Four retired employees have died by suicide and the cases shed light on the severe financial hardships faced by them. Analysts note that one factor that contributed to the LDF’s failure in the 2024 Lok Sabha elections was the delay in service schemes.

D Dhanuraj, CPPR Chairman, comments on the news published in The South First.

The concerns over the timely disbursement of pensions for retired Kerala State Road Transport Corporation (KSRTC) employees is now a burning issue in the state. The issue comes ahead of the local body and the 2026 Assembly elections. Adding fuel to the fire was the suicide of four pensioners.

“I am rushing now to arrange the final rites for my father. A man of great toil, he nurtured us with care. But on 20 August, I lost him. Many urged us to seek justice right away, but I chose to honour him first. The last gift I can offer is to complete his rituals before pursuing the path of the law.” Sujith Suresh, the son of M Suresh, a KSRTC pensioner who died by suicide told South First.

The suicides shed light on the severe financial hardships faced by the retired employees.

The pension policy, implemented in 1984, is often cited as a contributing factor to the corporation’s financial decline in the years that followed, a decline from which KSRTC has yet to recover.

Currently, KSRTC allocates around ₹72 crore per month to pensions, amounting to approximately ₹864 crore annually. While addressing the financial strain of these pension obligations is crucial for KSRTC’s revival, eliminating pensions is not a feasible solution, as it would be both impractical and unjust.

The conflict between Kerala State Road Transport Corporation (KSRTC) pensioners and the Kerala government spans several years.

In 2021, while KSRTC employees received a salary revision, pension amounts remained unchanged. Further complicating the issue, delays in pension disbursement led the Transport Pensioners’ Front to seek legal recourse.

On 5 August 2022, the court mandated that pensions be distributed by the 7th of each month. The responsibility for ensuring timely payments was placed on the state government, not KSRTC.

Supreme Court advocate and social activist Babila Ummarkhan elaborated on the KSRTC Pensioner’s Organisation (Reg. No. 400/80) v. State of Kerala case to South First.

She highlighted that the Kerala High Court’s judgment in this case underscores the importance of timely pension payments to KSRTC employees.

Justice Devan Ramachandran emphasized that even a single instance of an employee facing distress due to delayed payments deeply affects one’s conscience.

Such situations should be prevented, and this can be achieved only if all pensioners receive their payments on time.

While pension revisions may take some time as they depend on government decisions, the payment itself should not be delayed, as this can drive pensioners into despair and hopelessness.

Justice Devan Ramachandran specifically instructed the court to set a time frame for pension payments for July and August 2022 and to ensure that payments in subsequent months are made on time.

He mandated that pensions be disbursed within the first week of each month, and if possible, within the first five days.

Government in hot water 

Babila told South First that, according to a 5 August 2022, order, pensions must be distributed by the 7th of each month, a responsibility that falls on the state government, not KSRTC.

Failure to comply has led to the government facing court action fifteen times, with the Chief Secretary and Transport Secretary appearing in court on three occasions. Currently, pension distribution has been stalled for two months.

The government has spent nearly ₹100 crore on interest alone for pension distribution through cooperative banks.

More than 43,000 people receive pensions through this system, with a monthly expenditure of around ₹72 crore. The government sought the assistance of state cooperative banks in 2017 to manage the pension distribution and agreed to cover both pension payments and interest expenses, which amount to over ₹4.5 crore monthly.

However, when the government delayed repayment for three months, the cooperative banks halted pension distribution for two months, causing significant hardship for pensioners.

Babila also emphasized that the delay in pension distribution has not only affected the financial stability of pensioners but has also eroded their trust in the system.

The cooperative banks’ decision to suspend payments has led to a backlog of pensions, exacerbating the plight of many who rely on these funds for their daily needs.

Pride’s heavy price

Sujith Suresh shared with South First the details surrounding his father’s suicide and the subsequent legal proceedings.

“My father was retired from the Pappanamcode KSRTC depot. He had been struggling with some health issues following an accident and was a very prideful man throughout his life.

