Panel recommends extending pension age of cooperative employees in Kerala to 60 years

Thiruvananthapuram: A recommendation has been made to raise the pension age of cooperative employees from 58 to 60 years. This suggestion came from a committee appointed by the government to review pension reforms. The committee stated that raising the pension age would help reduce the significant financial burden on the pension board.

The cooperative institutions operate a self-reliant pension scheme without any government contribution. The amount received by an employee as pension often exceeds the total of their contributions and the interest income from it, placing the pension board in a precarious financial position. Currently, employees contribute 12 percent of their basic salary and dearness allowance towards the pension fund, and the committee has suggested increasing this to 15 percent.

The five-member committee, chaired by retired District Judge N Rajendran Nair, has submitted its report to the government. The committee has also proposed a 2 percent increase in the pension contribution. 

The average pension for an employee in a primary cooperative society ranges from a minimum of Rs 3,600 to a maximum of Rs 17,850, and the committee has recommended increasing it to Rs 19,040. For Kerala Bank employees, the pension amount is proposed to be raised from Rs 26,180 to Rs 27,965. However, it remains uncertain how the financially strained pension board will address this recommendation.