Financial Constraints restricts Maharashtra Government to cover fresh institutions or cadres under pension scheme for next 15 years
Finance Department of Maharashra Government announced that the State is reeling under massive debt burden the Government could not start any fresh institutions or cadres be covered under the pension scheme.
Maharashra Government in order to overcome a massive debt burden has decided that no fresh institutions or cadres be covered under the pension scheme.
Maharashtra Government has prepared a white paper report by the finance department, the proposal for a reform in the pension scheme at the state level has been pending since 1995.
It was stated that last time the proposal was put before the state Cabinet was October 17, 1995, but it did not receive the go-ahead.
As on February 18, 2015, there are 6,83,812 pensioners who have received pension from the state government through the Regular Pension Scheme or Defined Benefit Pension (DBP) Scheme.
The above pension scheme covers state government employees, other state pensioners, railway employees, All India Service, teachers of Old Education Board (prior to 1962), central government and military and family pensioners.
The total annual burden on the state exchequer on this account is Rs. 8,871 crore.
Principal Secretary of the Finance department (Reforms), Bijay Kumar said, “Employees of aided institutions and Zilla Parishad school teaching and non-teaching staff too have been allowed pension from the Regular Pension Scheme. It has further increased financial burden on the state exchequer.”
Maharashtra State govt has adopted New Pension Scheme or Defined Contribution Pension (DCP) Scheme from November 1, 2005 in respect of employees joined or before this date.
According to the DCP scheme, the state government deducts a certain amount from the employee’s salary and contributes an equal amount from its own offers.
Source : NDTV