(Weekly Organ of the Communist Party of India (Marxist)
November 20, 2011
THE Polit Bureau reiterates its strong opposition to the Pension Fund Regulatory & Development Authority Bill which has been cleared by the union cabinet.
The pension bill will deprive lakhs of government employees, both at the centre and state levels, of their right to get an assured rate of pension at the time of retirement which they have been enjoying. The government has ignored the standing committee’s recommendations in this regard. The bill will provide the legal backing for putting the pension funds into the stock market. This neo-liberal measure is being undertaken despite the pension funds in Western countries being badly hit by the 2008 financial crisis. Many employees found their pension benefits being sharply curtailed.
The provision for 26 per cent FDI in the pension sector has to be totally opposed. The government is not including this provision in the bill so that it can increase the FDI component in later years without amending the law.
This bill should not be passed in parliament. The CPI(M) appeals to the entire opposition to unitedly defeat the passage of the bill.