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TN Govt's contributory pension scheme challenged in HC

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Press Trust of India Madurai
Madurai Bench of Madras High Court has ordered notice to the Tamilnadu Government on a petition seeking to declare as illegal relevant provisions which paved the way for contributory pension.

Justice N.Paul Vasanthakumar ordered notice to the Secretary Finance (Pension) seeking explanation on the petition which challenged proviso to Rule 2 of the Tamilnadu Pension Rules (TNPR) and Sub Rule(3)of Rule 4 of the Tamilnadu General provident Fund Rules.

Petitioner, P.Frederic Engels, a Panchayat school teacher, submitted that under the contributory pension Scheme which came into existence from April 1,2003, 10 per cent of employees' salary was deducted towards pension and the government also contributed an equal amount.
 

He contended that the new scheme was not a pension scheme in the true sense, as it took away all the Pension benefits available in the earlier scheme as per TNPR.

The new scheme was a farce and it absolved the government of its constituted obligations to pay pension. It was also discriminatory as those who joined earlier were entitled for pension.

The government had not constituted a statutory authority, though the Pension Fund Regulatory and Development Authority Bill 2011 had been introduced in Lok Sabha.

The Supreme Court had held that Pension was neither a bounty nor a matter of grace and it was a payment for the past service, he submitted.

Hence the court should declare proviso to the impugned rule 2 of TNPR as illegal and restore the original pension scheme, he pleaded.

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First Published: Aug 02 2013 | 7:30 PM IST

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