Pensioners' Day

Every year 17th day of December is celeberated as Pensioners' Day since 1983.

The word 'Pension' is said to have its origin in Latin word pensio meaning payment. As per Wikipedia earliest form of compensation or pension was that of Roman King Ceaser. He used to pay some amount from his military treasury to keep the retired & wounded soldiers quiet. 

Pension in different forms to widows, old aged, orphans & disabled was granted by Arab Khalifas also out of Zakat or charity contributed by general society. Different countries have own systems of pension most popular being social insurance system. Following chart from Wiki shows pension systems by country.

Chart on Pension Systems in world - downloaded with thanks from Wikipedia. This chart however, needs updation 

History of pension in India is more than 150 years old. This pension system in India was introduced by the British in colonial India after the Indian independence struggle in 1857. This was a reflection of the pension system then prevelant in Britain. The then British government decided to provide money cover to retired employees for their post retirement life. 

The system was formalised by the Indian Pension Act of 1871. However the final authority of granting of pension was vested with Viceroy and Governors. Thus the pension was at the mercy of authorities rather than by default.

British government ocassionally allowed increase in amount of pension keeping in view the increase in costs, that is inflation. 

Even though the retirement benefits were being given by the government, they were not incorporated in Fundamental Rules made effective from 1-1-1922. 

Shri D.S.Nakara, Financial Advisor to Ministry of Defence who was an officer from Defence Service Audit & Accounts faced problems in getting pension when he retired in 1972. He lodged a petition in the Supreme Court. 

Chief Justice Yashwantrao Chandrchud heard the petitioner as well as the government pleas and ruled that pension is neither a gift nor a reward or bounty. Pension is the right of a retired government servant who had served nation for a long time. Government is bound to ensure that her emploees lead a peaceful and honourable life after retirement. 

This historical judgment was issued on 17 Dec 1982. Hence The Pensioners' Day.

In India Provident Fund based pension was in vogue till 2003 as is shown in the above chart. This Pension Scheme was scraped By Vajpayee govt & in its place new pension scheme NPS was launched in January 2004 for govt employees. Subsequently in 2009 it was extended to all sections of society. Broadly a subscriber may contribute in his pension account during working life. Subsciber could withdraw the amount later in parts - a part in lumpsum & other part in annuity to get regular income. This Scheme has recieved mixed reactions. Modifications of NPS is likely and may follow.

P.S. Wanted to publish this on 17th December but could not as internet was cut off by the govt. in Meerut due to agitation against CAA. Governments whether present one or earlier ones are unfortunartely less interested in welfare schemes for the seniors, elderly, widows & disabled. By & large such schemes are considered burden on exchequer.