Monday, October 4, 2010

Milestone of India - Milestone of India - Pension Scheme for Unorganised Sector Workers.


JANGIPUR (WEST BENGAL): Union Finance Minister Pranab Mukherjee on Sunday launched a pension scheme for workers in the unorganised sector who do not have access to the social security net.

“I launched the scheme to coincide with the 78th birthday of Prime Minister Manmohan Singh. This scheme will help those who are not covered under any social security scheme,” Mr. Mukherjee said after unveiling the programme at a function here in Murshidabad district.

Validity period

Under the scheme — which is named ‘Swavalamban' — subscribers would get Rs.1,000 from the government each year for a subscription amount of Rs.12,000 per year. The scheme will remain valid for this financial year and for the next three consecutive fiscals.

Mr. Mukherjee has already allocated Rs. 100 crore for the scheme in the budget for 2010-11. It will be managed by the Pension Fund Regulatory and Development Authority of India.

A subscriber can enter the scheme at the age of 18 years and will be eligible for pension after turning 60.

Mr. Mukherjee said 87 per cent of the country's workforce would benefit from the ‘Swavalamban' scheme, adding that there were eight crore people above 60 who were not getting pension.

This figure will rise to 20 crore over the next 17-18 years.

On turning 60, the pensioner can withdraw 60 per cent of his contribution, while the balance will be given as a monthly annuity by the LIC. The LIC has been appointed one of the many aggregators who will collect subscription amounts from subscribers.

Higher pension amount

Mr. Mukherjee said that while announcing the scheme in the budget, he had asked the State governments to join the programme so that pensioners could benefit by getting a higher pension amount.

Responses

“However, only two states — Haryana and Karnataka — have responded to the scheme,” he said.

Minister of State for Finance N.N. Meena, LIC chairman T.S. Vijayan and other senior Finance Ministry officials were present at the event. — PTI

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