Political parties, including the ruling party at the Centre, and chief ministers find themselves on the horns of a dilemma. It is on the question of pension. Not all citizens of India of a certain age get a pension. There is no social security scheme in India that offers a pension to a citizen. Millions of persons employed in the private sector do not get a pension on retirement. Even short service commissioned officers in the Indian defence forces do not get a pension.

Pension Wins Argument

As long as life expectancy was low, pension was of little consequence. Few got a pension but fewer lived for long after retirement. In 1947, when India became independent, the life expectancy was under 35 years. Today, it is slightly over 70 years. The obligation of pension will, on average, remain for 10-12 years after retirement and may continue to the spouse if there is the concept of family pension. That is why most employers are wary of pension. The employees have a powerful case: pension is a right earned through long and loyal service; or pension is a deferred wage; or pension is the path to the right to live with dignity after retirement.

In the case of government employees, the ‘right to pension’ won the argument and that was the right verdict. To those who pointed to the sections of the people that do........

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