Unorganised sector workers to get pension of Rs 1,000 a year

The Union Cabinet today approved the implementation of the Swavalamban scheme to cover workers in the unorganised sector and provide old-age security to all sections of society, particularly of the vulnerable sections. The proposal is to provide a support of Rs 1,000 crore over a period of four years till 2013-14 as contribution to subscribers of the New Pension System (NPS) covered by the Swavalamban initiative. Under this scheme, the government will cover one million subscribers each in four years, beginning 2010-11. The scheme will encourage people from the unorganised sector to voluntarily save for their old age. A higher level of NPS enrolment from the informal sector will ensure old-age income security for retired subscribers and thus decrease the burden of the government on social security in the future.

Initially, the government had launched NPS for central government employees joining service from January 1, 2004, but from May 1 last year it was extended to all citizens. However, it received a lukewarm response and only around 8,000 subscribers joined the scheme in 14 months.

The government would also provide about Rs 100 crore to the Pension Fund Regulatory and Development Authority for promotional and developmental activities for enrolment and contribution collection under the Swavalamban scheme.

The Cabinet also approved a proposal to form societies to run six institutions modelled on the premier All India Institute of Medical Sciences (AIIMS) under a centrally-sponsored project. These societies will run the institutions being set up under the Pradhan Mantri Swasthya Suraksha Yojana till these bodies are brought under an Act of Parliament. In addition, the government today approved transfer of defence land to the Kendriya Vidyalaya Sangathan at Samba in Jammu and Kashmir, Nabha in Punjab and Imphal in Manipur for construction of schools to educate wards of military personnel.