Agartala, Sept 5 (TIWN) Tripura finance minister Badal Choudhury said here Thursday that the new pension bill passed by the UPA (United Progressive Alliance) government Wednesday is unconstitutional and against the interest of the workers and employees.

“The pension bill was passed by the UPA government to appease the American government and foreign investors,” the minister told reporters.

Choudhury, also a member of the CPI-M central committee, said that the pension bill was against the Supreme Court verdict and recommendations of the fifth pay commission.

“The social security of the workers and employees in the organised and unorganised sectors would be at stake due to the new pension bill,” he pointed out.

The Lok Sabha Wednesday passed the Pension Fund Regulatory and Development Authority Bill (PFRDA), 2011 to regulate the New Pension System (NPS).

The bill was introduced in the lower house in March 2011 to provide for a statutory regulatory body. Currently the PFRDA has a non-statutory status.

The NPS has been made mandatory for all the central government employees (except armed forces) entering service with effect from 1.1.2004, a union finance ministry statement said. In all, 26 states have already notified NPS for their employees. 

 “NPS has been launched for all citizens of the country including un-organised sector workers, on voluntary basis, with effect from 1st May, 2009,” the statement added. 

The ministry said the PFRDA Bill would also provide subscribers a wide choice to invest their funds for assured returns by opting for government bonds as well as in other funds depending on their capacity for risk.