The report of the Contributory Pension Review Committee, which was finally out on Monday after more than two years, recommends, among other things, that the State Government’s contribution to the scheme be increased.
“The committee recommends that the contribution of the Kerala government to the Contributory Pension Scheme subscribers be raised from the present 10% of salary and dearness allowance to 14% as done by the Central government and many other State governments,” it says.
The benefits from the scheme will start reflecting in State spending from around 2040, the report notes.
From a long-term perspective, the continuation of the Contributory Pension Scheme will result in a reduction of the pension outgo as a share of the government’s total revenue receipts from around 2040, it observes.
“As a result, more resources will become available for capital spending or expenditure on health, education and other social services,” it says.
The 116-page report, submitted to the government in 2021, was not made public. A copy of it was handed over on Monday to Jayaschandran Kallingal, general secretary, Joint Council of State Service Organisations, on the basis of a Supreme Court order.
Mr. Kallingal had initially sought a copy under the RTI Act, and when he did not receive it, had approached the High Court. The High Court, however, ruled in favour of the government. Subsequently Mr. Kallingal moved the Supreme Court.
The committee has recommended that government employees whose recruitment was finalised on or before April 1, 2013, but whose joining was delayed on account of administrative reasons should be given the option of joining the statutory pension scheme.
Further, the committee has recommended that death-cum-retirement gratuity should be made available to employees who have joined the contributory pension scheme. Ex gratia pension should be paid to subscribers of the scheme with less than ten years of qualifying service. As in the case of statutory pensioners, those opting for ex gratia pension must forego service gratuity, it said.
The Joint Council of State Service Organisations, in a statement, welcomed the government’s decision to hand over a copy of the report. The report does not mention any legal hurdles for withdrawing the contributory pension scheme.
The findings in the report, in fact, are a setback to the stand that the scheme cannot be withdrawn. The council urged the government to discuss the report with service organisations and reinstate the old pension scheme.
