Friday, 22 November 2013

Pension system for Government Employees in India:

I have sent my suggestions to VIIth Central Pay Commission (CPC). Click to read.

Pension system is not a new or not established either by British or present Government of India. It is in vogue since hundreds of years. Earlier its form was different. Kings used to provide for work done by their respective commanders and soldiers by giving some land or authorising collection of revenue. Portion of collection was allowed to be retained by the king’s employee and his/her heirs. British India Government introduced Pension system in India after Indian Independence struggle in 1857. This was a reflection of the Pension system then prevailing in Britain. Governors were empowered to sanction pension to employees. Hence pension was totally governed by governors. The pay scales in the government service in India were planned to enable the “native employees” of the British Government to meet their normal subsistence. Practically nothing was left from the pay to make provision for their post-retirement life. The service conditions did not allow the Government employees to earn any extra income by doing business or through any other profession. British Government decided to provide money cover for their post retirement life of her employees. Rules for Pension System thus started in India was finalised by the Indian Pension Act of 1871.British Government authorised Viceroy and Governors for granting pension. This had been kept outside the jurisdiction of all courts.

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