Rollback new pension scheme: AIDTO

He said that the State government implemented the new pension scheme in 2006. The government is deducting 10 per cent of the salary from every employee and keeping the same in its coffers for the pension scheme. 

However, instead of keeping it with the government, it is providing the money to private fund managers who are investing it in the stock market.

Condemning investment of pension money in the stock market, Raju said that if the stock market crashes then all the money earned by teachers for their retirement will be lost.

Further, none of the teachers will be able to withdraw the money until they are 60 years.

With absolutely no guarantee of the money being returned to the teachers, all the teachers are being forced to deposit their money with the new pension scheme, which later will be used in the stock market.

Citing the examples, Raju said that British government had invested pension in the stock market. But after the oil spill involving British Petroleum, all the pensioners’ money has been lost, he said. Raju demanded that the pension money should be managed by the government instead of investing with private pension fund managers.

UTUC district convenor M Shashidhar and AIDTO member Ravichandra were present.