Fate of pension Bill likely to be decided this week / Dec 13, 2005 / The Financial Express

From Indiapensions

Fate of pension Bill likely to be decided this week

MAHUA VENKATESH

NEW DELHI: The contours of the proposed pension reforms will hinge on a united stand the Left parties are going to take this week. Even as the CPI remains overtly opposed to the reforms per se, a senior CPI-M functionary told FE that a collective decision of the Left parties on the issue was likely to be articulated this week.

With a view to ironing out differences on the issue, finance minister P Chidambaram had held a series of meetings with the Left parties in the last week. Earlier, the government had provided a paper on the reforms for the Left parties' perusal.

"The government is still holding talks with the Left parties and trade unions on the issue. However, the two are yet to reach a consensus," official sources said.

The CPI has said it would not support the government's move to shift to a defined contribution system from a defined benefit one, which is the crux of the new pension system. According to sources, the Bill may still be able to see the light of the day if the Left parties decide to give a go-ahead signal in the forthcoming meeting.

A government official, however, pointed out that the system has been eventually targeted at the unorganised sector, where there is no pension system. "That apart, for the unorganised sector, it is a voluntary exercise," he added.

Meanwhile, the Pension Fund Regulatory and Development Authority (PFRDA) has indicated that the new pension system would be in place only by October, if the Parliament gives its nod during the current session. The regulator would finalise the draft on regulatory affairs after the Bill is passed in Parliament.