Thiruvananthapuram: Although it was announced in the budget that participatory pension will be withdrawn, the government still lacks clarity as to how this will be done. There has been no further action after the announcement. The withdrawal is likely to be delayed indefinitely.

It is now being considered to appoint another committee to study and recommend the implementation of the new scheme of ensuring fixed pension instead of contributory pension. On the occasion of the third anniversary of the CPM-led government in Kerala, the next 100 day plan will soon be announced. This may include the appointment of the committee. 

The expert committee that re-examined the participatory pension scheme had clarified that there is no legal bar to withdraw from the scheme. Employees organisations also staged agitations demanding the restoration of the old pension scheme. The government owes Rs 20,000 crore in DA and salary revision arrears to government employees.

It is in this context that the participatory pension scheme will be withdrawn to give relief to the civil service sector, K.N Balagopal had announced in the budget on February 5. Prior to this, the government had appointed a cabinet sub-committee to examine the report prepared by the committee that re-examined the pension scheme. This committee was appointed when the court questioned why the report was kept confidential. The committee, comprising the finance and law ministries is yet to meet.  

The finance department estimates that Kerala has already paid at least Rs 8000 crore into the National pension fund. The key issue is reversing this. Employees have also invested the same amount. None of the states that decided to withdraw from the contributory pension scheme have been refunded.