Plight of pensionless retirees
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This has reference to the recent statement by the Governor of RBI on dosa economics.
It is appreciated that if the inflation comes down, one can buy more dosas even if the rate of interest rates drop town regularly.But this has not happened so far.
For the last decade almost all prices have gone up.This includes groceries,milk,oil,pulses,vegetables and most of the commodities needed for a family living.Apart from this electricity.water,telephone,house taxes,bus and train and other transport charges,cost of medicines,house rent,etc etc have gone up steeply.Only a few items like cell phone,digital equipments, etc have shown some steady levels.These are mostly luxury items.
On an average increase is around 35 to 40% in 10 years.However the interest rates for the deposits in banks have been steadily going down from 10% to 7% during this period.Because of this we are not able to control our expenditure
For those people who retired from government service,state or central,armed forces and other companies where they get pension are all adequately compensated by DA and pension increases periodically.This compensates the cost of living.
The workmen of public sector undertakings like HAL,BEL,HMT,ITI,BEML,BHPV, and other government manufacturing units like CMTI etc who were coming under the department of public sectors(manufacturing) did not have pension schemes.They have contributory provident fund scheme by which the managements contribute only 8% of basic pay for the employees contribution of 8%.
Hence the public sector employees deposited in banks their retirement benefits and the interest accrued is used for the livelihood of them.They did not get any pension..
Often the commitment like housing loans,marriages,educational loan etc availed during the tenure of service has resulted in decreased retirement benefits and such amounts when invested in banks have been giving low rates due to reduced rates of interest.
This scenario did not happen to retirees from government or armed forces who are all adequately compensated higher amounts of pension month after month due to increase in cost of living.
The plight of retirees from the public sector is really a matter of concern.Due to frequent lower revision in interest rates by the banks citing the example of repro rates and to help the loan seekers has resulted in better business for banks but a big hit below the belly for those depending purely on interest income from the banks for their livelihood.
While the government is trying to improve the condition of its retirees by increased pension and the status of armed forces retirees with OROP , canteen services, 50% taxes etc, they have completely ignored the 15 lakh retired employees and officers of the central public sector units.In fact they have added insult to injury by reducing the interest rates citing inflation as a reason.
We all appeal to you to take up this issue in the forthcoming budget session as a priority item and to find ways and means to address these issues and to consider a pension scheme in line with those of army and government retirees.
As a government department dealing with Finance, this appeal should reach all concerned for immediate action and discussed at different levels for those responsible in suggesting, implementing and taking early action to redress the sufferings of those concerned.
I am confident that our Hon'ble Finance Minister Shri Arun Jaitley will look into this and come out with something positive for us.
Looking forward to your early action.
Retd DGM,HAL Bangalore-17
28,II Main,AECS II Stage Layout,
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