Goa approves Rs 135 crore pension fund

Injecting fiscal reforms in the system, the Goa cabinet approved creation of the pension liability fund with a provision of Rs 135 crore for the current financial year.

"In the next ten years, the fund would be fed by the annual budget allocation to create a corpus", said Pratapsinh Rane, chief minister, Goa.

The state recorded a pension expenditure of Rs 155 crore for the year 2005-06, Rane said adding, "Goa is amongst the eleven states whose pension expenditure is greater than the administrative service expenditure."

"It has increased faster than that of the consolidated position of all the states combined," he added.

Rane said the Darashaw Company - a professional agency, has been hired to get a detailed study on the pension expenditure and the funding requirement.

Nearly 30 per cent pensioners in Goa were in the age group of 60-65 years, while 65 per cent were in between 65 and 70, he said.

Rane said by 2014, the number of pensioners and employees will be equal, after which the number of pensioners or dependent population will be greater than productive employee population.

The total pension liability for the state is estimated to be Rs 45,198 crore inclusive of death-cum-retirement gratuity benefit at present value cost, for the existing employees, he added.