Pension scheme for unorganised sector launched

Jose K. Mani M.P. launching the State-wide Swavalamban Yojana, a National Pension Scheme for the Unorganised Sector, in Kottayam on Monday.

Workers have to contribute Rs.1,000 a year to Swavalamban Yojana

The State-wide launch of Swavalamban Yojana, the national pension scheme for the unorganised sector, was held here on Monday.

Speaking after launching the scheme, Jose K. Mani, MP, said that such welfare schemes, introduced by the Pension Fund Regulatory and Development Authority (PFRDA), had great importance in bringing the economic and social security initiatives of the Central government into fruition.

The scheme, promoted by the PFRDA, under the Central government, is implemented through selected agencies across the nation. ESAF Microfinance has been selected as the implementing partner for the scheme in seven States, including Kerala. PFRDA Executive Director Padma Iyer Kaul presented a detailed report on the pension scheme during the inaugural function.

In his welcome address, K. Paul Thomas, managing director, ESAF Microfinance, lauded the Central government for formulating such a policy. He also said that the scheme would benefit nearly 4.5 lakh ESAF clients spread across seven States in India.

Kottayam municipal chairperson Sunny Kalloor presided over the function.

PFRDA Deputy General Manager Rakesh Sharma, Deputy Labour Commissioner Joseph K. Paul, ESAF Microfinance board member R. Prabha, director operations George Thomas, and former MLA V.N. Vasavan spoke on the occasion.

Later, speaking at a press conference, Ms. Kaul said that through the Swavalamban Yojana scheme, the government aimed at providing protection to people working in the unorganised sector in their old age. A person joining the programme should contribute an amount of Rs.1,000 a year. The government should also contribute an equal amount annually until the financial year of 2013-14. The accumulating amount would be invested by the government in funds having growth prospects.

The beneficiaries will be able to avail of the pension when they turn 60, based on the amount accumulated. They will also have the option of withdrawing their respective amounts partially, subject to certain conditions.

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