Payment of pension: Tort liability

Basics first | Business Line

The Hindu Business Line, October 9, 2015
This refers to ‘Centre’s
delay in approving pension updation scheme irks RBI retirees’ by Vinson Kurian
(October 8). Although all financial transactions have a cost, if there is delay
in completion in the case of payment of pension, the tort liability on the
establishment stands out. This is because, if the beneficiary dies before
receiving the benefit, the purpose of paying pension which is meant for the
sustenance of the individual post-retirement, is lost. Every year the pension
fund corpus is augmented taking into account the additional provisions needed
on account of periodic revisions. The institution transfers huge surpluses to
the government. The earlier revisions till 1997 are valid. The demand of the
present retirees is genuine.
is the autonomy?
This refers to the news item,
‘Centre’s delay in approving pension updation scheme irks RBI retirees’ by
Vinson Kurian (October 8). It is unfortunate that the periodical updation of
pension was agreed upon and implemented in an agreement between the Centre and
the RBI in 1990 was arbitrarily withdrawn by means of an oral order without
rhyme or reason. The RBI is supposed to be enjoying autonomy but even for
payment of pension it has to get clearance from the Centre.
It is not only a question of
autonomy, it is also a question of the survival of retirees in these days of
high inflation, exorbitant medical expenditure and ever increasing taxes and
declining interest rates on deposits. The dispute is certainly not because of
want of resources or not recognising the genuine need to update the pension.
Retirees cannot be condemned like this as they have contributed a lot to
enhance the image of the RBI. This issue could have been settled amicably
between the Centre and the RBI without involving so much publicity.
TR Usha



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