The State government had launched a massive campaign to convince the employees of the new pension scheme. The government had proposed a Guaranteed Pension Scheme (GPS) in the place of Contributory Pension Scheme (CPS).
The government had also constituted a committee to study the issue and make recommendations on the GPS. Before the committee could meet, finance minister Buggana Rajendranath issued a detailed two-page advertisement in the print media explaining the two pension schemes of CPS and GPS.
The government said that the CPS would become a financial burden to the government while the returns to the pensioners are not guaranteed. “The CPS has no guaranteed person and is linked to bank interest rates,” the government said to convince the employees.
On the other hand, the GPS would guarantee a minimum 70 per cent pension, which is more than what is paid under the CPS. Recalling that the state had withdrawn pension in 2003, the government said that the present CPS would become unbearable financially.
The government also gave projections of the financial burden on the government in the years to come from 2023 to 2100. The government said that the salaries and pensions would go up by 132 per cent of the State Owned Resources by 2023 to 197 per cent by 2050 and 395 per cent by the year 2100.
The government said that through the GPS, the employee receives a guaranteed pension of 33 percent of the last drawn basic pay.
Thus the government had given two options to the employees asking them to choose. The first option is that every month, if an employee continues 10 percent of his salary, the government will add another 10 per cent and the employee after retirement would receive 33 per cent of his last drawn basic pay as guaranteed.
In the second option, the government said if the employee contributes 14 per cent, the government too would contribute an equal amount and the employee would get 40 per cent of the last drawn basic as pension.
The government also alleged that a section of the ‘yellow media’ is now trying to point a finger and ridicule the government’s intentions on the pension scheme. It cautioned the employees not to fall into their trap and asked them to “decide your choice.”