Pension scheme for BMW owners? Kerala govt faces Oppn ire

The cartoon highlights recent news reports revealing that even affluent individuals — owners of luxury cars like BMWs and residents of fully air-conditioned homes—are benefiting from Kerala’s welfare pension scheme. This unique scheme, intended to support underprivileged sections, provides ₹1,600 per month, sparking questions about eligibility and oversight.

This BMW reference stems from a single incident in which a car registered in the name of a pensioner was believed to be owned by the individual’s son.

Systemic irregularities

Earlier this week, the state-owned Information Kerala Mission (IKM) submitted a report stating that at least 1,458 serving government officials, including gazetted officers, have been regularly receiving the ₹1,600 monthly social welfare pension, reigniting concerns about systemic irregularities in the distribution of welfare funds.

The recent controversy appears to centre around instances where pensions continued despite beneficiaries securing employment.

A significant revelation came from a ward in Kottakkal municipality, Malappuram district, where 38 out of 42 pensioners were reportedly found to be ineligible. While the local government has dismissed the figures as exaggerated, the state government has initiated a detailed vigilance inquiry into the matter.

Interestingly, the municipality is ruled by the state Opposition UDF.

IKM report estimates suggest that ₹23 lakh has already been disbursed to serving officials this year alone, including school and college teachers and employees in health and other state departments.

In Kerala, nearly six million people depend on this monthly pension, which is often paid in arrears, adding to the complexity of monitoring the system.

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Opposition over issue

In 2022, a Comptroller and Auditor General (CAG) report had already flagged this issue, highlighting that over 9,000 ineligible individuals had received a total of ₹39 crore in the three-year period starting in 2017. Despite these findings, the state government has yet to release a comprehensive list of beneficiaries, drawing criticism from Opposition parties and activists.

Meanwhile, political opposition has intensified, with the Congress-led United Democratic Front (UDF) staging protests against what they call rampant corruption, and BJP state president K Surendran demanding the publication of a list of government officials benefiting from the welfare scheme.

The Opposition Congress urged the government to disclose names of government employees illicitly receiving social security pensions. Leader of Opposition, V D Satheesan, wrote a letter addressing the Chief Minister and the finance minister, highlighting the lack of action despite CAG findings, stressing transparency to protect honest officials.

In it, Satheesan expressed surprise over the government's inaction despite Comptroller and Auditor General (CAG) findings from two years ago pointing out this misuse.

The public outrage after the revelation of misappropriation of pension funds, prompted the government to call for stringent disciplinary measures against those implicated.

Disciplinary action

Chief Minister Pinarayi Vijayan announced that strict action will be taken against government employees, who are inappropriately receiving welfare pensions, after a special meeting focused on the government employees and pensioners unlawfully acquiring welfare pensions.

“Disciplinary actions will be initiated against those found to be committing fraud, and the amounts received will need to be repaid with interest. Action will also be taken against officials who created opportunities for ineligible individuals to benefit from these pensions. Those who have passed away will be removed from the pension list through timely verification. Annual audits will be mandated, supported by a facial authentication system. Income certificates and Aadhaar seeding will be made compulsory,” read a media release from the CMO.

The Chief Minister instructed that the eligibility of welfare pension beneficiaries should be assessed based on local self-government institutions, and the finance department is to continue its inspections.

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Disproportionate narrative

“There may be individuals who receive social security pensions undeservedly. Such undeserving cases can be found in any category. Identifying and rectifying these is an administrative procedure and an ongoing process. The accurate figures we discuss today are a result of establishing such systems,” said M Gopakumar a former official of ministry of finance told The Federal.

It should be noted that the LDF government has a declared goal of providing universal old age pension. Moreover, Kerala's social security pension scheme is the largest and most efficient social welfare scheme in the country.

“If the policy is universal old age pension, what relevance does it have whether the beneficiaries’ children own BMW or Rolls Royce cars? Unnecessary and disproportionate narratives can only create harm,” pointed out M Gopakumar.

One of the anti-Kerala narratives at the national level is that Kerala is squandering funds. It remains to be seen how this episode will be utilised in academic public finance discussions,” added Gopakumar.

Scheme expanded

Kerala’s welfare pension scheme has seen a remarkable transformation since 2016, expanding from 32 lakh beneficiaries to 62 lakhs under the LDF government. Overcoming initial hurdles like a lack of data and pending arrears, the state streamlined the system, cleared backlogs, and raised the pension amount from ₹600 to ₹1,600.

This initiative was widely seen as a key factor in the LDF’s historic 2021 assembly election victory, securing them a second consecutive term.

Although financial constraints — blamed by the state on the Union government — have caused delays, with pensions being paid in arrears especially during the last couple of years, the scheme remains a model for the nation. However, recent controversies underscore the need for stricter eligibility checks to ensure these benefits are reserved for those who truly need them, safeguarding the integrity of this progressive programme.