Forced Deduction From Pension To CMDRF Not Permissible: Kerala HC

Overview

• The Kerala State Electricity Board (KSEB) had issued a circular authorizing a forcible deduction from retired employees' pensions towards the Relief Fund.
• Rajan E G and M Kesavan Nair (retired KSEB employees) brought to the notice of the Court, an issue concerning the payment of the pension in the Kerala State Electricity Board.

Court Proceedings

• Petitioners alleged that a portion of their pension is being withheld, under the umbrella of a "Vaccine Challenge" linked to the Chief Minister's Relief Fund.
• The petitioners argued that they had not agreed to any contribution. Nor have they consented that their pension to be reduced for such purpose.
• Further, the KSEB argued that the circular did not intend to force retired employees to contribute any amount without their consent.
• They stated that a circular was issued based on the specific agreement of the association of pensioners that their members were willing to contribute one day's pension to the Chief Minister's Relief Fund under the 'Vaccine Challenge'.

Pension

• Under the Pension Rules, a public servant retiring is entitled to receive pension on completion of at least 10 years of qualifying service.
• It is calculated regarding last basic pay or average basic pay, whichever is more beneficial.
• The amount of pension is 50% of the basic pay or average basic pay, whichever is beneficial.

Court Order

• The Court observed that any contribution to the relief funds could not be a matter of compulsion or forced compliance, unless there was a valid law that sanctions such deductions.
• The Court allowed the writ petition and directed the respondents to refund the amounts deducted from the pension of the petitioners within two weeks.
• The Court further declared that no amount shall be deducted from the pension, except if they give consent in writing.

What are your views on the deductions from pensions to relief funds? Let us know in the comment section below!