Even after retirement, he managed our family and health expenses from his pension. However, the delays in receiving his pension began to affect him mentally.

The police FIR also indicates that the financial difficulties caused by the delay in pension payments contributed to his suicide.

Many of my father’s friends have suggested pursuing legal action. This will be done after completing his final rites. We are likely to file new cases against KSRTC for the pension delay on Monday, 26 August.

The day after Suresh’s suicide, on 21 August, the Kerala High Court summoned the KSRTC lawyer to explain why the pension had not been provided. Justice Devan Ramachandran inquired about the delay, and the government lawyer assured the court that steps would be taken to issue the pension within two days.

The court instructed that such delays should not recur and ordered that if the pensions for July and August are not disbursed promptly, it will summon the Transport Secretary and the Chief Secretary directly.

The case is scheduled for review again on 29 August.

Muhammed Ashraf from the KSRTC Pensioners Association told South First, “We will definitely proceed with the protest over the delay in pension disbursement. We dedicated our health and time to KSRTC, and now, what do we get in return? At this final stage of our lives, we are forced to protest in the streets to secure our livelihood.”

Pension crisis and poll prospects

Many political analysts have noted that a significant factor contributing to the LDF’s backlash in the 2024 Lok Sabha elections was the delay in service schemes and social initiatives such as pensions.

Currently, the issue of pensions and related suicides among pensioners is again a topic of discussion in Kerala.

Dr D Dhanuraj, founder and chairman of the Centre for Public Policy Research (CPPR), an independent think tank based in Kochi, shared his insights on the potential political ramifications of this issue with South First.

‘’The KSRTC employees and their pensioners constitute a significant vote bank for both the LDF and UDF.  The concerns of pensioners must be addressed. They question why only KSRTC employees are being targeted, and they will undoubtedly raise their voices against such actions. This could lead to a backlash against the government,” he said.

“The reality is that the government lacks funds, even for daily expenditures. Several factors contribute to this situation, including poor financial management and insufficient revenue generation. The primary source of revenue is GST, while other sources such as lotteries and liquor are inadequate to cover expenditures. This reflects a failure in government policies,” he added

Dhanuraj said the crisis is not new but has been developing for many years.

“There is a need for reform or restructuring, but political interests have complicated the process. For instance, the government instructed that celebrations should be avoided following the Wayanad landslide. However, the consequences of such measures will ultimately be borne by the government itself. This is a fundamental mistake. Onam is the largest selling season in Kerala, contributing significantly to government revenue. Without encouraging market activity and transactions, how can the government raise funds? It seems that those in the government lack a clear understanding of public finance, which is unfortunate,” he said.

He also questioned the government’s salary challenge for government employees.

“How does the government manage crises? Through salary challenges and fundraising from film stars? These are not solutions. The government remains on a conventional path,” he said.

“And in case of political impact, Why wait for the 2026 assembly elections? The panchayat and municipality elections will be held in December next year, setting the trend for the assembly elections. The gap between the two elections is only 6-7 months. The opposition is not strong enough, and the BJP is gaining strength in Kerala. Analysis of the Lok Sabha elections reveals that CPI(M) votes have shifted to the BJP, suggesting a potential triangular fight in upcoming elections,” he added.

Substantiating his points, Dhanuraj cited a previous incident in Kerala.

“In 2001, Kerala faced a similar crisis. At that time, then chief minister AK Antony issued a white paper and attempted to introduce a reform package. However, the Opposition opposed it, leading to a direct confrontation between the government and government employees,” he said.

“Even then, the pension crisis was not as severe as it is now. Financial issues were present, and the finance minister was often the target of criticism. This is why IAS officers are now reluctant to become Kerala’s financial secretary, according to my sources,” he added.

“People are watching. We can’t underestimate them. If these kinds of issues are not sorted out, it will reflect in the elections,” Dhanuraj warned the government.

Views expressed by the author are personal and need not reflect or represent the views of the Centre for Public Policy Research.