Pension scheme: Govt contribution for civil service officials hiked to 14%

Thiruvananthapuram: The finance department, which refused to increase the government contribution in the contributory pension scheme for employees, has agreed to the same request by the civil service officials.

The government contribution for the 200 IAS, IPS, and IFS officials, who joined the service after the contributory pension scheme was introduced, was increased by 14 per cent. Meanwhile, the government employees who asked for a similar rise were asked to submit a request to the re-examine committee. Though an office was allotted six months after the committee was set up, it would take three more months before it starts functioning. Though the employees pointed this out, the finance department refused to heed to their demands.

The central government started the scheme on April 1, 2004. As per the norms, the state governments have to implement the improvisations brought in by the Centre. For the pension fund, both the employees and the government had to make a contribution of 10 per cent. The scheme was implemented in Kerala in 2013. The central government's contribution to the pension scheme was raised to 14 per cent from April 2019. From then on, the Kerala government too issued an order increasing the contribution for civil service officials.

Statutory pensioners have the benefit of Death-cum-Retirement Gratuity (DCRG). Currently, it is Rs 20 lakh for Centre and Rs 14 lakh for Kerala.

The Centre decided to extend this benefit to contributory pension members on August 28, 2016. V D Satheesan, Paravur MLA, had asked in the Kerala Assembly to extend the benefit accorded to the civil service officials to the to the employees too. However, Finance Minister Thomas Isaac replied that it was not possible. Around one lakh people from the government departments and 30,000 from the public establishments are parts of the scheme.

The annuity pension for retired employees who are part of the contributory pension scheme in Kerala is from Rs 800 to Rs 1200.

No data of retired employees?

As per the statutory pension, a person who had one year of service was eligible for a pension of Rs 3,500.

For 10 years of service, the pension is Rs 8,500. However, the government reportedly has no statistics on the number of retired employees, who are part of the contributory pension scheme.

Finance Minister Isaac had given different answers of 67 and 30, during separate instances.

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