Reroute to statutory pension: Left affiliated service unions differ on procedures

PK Manikantan

Representational Image | File Photo: PTI

Thiruvananthapuram: The Left affiliated service unions in Kerala are differing on the rationale to be followed while re-routing from contributory pension to statutory pension.

Though all camps agree to adopt statutory pension instead of the contributory pension scheme, there are contestations on how to go about it.

CPM-affiliated NGO union cited that replacing contributory pension with statutory pension in Rajsathan caused a problem related to custody of the accumulated corpus under the National Pension System (NPS). Because Pension Fund Regulatory and Development Authority (PFRDA) pointed out that there is no legal provision to reimburse or redeposit the funds to the state government, which is already deposited (employee+government contribution) in NPS. According to the NGO union, PFRDA rules should be abolished to retrieve the fund. It has urged the state government’s intervention for the same but pointed out that the union government should bear the responsibility of replacing the contributory pension scheme with the statutory pension.

On the other hand, CPI affiliated Joint Council holds a view that there are no legal hurdles. PFRDA can turn down the demand for refund or to get the deposit back. Because it is a body similar to Insurance Regulatory and Development Authority (IRDA), said Joint Council. It also slammed the state government for not realising the report on contributory pension.

Both groups have decided to campaign for putting their contentions in the limelight.

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