Thiruvananthapuram: The distribution of pension to former employees of KSRTC has been stalled for two months due to clashes between the finance department and co-operative department in the state. The dispute between the departments arose due to disagreements over the interest rate of the loan amounts.

The department of cooperation has been granting loans to distribute pensions to beneficiaries based on the assurance of the state government. Recently, the department demanded an increase in the interest rate for the loans from 8.25% to 9%. However, the department of finance asserted that the interest rate cannot be increased until June as per the contract. Although discussions were held between ministers on this matter, no solution has been found yet.

The former employees of KSRTC have moved a contempt plea at the Kerala High Court as the delay in pension distribution violated the court order which demanded timely disbursal of pensions.

Meanwhile, KSRTC is currently distributing the salaries of employees in two instalments without fail.