Large protests in Paris over pension reforms this week could be a replica of the growing disquiet in India in some sections of the government employees demanding the restoration of the old pension scheme.

Violence broke out in the French capital on Thursday after thousands of people marched on the streets and clashed with police as the government passed an order to increase the retirement age from 62 to 64, bypassing a parliament vote.

The latest crisis comes after months of heated public debate and strikes over the issue. Scores of people were reportedly arrested during the clashes with police.
The Paris strikes bore a similarity in India, where government employees in Maharashtra and Haryana on Tuesday held demonstrations to demand the restoration of the old scheme.

Many non-BJP-ruled states have already dumped the new pension scheme (NPS) and have demanded that the central government refund the accrued NPS corpus.

Old Vs. New Pension Scheme

Under the old scheme, the government provides the monthly pension amount till the end of their service, and they get half of the last salary drawn until death.

In the new pension plan, both the government and the employee contribute to the pension corpus, and the member can withdraw up to 60 per cent of the corpus after retirement.

The new plan came into effect in January 2004 to ensure income security for employees in a fiscally sustainable manner, unlike the old plan that increases government liability. In 2009, it was rolled out to all citizens on a voluntary basis.

Government employees in more than half a dozen states want the restoration of the old pension scheme. Meanwhile, Himachal Pradesh, Punjab, Rajasthan, Jharkhand and Chhattisgarh have already junked the new plan. Employees in Maharashtra and Haryana now also want the new system revoked. On Tuesday, thousands held sit-ins to petition the two state governments to accept their demand.

Protests Gain Momentum

The protests in India gained momentum after the government allowed a select group of employees to opt for the old pension scheme early this month. The ministry of personnel, in a circular, said employees who joined the services before December 22, 2003, when the new plan was notified, could switch to the old scheme under the then Central Civil Services (Pension) Rules 1972.

In Karnataka, where similar protests were held, the employees called off their strike, for now, after the government agreed to a salary hike.

Meanwhile, the central government has stood its ground, saying it has no plans to revoke the new pension scheme. Responding to some states’ demand to refund the accumulated NPS corpus, the government on Tuesday said the Pension Fund Regulatory and Development Authority (PFRDA) Act has no such provision.

On Tuesday, Maharashtra Chief Minister Eknath Shinde urged the employees to call off their strike, assuring them of a sympathetic hearing.