Cabinet to take up new pension plan tomorrow

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Cabinet to take up new pension plan tomorrow

The Hindu

August 22, 2003

New Delhi, Aug 22. (PTI): A contributory pension scheme for government employees and the proposed National Tax Tribunal will be taken up by the Cabinet tomorrow, official sources said today.

The new contributory pension scheme, managed by independent fund managers, has been mooted by the Finance Ministry for all government staff employed after October 2002, as part of efforts to reduce the government's pension liabilities.

Sources said one-tenth of the basic pay of government staff and dearness allowance will be deducted from their salary and put in the pension fund while the Centre will make a matching contribution.

The Government will mandate the proposed Pension Fund Regulatory and Development Authority to licence the new pension funds.

The Cabinet will also take up the proposed National Tax Tribunal to settle disputes relating to taxation matters expeditiously.

The move comes in the wake of mounting outstanding tax arrears at Rs 70,670 crore till May 2003 while the number of pending cases in various courts have gone up to 3.15 lakh locking up over Rs 42,860 crore in revenue.

The proposed National Tax Tribunal will take up all appeals against orders of Income Tax Appellate Tribunals lying with High Courts.

The total number of pending cases in Supreme Court alone is over 4,610; the number crosses 28,840 in High Courts involving over Rs 1,820 crore.