Reverting to old pension scheme by states will set off a fiscal time bomb

The move by Rajasthan and Chhattisgarh state governments to stop providing for future pension liabilities by reverting to the pay-as-you-go (PAYG) old pension scheme will place an unsustainable debt burden on future generations. A report by State Bank of India has estimated the present value of future liabilities at 13% of gross domestic product if all states follow suit.​ https://ift.tt/2TX0ivj