Lifetime pension for aged under BPL

NEW DELHI: There is good news for senior citizens. The government plans to provide them life-long financial support under a monthly pension scheme.

“The government is considering a proposal to provide Rs 400 per month to all senior citizens over 65 falling in below poverty line (BPL) category,” an official said. Currently, the old age pension scheme covers only destitutes.

The proposed scheme would be an extension of the proposed social security scheme for the unorganised sector workers. A legislation to this effect has already been finalised by the government.

“The existing old age pension scheme only provides monetary support to destitute. But this classification is vague. It has now been proposed to extend the scheme to all persons above 65 years in the BPL families,” he said.

Once implemented, the scheme would benefit 1.57 crore individuals. The Centre is expected to fork out Rs 3,768 crore annually to run the scheme under which Centre would provide support of Rs 200 per month while a matching contribution would have to be made by the states. Only 11 states are presently giving their contribution.

The source said that under social security for unorganised workers, another scheme may be launched that would provide windows in BPL families a higher pension of Rs 600 per month and disabled in category a pension of Rs 400 per month. The schemes would run on 75:25 support from the Centre and the states, with the former’s share working to about Rs 7,400 crore annually while the states would have to provide Rs 2,500 crore annually.

The government is also planning to provide maternity benefits to women of BPL families to the extent of Rs 3,000. This may be offered in instalments of Rs 500, three months before and after the delivery.

The rejig in the social security schemes may also extend the coverage of universal health insurance scheme (UHIS) for BPL families to all National Rural Employment Guarantee (NREG) scheme beneficiaries.