Thiruvananthapuram: As the Kerala government has been availing the additional loan granted by the Centre in the name of participatory pension, switching to the old pension system may turn out to be burdensome for Kerala.

The state began accepting loans related to this in the last financial year. The Centre made modifications to the loan sanctioning norms after many states made a move to return to the old pension scheme. The central government's decision was aimed at putting a stop to this return. 

Owing to a severe financial crisis and an unwillingness to revise the participatory pension scheme, Kerala availed a loan of Rs 1700 crores in the previous financial year. In the current year, a loan amounting to Rs 1755 crores can be taken. 

The center sanctioned the issuance of an additional loan equivalent to the amount deposited annually in the participatory pension scheme. 

However, this loan is sanctioned only to those that continue in the participatory pension scheme. If the state opts out of this scheme, the loan amount will be deducted from the loan limit for subsequent years. 

An additional loan of Rs 1755 crores was sanctioned this year after Kerala announced that it would continue in the scheme this year as well. In light of the worsening financial crisis, the state will be forced to continue to avail loans.

In the 2016 electoral manifesto, LDF made promises to review the participatory pension scheme introduced by the UDF government. An expert committee to study the circumstances was appointed by the previous LDF government. Even though the committee submitted its report, the government is yet to release it. It has not taken any decisions regarding the matter.

The Central government announced certain changes to the pension scheme in order to ensure that employees receive the pension that they deserve. The state government is attempting to figure out how this will turn out to be.