Direct allocation of pension funds should not be exploited by the government

The disbursement of central shares of old age, widow, and differently-abled pensions through the state government has been stopped by the Thiruvananthapuram ∙ Center. The central government has decided to directly pay these shares into beneficiaries’ bank accounts. This reform has been implemented to convey the message that the state will not take advantage of money provided by the Centre. Although the state claims that this will help people realize that the Centre pays a small amount for pension distribution, it has resulted in beneficiaries receiving a reduced amount from the central share. The pension amount will be distributed every two to three months instead of monthly. Also, the government transfers money to cooperative banks through treasuries, which may cause a delay in pension distribution.

Thiruvananthapuram ∙ Center has stopped disbursement of central share of old age, widow and differently abled pensions through the state government. Instead, the central government decided to pay the central share directly into the bank accounts of the beneficiaries. The reform is a part of the political decision that the state should not take the benefit of the money provided by the Centre. However, the state is of the position that this reform will help the people to realize that the Center is paying a meager amount for pension distribution.

The Center implemented the reform from this month, the beginning of the new financial year. Yesterday, the state government transferred 2 months’ welfare pension amount of Rs.3200 to the beneficiary’s account. But 4.7 lakh people who are getting old age, widow and disability pensions have received reduced amount from the central share. When I complained regarding this, I was informed that the central share would arrive later. The experiment was done by depositing a rupee before transferring the money, but the attempt to deposit the pension amount in the account failed. Many people get the central share of Rs 200 to Rs 500. Officials explain that the central share will be deposited in the account immediately following the problem is resolved.

While a total of half a crore people in the state receive welfare pension, pension is given to 4.7 lakh people by adding the allocation from the Centre. Earlier, Kerala used to pay Rs 1600 each to everyone, and later took the share from the Centre. However, now that the Center and Kerala are allocating money separately, they will not get 1600 rupees at once. Kerala now distributes pension together every two or three months. Indications are that the center will distribute monthly.

Meanwhile, money for welfare pension disbursements reached the banks but not the treasuries. If the government does not release the money today, the pension will not be distributed before Vishu. Remittances to pensioners are brought home directly through cooperative banks. Government transfers money to co-operative banks through treasuries. There is no obstacle for those who buy pension through other banks.

English Summary : Welfare pension union share will get direct to bank account

In conclusion, the decision by the Central government to directly disburse the central share of old age, widow, and differently-abled pensions to beneficiaries’ bank accounts has caused some initial hiccups in the distribution process, causing reduced payments. The move is aimed at greater transparency and reducing the dependency of states on central funds. Kerala, which used to provide a flat pension of Rs.1600 to everyone, has now adopted a different approach, with pension payments being made every two or three months. It remains to be seen how smooth the transition to the new system will be and how quickly the issues with reduced payments and delays will be resolved.