Wednesday, August 27, 2008

Letter to Editor - Financial Express

Twisting the welfare logic

The editorial (‘No country for old men’, Aug 21) suggests a cure worse than the disease. It calls for excluding the main stakeholders—employee unions and employer's representatives—on the ground of their ignorance on pension economics. To seek defined contributions to the exclusion of defined benefits is to prefer short-time gains over long-term welfare. This is again evident in the agrument against extending the EPFO cover to firms with 10 or more employees. The basic objective of a pension system is to provide some relief in the autumn of one’s life. How does one guarantee this when benefits are not certain? The entire new policy on pension management is investment oriented rather than welfare oriented.
—G Gokul Kishore, New Delhi

1 comment:

manimohan said...

Government is clear that it is the children who should take care of their parents, even if the children themselves do not have means to make ends meet... any deviation can land them in jail, perhaps to be fed at state expense.. the responsibility for pension payment vanishes with this morally high legislation.. old people will be taken care of, dont wory.