The list is still not complete, but the argument is. Whatever else Mr Karat’s policies do, they will not be able to match the returns that equities give. A citizen investing Rs 10,000 per month in a 6.2 per cent G-Sec will retire, after 30 years, with Rs 1 crore. The same person has the potential to retire with almost triple the wealth (Rs 3 crore) if we take Damodaran’s equity premium, while Mehra’s premium will take care of this saver’s next generation with a kitty of almost Rs 11.6 crore.

I suppose the technical and economic debate is over. Yes, there will be short-term risk. But pension funds are long-term instruments that can smoothen outvolatility. The bigger issue is choice: do I as a free citizen in a free country have the right to invest my money in a low-cost, higher-return product?

Besides, who will invest in G-Secs when alternate avenues like PF and small savings give 8-9.5 per cent? This ‘reform’ in its present form of equity-free investments will die a financial death before it comes to life. Quite like Mr Karat’s 100 per cent debt wish, pension reforms too have to be 100 per cent reforms.