Letter to BS: Indian pension system needs a comprehensive review, overhaul

The pension component should be part of the wages paid by the employer

This refers to Somesh Jha’s report “Hike in minimum pension will need budgetary support: EPFO” (February 26). The Indian pension system needs a comprehensive review and overhaul. Since December 2003 when the government unilaterally and prospectively discontinued a defined payment-based pension scheme, which existed for the central government employees, and introduced a New Pension Scheme (later rechristened as National Pension System), temporarily exempting defence 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