Hyderabad: TS employees are demanding scrapping of contributory pension scheme introduced in in 2004 and a return to the old scheme. All staff appointed after 2004 are part of CPS.
Employees say 10 per cent of basic pay and DA and 60 per cent of the government matching grant are being paid as pension without specifying the rate of interest. Restrictions like allowing an employee to withdraw only 10 per cent of the accrual after 10 years and withdrawal of 25 per cent during service were against the interests of employees.
They cited the examples of West Bengal, Tripura and Kerala governments implementing the old scheme. “It does not guarantee any returns. The money of employees would be subjected to the vagaries of the stock market. The amount is not being properly credited to the account of the employees. There was no certainty about the amount of pension to be rece-ived,” said Telangana Udyogula Sangham president A. Padma Chary.
“The government should revert to the old pension system to provide social security to employees and their families,” said Mr G. Deviprasad of TNGOs Association. The CPS fund in Telangana state currently stands at '1,678 crore.
