The
Pension Bill, which was expected to be discussed in the cabinet meet
today, has been deferred. The bill, awaiting clearance on three
amendments, was not brought before the cabinet today.
The
bill has been stalled for years as political parties squabble over its
provisions. UPA's biggest challenge is to bring around its partner
Trinamool Congress, which has been dead opposed to the legislation. To
pass the Bill in Parliament the government needs numbers and the likely
loss of support of the Trinamool's all important 19 MPs in the Lok Sabha
have stalled the government mid-step many a time.
The three changes proposed are -
to allow a contributor to the pension scheme to withdraw funds in case
of an emergency. To give subscribers a minimum assured return on
investment and to provide a cap of 26% on foreign direct investment in
the scheme.
The Bill, also
called the Pension Fund Regulatory and Development Authority Bill,
allows pension funds the flexibility to appoint a professional fund
management company. Currently, these savings are invested in government
securities that offer a fixed rate of return. The changes will affect
how savings of nearly 25 lakh Indians are invested.
Also, under the National Pension
System (NPS), every subscriber will have an individual pension account,
which he can port with a job change. Every government employee hired
since 2004 is covered by the NPS and it is voluntary for all other
citizens since 2009 including the unorganized sector.
The Bill has repeatedly run into
rough weather, with primarily the Left parties, apart from the
Trinamool Congress, opposed to it. The BJP wanted the FDI cap of 26 per
cent to be included in the PFRDA Bill. The government is said to have
finally sewn up the support of the main Opposition party in the last
Winter session by agreeing to the amendments it sought.
But, say sources, in the season
of new friendships, the UPA government might not be holding its breath
this once. The Congress' growing closeness to the Samajwadi Party could
ensure that Mulayam Singh Yadav and his 21 MPs will be by the UPA's side
on the Pension Bill. The Samajwadi Party chief has so far ruled out any
formal equation with the Congress-led alliance that rules at the
Centre, but has bailed out the government a number of times on important
issues and Bills in Parliament. At a recent dinner to celebrate the
UPA's three years in governance, Mr Yadav got higher billing than
official UPA allies - he was seated prominently on the dais and then at
Congress president Sonia Gandhi's table for dinner.
Source : NDTV
