The state cabinet announced Wednesday the creation of a three-member committee to review the contributory pension plan and make recommendations on the implications of the withdrawal of the regime, as promised in the election manifesto of the government. Left Democratic Front (LDF).
The committee is composed of former district judge, S. Sathish Chandrababu, president, deputy secretary general, P. Marapandian, and director of the Gulathi Institute of Finance and Taxation, D. Narayana , members. The contributory pension scheme was established by the previous government of the United Democratic Front (UDF) and came into force on April 1, 2013 for all employees who joined the administration after that date.
The mandate of the commission is indicative of the government's view of this project. The Committee was asked to examine the legal and financial implications of this operation, as well as its impact on Finance Commission standards and fiscal consolidation. The committee will study in detail the burden of financial commitments arising from agreements signed by the state government with the National Pension System Trust and the National Securities Depository Limited.
The committee will also make recommendations on how to manage employee contributions and government contributions up to now, the legal status of benefits to people who have joined the contributory scheme but have since taken their retirement if the government reinstated the legal pension scheme.
The committee was also charged with making suggestions to make the contributory pension plan attractive in the event of obstacles when reviewing its implementation. The committee will probably be invited to submit its report within six months.