Left states block pension reforms

The Left has been saying that there should be only public sector management of pension funds and is opposed to the employees8217; pension savings being invested in the stock market.

8220;We have been saying that pension should be managed in the public sector and we are also against the pension contributions being parked in speculative market,8221; CPM politburo member Sitaram Yechury said yesterday.

The Left also maintains that it should be assured that the 50 per cent of employees8217; last salary is given as pension.

Though the CPM has putting hurdles in the way of pension reforms, sates like Kerala are in immediate need for such a change. Kerala government sources point out that the number of pensioners in the state will be more than that of the salaried employees within 15 years. The state also spends double the national average on giving pensions.

Meanwhile, there is already some movement on pension reforms in states like Andhra Pradesh, Chhattisgarh, Himachal Pradesh, Jharkhand, Manipur, Rajasthan and Tamil Nadu. They have notified and introduced defined-contribution pension scheme for their employees.

A few other states are interested in joining the new pension scheme when its 8220;architecture and mechanism8221; are in place.