Universal Pension Scheme for All; Traders, Businessman to Benefit

New Delhi: The government is planning a Universal Pension Scheme (UPS) to offer social security for everyone.

The Union Ministry of Labour and Employment is developing the suggested plan, which would enable voluntary contributions and post-retirement pension payments.

No Government Contribution to the New Pension Plan

According to a ministry official, self-employed and unorganized sector workers can also participate in the planned system and contribute funds because it is available to everyone.

However, the government is unlikely to make any financial contributions to the new plan.

According to the official, the government anticipates that a wide range of people will profit from the program, including independent contractors, workers in the unorganized sector, gig workers, dealers, and anyone over the age of 18 who wishes to receive pension payments after reaching 60. 

Merging Existing Pension Schemes

It is probable that the new plan will incorporate current pension plans such as the Atal Pension Yojana, the National Pension Scheme for Traders and Self-Employed (NPS-Traders), and the Pradhan Mantri Shram Yogi Maandhan (PM-SYM).

What is Universal Pension Scheme (UPS)?

The Universal Pension Plan will be a voluntary, contributory pension plan. Since it would be accessible to all citizens over the age of 18, it would be especially helpful to traders, self-employed individuals, and those working in the unorganized sector, who typically do not have access to traditional pension plans. By combining all current pension plans under one roof, the program seeks to increase participant accessibility and benefits.

Involvement of State Governments

In order to boost pension benefits and prevent beneficiary duplication, the government will begin talks to persuade state governments to combine their pension plans with this new effort, the official stated.

Social Security for Individuals

Many nations have adequate social security programs. Currently, the provident fund system is the primary foundation of India's social security system.

Other programs, such as health insurance and old-age pensions, are specifically designed for people who are below the poverty level.

According to the source, the planned UPS intends to increase coverage and establish a more inclusive pension system for the nation's workers.