Left not impressed with pension reform proposals

Realising that it will not be able to push through pension reforms without the Left8217;s support, the Government has made a formal proposal on the PFRDA Bill to the Left parties.

Realising that it will not be able to push through pension reforms without the Left8217;s support, the Government has made a formal proposal on the PFRDA Bill to the Left parties. But Left leaders said the proposals were unsatisfactory in the absence of a provision guaranteeing pension amounting to half the last salary drawn. However, they did not reject the proposals outright, saying the trade unions would have to be consulted even though the government is sticking to its position on the issue.

CITU president M K Pandhe said the CPIM8217;s parliamentary party was yet to discuss the proposals with him. But if there was no provision for a guaranteed pension, calculated at 50 per cent of the average monthly salary of three years, 8220;the employees8217; unions were unlikely to accept them8221;.

A proposal was also made on the Banking Regulation Act. But again the Left said there was no meeting ground with the government. Left sources said the proposals were presented at a Parliament House meeting between Foreign Minister Pranab Mukherjee and Finance Minister P Chidambaram representing the UPA and CPIM8217;s Sitaram Yechury and CPI8217;s Gurudas Dasgupta.

Left leaders attending the meeting said Friday8217;s proposals by the government on pension reform and the Banking Regulation Bill were the same as those made at the November 13 UPA-Left coordination meeting. 8220;Our stand on the issue remains the same,8221; said Dasgupta.

In the case of the PFRDA Bill, the suggestions include putting PSU fund managers in charge of the pension funds. They would then invest in government securities for three years in the case of those belonging to C and D categories. But the Left parties have objected to the government8217;s lack of clarity on how the funds would be invested after that. In fact, the CPI has even raised questions over the credibility of the PSU fund managers, especially the UTI.

Sources said the UPA was hoping to make headway with the Left parties on pension reforms in view of the fact that with Left rule in West Bengal and Kerala they would be keen to get the trade unions on board soon. Even the trade unions appear to have realised the need for a resolution. A top trade union leader said, 8220;We admit the pension reforms cannot be kept in abeyance indefinitely. But the government has to come up with concrete proposals to meet employee demands.8221;