The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Yenne Raja sekhar, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur
According to National Sample Survey Organization, about 88% of labor force consists of unorganized sector. These don’t have any provision after their retirement. So Government of India has launched Atal Pension Yojana in recent Lok Sabha session. This plan would be implemented from June 1st, 2015 and would be administered by Pension Fund Regulatory Development Authority of India.
The existing Swavalamban Scheme launched by UPA government is lacking of benefits that are to be provided after age of 60. The minimum age for joining this program is 18 years and maximum age would be 40 years. People receive varied retirement benefits base on their contributions and age at which they join the scheme. For the scheme to be availed, subscribers need to have a bank account opened. Government would be contributing 50% of the amount or 1000 per year whichever is lower. If contributed amount is Rs. 48, individual would be receiving Rs.1000 per month and if contribution is Rs.248, would be receiving Rs.5000 per annum.
I hope among all the schemes Government has initiated, it is one of advantageous schemes that support unorganized sector employment in India. It would benefit about 41.61 crore people that guarantee their future after retirement.