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Heed the pension prayer

Adequacy of resources doesn't stand in the way of pension revision in the RBI

Business Standard 

With reference to Anup Roy’s report, “employees stage protests on issue” (November 3), employees and retirees of the central bank have been holding these protests for 12 years now. A scheme along the lines of the central government plan, the Contributory Provident Fund (CPF), was introduced in the on January 1, 1986. The regulations had built-in provisions for a revision, whenever were revised for serving employees. This was reiterated by the in a circular dated March 13, 1992. Following the circular, employees hesitated to opt for surrendering their accumulations to the CPF. The revised thrice — effective November 1, 1987; 1992 and 1997 after for serving staff.

Due to a misunderstanding at the lower level in the finance ministry, the government imposed an unwritten ban on further revision of in the RBI, effective November 1, 2002. The has created its own fund, which is augmented annually based on actuarial valuations and after reckoning increased needs arising from periodic revisions. The fund’s corpus crossed the Rs 10,000-crore mark in 2015; clearly, adequacy of resources doesn’t stand in the way of revision in the Several Supreme Court judgments have acknowledged that wage and revisions are inseparable. Recognising this principle, the government has revised the of its employees. In the same spirit, the government should lift the unwritten ban imposed on revision in the This would likely avoid further unrest among employees and ameliorate the grievances of retirees. Former governor Raghuram Rajan, in his book I Do What I Do laments: “On the internal front, my biggest regret is that I could not solve a long-pending matter that I inherited from my predecessors: securing for retired staff the same benefits that government employees enjoy, despite repeated assurances from the government that the matter would be addressed. I hope the government will do the right thing here.” Let us join Rajan in prayer. M G Warrier, Thiruvananthapuram

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First Published: Sun, November 05 2017. 22:36 IST