Letters to the editor Twisting the welfare logic

Written by The Financial Express | Updated: Aug 29 2008, 03:07am hrs
The editorial (No country for old men, Aug 21) suggests a cure worse than the disease. It calls for excluding the main stakeholdersemployee unions and employer's representativeson the ground of their ignorance on pension economics. To seek defined contributions to the exclusion of defined benefits is to prefer short-time gains over long-term welfare. This is again evident in the agrument against extending the EPFO cover to firms with 10 or more employees. The basic objective of a pension system is to provide some relief in the autumn of ones life. How does one guarantee this when benefits are not certain The entire new policy on pension management is investment oriented rather than welfare oriented.

G Gokul Kishore, New Delhi