The Hindu Editorial Analysis- 26th August 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Middle path 

Why in News?

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.

• India's Unified Pension Scheme is a plan designed to simplify and bring together the different retirement schemes in the country.
• The goal of this scheme is to make the pension system more efficient by combining various existing pension plans into one, ensuring that all workers, whether formal or informal, have a reliable income after they retire.
• The Unified Pension Scheme aims to merge various pension schemes like the Employees' Provident Fund (EPF), Employees' Pension Scheme (EPS), National Pension System (NPS), Old Pension Scheme (OPS), and others into a single, more organized system.

Key features of the Unified pension scheme

• Assured Pension: Employees get a pension equal to half of their average basic pay from the last 12 months before retirement if they've worked for at least 25 years. For those with 10 to 25 years of service, the pension is reduced accordingly.
• Family Pension: If an employee passes away, their family receives 60% of the employee's pension for ongoing financial assistance.
• Minimum Pension Guarantee: The scheme ensures a minimum monthly pension of ₹10,000 for employees with a minimum of 10 years of service.
• Inflation Indexation: Pensions will be adjusted to inflation based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW) to retain purchasing power.
• Lump-Sum Payment: Upon retirement, employees receive a lump sum payment along with gratuity. This payment amounts to 1/10th of monthly emoluments for every six months of completed service, without affecting the assured pension.

Significance of Unified Pension Scheme

• Inclusivity: The plan aims to help all types of workers, even those in jobs without set pension plans. This is especially important in a country like India, where many people work in jobs that aren't formally organized.
• Portability: A major feature of the United Pension Scheme is that workers can take their pension benefits with them when they change jobs or move to different places. This makes it easier for the modern workforce that moves around a lot.
• Centralized Administration: The plan will be managed by one central authority, making sure that pension benefits are handled consistently and fairly all over the country.
• Enhanced Benefits: By combining resources and managing money better, the plan hopes to give retirees better pension benefits, making their retirement more secure and stable.
• Financial Literacy: As part of this effort, there will be programs to teach workers more about managing money, especially those in informal jobs, so they can make smart choices about their retirement savings.

Challenges

• Transition Process: Combining different plans with different rules and benefits into one system might be hard and needs careful planning to make sure current recipients don't lose out.
• Funding and Sustainability: Making sure the Unified Pension Scheme can stay funded is very important. This involves figuring out how much people should contribute, how the government can help, and how to invest money to make sure the scheme can last a long time.
• Legal and Regulatory Framework: Bringing in a single scheme would need big changes to the laws and rules that control pension plans in India.

How will the Unified Pension Scheme differ from OPS and NPS?

The Unified Pension Scheme (UPS) approved by the Indian government aims to address some of the issues and gaps found in both the Old Pension Scheme (OPS) and the National Pension System (NPS), creating a more integrated and efficient pension framework.

Here’s how the UPS would differ from OPS and NPS:

Conclusion

The Unified pension scheme aims to offer a significant amount of support and protection to retired individuals, ensuring they receive a steady income and are shielded from the negative impacts of inflation. In simple terms, the UPS is designed to strike a balance between the reliability and security provided by the OPS and the adaptability and returns linked to the market offered by the NPS. Its goal is to establish a more sustainable and equitable pension system for government workers. 

Reality of reel life, exploitation as a structural problem 

Why in News?

The Kerala High Court on Thursday (August 22) ordered the state to place before it in a sealed cover the entire Hema Committee report, including sections redacted for confidentiality. This order comes while the court considers a Public Interest Litigation (PIL) demanding the initiation of criminal proceedings against the offenders named in the report.

• The Justice Hema Committee report was made public by the Kerala government on August 19, (4.5 years after it was handed to the Chief Minister).
• The 233-page file strongly criticizes the unfair treatment and misuse encountered by women in the Malayalam film sector.

THE BACKGROUND

• On February 17, 2017, a major Malayalam movie actress was kidnapped and sexually attacked in her vehicle by a group of men. A well-known actor was later linked to the incident, causing anger throughout Kerala and highlighting the unfair treatment of women in the Malayalam film industry.
• The Women in Cinema Collective (WCC) was established as a result of this event, consisting of female actors, producers, directors, and technicians.
• On May 18, 2017, the WCC presented a request to the Kerala Chief Minister, urging an investigation into the occurrence and broader gender-related problems affecting the state's film sector.
• In July, the state government assembled a three-person panel led by Justice K Hema, a retired judge from the Kerala High Court, to address sexual harassment and widespread gender disparities in the Malayalam film industry.

WHAT DOES THE REPORT SAY?

• A culture of sexual harassment is widespread in the Malayalam film industry.
• The Committee found instances of casting couch (where powerful individuals demand sexual favors from women for opportunities in films), frequent suggestive and vulgar comments at work, and intoxicated male co-actors intruding into women's rooms.
• Fear of retaliation stops sexual harassment reports.
• Justice Hema states in the report that many individuals were scared to disclose their experiences, fearing repercussions.
• Besides direct consequences, the report notes the threat of online harassment, particularly from harmful fan clubs, silencing women.
• An all-male "mafia" of influential actors and producers dominates the industry, exerting power without consequence.
• The report emphasizes that individuals are afraid to speak out against the powerful group for fear of being removed from the industry.
• The male-dominated industry neglects providing basic amenities to women, like inadequate toilets and changing rooms on sets.
• Female staff on film sets lack proper facilities, relying on open spaces or shared bathrooms, risking health issues like UTIs and hospitalization.
• < />gender pay gap is due to the absence of formal contracts, leading to unequal pay.