PC requests Left to support Pension bill

NEW DELHI: Finance Minister P Chidambaram today asked Left parties to reconsider their opposition to the pension bill so that government can provide a "legal basis" to the new pension system started last year.

"I requested the Left Parties to reconsider their opposition to the PFRDA bill," he told reporters as the bill was slated to be taken up for debate in Lok Sabha.

"I have pointed out that the new pension system has already come into force from January 2004. It is now without a legal basis. It is therefore important to provide a legal basis," he said.

The new pension system was started by earlier NDA government for new recruits in central government from January 2004. After that nine states -- Andhra Pradesh, Tamil Nadu, Rajasthan, Chattisgarh, Jharkhand, Orissa, Andhra Pradesh, Manipur, Himachal Pradesh and Gujarat have also decided to implement it.

Chidambaram said he has already spoken to Left leaders on the Pension Fund Regulatory and Development Authority Bill, which will enable government to set up a regulator and allow private players to manage long term savings.

At present, the pension constribution of the new government employees are being accumulated in the Consolidated Accounts of the government.

Once, the PFRDA bill is passed and the pension regulator gives licence to pension fund managers, the pension contribution would be managed by them.

"I am sure they will consider my request. Let us see what happens in the floor of the House," Chidambaram said.