New pension scheme for low-income workers to be launched Sunday

NEW DELHI - A new pension scheme for low-income workers in the unorganised sector, for which the government will grant an incentive of Rs.1,000 annually, will be launched in West Bengal Sunday.

Finance Minister Pranab Mukherjee will formally launch the new scheme, called Swavalamban (self-reliance) Scheme, in the state’s Murshidabad district, an official statement said Saturday.

“The scheme is applicable to all citizens in the unorganised sector who join the New Pension Scheme (NPS) subject to their meeting the eligibility criteria,” the statement said.

In his budget speech this year, Mukherjee said the government would contribute Rs.1,000 annually to each NPS account opened in 2010-11 and for the next three financial years - 2011-12, 2012-13 and 2013-14.

The scheme, which will function under the Life Insurance Corporation (LIC), will be funded by grants from the central government. The operational guidelines of the scheme have already been approved.

To be eligible for the scheme, a person will have to make a minimum contribution of Rs.1,000 and maximum contribution of Rs.12,000 per year.