Increase in premium led to fall in pension scheme enrolment: House Panel

Discontinuation of premium share from the social security fund and the consequent increase in contribution of state governments and beneficiaries is the ‘primary’ reason for a decline in enrolment of handloom workers under the pension schemes run by the textiles ministry, a parliamentary standing committee on labour said in its latest report released on Friday.

To provide universal and affordable social security in case of natural or accidental death and total or partial disability, the ministry runs three schemes -- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and the Converged Mahatma Gandhi Bunkar Bima Yojana (MGBBY). 

The committee noted that after the implementation of the full premium payment regime in April 2020, there was ‘nil’ enrolment under the PMSBY and PMJJBY in 2020-21. Afterwards, the number of enrolments of handloom workers under PMSBY and PMJJBY picked up to 111,957 in 2021-22, but came down to nearly half to 62,286 in 2022-23. 

Manipur saw the steepest decline among states under the PMSBY, as the number of beneficiaries fell to 27,488 in 2022-23 from 107,565 in 2021-22. Meanwhile, the MGBBY is yet to see any enrolment since 2020-21. 

“Despite taking up the matter with the states several times, the states have not been contributing their share. As the outcome of the schemes is not up to the desired level, the committee would exhort the ministry to strengthen their monitoring and coordination mechanism,” the panel stated.

Earlier in April 2020, the finance ministry had issued a clarification that the schemes be implemented with full premium payment regime, which meant that the social security share of Rs 100, which was earlier borne by Life Insurance Corporation, will be borne by state government or beneficiary. Later in June 2022, the government hiked the PMJJBY premium rates from Rs 330 to Rs 436 and PMSBY rated from Rs 12 to Rs 20.

Besides, the committee asked the ministry to expedite the procedure of issuing the identity cards to the handloom weavers/handicrafts artisans, which entitle them to avail benefits of various scheme, as only half of the eligible beneficiaries (1.71 million) of 3.52 million handloom workers have been issued. The situation is, however, better in the case of handicraft artisans, as 2.67 million of 3 million identified artisans have been issued Pahchan Cards. 

The committee also pitched for exploring the possibility of issuing a ‘credit card’ to the handicraft artisans on the lines of Kisan Credit Card so that these artisans can derive the benefit of some form of financial assistance under indigent circumstances.