Pension bill unconstitutional, says Tripura finance minister

Tripura finance minister and top CPI-M leader Badal Choudhury Friday said the pension bill passed by the UPA government Wednesday is unconstitutional and against the interests of workers and employees.

"Making a secret deal with BJP (Bharatiya Janata Party), the pension bill was got passed by the UPA (United Progressive Alliance) government to appease the American government and foreign investors," the minister told reporters here.

"Before the G-20 summit (at Russia's St. Petersburg) the pension bill was passed to pacify US President Barack Obama," he alleged.

Choudhury, a senior member of the Communist Party of India-Marxist (CPI-M) central committee, said the pension bill was against the Supreme Court verdict and recommendations of the fifth pay commission.

"The future and social security of the workers, employees and their family members in the organised and unorganised sectors would be at stake due to the new pension bill," he said.

The Lok Sabha Wednesday passed the Pension Fund Regulatory and Development Authority Bill (PFRDA), 2011 to regulate the New Pension System (NPS).

The NPS has been made mandatory for all central and state government employees (except armed forces) entering service with effect from 1.1.2004.

In all, 26 states, excluding Tripura and West Bengal, have already notified NPS for their employees.

"NPS has been launched for all citizens of the country, including workers in the unorganised sector, on voluntary basis with effect from May 1, 2009," a union finance ministry statement said.

It said the PFRDA Bill would also provide subscribers (employees) a wide choice to invest their money in for assured returns by opting for government bonds as well as in other funds, depending on their capacity for risk.