As an autonomous institution, the RCC functions under its own service rules, including the distinct pension mechanism REPS.
Published Oct 09, 2025 | 8:00 AM ⚊ Updated Oct 09, 2025 | 8:00 AM
RCC Thiruvananthapuram.
Synopsis: The Pension Scheme at RCC Thiruvananthapuram has become a flashpoint of discontent, sparking protests, court battles, and heated debates. A major point of contention is that REPS was designed internally by RCC experts, without the guidance of a certified actuary — a practice considered standard in pension design.
At the Regional Cancer Centre (RCC) in Thiruvananthapuram, Kerala, a different kind of battle is unfolding. The fight this time isn’t against disease, but over pensions.
The RCC Employees’ Pension Scheme (REPS), a unique contributory model introduced to ensure financial self-reliance, has become a flashpoint of discontent, sparking protests, court battles, and heated debates.
Now, with the state government stepping in to examine the scheme’s financial stability, what began as an administrative arrangement has snowballed into a full-blown controversy — pitting autonomy against accountability, and employees’ futures against institutional sustainability.
As an autonomous institution, the RCC functions under its own service rules, including the distinct pension mechanism REPS.
Designed as a participatory or contributory model, REPS diverges sharply from the standard government pension system, requiring employees to contribute a share of their salary — typically 10–12 percent.
When introduced, the scheme was touted as a move toward financial sustainability. Yet, it stands mired in controversy — facing protests, legal battles, and mounting distrust among doctors, staff, and retirees.
At the core of the dispute lies RCC’s autonomous status, which exempts it from several conventional pension laws. Employees at the centre are governed by Rule 44(a) of the RCC Service Rules, rather than the Payment of Gratuity Act, 1972.
The RCC management has maintained that the government issued a statutory notification exempting the centre from the provisions of the 1972 Act.
However, those challenging the REPS have argued that no such formal notification or clarification has been produced by the state government — casting doubt over the legal standing of the exemption.
“It’s not just about pension; it’s about legal clarity,” said a senior doctor, speaking on condition of anonymity to South First. “Employees deserve to know under which law their service benefits are protected.”
A major point of contention is that REPS was designed internally by RCC experts, without the guidance of a certified actuary — a practice considered standard in pension design. This, employees alleged, led to arbitrary contribution rates and questions over the fund’s long-term sustainability.
In 2016, doctors staged rare protests, branding the scheme “unscientific” and demanding an independent actuarial review.
Critics said the lack of professional validation had undermined transparency and fairness, creating uncertainty about future payouts.
“No other major institution would roll out a pension fund without actuarial vetting,” said a senior staff member. “We’re effectively part of an experiment with our own retirement savings.”
Another flashpoint has been the manner in which the scheme is being implemented.
Several employees have accused the management of coercion, claiming appointment letters were withheld until they agreed to join REPS and start contributing.
This “forceful enrolment,” employees argue, violates their rights and has created anxiety among new recruits and retirees alike.
“Many of us signed under pressure,” said a retired RCC employee, who approached the Kerala High Court over REPS and is awaiting a verdict, and added, “Now we’re left wondering if our pension fund will survive at all.”
In 2023, the then-Principal Secretary (Health) Tinku Biswal proposed halting employee contributions altogether, suggesting that the entire burden be transferred to RCC or the state government.
While intended as a reform, the proposal alarmed employees, who feared it would destabilise the fund or lead to retrospective recoveries.
The implementation of the 7th Central Pay Commission (CPC), retrospectively effective from 2016, exposed further cracks in the system. Salary fixation anomalies led to “excess payments” being detected, prompting RCC to initiate recovery of those amounts — in some cases through pension deductions.
The move sparked widespread anger, culminating in a strike in December 2022, when over 200 doctors and staff staged demonstrations demanding arrears and fair pension adjustments.
Such large-scale protests are rare in RCC’s history, highlighting the depth of frustration among its workforce.
“We were punished for administrative mistakes,” said an aggrieved doctor. “The errors weren’t ours, yet we’re paying the price.”
Multiple writ petitions and appeals have been filed in the Kerala High Court since 2016, primarily challenging recoveries, withholdings, and the scheme’s legality. The court has issued interim orders, including mandating actuarial valuations, but many cases remain pending or under appeal.
Meanwhile, after years of delay, a long-awaited actuarial evaluation of the REPS has finally been completed, exposing deep structural flaws that could push the fund into a severe financial crisis within the next decade.
The evaluation, recently carried out by Transvalue Consultants using the Projected Unit Credit Method (PUCM), painted a troubling picture.
According to the findings, the REPS will begin facing a financial deficit from 2027, and by 2032, withdrawals from the principal corpus will be necessary to sustain pension disbursals.
Even under the most conservative scenario — without any pension enhancement — the scheme is projected to run short of funds by 2028 and completely deplete its corpus by 2034.
The report attributes the impending shortfall to fundamental weaknesses in the RCC Employees Pension Rules, which diverged from the self-financing contributory model originally envisioned.
Key issues flagged include:
Compounding the problem, the report notes that out of the ₹34 crore one-time government grant intended to stabilise the fund, only ₹16.5 crore has actually been released, while the remaining ₹17.5 crore is still pending regularisation.
To address the looming crisis, the report laid out several policy options before the government — from continuing the existing scheme with state support, to comprehensive restructuring based on contributory principles, or even shifting to an alternative model such as an LIC-managed scheme or reverting to the EPF system.
Regardless of the chosen path, the actuaries recommend urgent corrective measures, including immediate recovery of pending EPF balances, release of the full grant amount, diversification of investments into secure instruments, regular actuarial assessments, creation of a digital pension management portal, and establishment of a grievance redressal mechanism.
Compounding earlier concerns over the financial stability of the REPS, the Health Department has now constituted a high-level committee to examine the issue in detail.
The move follows the findings of a Technical Audit note submitted by a committee led by Madhavikkutty IAS, then Deputy Secretary (Health), which reviewed the grievances of pensioners and recommended a comprehensive review of the scheme’s functioning.
Acting on these recommendations, the Health Department, on 26 September, observed that an in-depth study and specific recommendations were essential to decide on the future course of action regarding the pension scheme.
Consequently, the government has formed a High-Level Committee to thoroughly assess the financial viability of the REPS and propose measures to ensure its long-term sustainability.
The committee will be headed by the Additional Chief Secretary (Health & Family Welfare). It will include the Additional Chief Secretary (Finance), the Directors of both the Regional Cancer Centre and Malabar Cancer Centre, and a pension expert from the State Level Bankers’ Committee (SLBC).
According to the Terms of Reference, the committee will examine the actuarial evaluation report prepared by Transvalue Consultants, assess the financial viability of REPS, and recommend the most appropriate policy options for the government to adopt.
It will also suggest necessary amendments to the RCC Employees Pension Rules to restore the contributory principle, recommend steps for the recovery of outstanding EPF balances, and propose strategies for regularising the one-time grant.
Additionally, the committee will formulate a long-term investment and monitoring strategy, including provisions for periodic actuarial reviews, and may consider any other aspects it deems necessary.
The committee is expected to submit its comprehensive report to the government within three months.
As the state Health Department begins a deep dive into the troubled RCC pension scheme, the findings could redefine the future of hundreds of employees and retirees.
The outcome of this review will decide not just the fate of their pensions, but the credibility of RCC’s promise of security after a lifetime of service.
(Edited by Muhammed Fazil.)
