The State Government proposes to introduce contributory pension scheme for its employees from next year, Chief Minister, Oommen Chandy, has said.

But this would not lead to any pruning of vacancies, he said while speaking to newspersons after a meeting of the State Cabinet here on Thursday.

IN-PRINCIPAL NOD

The new pension scheme would not harm in any manner prospects of existing employees.

The State Government has already notified its in-principle acceptance of the scheme.

Earlier last week, the Chief Minister had told the State Assembly that the Government would most likely need to introduce a contributory pension scheme for new entrants joining service.

Kerala was among the three states that had not opted for the scheme. It would need to review its stance without upsetting the existing scheme.

This is because service pension bills are set to exceed employee salary sooner or later.

PENSION OUTGO

Pension payments brought about a three-fold rise in State’s liabilities between 2001-02 and 2010-11.

During 2011-12, it amounted to Rs 8,669.30 crore, Chandy said.

In any case, the Government has an open mind on the issue and would strive to evolve a consensus.

Meanwhile, the Cabinet on Thursday also agreed to sanction ex gratia of Rs 3 lakh to families of those perished in the cloud burst-related disaster in the northern district.

NINE DEATHS

Nine people were killed after torrential rain set of landslides and flash floods in the foothills of the Western Ghats bordering the Wayanad, Kozhikode and Kannur districts.

Whole stretches of roads were washed away, hundreds of dwellings destroyed, whole neighbourhoods flooded, and damage worth an estimated Rs 105 crore caused to property.

The injured persons are entitled to receive Rs 1 lakh each, the chief minister said.

> vinson.kurian@thehindu.co.in

Related Topics