Synopsis
The Central government is contemplating a Universal Pension Scheme to ensure social security for all Indian citizens. This voluntary scheme aims to provide pension benefits to individuals regardless of their employment status, including those in the unorganised sector, potentially transforming financial security for millions.Key Takeaways
- Universal Pension Scheme aims for social security for all.
- Voluntary participation regardless of employment status.
- Accessible to workers in the unorganised sector.
- Potential integration with existing pension schemes.
- Government may contribute to beneficiaries' accounts.
New Delhi, Feb 27 (NationPress) The Central government is contemplating the launch of a Universal Pension Scheme aimed at providing social security for every Indian citizen.
As per various reports, the Ministry of Labour and Employment has initiated talks with multiple stakeholders to develop the framework for this ambitious initiative.
At this stage, there has been no official announcement regarding the scheme.
The plan is anticipated to be voluntary, enabling individuals to participate irrespective of their employment status. This implies that anyone interested in making monthly contributions can enroll and benefit from pension provisions.
In contrast to current schemes linked to specific professions or sectors, this pension initiative will be inclusive, catering to workers across various industries, including those in the unorganised sector.
Presently, numerous workers, such as gig employees and domestic helpers, lack access to pension benefits.
The Universal Pension Scheme could transform this scenario by providing financial security to individuals not covered by existing pension programs.
The Employees’ Provident Fund Organisation (EPFO) is anticipated to serve as the lead agency for designing and implementing this scheme.
Reports indicate that the government may also contribute to the pension accounts of participants, either on a monthly or quarterly basis, to incentivize more individuals to join.
This method mirrors existing voluntary pension options like the National Pension Scheme (NPS) for traders and self-employed individuals, as well as the Pradhan Mantri Shram Yogi Maandhan (PM-SYM), which provides a monthly pension of Rs 3,000 post the age of 60.
These schemes necessitate contributions ranging from Rs 55 to Rs 200, with the government matching the contribution amount.
As part of the new initiative, some existing pension schemes might be integrated into the Universal Pension Scheme.
The government is also evaluating the incorporation of the Atal Pension Yojana into this framework, as per reports.
Currently overseen by the Pension Fund Regulatory and Development Authority (PFRDA), the Atal Pension Yojana offers retirement benefits to low-income workers.
Furthermore, authorities are investigating the potential use of the cess collected under the Building and Other Construction Workers (BoCW) Act to fund pensions specifically for construction laborers.
If executed, this initiative could be revolutionary for millions of workers, particularly those in informal employment, guaranteeing them financial stability in their old age.
