Don't invest pension funds in stock market: CPM tells Govt

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New Delhi, Sep 20 (UNI) The CPI(M) today lashed out at the government on the new pension scheme asking it to abandon all moves to put pension funds of government employees into the stock market, thereby leaving the money at the mercy of speculative forces.

A statement issued by the CPI(M) Politburo said Finance Minister P Chidambaram's recent statements in the aftermath of the US financial crisis, reiterating the Government's commitment to carry forward financial sector reforms, show a ''stubborn refusal'' to learn proper lessons.

His assertion regarding the ability of India's financial regulators ''to keep regulations one step ahead of innovation'' does not carry any conviction, the statement said.

It said the UPA Government should abandon forthwith all moves to put the pension funds of Government employees into the stock market.

The Government has refused to assure a minimum guaranteed pension for the Government employees under the New Pension Scheme.

''The pension funds of the employees must not be left to the mercy of the speculative forces, which have played havoc in stock markets across the world,'' the CPI(M) said and added that the Government would be held squarely responsible for any erosion of the hard earned savings of the employees owing to a stock market meltdown.

The CPI (M) demanded that the interim step announced in January 2007, allowing upto 5 per cent of pension funds under the New Pension Scheme to be invested in the stock market, be immediately rescinded.

''The CPI (M) also demands that the PFRDA Bill, which enables investment of employees' pension funds into the stock market, be discarded and the Pension Scheme for Government employees reworked to ensure minimum guaranteed pension,'' the statement addeed.

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