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Serving, retired staff of government insurers to benefit from pension scheme

Serving, retired staff of government insurers to benefit from pension scheme

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  5 March 2019 5:55 AM GMT

Chennai: Retired and serving employees of government-owned insurance companies are happy at the Centre’s decision to offer another chance to opt for pension scheme.

“I am happy with the development. With the interest rates on bank deposits sliding down, getting a steady pension income is good. I am going to opt for pension,” said Y. Sivam, a retired employee of National Insurance Company Ltd.

A serving employee in the same company said: “Earlier I didn’t opt for the pension scheme as the situation was different. But now the circumstances have changed. And I am going to retire in a couple of years down the line, it is better to have pension.”

According to the employee, the amount that a retired employee has to refund as the company’s share of provident fund can be recovered through monthly pension in couple of years’ time. Sivam, who was a union leader while in service, said: “The scheme has to be employer-friendly per say if the buzz word ‘social security scheme’ is true. It is true, many could not opt in the first place owing to reasons, such as appreciable interest on deposits.” According to Sivam, as the insurers have told the government that they would absorb the additional cost, those who are going to opt now should not be subjected to additional woes.

He said, the inclusion of new members also helps in making the pension scheme viable. According to him, the National Pension Scheme (NPS) that is applicable for some sections of the employees should be scrapped and they should be enrolled under the old pension scheme. Employees who have joined the public sector general insurers after April 1, 2010 come under the NPS while all those who joined prior to that will be under the old pension scheme. (IANS)

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