Pension bill shelved despite Congress promises
07 Jun 2012
Belying the Congress promises of fast-tracking reforms made before a party working committee meeting, the United Progressive Alliance today once again deferred the pension reform bill.
The pension fund regulatory and development authority (PFRDA) bill has been pending for several years. It was to be discussed by the cabinet today, but the matter has been shelved.
The delay is widely attributed to the opposition of the Trinamool Congress, a key coalition partner, to pension reforms. With the Presidential elections around the corner, the Congress has once again decided to play it safe and not risk rocking the boat.
A report citing sources said the TMC did not openly oppose the bill, but chose not to speak when it was discussed at an earlier UPA meeting.
The Trinamool Congress' member in the union cabinet, railway minister Mukul Roy, was present at today's cabinet meeting. Had the amendments to the bill been brought up for discussion today, he was expected to oppose it.
The PFRDA bill has three key proposals: to allow a contributor to withdraw funds in an emergency; to give subscribers minimum assured returns on investment; and to allow foreign direct investment up to 26 per cent in the pension sector.
