Kerala's social security pensions, long considered a model welfare initiative, are now in the spotlight for the wrong reasons.
Recent revelations have exposed widespread irregularities, with unqualified individuals, including government employees and wealthy citizens, fraudulently claiming benefits meant for society's most vulnerable.
In November 2023, the State Finance Department uncovered 1,458 government employees, including gazetted officers and teachers, drawing ₹1,600 monthly pensions despite being ineligible.
An audit in Kottakkal municipality found wealthy individuals, including luxury car owners, fraudulently enrolled as pensioners, likely with official collusion.
The Finance Department has mandated disciplinary action and recovery of misappropriated funds at a penal interest rate of 18%.
The Soil Survey and Soil Conservation Department suspended six employees for pension fraud, and more departments are expected to follow suit.
Kerala’s Social Security Pension Program
Kerala has been lauded for its expansive social security scheme, which supports nearly 50 lakh beneficiaries, including:
Elderly: Those aged 60 years or older.
Widows, Unmarried Women (50+), and Disabled Persons
Agricultural Labourers
The pension amount was raised from ₹600 in 2016 to ₹1,600 in 2017, with a strict ineligibility clause barring income tax payers, service pensioners, and families earning over ₹1 lakh annually.
Scale and Financial Challenges
Rising Numbers: Beneficiaries increased from 34 lakh (2015-16) to 52.38 lakh (2022), before falling to 46.77 lakh (2023).
Categories: 56.5% are elderly, 27.1% are widows, 7.8% are disabled, and 6.8% are agricultural workers.
Financial Strain: The program costs over ₹900 crore monthly, with additional cesses on liquor, petrol, and diesel contributing a fraction of the required funds.
The CPI(M)-led government claims to have spent ₹33,800 crore on social security pensions since 2021. However, Central contributions, which support 5.88 lakh pensioners, remain in arrears.
Long Standing Issues
A 2020 circular highlighted illegal pension claims by government employees and pensioners, urging them to return the money and exit the system.
The Comptroller and Auditor General flagged irregular disbursements in its 2022 audit report.
Way Forward
The scandal underscores the need for:
Tighter Surveillance: Ensure regular audits and real-time monitoring of disbursements.
Beneficiary Reviews: Periodically update lists to remove ineligible recipients.
Strict Accountability: Punish officials complicit in fraud.
Sustainable Funding: Explore alternative revenue streams and demand timely Central contributions.
As Kerala grapples with a financial crunch, plugging leaks in public funds is imperative to ensure the integrity and sustainability of its social security system.
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