Nation Current Affairs 13 Nov 2017 KSRTC mulls over cap ...

KSRTC mulls over capping pensions

DECCAN CHRONICLE.
Published Nov 13, 2017, 6:37 am IST
Updated Nov 13, 2017, 6:37 am IST
The minimum monthly pension and family pension is Rs 4,500, and the highest pension a KSRTC retiree gets is Rs 47,000.
AITUC-affiliated Kerala State Transport Employees' Union general secretary M.G. Rahul said he understood the authorities had already decided on the cap on the recommendations of the finance department.
 AITUC-affiliated Kerala State Transport Employees' Union general secretary M.G. Rahul said he understood the authorities had already decided on the cap on the recommendations of the finance department.

Thiruvananthapuram: The KSRTC is keen on capping pensions at a limit of Rs 20,000 or 25, 000 even amidst opposition from unions of workers and pensioners to streamline finances of the loss-making public sector utility.

AITUC-affiliated Kerala State Transport Employees' Union general secretary M.G. Rahul said he understood the authorities had already decided on the cap on the recommendations of the finance department. 

 

"The order is likely to be issued soon," he told DC.

There are 38,516 retirees in the KSRTC. They are yet to get the full pension for October and November and part of balance payment of Rs 10,000 for June and September this year.

At present, the state government provides half the amount of Rs 59.67 crore for disbursing pension every month. Apart from that, the corporation needed another Rs 80 crore for paying salaries on the first working day of the month.

Capping the pension at Rs 25,000 would reduce the pension burden per month to Rs 42 crore and the corporation would save up to Rs 200 crore a year.

It had also introduced contributory pension on April 1, 2014, reducing the future burden further.

The minimum monthly pension and family pension is Rs 4,500, and the highest pension a KSRTC retiree gets is Rs 47,000.

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