Chief Minister Oommen Chandy, speaking to reporters after a special cabinet meeting, said a government order in this regard has been issued by the Finance department and the new scheme would be applicable only to those who join the service after April, 2013.
"There will not be any difficulty for the present employees," he said.
Except Kerala, West Bengal and Tripura, all other states in the country have introduced contributory pension scheme, Chandy pointed out as a justification for the UDF Government decision to go for contributory pension.
To a question on raising the retirement age of staff from 56 years to 60 years, Chandy said it was a matter that needs a consensus. 'Government will take a decision on retirement age only after taking the youths into confidence', he said.
The government faced strong protest not only from LDF Opposition and its Youth outfits, but also from Youth congress in the state when the issue of retirement age came up for a discussion in the last assembly session.
Opposing the government decision, LDF Convener Vaikom Viswam said LDF would support the agitation of trade unions against the new pension scheme.
'It is a way of exploiting labour force with a view to help corporates', he added.
Meanwhile, DFYI, the youth wing of CPI-M, said government decision was a challenge to the future generation.