Review pension system



M G Warrier                       
February 26, 2019
Review pension system

This refers to Somesh Jha’s report “Hike in minimum pension will need budgetary support: EPFO” (Business Standard, February 26). The Indian Pension System needs a comprehensive review and overhaul. Since December 2003 when GOI unilaterally and prospectively discontinued a defined payment-based pension scheme then existing for central government employees and introduced New Pension Scheme (later rechristened as National Pension System), temporarily exempting defense personnel from the changeover, the policy approach to pensions has been one of ‘hit and run’.
By now, there appears to be a consensus that a pension scheme, as a social security instrument, is an essential ingredient of remuneration packages across public and private sector establishments. If that be so, there should be agreement on the  following:
(a)              Pension component should be part of wages paid by the employer. If central or state government has to subsidize cost of pension outgo, for any specific reasons, like losses incurred by a particular sector/group, it should be on a monthly or annual basis.
(b)             Pension should have a relationship to the earnings/wages.
Centre may consider including review of pension system for its employees in the TOR for Central Pay Commission and appointing a High level pension review Committee to consider integrating pension schemes now operated by different agencies in public and private sector organizations.
M G Warrier, Mumbai

Comments

Popular posts from this blog

NAVAGRAHA STOTRAM

Agnimeele Purohitham : First recording on Gramaphone

Remembering R K Talwar : Vaghul