J&K to introduce new pension system from next year

The Jammu and Kashmir government will introduce a new pension system, providing multiple benefits for its employees, in January 2010.

“The pros and cons of the scheme are being discussed and it would be implemented from January 2010,” Finance Minister Abdul Rahim Rather said here today.

Rather said that though the government was presently facing some resource constraints, the introduction of new system, which is a major reform step, is inevitable. “This system should have been implemented in 2004 itself when it was introduced at the national level,” he added.

The minister said the Annual Pension Bill of the state was Rs 46 crore in 1992, which has risen to Rs 1,200 crore in the current year.

It shows how much burden has increased on the state exchequer due to the payment of pension, leading it to gradually become unsustainable, he said.

Rather expressed concern over the excess payment of pension by Jammu and Kashmir Bank as pointed out by the state Accountant General, and directed department officials to take up the matter with the bank authorities.

He said that there should be a prompt action on complaints so that the erring officials are booked and punished as per the law.

Taking cognisance of non-compliance of orders by officers, Rather said any officer, who ignores the directions of his seniors, does not deserve to be a public servant and he would not hesitate to terminate such employees.