Riders in unorganised sector pension scheme leave major chunk of intended beneficiaries out

Another rider is that only spouses can be the nominee and can avail 50 per cent of the pension if the beneficiary dies.

Published: 11th February 2019 09:46 AM  |   Last Updated: 11th February 2019 10:29 AM   |  A+A-

By Express News Service

NEW DELHI: Within a week of Finance Minister Piyush Goyal announcing a new pension scheme for the unorganised sector, a notification from the labour minister has put a number of riders, leaving a major chunk of the intended beneficiaries out.

According to the Ministry of Labour and Employment notification issued on February 7, an unorganised worker above 18 and below 40 years, with a monthly income less than Rs 15,000, can join the ‘Pradhan Mantri Shram Yogi Maan-dhan 2019’ scheme. This allows for a Rs 3,000 per month pension from the age of 60 years, starting February 15. This scheme is open to those with saving accounts and Aadhaar. It said persons covered under National Pension Scheme, contributed by the Central Government or Employees’ State Insurance Corporation Scheme under the Employees’ State Insurance Act, 1948, or Employees’ Provident Fund Scheme under the Employees’ Provident Fund, can’t join the scheme.

Another rider is that only spouses can be the nominee and can avail 50 per cent of the pension if the beneficiary dies. After the death of the subscriber and spouse, the corpus will be credited back to the Pension Fund. The notification also said that if an eligible subscriber defaults in the payment of the contribution, he shall be allowed to regularise his contribution by paying the entire outstanding dues along with interest at the rate determined by the Ministry of Labour and Employment from time to time.

The notification also has a harsh exit clause. “In case an eligible subscriber exits this scheme within a period of less than 10 years from the date of joining the scheme, then the share of contribution by him only will be returned to him with savings bank rate of interest payable thereon,” the notification added.
Experts claim that the notification will leave a majority of people out. “I do not think this is a labour friendly initiative,” a member of All India Central Council of Trade Unions said.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp