Thiruvananthapuram: An RTI disclosure has contradicted Kerala’s assertion that it had approached the Centre to withdraw the contributory pension scheme, revealing that no such communication was ever made.                     

In its budget speeches both last year and this year, the state government had announced the introduction of an assured pension scheme that would guarantee a fixed pension amount. When asked why no action was being initiated in this regard, the government maintained that it had already written to the Centre and was awaiting a reply.

However, in response to an RTI query, the Finance Department has now clarified that no such letter was sent to either the Central Government or the Pension Fund Regulatory and Development Authority. The revelation raises a serious question as to how the Centre could be expected to respond to a letter that was never sent.

The revision of the contributory pension scheme was among the promises listed in the 2016 election manifesto of the Left Democratic Front. Apart from paying lip service to the promise, the government is now cornered into admitting that it has done nothing to act on it.

Although a committee was constituted during the final months of the first Pinarayi Vijayan government to study the possibility of withdrawing the contributory pension scheme, its report was released only after a lengthy legal battle by the Joint Council, which reached the Supreme Court. The declarations made in budget speeches appear to have been prompted largely by continuing protests from government employees. With just two days remaining for the government’s `file adalat' to conclude, the relevant file on this matter remains untouched.

Contributory pension scheme
The contributory pension scheme was introduced in April 2013, replacing the statutory pension system. Under this scheme, employees and the government each contribute 10 per cent of the employee’s salary to a pension fund, from which pension benefits are later drawn.

RTI queries and Finance Department’s responses
Q. Did the ministerial and bureaucratic committees formed to initiate follow-up action on the Expert Committee’s recommendations regarding the contributory pension scheme hold any meetings?

A. A meeting was convened once, on October 10, 2024. However, the minutes of that meeting were not recorded. The committee consisted of the Finance Minister, the Law Minister and the Chief Secretary.

Q. Has any letter been sent to the Union Government or the Pension Fund Regulatory and Development Authority regarding withdrawal of the pension scheme?
A. No such letter has been sent.