Isaac alleges false propaganda on contributory pension scheme

Former Finance Minister and CPM leader Thomas Isaac alleged here on Tuesday that Chief Minister Oommen Chandy and the UDF Government were  involved in false propaganda regarding the contributory pension scheme.

Addressing a press conference, Isaac alleged that the contributory pension scheme would in effect torpedo the existing pension scheme of the government employees.

‘’The Pay Commission defines the salary of the government employees by also including the pension amount. If the contributory pension scheme is introduced it would have an adverse effect on it. An employee will only get half of the pension on the contributory pension scheme compared with the normal pension,’’ he said. Isaac also pointed out that by implementing the contributory pension scheme, the State Government would be at the mercy of the speculative market. ‘’The equal pension amount from the employee and the government is deposited in banks and share market. Depending on the market trend, the interest will fluctuate and there is uncertainty. If the banks or share market witness a collapse than the pension scheme will be doomed affecting thousands of government employees,’’ he said.

He said if financial crisis exists than contributory pension is not the way forward to overcome it.

‘’For overcoming a financial crisis, the govt should find way to increase the revenue.  The government is in line to cut down the salary of employees and also to cut jobs which would be opposed strongly by the employees,’’ Isaac said.