Deccan Herald 12.11.2009
| Associations divided over new scheme | |
| New pension scheme for govt staff | |
| Bangalore, Nov 11, DH News Service: | |
The State Cabinet on Wednesday approved the introduction of a new pension scheme for the government employees recruited after April 1, 2006. |
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Home Minister V S Acharya told reporters that under the new scheme, which also called the contribution scheme, the employees will have to contribute at least 10 per cent of their monthly salary towards it, while the Government will contribute an equal amount. The money will be deposited with the Centre’s Pension Endowment Fund, which will invest in the market. On retirement, the employees will be given a lump sum amount. The State government has abolished its pension scheme in 2006. Under this scheme, the State government used to pay pension to the employees from its own resources. The employees are divided over the new scheme. The State Government Employees Association has welcomed the scheme, while the State Government Employees Federation has opposed it. No consensus The amount that employees get after retirement depends on the market fluctuations. So, the Federation opposes this, he said. Bicycles for studentsThe State Cabinet has earmarked Rs 145.87 crore for distribution of bicycles to 6.7 lakh students studying in the eighth standard. The Cabinet decided to hold the legislature session for 10 days from December 10. Acharya said the Cabinet decided to borrow loan of Rs 700 crore to improve infrastructure facilities. The Cabinet gave its approval to appoint a consultant to identify State highway roads that are developed under the K-Ship 1 and the annuity basis for imposing toll on road users. *10-day Legislature session from December 10 |
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