Punjab State Farmers Commission (PSFC) and Punjab Agro Industries Corporation (PAIC) on Wednesday signed a memorandum of understanding with UCO Bank to promote National Pension Scheme (NPS) among rural people, especially farmers.
A spokesperson of the PAIC said NPS, which was introduced in 2004, is regulated by the government of India through Pension Fund Regulatory and Development Authority (PFRDA). He said the objective of this scheme was to provide old-age income security. However, the scheme had not been able to attract rural masses due to a lack of awareness and a proper platform for opening accounts and contributing funds.
PSFC Chairman G S Kalkat said there was a need to create awareness among the rural population to contribute in the pension fund to ensure that regular income could be obtained when a person grows old. He also said the agriculture department and PAIC would work closely with the UCO Bank to sensitise people to open their pension accounts and deposit funds on a half-yearly basis so that sufficient capital is generated to guarantee old-age pension when a person turns 60.
K S Pannu, managing director of PAIC, said the greying of Punjab's population would impact the social and economic structure of society. He said the annual growth rate of population in the state had declined from 1.85 per cent in the previous decade to 1.30 per cent in the decade ended 2011 according to the census data. He said the proportion of children in the total population had also declined by 2.40 per cent in the corresponding period whereas the average life expectancy in the last 10 years had increased by eight years.
Pannu added that due to the slowing of the population growth rate and increase in longevity, the traditional family support system for the older population was going to face a severe social and economic strain, the symptoms of which were already visible in society.
Therefore, there was a need for old age economic security from regular income through the system of pension arising from contribution by a person during his young age.
V K Srivastava, general manager, UCO Bank, said any citizen in the age group of 18-60 years could enroll in NPS by opening an account in block level branches of UCO Bank.
Where he would be given a Unique Permanent Retirement Account Number. A person could contribute Rs 6000 and above annually in the fund which would be invested by PFRDA. He said the pension fund would be transferred to the nominee after his death.
