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| Existing pension scheme scrapped, new policy for fresh recruits from Jan | | | Early Times Report
Jammu, Jan 8- Jammu and Kashmir Government has scrapped the existing pension scheme for those who will be appointed in Government departments from the current month onwards. Under the new scheme both the Government and the employees will make monthly contributions to a pension fund and consequently the incidence of payment of pensions will get shifted to this fund.
However, it is not yet known whether the family pension scheme too has been scrapped or it has been modified after the introduction of new pension scheme in the state.
Experts in the Finance Department said that on retirement the employees will get the amount contributed to the pension fund as his post-retirement benefit. It has not been decided yet whether the employees will have an option to receive the entire amount deposited in the pension fund at one time or released to him in installments.
These experts said that this new scheme has been introduced in the Central Government departments and in several states. They said introduction of the new scheme had become necessary after the Government realized the annual increase on expenditure on pensions had made budgetary management a difficult exercise since this yearly increase was not within the control of the Government.
They said along with annual increase in the salary bills owing to increase in DA rates and annual increments in basic pay the increase in pension bills also would take place on account of increase in DA rates. In view of enormous hike in the pension bill following implementation of the 6th pay commission the Government felt it necessary to introduce a scheme which would have a long term relief on the state exchequer. Once this scheme is introduced the Government will not have to pay pension to employees after retirement. The experts said that since the life span during the last three decades had increased the number of pensioners in the state had increased in geometric progression.
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