Government Plans a Nationwide Pension Initiative
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New Delhi: The Central government is considering introducing a Universal Pension Scheme to provide social security for all Indians.
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Discussions Underway
According to multiple reports, the Ministry of Labour and Employment has initiated discussions with various stakeholders to develop the framework for this ambitious project. However, no official announcement has been made yet.
Voluntary and Inclusive Approach
The proposed scheme is expected to be voluntary, allowing individuals from all employment backgrounds to participate. Unlike existing schemes that are tied to specific jobs or sectors, this plan will be open to everyone, including workers in the unorganised sector, such as gig workers and domestic staff.
EPFO as the Nodal Agency
The Employees’ Provident Fund Organisation (EPFO) is likely to oversee the design and implementation of the scheme. Reports suggest that the government may contribute to the pension accounts of beneficiaries, either monthly or quarterly, to encourage participation.
Integration with Existing Pension Schemes
The new scheme could merge with existing voluntary pension plans, such as the National Pension Scheme (NPS) for traders and self-employed individuals and the Pradhan Mantri Shram Yogi Maandhan (PM-SYM), which provides a pension of Rs 3,000 after the age of 60. Contributions to these schemes currently range from Rs 55 to Rs 200, with the government matching the amount.
Additionally, the Atal Pension Yojana, which provides retirement benefits to low-income workers, may also be integrated into the Universal Pension Scheme.
Special Focus on Construction Workers
Authorities are exploring the possibility of using the cess collected under the Building and Other Construction Workers (BoCW) Act to fund pensions specifically for construction workers.
A Game-Changer for Informal Workers
If implemented, this scheme could transform the financial future of millions of workers, particularly those in informal jobs, by ensuring financial stability in their later years.
