India government should read this article, but even then they will not listen. They are determined to follow the path of privatisation of pension funds, which means ruinification of millions of people. I know a number of Indians who worked in Britain and got private pension plans from very reputed companies but after a few years these pension companies either went bust or they were purchased by some other foreign companies( Arab) who resuded to give them back no more than what they have contributed without even interests. The Employers contributed nothing at the end, but got away. This is the trick they employ in private pension plans..
Re: But India Government will not listen
by Dipak Bose on Sep 22, 2008 10:10 AM
World Bank advertised this type of private pension plans a few years ago as Chilean Revolution of Pension. The experience of Chile shows that employees got nothing much at the end, so they cannot retire, as they have no retirement pension to rely upon.
Re: why this article
by Bhaumik on Sep 20, 2008 11:48 PM
You are not well-informed. Read wide and well.
There is a consistent demand by vested interests in India to allow pension funds, including EFP, to invest in stocks. Sometime back Indian sailors' hard earned pension benefits were lost when the organisation responsible for the funds placed them with stock brokers. There was also an ominous campaign for Mumbai Municipal employees' pension funds to be squandered similarly. Mind you, also, vested interests are out there to get hold of the huge EFP balances.... Hear the echoes?
Secondly, Rediff has a large constituency of Indian Americans visiting the site..
Re: why this article
by Ramesh Kapoor on Sep 20, 2008 11:43 PM
Needless to say, I am an Indian American who is on social security and whose 401(K) plan has seen a big dent since its peak in June 2007. Between then and today, I have lost over $90,000 in my retirement portfolio, and privatization of Social Security will be a sin that any Government could commit. And answering Vishal, rediff owns India Abroad a local weekly published in New York and thus has a wide readership both locally and other countries.