Global tensions involving Iran, Israel and the United States have triggered market volatility that is eroding the retirement savings of government employees in Telangana. In just two weeks, an estimated 1,300 crore has been wiped out from contributory pension accounts, with individual losses ranging from 40,000 to 2 lakh depending on fund exposure and performance.

The contributory pension system, introduced in 2004, covers around 2.60 lakh employees, including nearly 80,000 teachers. Under this market-linked structure, employee and government contributions are invested in equity and debt instruments, making returns vulnerable to market swings. Recent declines have sharply reduced account balances, highlighting the risks tied to global economic instability.

The losses have reignited demands to scrap the contributory model and restore the old pension scheme that guarantees fixed post-retirement income. Employee unions argue that retirement savings should be protected from international market fluctuations and are urging the state government to fulfill its election promise to reinstate a guaranteed pension system backed by the government.