Postponing the problem | Business Line

Postponing the problem | Business Line

My VIEW:

Many misleading stories are doled out in defence of introduction of NPS and for keeping OROP demand unresolved for decades. Some of them confront common man with confusing numbers. One theory, quoted by BL, in this editorial, says the present worth of future pension liability in 2004 was estimated at 64.5 per cent of that year’s GDP. India Pension Research Foundation should have also estimated the present worth of future GDP and made the comparison realistic, as the payment will be spread over a long period! The 6th Pay Commission had quoted the pension liability figure at Rs 3,35,628 crore, if Centre was to move out of ‘Pay as You Go’ and fund the entire pension liability in the first decade of this century. In 2013, an estimate of unfunded liability in US pension systems was over $4 trillion.

M G Warrier, Mumbai

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