KSRTC retirees still waiting for retirement benefits, 30 months of delay

Kozhikode: For those who retired from Kerala State Road Transport Corporation (KSRTC) since May 2022, their retirement benefits remain unpaid. This includes the Death-cum-Retirement Gratuity (DCRG), Commuted Value of Pension (CVP), Provident Fund (PF), and the Surrender of Terminal Leave, among others. These payments have been delayed for over 30 months. Currently, around 4,000 retirees are waiting for their due retirement benefits.

While some retirees begin receiving their pensions after six or seven months, the situation remains grim for many. The implementation of the minimum pension in KSRTC is still pending, resulting in many retirees receiving meagre amounts. The delay in PF payments is attributed to the diversion of the employees' share of the PF funds.

A division bench of the Kerala High Court has ruled that these benefits should be paid. Despite the court's ruling, the retirees are yet to receive their due benefits.

The crisis deepened when the corpus fund meant for pensioners was scrapped, a fund created per the High Court's order. Previously, the pension fund had a 10 percent contribution, but this was diverted, which led to the financial crisis. Pension payments can be made on time if the fund is restored, but retirees are still awaiting payments, and interest on the delayed benefits has not been provided either.

Outdated pension scales

The pension and benefits for retirees are still being calculated based on outdated pension scales. There have been numerous complaints about this issue, with pensioners citing unfair treatment.

Many believe that these issues could be resolved if KSRTC were converted into a government department, or if the government directly provided pensions, as is the case with other departments such as the Kerala State Electricity Board (KSEB) and the Kerala Water Authority. However, both the government and the KSRTC Transport Pensioners Front, an organisation representing pensioners, allege that the KSRTC management lacks the will to implement these changes. 

KSRTC's last pension revision in 2011

The last pension revision at KSRTC occurred in 2011, and despite the salary revision coming into effect in January 2022, pension reforms have not been implemented. Currently, KSRTC has around 42,000 pensioners, and the pension distribution is divided into three categories:

• Those receiving unrevised pensions.
• Those not receiving even the minimum uniform pension set in 2011.
• Those receiving pensions based on revised pay scales.

This division has led to complaints that it is discriminatory and unfair to treat retirees in the same institution in such a manner. Pensioners are now demanding that their pensions be unified, ending the discrimination between those who retired before and after January 2022, provided they have completed at least 10 years of service.