Abolish Contributory Pension Scheme

The 17th December marks 36th anniversary of the historic judgement in DS Nakara & others Vs Union of India case delivered by the then CJI Justice YV Chandrachud. The judgement reads that, "Pension is neither a bounty, nor a matter of grace depending on the sweet will of the employer, nor an ex-gratia payment. It is a payment for the past services rendered. It is a social welfare measure rendering socio-economic justice to those who in the heyday of their life ceaselessly toiled for the employer on an assurance that in their old age they would not be left in lurch." 

But what's going on in neo-liberal India is quite contrary to the spirit of the above judgement. The introduction of Contributory Pension Scheme (CPS) since 01.01.2004 is a clear abdication of social responsibility by the governments. Left-ruled states were an exception.  The recent AAP Government's decision to revert to Old Pension Scheme is a measure in tune with the aspirations of the workforce demanding defined pension not dependent on the volatility of the stock markets.

It is time for the NDA government to act. The Contributory Pension Scheme must be abolished. It must accord functional autonomy to institutions like LIC to allow its staff to have one more option for Pension. Updation of pension, uniform rate of family pension, increased minimum pension, full pension for 20 years of service and last drawn salary as the basis for pension - are the other issues that need urgent attention.
A Raghunatha Reddy, Kadapa