaniswami said, “Without adequate funds, how will the government be able to agree to their demand?”

“The government employees are well aware of the critical financial position of the State, as they are the ones who run the State machinery. Understanding this, they should cooperate,” he said.

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