The Hindu : National : Left opposition to Pension Bill continues

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Wednesday, Mar 23, 2005

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National

Left opposition to Pension Bill continues

By Our Special Correspondent

NEW DELHI, MARCH 22. With the United Progressive Alliance Government getting the Patents (Amendment) Bill approved by the Lok Sabha, it is now faced with another major task — the passing of the Pension Fund Regulatory and Development Authority Bill, 2005. The Ordinance for the Bill will lapse on April 8.

The PFRDA Bill was listed for legislative business in the Lok Sabha on Tuesday after the passage of the Patents Bill but could not be taken up for lack of time and the vehement opposition of the Left parties. The Left parties are not only opposed to the opening up of the pension system to private players but also have reservations about the new defined contribution pension regime which is to replace the earlier defined benefit pension system.

While the Bharatiya Janata Party-led National Democratic Alliance partners walked out of the House today, the Left parties supported the Centre on the Patents Bill to help honour its international obligation. On the PFRDA Bill, however, the NDA is ready for enactment of the legislation while the Left Parties are not.

`Legal basis needed'

Highly placed sources say that the Government would not like to see the PFRDA Bill through with the help of the NDA. It would prefer to refer the Bill to the Parliamentary Standing Committee on Finance for a broader consensus on its provisions. In the interim, the funds being contributed by the employees would continue to be deposited into the Consolidated Fund of India, sources said.

Earlier, the Finance Minister, P. Chidambaram, urged the Left parties to reconsider their opposition to the Bill. "I requested the Left Parties to reconsider their opposition to the PFRDA Bill," he told newspersons. "I have pointed out that the new pension system has already come into force from January 2004. It is now without a legal basis. It is, therefore, important to provide a legal basis," he said.

The new pension system was introduced by the NDA regime for the new entrants into Central Government service with effect from January last year. Since then, nine States have decided to implement the new plan owing to the burgeoning pension bill. The Bill, when passed, would enable the Government to set up a regulator to issue licences to private players to function as pension fund managers.

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