Kerala Finance Minister K.N. Balagopal has announced that the state will implement an assured pension system in place of the contributory pension scheme. The minister said in his budget speech that a committee has been formed to further review the report of the review committee.
The contributory pension scheme has created a lot of uncertainty among the employees and has led to a great deal of insecurity. A three-member committee has been constituted to further review the report of the committee appointed by the government to study the revision of the scheme. The government is considering revising the contributory pension system and implementing a pension scheme that provides security to the employees.
It's important to note that the central government had also constituted a committee to revise the National Pension System (NPS), which is the nationwide contributory pension scheme in India. However, their report is yet to be submitted.
The implementation of an assured pension system is a major demand of government employees in Kerala. The current contributory pension scheme has been criticized for being risky and providing inadequate benefits to employees. The new assured pension system is expected to provide greater security and stability to the employees, especially considering the ongoing review of the NPS by the central government as well.
The minister also clarified that one installment of DA will be given to the employees and pensioners along with the salary for the month of April.