Forum146;s proposal may stall pension reforms

In what could be a major setback to the UPA government in pushing through pension reforms, the Joint Consultative Machinery JCM, a forum comprising government representatives and employees to reduce industrial unrest, has favoured reverting to a defined benefit system.

The new pension scheme envisages a shift to defined contribution from the defined benefit regime. The JCM8217;s decision comes at a time when a Parliamentary Standing Committee has been mandated to evaluate the pros and cons of the proposals in the Bill on pension reforms.

Notably, the standing committee has not met even once, although its first report was expected by April 20. 8220;The JCM8217;s view is crucial and is likely to have an impact on the standing committee as it deliberates the issue,8221; a senior government official said.