Social security pension: Kerala yet to settle monthly arrears

Thiruvananthapuram: The crisis in the distribution of social security pension, which serve as a lifeline for lakhs of ordinary people, continues.

Pension payments for six months, including the current month, are pending. The government, grappling under financial crisis, requires Rs 4,800 crore to settle pension payments.

During the 2024 budget in February, the government assured that pensions would be disbursed every month. It claimed that pensions would be released monthly as instalments and distribution issues would be resolved accordingly.

In April 2024, ahead of the elections, a lump sum of Rs 1,600 crore was disbursed. However, it represented the arrears from November 2023. The government plans to release one instalment for this month's pension, covering the arrears from December 2023.

Even if the government disburses one instalment every month or twice during festivals or special seasons, arrears will continue to exist. The financial crunch is preventing the government from releasing two instalments in a month.

Presently, the company formed for distributing welfare pensions relies on loans from a consortium of cooperative banks. Previously, the company had surplus funds to release at least one instalment. However, with the treasury depleted, these funds were utilized, leading to an overdraft. Recovery of these funds hinges on revenue from alternative sources. Only then this month's pension can be allocated.