The Hindu : Front Page : Pension Bill referred to Standing Committee on Finance

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Thursday, Mar 24, 2005

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Pension Bill referred to Standing Committee on Finance

By Our Special Correspondent

NEW DELHI, MARCH 23. The Government has referred the Pension Fund Regulatory and Development Authority (PFRDA) Bill, 2005, to the Parliamentary Standing Committee on Finance.

This was stated in the Lok Sabha today by the Union Minister of State for Parliamentary Affairs, B.K. Handique, after Gurudas Dasgupta (Communist Party of India) sought to know the fate of the draft legislation that had been introduced in the House on Monday amid a walkout by the Left parties.

Referring to the fact that there was no mention of the Bill in today's list of business — despite it being listed for consideration and passing on Tuesday when the House was adjourned without taking it up — Mr. Dasgupta wanted to know whether the Government was going to allow the PFRDA Ordinance.

The Government had introduced the Bill to replace the PFRDA Ordinance which had been promulgated on December 29, 2004, to provide for the establishment of an Authority to promote oldage income security by establishing, developing and regulating pension funds under the New Pension Scheme ushered in at the beginning of the year.

Left to vote against Bill

Meanwhile, the Left parties asserted that they would vote against the Bill. The Communist Party of India (Marxist) Polit Bureau member, Prakash Karat, said the Left was against the move since it seeks to change the basis of pension, which is a statutory benefit. The Bill, he said, would open the floodgates for pension funds to be managed by those in private sector and invest in the stock market. In this context, he said, the experience has not been good and cited how Rs. 100 crores was lost in the Seamen's Fund.

Mr. Karat said now that the Bill had been referred to a Standing Committee, the party would like to discuss with trade unions and other organisations the implications of opening up the fund to private players.

Later, addressing a seminar organised by the party, he said the Government could not have opted to take the support of the Bharatiya Janata Party to ensure the passage of PFRDA since it was money bill.

Failure to see its passage would have resulted in the Government losing confidence of the House, he emphasised.

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