Left-ruled states oppose new pension reforms
Government's latest initiative to thrash out a consensus on the contentious pension reforms on Monday failed with Left-ruled states rejecting outright the new scheme and the NDA states voicing concern over "delay" in passage of the Pension Bill in...
By PTI |
NEW DELHI: Government's latest initiative to thrash out a consensus on the contentious pension reforms on Monday failed with Left-ruled states rejecting outright the new scheme and the NDA states voicing concern over "delay" in passage of the Pension Bill in Parliament.
"We Left-ruled states (West Bengal, Tripura and Kerala) have opposed the New Pension Scheme ... and conveyed our unified opposition," West Bengal Finance Minister Asim Dasgupta told reporters after a conference of state chief ministers and finance ministers, chaired by Prime Minister Manmohan Singh. Kerala Finance Minister Thomas Issac also aired similar views.
Objecting to a "cut" in salary and pension and "absence" of government guarantees for retirement benefits in the new scheme, Dasgupta said at the meeting "we are not in a position to accept the new scheme. We strongly urge that a more in depth factual and analytical discussion is held before taking any further step towards the new pension system."
Apprehending loss for employees in terms of wages from the new scheme, Dasgupta said he felt there will clearly be a cut in the wages of employees to the extent of 10 per cent of pay, including dearness allowance, throughout service.
He said with increase in the cost of living index, the pension will fall further unlike in the case of existing scheme in which an employee gets 100 per cent neutralisation for increase in the cost of living index through dearness relief.
"Thus, there is a serious loss to the employee in so far as his retirement benefits are concerned in addition to the loss that he has suffered through effective wage reduction during his service," he said.
"We Left-ruled states (West Bengal, Tripura and Kerala) have opposed the New Pension Scheme ... and conveyed our unified opposition," West Bengal Finance Minister Asim Dasgupta told reporters after a conference of state chief ministers and finance ministers, chaired by Prime Minister Manmohan Singh. Kerala Finance Minister Thomas Issac also aired similar views.
Objecting to a "cut" in salary and pension and "absence" of government guarantees for retirement benefits in the new scheme, Dasgupta said at the meeting "we are not in a position to accept the new scheme. We strongly urge that a more in depth factual and analytical discussion is held before taking any further step towards the new pension system."
Apprehending loss for employees in terms of wages from the new scheme, Dasgupta said he felt there will clearly be a cut in the wages of employees to the extent of 10 per cent of pay, including dearness allowance, throughout service.
He said with increase in the cost of living index, the pension will fall further unlike in the case of existing scheme in which an employee gets 100 per cent neutralisation for increase in the cost of living index through dearness relief.
"Thus, there is a serious loss to the employee in so far as his retirement benefits are concerned in addition to the loss that he has suffered through effective wage reduction during his service," he said.
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