The Kerala government has announced the introduction of the new pension scheme – rechristened the "participatory pension scheme" – for its employees joining service from April 1, 2013 ("Contributory pension scheme for new Kerala govt employees," August 9). The state's chief minister is lamenting that this will put additional burden on the state exchequer to the extent of 13 per cent of the wage bill in respect of new recruits and savings. For the new recruits, it will be a straight 13 per cent cut on their remuneration package, which, any serving employee will attest, is a little more than what a normal wage revision factors in as rise in total wages. The new pension scheme was kept outside the purview of the Sixth Pay Commission, although the scheme was under implementation and several central government employees – whose wage structure the Commission was reviewing – were affected by it. Some links are missing. Will anyone come out with the real compelling concerns that weighed with the Centre and state governments to introduce the scheme, which in reality is a "No Pension" Scheme, even before it has gained legislative legitimacy with appropriate systems for implementation in place?
M G Warrier Thiruvananthapuram
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