UP govt tweaks pension scheme, gives its staff more options

LUCKNOW: The state government has introduced changes in national pension scheme, which includes giving employees the option of investing in three kinds of public enterprise funds in share market.

Lakhs of government employees had gone on strike from February 6, demanding rollback of the current pension scheme which was implemented in 2005, saying that they did not want the money to be invested in share market at all. The strike was called off when high court intervened, holding the strike illegal.

Chief secretary Anup Chandra Pandey has directed that permanent retirement accounts of all those employees who do not have one till now should be opened within 10 days. Sources pointed out that though the new scheme was implemented in 2005, accounts of several employees were not opened due to carelessness of successive governments. "As a result, 10% salary deduction towards pension was never done for thousands of employees," he said.

Pandey said that such employees be given the option of depositing their share in one go or through monthly instalments. For those whose salary has been deducted but not deposited in accounts or deposited late, the government will deposit the amount with interest as applicable on general provident fund.

But employees are not happy with the changes. "We do not want our money to be invested in share market. Will the government take responsibility if the share market crashes?" asked Manoj Srivastava, media in-charge of Purani Pension Bahali Manch.