Left Wants New Pension Scheme To Go

New Delhi, May 30 | Updated: May 31 2004, 05:30am hrs
The Communist Party of India-Marxist (CPM) has demanded scrapping of the defined contribution pension scheme for government employees, which was initiated by the NDA government, and said private players should have no role to play in the pension sector.

We are against defined contribution pension scheme and privatisation of pension sector, MK Pandhe, a senior CPM politburo member, told PTI here.

Under the proposed scheme, cleared by the Union Cabinet during NDA government, employees who join the Central service after January 2004 would not have general provident fund (GPF); they would instead contribute to pension to be managed by six fund managers, including one in the public sector and there would not be any assured returns.

Mr Pandhe, also the CITU president, said the payment for pension for government employees should come from consolidated fund of India.

The CPM, which is supporting the UPA government from outside, has also demanded scrapping of the privatisation programme.

SK Vyas, president of Government Employees Confederation, said his Union was against replacing the defined benefit scheme by defined contribution and would soon take up the matter with Left parties.