Govt. sitting on report over new pension scheme -THE HINDU

No clarity on benefits for those who joined after April 1, 2003

Though it is about a year since retired IAS officer T.S. Sridhar, who examined the demand to revoke the Contributory Pension Scheme (CPS) for State government employees, submitted his report, the Tamil Nadu government is yet to make the contents public or frame guidelines for the new scheme.

In the absence of guidelines, confusion prevails over calculation of retirement benefits for government employees who joined service after April 1, 2003.

 

While a similar CPS introduced by the Centre for its employees (joining service from January 1, 2004) provides for gratuity, the State government employees are left in the lurch.

“When a former MLA or MP is granted a minimum pension of ₹20,000, in what way is our service any less,” asked a government servant.

Employees (about 5.50 lakh), who joined service after April 1, 2003 and retired, the sum of their 10% contribution along with 10% contribution of the employer (State government) with 7.9% interest is handed over as pension.

When some employees sought information under the RTI Act as to whether guidelines for new pension scheme have been framed and whether they were eligible for gratuity, the State government told them that the issue was “still under consideration”.

 

Govt.’s indecisiveness

“There is no talk about gratuity and no family pension is given, if the official dies in service. Why has the State government not framed rules yet? Should we pay for government’s indecisiveness,” asked a government school teacher.

“During disasters we work round the clock. The government and people should understand our plight,” said another employee.

 

Citing the Government Order No: 59, retired employees (who joined service after April 1, 2003) are forced to sign an undertaking that they would not seek pension in future.

Unlike the Centre and other State governments, the Tamil Nadu government has not deposited the sum of employee and employer contribution under CPS with the Pension Fund Regulatory and Development Authority (PFRDA).

“If everything is transparent, why is the State government not investing in the PFRDA like the Centre and other States,” he asked.

The Centre, which implemented the CPS from January 1, 2004, has increased the employer’s contribution from 10% to 14% with effect from April 1 this year.

 

Former Chief Minister Jayalalithaa in February 2016 announced that a committee would look into the demand for revoking the CPS and revert to the old pension scheme.

After a long delay, the report on the demand was submitted to Chief Minister Edappadi K. Palaniswami in November last year. No action has been forthcoming from the government since then.

 

When contacted, a senior official said the report submitted by the retired IAS officer would be published soon.

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