Idioms and phrases from “THE HINDU editorial Middle path: On the Unified Pension Scheme”

Idioms and phrases from “THE HINDU editorial Middle path: On the Unified Pension Scheme”

The Centre has restored guaranteed pensions for its employees, meeting their demand halfway, and weakly trying to hold on to principles of fiscal prudence. Pension schemes around the world, whether contributory and market-linked or underwritten by the exchequer, are facing a crisis due to multiple factors, including demographic reasons. According to the Reserve Bank of India, the total Budget estimates of various States and Union Territories for pension in 2023-24 was ₹5,22,105.4 crore, which is between 6%-21% of their total revenue receipts. Pensioners argue that it is their deferred wages. It can also be argued that pensions from the exchequer are at the cost of future generations. Governments are outsourcing jobs through contracts, and resorting to innovations such as Agnipath — a short service scheme for the military services — and the ballooning of pension bills is among the reasons that drive such measures. Governments are also leaving posts unfilled. All such measures are leading to two things. First, it negatively affects state capacity, and second, it reduces avenues for government and public sector jobs for India’s expanding number of young job seekers. The New Pension Scheme (NPS), which was market-linked and managed by an autonomous entity, was introduced during the stock market boom. Two decades later, when people began retiring under the NPS — those who joined after January 1, 2004 — it turned out that they were receiving much less than what they would have got under the old scheme.

With the Congress making the restoration of the old scheme a central piece of its politics, the BJP was pushed to the corner. A committee led by former Finance Secretary and Cabinet Secretary-designate T.V. Somanathan devised a middle path that involves employee contributions and enhanced share from the Centre. The Unified Pension Scheme (UPS), approved by the Cabinet, promises a pension of 50% of the average basic pay of the last 12 months before retirement and a minimum pension of ₹10,000 for those who worked for at least 10 years. The Centre’s share towards the scheme was increased from 14% under the NPS to 18.5%, which Prime Minister Narendra Modi has said will ensure government employees dignity and financial security. The BJP and the government should note that no reform can be sustainable without broad political consensus. Social security for older people must cover the widest segment of the population. Government employees are an organized pressure group, and having managed to restore their guaranteed pension, they should wholeheartedly welcome the UPS, rather than protest against employee contribution.

  Middle path

• Meaning: A compromise or solution that tries to find a balance between two extreme positions or ideas.

• Example: "The committee devised a middle path that balanced the need for economic growth with environmental protection."

  Meeting their demand halfway

• Meaning: Compromising or agreeing to some part of what is being asked for by another party.

• Example: "The company decided to meet the union's demand halfway by offering a partial pay raise."

  Pushed to the corner

• Meaning: Forced into a difficult or disadvantageous position where one has limited options.

• Example: "The company was pushed to the corner by mounting debt and declining sales."

  Hold on to principles

• Meaning: To maintain or adhere to one's core beliefs or values despite pressure to change.

• Example: "The activist held on to her principles even when faced with significant opposition."

  Ballooning of pension bills

• Meaning: A rapid and substantial increase in the cost or size of pension obligations.

• Example: "The ballooning of pension bills is putting a strain on the state's budget."

  Social security

• Meaning: Government programs designed to provide financial support and services to individuals, particularly the elderly, unemployed, or disabled.

• Example: "The new policy aims to expand social security benefits to cover more low-income families."

  Broad political consensus

• Meaning: General agreement or unity among different political groups or parties on a particular issue.

• Example: "Achieving broad political consensus is essential for the passage of the new environmental regulations."

  Organized pressure group

• Meaning: A group of individuals or organizations that work together to influence government policy or decisions in their favor.

• Example: "The teachers' union acted as an organized pressure group, lobbying for better wages and working conditions."

  Sustainable reform

• Meaning: Changes or improvements that can be maintained over the long term without causing negative consequences.

• Example: "For economic growth to be truly beneficial, it must be accompanied by sustainable reforms that protect the environment."