Kerala’s Finance Minister, KN Balagopal, has expressed the state government’s intention to revisit the Contributory Pension Scheme introduced under the National Pension System ( NPS ). The announcement regarding this initiative was made during the presentation of the state budget for 2024 by the Finance Minister.
Balagopal highlighted the concerns among government employees regarding the insecurity associated with the NPS, prompting the formation of a three-member committee. This committee will further scrutinize the report submitted by a government-appointed committee tasked with studying the potential revision of the NPS.
In a bid to address these concerns and enhance employee security, the government aims to review and implement a Revised Scheme. Balagopal emphasized the commitment to reclaim the central government‘s share and develop an ‘Assured’ pension system through the revised scheme. Additionally, he mentioned the examination of similar schemes in other states, with plans to implement relevant measures in Kerala.
The Contributory Pension Scheme was originally launched by the Oommen Chandy government in 2013, and in 2018, the LDF government formed a committee to reevaluate the scheme. The report, submitted in 2021 and published in November 2023, recommends increasing the state government’s contribution, enhancing benefits such as Death-cum-Retirement Gratuity ( DCRG ) and ex-gratia pension, and aligning employee salary and dearness allowance with central government standards.
The committee also suggests extending the option to join the statutory pension scheme to government employees recruited before April 1, 2013, but who commenced service after that date. The proposed changes aim to address the concerns raised by government employees and improve the overall pension system in the state.
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