The working group on pension liabilities headed by controller general of accounts AM Sehgal, has suggested a switch over to a funded pension system for government servants to restrict the mounting pension liability.
The report submitted to finance minister Yashwant Sinha by Sehgal today has said this is the only way to restrict the pension liability from mounting beyond Rs 29,500 crore by 2009-10, from the already immense burden of Rs 21,400 crore in the last fiscal.
The report says,