Railway Union Protests New Pension Scheme

HYDERABAD: Railway employees nationwide started a relay hunger strike on Monday opposing the recently implemented National Pension Scheme, effective since January 1, 2004. The protest is scheduled to continue till January 11. In the South Central Railway, around 100 railway station employees protested, urging the Centre to revoke the pension scheme and reinstate the former pension policy.

Shankar Rao, the general secretary of the South Central Railway Mazdoor Union, highlighted that around 20 lakh employees will be affected by the new policy. According to Rao, "Under this scheme, 10 per cent of the basic salary and DA of the employee, along with the contributed 14 per cent from the Centre, will be invested in the stock market through pension fund managers selected by the PFDRA. The pensioner receives pension based on the stock market's performance. If there's a loss, there will be no pension, with no guarantee from the Centre. In the old pension scheme, the government guaranteed 50 per cent of the last basic pay drawn."

Rao criticised the government's decision as inhumane, pointing out that employees dedicate years of service to the organisation, and if they are denied pension in their old age, it raises concerns about their well-being. He questioned if the government is indirectly pushing retired employees to beg on the streets.

Prasad, the vice-chairman of SCR Employees Union in Vikarabad, emphasised the need for the government to retract its new pension policy to safeguard the interests of 20 lakh employees. For many, pension is the sole source of revenue in their old age.