Government to give Rs 2,065 cr more to Swavalamban pension scheme

NEW DELHI: In a move that will benefit 70 lakh unorganised sector workers, the Centre today approved an additional support of Rs 2,065 crore to Swavalamban Scheme, a pension programme, and also extended the funding support to subscribers for another two years.

Extending funding support for implementing the scheme under the New Pension System (NPS) from present three years to five years for all subscribers enrolled during 2010-11, 2011-12 and 2012-13 has been approved, HRD and Telecom Minister Kapil Sibal told reporters after the Cabinet meeting.

The Cabinet, he said, provided an additional funding support of Rs 2,065 crore to the scheme upto 2016-17 towards government's co-contribution to the subscribers and also for promotional and developmental activities.

"This will benefit 70 lakh workers of the unorganised sector till 2016-17," Sibal said.

Also, the exit norms of the scheme have been relaxed to enable Swavalamban subscribers to exit at the age of 50 years instead of 60 years, or a minimum tenure of 20 years, which ever is later.

In 2010-11, there were about 3.02 lakh subscribers under the scheme, whereas during 2011-12 (till March,9, 2012) there were 1,93,238 subscribers.

The Swavalamban Scheme is a co-contributory pension scheme under which the Central Government contributes a sum of Rs 1,000 per annum in each NPS account opened and having a saving of Rs 1,000 to Rs 12,000 per annum.

The scheme is aimed at benefiting anganwadi workers, construction workers, occupational classes like weaver, fishermen, farmers and dairy workers, Sibal added.

The New Pension System aims at providing retirement income to every citizen.