panel moots six pension plan options
Abraham, The Business Standard
The proposal seeks to reduce the financial
load on the
A senior official, who attended this meet,
said: “The current scheme, if allowed to continue in its present form,
would witness the annual pension expenditure of states reaching the same
levels as the annual salary expenditure. States such as Kerala (Rs 600
crore pension expenditure per annum) are suffering the most because their
current pension expenditure is as high as 20 per cent of the state’s
The new proposals seek to delink the
dearness allowance paid to a pensioner or at least maintain it at a
controlled level in order to reduce the pension liability of the Union
government and state governments.
These proposals also seek to put in place a
contributory pension scheme to replace the existing pension scheme in
force all over the country.
Close behind Kerela in high pension
expenditure is Rajasthan and Tamil Nadu whose annual pension outgo is in
the range of 15-20 per cent of their respective state Budgets.
“However, even in
“However, steps taken by the state
government such as imposing a ban on fresh recruitments have helped to
keep the pension liability of the state staying within manageable
levels,” the official said.