Under the scheme, which would be administered by the Pension Fund Regulatory and Development Authority (PFRDA), the government would contribute Rs 1,000 per year to every New Pension System (NPS) account of such workers over four years starting this fiscal. The assistance is subject to the beneficiary contributing any amount between Rs 1,000 to Rs 12,000 per annum, according to an official statement.
Union Finance Minister Pranab Mukherjee in his budget speech last year had announced to launch the scheme in the current fiscal. In the absence of any tangible social security measure, a large number of 300 million informal sector workers are highly vulnerable to old age poverty because they have traditionally been excluded from formal pension provisions.
The old age income security system in the country covers only the organised sector, comprising the public sector (including the civil service) and the establishments covered under the Employees' Provident Fund Organisation (EPFO) or other statutory funds.
Speaking at a sensitisation workshop on the new pension scheme in Aizawl today, state Finance Minister H Liansailova appreciated the initiatives taken by the central and the state government to give social security to the unorganised sector workers.
He said such sensitisation workshop was necessary as many beneficiaries would be unaware of the scheme. According to official statement, altogether 15,977 people are getting pension and family pension from the state government. As much as Rs 272.80 crore has been allocated in the 2011-2012 budget for the purpose.