Representative Image | Photo: ANI
Thiruvananthapuram: Kerala cabinet will soon consider the report on contributory pension for a detailed discussion. An expert committee appointed by the government has recommended that the contributory pension scheme must continue for ensuring financial stability of the state.
Meanwhile, the committee chaired by justice Satheesh Chandrababu also noted that no hindrance exists in returning to the statutory pension scheme. The majority of the state’s revenue is being utilised for dispensing salaries and pensions, pointed out the committee. Out of this, the government can only bring out restrictions on the present pension schemes.
Pursuing the contributory pension scheme will improve the financial security of the state by 2040 and returning to the previous scheme will retard this, the report read.
The committee has suggested introducing the contributory pension scheme only for those who are appointed after enforcing the scheme. The Kerala government adopted the contributory pension scheme on April 1, 2013. Those who received the advice memo before April 1, 2013, and were appointed in April or the following months will also be considered for the contributory pension scheme.
According to data, only 10,000- 20,000 employees will fall under the previous pension scheme.