VIJAYAWADA: The YSR Congress government is on a mission to resolve the long-pending demand for Contributory Pension Scheme (CPS) with a Guaranteed Pension Scheme (GPS). Y.S. Jagan Mohan Reddy, as the Leader of Opposition, during his padayatra promised to abolish CPS and to restore the old pension scheme after coming to power, but it turned out to be non-feasible due to AP’s financial conditions. As the YSRC has embarked on the Mission 2024 election programme, The Chief Minister decided to resolve CPS with GPS but employees unions and association are adhering to their demand.
It may be recalled that as per Pension Regulatory and Development Authority Bill (PFRDA), the new pension scheme was started by the Central government from January 1, 2004 and by the erstwhile Andhra Pradesh government from September 1, 2004 and it was called the Contributory Pension Scheme. Many protests and agitations were held during the earlier Telugu Desam government for the abolition of CPS but in vain. During the walkathon, Jagan met numerous leaders, unions and associations who deplored severe injustice to employees and sought implementation of OPS. Jagan primarily decided to abolish CPS, gave assurance of the same but things turned worse after coming to power due to the financial crisis.
Jagan chalked out a long roadmap to win the elections under which he instructed legislators to be among the masses for the next two years. Further, he decided to garner support of the government employees who played an important role in the win of YSRC by giving their support. The employees intensified protests and agitations putting pressure on Jagan for CPS abolition in view of completion of three years of the government.
Senior political analysts say that there are chances of forming an alliance to avoid splitting of votes by Opposition parties to defeat YSRC in the 2024 elections hence the ruling party started efforts to get support of the CPS employees by showing alternative and better options in the GPS.
They said that earlier government employees agitated in the PRC and other issues but the government after a series of consultations succeeded to pacify them. Now also there are chances of pacifying the employees through GPS after the consultations process which was recently started.
The government started a vast campaign in the media through advertisements explaining the benefits of GPS and further ministers also started efforts to pacify CPS employees. The employee receives a guaranteed pension of 33 per cent of the last drawn basic pay and the GPS enables an employee to assess the amount of pension in advance, so that he can plan his future financially. Market conditions will have no influence on the pension under GPS, leaving no chance for reduction of pension in future. The GPS is nearly 70 per cent higher than the present pension under CPS received in line with present interest rates.
However, AP United Teachers Federation state president N. Venkateswarlu, general secretary K.S.S. Prasad and AP SC, ST Teachers Association state president Samala Simhachalam strongly opposed the government's new GPS move. They said by implementing the GPS, the state government was going back from its promise given to the employees.
