Swavalam­ban for the Un­or­ga­nized Sec­tor

Consumer Voice - - Pension -

Swavalam­ban Yo­jana was last an­nounced by the Gov­ern­ment of In­dia in Gen­eral Bud­get 2010–11 with the ob­jec­tive of en­cour­ag­ing in­di­vid­u­als from the un­or­ga­nized sec­tor to vol­un­tar­ily save for their re­tire­ment. Un­der this model, in­di­vid­u­als from eco­nom­i­cally weaker sec­tions of the so­ci­ety can join the NPS in ‘groups’ through ‘ag­gre­ga­tors’ (a set of grass­roots in­ter­me­di­aries in­clud­ing state gov­ern­ment en­ti­ties, public sec­tor banks, re­gional ru­ral banks, mi­cro­fi­nance in­sti­tu­tions, non-bank­ing fi­nance com­pa­nies and pri­vate sec­tor en­ti­ties as iden­ti­fied by the PFRDA). This model brings the dis­ad­van­taged sec­tions into the main­stream of pen­sion wealth. Un­der this model, the cen­tral gov­ern­ment makes a con­tri­bu­tion of Rs 1,000 per an­num per ac­count/ sub­scriber to all el­i­gi­ble Swavalam­ban ac­counts where the sub­scriber’s own con­tri­bu­tion is be­tween Rs 1,000 and Rs 12,000 per an­num. The an­nu­ity pen­sion payable ev­ery month is 100 per cent of the ac­cu­mu­lated wealth in case the monthly pen­sion payable falls be­low Rs 1,000 per month. Sev­eral state gov­ern­ments have adopted this scheme to cover build­ing and con­struc­tion work­ers, an­gan­wadi work­ers and helpers, and other work­ers en­gaged in iden­ti­fied oc­cu­pa­tional groups. The idea is to in­cen­tivize vol­un­tary par­tic­i­pa­tion of work­ers from the un­or­ga­nized sec­tor.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.