Swavalamban Launched

Indian Union Finance Minister Pranab Mukherjee on 26 Sept 2010 launched a pension scheme, Swavalamban, for workers, in the unorganised sector who do not have access to the social security net. Under the scheme subscribers would get Rs.1000 from the government each year for a subscription amount of Rs.12000 per year. A subscriber can enter the scheme at the age of 18 years and will be eligible for pension after turning 60. Upon turning 60, the pensioner can withdraw 60 per cent of his contribution, while the balance will be given as a monthly annuity by the LIC. The scheme would remain valid for FY 2010 and for the next three consecutive fiscals. Rs. 100 crore was allocated for the scheme in the budget for 2010-11. The scheme will be managed by the Pension Fund Regulatory and Development Authority of India. The LIC has been appointed one of the many aggregators who will collect subscription amounts from subscribers.