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Mamuni Das

New Delhi , May 12

THE Ministry of Shipping, Road Transport and Highways has decided to approach the Union Cabinet with a proposal to seek Rs 600 crore to form a corpus pension fund for Calcutta Dock Labour Board (CDLB).

The Ministry had earlier advised CDLB to come up with a self-sustaining proposal for CDLB pensioners so that an appropriate policy and methodology for payment of pension is worked out.

As on April 1, 2004, the Life Insurance Corporation had assessed the actuarial liability for pension and family pension at Rs 457.04 crore. Adding the arrears of pension and wages, among other heads at Rs 76.35 crore (as on February 2005), the Ministry had earlier estimated Rs 533.39 crore as the amount required to clear all outstanding liabilities of the board and for building a corpus of pension fund out of which the future pension liabilities of the board can be discharged.

Speaking to Business Line, the Department of Shipping Secretary, Mr D.T. Joseph, said, "With the interest component added for the entire year, the liabilities are now close to Rs 600 crore. We would be moving a proposal to the Cabinet soon to seek creation of a corpus fund of Rs 600 crore."

The Ministry had a meeting recently with the port authorities after which it decided to move the proposal to the Cabinet.

Recently a Parliamentary Committee had recommended that Government should build a corpus of pension fund for discharging the future pension liabilities of the board, as the bulk of its employees will retire in another two years.

It had also asked the Ministry to implement comprehensive restructuring of CDLB and introduce a voluntary retirement scheme.

"The committee is of the firm opinion that liabilities on account of payment of arrears of pensions and pension dues of CDLB entirely lies on the Government and the Government cannot be absolved of its liability and withhold pension and post-retirement benefits to the employees," it had stated.

Earlier, the Finance Ministry had turned down a proposal sent by Department of Shipping to release enhanced grant of Rs 59.59 crore to CDLB to meet its pension liabilities on account of revision of pension benefits.

The Finance Ministry had maintained that no regulation made by the port could take effect till it is approved by the Central Government.

Additionally, the Act governing service conditions of port trusts/dock labour yards stipulate that they generate their own resources to meet financial liability on account of salaries/pension, etc.

The resources available with these bodies do not justify the extension of pension scheme on Government pattern, it had reasoned, adding that permission in one case would lead to similar demand from employees of other autonomous bodies.

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