7 mn unorganised sector workers to get pensions

April 12th, 2012 - 6:50 pm ICT by IANS  

Manmohan Singh New Delhi, April 12 (IANS) Aiming to benefit around 7 million workers in the unorganised sector, the cabinet Thursday provided additional funding support of Rs.2,065 crore to the Swavalamban Scheme of the New Pension System (NPS) upto 2016-17.

The cabinet also extended the benefit of the Swavalamban Scheme from three to five years for all subscribers enrolled between 2010-11 to 2012-13, Human Resource Development Minister Kapil Sibal told reporters after a cabinet meeting chaired by Prime Minister Manmohan Singh.

The exit norms of the scheme have also been relaxed to enable subscribers leave at the age of 50 years instead of 60 years, or after a minimum tenure of 20 years, whichever is later, Sibal added.

Swavalamban is a contributory pension scheme under which the central government contributes Rs.1,000 per annum in each NPS account opened with deposits of of Rs.1000 to Rs.12,000 per annum.

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