SRINAGAR — Doctors Association Kashmir (DAK) on Thursday sought restoration of the old pension scheme for the government employees of Jammu and Kashmir.
“Revival of the old pension system would ensure the social and financial security of employees,” said DAK President Dr. Nisar ul Hassan in a statement issued to the news agency KNO.
Dr. Hassan said under the old pension scheme, an employee gets 50% of his/her last drawn salary as a monthly pension with the addition of a dearness allowance as and when declared by the government. “After the demise of the retired employee, the nominee gets 50% of the total amount drawn by the retired employee as a family pension,” he said.
Government employees in J&K recruited on or after January 1, 2010, are not eligible for the old pension scheme and come under the new pension scheme.
The DAK President said the new pension scheme does not provide a guarantee of pension and there is no provision for family pension in the new system. “Under the new scheme, employees are required to contribute 10% of their monthly salary, which the government matches and invests in equity shares,” he said, adding “The new scheme is market-linked and hence uncertain.”
Dr. Nisar said employees spend their productive years of life in government service with the hope that post-retirement, they get a guaranteed pension which will give them financial independence in old age when they can’t earn. “The employees put in their blood and sweat during service to cause good governance and the government is duty bound to provide them with a sense of security post-retirement,” he said.
General Secretary DAK, Dr. Arshad Ali said under the new pension system, the hard-earned retirement fund of employees is subjected to the vagaries of the share market which fluctuates at the drop of a hat, putting the social security of employees at risk.
“An employee cannot work with his full potential and contribute to good governance if his socio-economic security is threatened,” he said.
“Four of the States including Rajasthan, Chhattisgarh, Jharkhand and Haryana have gone back to the old pension scheme and the chorus for restoration is also mounting in other states,” he added.