21 August 1947 — 6:25 PM, Central Legislative Assembly
The air was heavy, but the chamber refused to disperse.
The Right to Education Act had just passed by majority — the first true legislative victory of the newborn republic.
Rajendra Prasad was ready to adjourn, but Saraswati Devi raised her hand once more.
"Before adjournment," she said calmly, "there remains one critical matter — pensions."
The hall groaned. Nehru leaned back; even Patel exhaled.
But Anirban Sen, the newly-appointed Prime Minister of the Interim Republic, gestured for her to continue.
"Proceed, Saraswati Ji. You've earned the floor."
---
The Opening
She stood again, this time with no notes — only a thin blue folder.
"Gentlemen,as I say in my previous session the method of funding education you come to know that you all have inherited a pension system designed by people who never intended this nation to be wealthy," she began.
"Do you know how this system works? It assumes the State will always pay from future tax money — money not yet earned — to people who have already finished working. That's not retirement security. That's generational theft."
A rustle moved across the room. The Finance Minister, R. K. Shanmukham Chetty, looked up sharply.
Saraswati continued,
"If 10,000 employees retire, the State must pay them from this year's revenue. So the government borrows, increases taxes, or prints money. In the British Raj, that was sustainable because the Empire plundered colonies. For us — it will be suicide."
---
Dissecting the Colonial Pension Logic
She turned toward the economic benches.
"The British built pensions as a carrot — to keep Indian civil servants loyal until death. Not as welfare, not as investment — just control."
The Labour Minister Jagjivan Ram nodded slowly.
"She's right. I've seen the files. It's unsustainable. Every decade, the burden doubles."
Saraswati looked to him directly.
"Then why hasn't it been fixed?"
Jagjivan sighed.
"Because no one wants to be the minister who cuts old men's payments."
Saraswati smiled faintly.
"I am not saying we cut pensions. I am saying we fund them properly. Permanently."
---
Her Proposal
She opened the blue folder.
"This is the concept of the National Pension and Provident Fund (NPPF).
Not tax-funded — but capital-funded.
Every government employee contributes ten percent of their salary into a personal account, matched by the government with another ten percent.
The pooled corpus becomes an investment vehicle — in gold, steel, railways, and essential industries."
The Finance Minister leaned forward, intrigued.
"Essentially, a sovereign wealth fund," he murmured.
"Exactly," Saraswati replied. "But seeded by the sweat of our own workers, not by colonial debt."
She continued, her voice steady:
"Under this system, pensioners don't depend on the next generation's taxes. They depend on returns — from industries they helped build."
---
Expanding the Vision
From the education benches, a teacher's representative rose.
"Madam, if all teacher will be contributing to the fund under the new Education Act, why not extend the same to all public servants — from postal workers to soldiers?"
Saraswati turned toward him, eyes bright.
"You read my mind. Teachers will began this because they wished to build the Republic's mind. Why not others — to build its body and its heart?"
She looked to the front benches.
"Why should the responsibility stop at civil servants?
When the Republic is declared, and new ministers take oath, let them also contribute a share of their salary — to the same fund.
If those who govern and those who teach invest together, the collective strength will be unmatched.
The Fund will become not only self-sustaining — but the first institutional investor of free India."
A low hum of approval spread through the chamber.
Finance Minister Chetty smiled for the first time that evening.
"Now that," he said, "is a republic in action — every class investing in the same future."
---
Economic Shockwave
A long pause followed.
Prime Minister Anirban Sen finally spoke:
"Saraswati Ji, you're suggesting to turn the pension fund into an investor?"
"Yes, Prime Minister," she replied.
"Into a silent investor that strengthens the Republic while securing its people.
It will be our Reserve of Faith — in ourselves."
Chetty nodded gravely.
"She's not wrong. Every rupee paid to a retiree today is a rupee stolen from education or infrastructure tomorrow.
And the reserves left by the British are already being drained."
Jagjivan Ram added, "The colonial pensions never circulated wealth — they drained it. This would do the opposite."
---
The Prime Minister's Directive
Anirban Sen stood. The hall quieted instantly.
"Finance Minister Chetty, Minister Ram," he said, his tone crisp but thoughtful,
"Prepare a draft — within thirty days.
A complete restructuring of the pension model under Saraswati's guidance.
The fund must be self-sustaining, contributory, and investment-based — open to teachers, employees, and ministers alike."
Both ministers nodded.
Chetty hesitated. "Who shall lead this fund, Prime Minister?"
Sen looked toward Saraswati.
"I think the question answers itself."
The chamber erupted — some in applause, some in disbelief.
Patel chuckled.
"Well, if anyone can make government money behave like mathematics, it's her."
---
The Technical Debate
Economist K. T. Shah rose from the back, intrigued but cautious.
"What of inflation? Investment risk? Political misuse?"
Saraswati replied instantly:
"The fund's assets will be diversified —
40% gold and bullion,
30% domestic industry bonds,
20% land and infrastructure,
10% foreign reserves once we establish trade agreements. And this ratio will be changed every decade but the fund will be always invest atleast 20% percent of its fund in gold or bullion in future.
As for misuse — the fund shall be administered by a Board of Trustees, not by ministers.
Appointments by Parliament. Tenure-protected.
Audited annually by the Comptroller and Auditor General."
Ambedkar leaned in.
"Independent of the executive?"
"Completely," she said.
Even opposition benches murmured approval.
---
Closing the Session
As the clock struck 8:00 PM, Rajendra Prasad rose again.
"Very well. It shall be recorded in the minutes:
The Prime Minister has instructed the Ministry of Finance and the Ministry of Labour to prepare a proposal for the National Pension and Provident Fund.
Saraswati Devi will serve as Special Economic Advisor for its design."
Applause broke again, subdued but historic.
The Assembly adjourned for the night.
Saraswati gathered her papers.
Outside, rain drummed softly against the colonial dome.
For the first time, the Republic had not just promised rights —
it had planned their economics.
---
[End of Chapter 22 — "The Pension Question"]