The Hindu : National : Shelve PF Bill, says CPI (M)

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Shelve PF Bill, says CPI (M)

Special Correspondent

NEW DELHI: The Communist Party of India (Marxist) on Saturday demanded that the Pension Fund Regulatory and Development Authority Bill be shelved and the pension scheme for government employees be reworked to ensure minimum guaranteed pension.

Reacting to Union Finance Minister P. Chidambaram’s reiteration of the government’s commitment to go ahead with financial sector reforms despite the financial crisis in the U.S., the CPI (M) Polit Bureau, in a statement, further demanded that the interim step announced in January 2007 – allowing up to five per cent of pension funds under the New Pension Scheme to be invested in the stock market – be immediately rescinded.

According to the CPI (M), the Minister’s pro-reform statements in the aftermath of the financial crisis in the U.S. show a “stubborn refusal to learn proper lessons.”

As for Mr. Chidambaram’s assertion regarding the ability of India’s financial regulators “to keep regulations one step ahead of innovation,” the CPI (M) said it did not carry any conviction.

Of the view that the pension funds of employees must not be left to the mercy of speculative forces which have played havoc in stock markets across the world, the CPI (M) demanded that the United Progressive Alliance government abandon “forthwith” all moves to put the pension funds of government employees into the stock market.

“The government will be held squarely responsible for any erosion of the hard-earned savings of the employees owing to a stock market meltdown.”

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