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The proposed contributory pension scheme would not in any way change the statutory pension scheme covering Government employees currently in service.
Neither would it affect pension being received by those who are already on the pensioners’ list, according to Finance Minister K. M. Mani.
New pension scheme
The Finance Minister reiterated that the new pension scheme would be applicable only for those entering Government service on or after April 1, 2013.
He said this while replying to a discussion on the subject in the State Assembly here on Wednesday.
The Government would deposit 10 per cent and the employee another 10 per cent of his or her monthly salary as per provisions of the new scheme.
The State Government has written to the Centre to permit depositing this amount in a pension fund of the employees’ choice. The new system would also have the family pension component, the Minister said.
In the event of the employee’s death, his or her family would get a pension derived on the basis of the sum accruing into individual pension account during period of service.
Triggers walkout
The Opposition chose to walk out taking umbrage at the Minister’s ‘refusal’ to disclose the full import of the new pension scheme.
C. Divakaran of the Opposition, who initiated the discussion, said the Government was taking away the right the employee had been enjoying since 1957.
The security of a statutory pension has been the biggest attraction of Government service, he said citing a Supreme Court judgment.
Former Finance Minister T.M. Thomas Isaac said that change to the new system would help the Government save four-fifth of the pension expenses.
But Mani disputed this interpretation, prompting the Leader of the Opposition to announce the walkout.
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