Yojana July 2017 Comprehensive Summary / Gist: Social Security (Download PDF)

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Why? By 2026: Elderly population in India – 173 million. Majority: Poor, underprivileged & women – need financial & psychological support. Social security provided in Article 43 of Constitution. “If a free society cannot help the many who are poor, it cannot save the few who are rich” – J. F. Kennedy. Problem lies in sustainability of public pension scheme – increase in beneficiaries. MDCs: by 2050, 1/3rd population would be more than 60 years. Increase in elderly population from 7 % to 14 % in 100 - 120 years in EU nations can happen in India & China in only 40 years. India: Home to 1/5th world population, 1/3rd poor population & 1/8th elderly population of world.

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Yojana July 2017 Summary: Social Security (In English)

Dr. Manishika Jain presents the summary of Yojana July 2017. The highlights include - social security projects.

Traditional Old Age Security under Stress Due To:

  • Increase in life expectancy
  • Disintegration of joint family system
  • Non-availability of caregivers
  • Lower incidence of widowhood
  • Migration of Youth
  • Urbanization & occupational changes

Build a Knowledge – Base on Population Ageing in India (BKPAI Survey)

  • Jointly by UNFPA, IEG, ISEC & TISS on “Status of Elderly”
  • B/w 2000 to 2030 – population to increase by 360%
  • As of 2011 – 104 million elderly
  • 45 % elderly with Antyodaya or BPL card
  • 1/3rd elderly have monthly per capita expenditure less than Rs. 1000
  • Elderly women mainly widow are vulnerable with no income, no asset & full financial dependence
  • 1/3rd of poorest elderly live alone or with spouse

Government Initiatives

  • Awareness around 70 - 80 % but only 15 - 20 % avail it
  • Indira Gandhi National Old Age Pension Scheme (IGNOAPS): Launched in 1997 as GNOAPS & renamed as IGNOAPS in 2007 – Pension Rs. 200/month for 60 - 79 years & Rs. 500/month for above 80 years
  • Indira Gandhi National Widow Pension Scheme: In 2009 BPL widow of age group 40 to 64 years with Rs. 200/month, after 60 years - IGNOAPS
  • National Program for Elderly – concessions
  • Rashtriya Vayoshri Yojana: Physical aids to senior citizens – Rs. 484 crore to benefit 5.56 lakh people from BPL in 260 districts in next 3 years
  • Demand for Universal Pension Scheme – For men (55+) & women (50+) for Rs. 2000/month or 50 % of minimum wage
  • Atal Pension Yojana, 2015: For unorganized sector with pension Rs. 1000 to 5000/month. Govt. to contribute 50 % or Rs. 1000 whichever is less – Govt. to contribute for 5 years only. Applicants in age 18 - 40 years
  • Jan Suraksha Bima Yojana, 2015: Accidental insurance at Rs. 12 annual premium – For death or full disability Rs. 2 lakh will be paid while for partial disability Rs. 1 lakh will be paid
  • Jan Dhan Account: with zero balance, will provide accidental coverage of Rs. 1 lakh & life insurance of Rs. 30, 000 after death. By Feb 2017 – 27 crore accounts opened
  • PM Jeevan Jyoti Bima Yojana, 2015: Rs. 2 lakh to family of policy holder after death, premium of Rs. 330 per year

State Schemes

  • Briddhashree & Sanjbhati scheme – W. Bengal
  • Madhubabu Pension Scheme - Odisha
  • Shravanbal Pension Scheme & Sanjay Gandhi Destitute Women Pension Scheme – Maharashtra
  • Atta Dal Scheme - Punjab

NPS

  • Prior to 2004
  • Central Govt. 1972: Pay as you go benefit till 2004
  • Social pension to BPL above 60 years – National Social Assistance Program
  • EPFO: administers Employee Provident Fund & Employees’ Pension Scheme – for establishments with more than 20 employees
  • Separate PF for coal mines, Assam tea, seamen – based on occupation
  • Superannuation or retirement pension plan by LIC or mutual fund & PPF
  • New Pension Scheme renamed to National Pension Scheme (NPS) – contribution under Pension Fund Regulatory & Development Authority (PFRDA) – Initially for Govt. Employees after 2004 on mandatory basis & later from 2009 to all Indian Citizens on voluntary basis. For Govt. employees: 10 % of pay & equal amount contributed by employer – PRAN
  • CRA – Central recordkeeping agencies – keeps record of the data of individual subscriber & coordinates among functionaries in NPS
  • NPS account opened by Drawing & Disbursing Officer (DDO) or Pay & Accounts Officer (PAO)
  • eNPS: with Aadhaar, PAN & KYC documents
  • from 2004 to 2008 – NPS contribution maintained by Central Pension Accounting Office
  • After 2008: Remitted to PFRDA appointed trustee bank after March 2008
  • Tier I: Mandatory, partial withdrawals not more than 25%- 3 withdrawals throughout accumulation phase, 1st after 3 years of Joining
  • Tier II: Optional Investment – flexibility of contribution and withdrawal of funds, no tax deductions
  • After 60 years, subscriber has to annuities minimum 40 % accumulated balance for periodic pension & 60 % withdrawal in lumpsum. 40 % lumpsum withdrawal is tax exempt.
  • NRI can open NPS on repatriable or non-repatriable basis
  • Benefits in Tax: deductible under section 80CCD of Income Tax Act
  • NPS contributions allotted to SBI pension fund, UTI retirement solutions & LIC pension fund

Investment Guidelines:

  • 50 % in govt. securities
  • 45 % in debt instruments
  • 15 % in equity
  • 5 % in short term debt instruments
  • 5 % in asset backed trust structured investment

Subscribers other than govt. employees – have 8 options – HDFC, ICICI, Kotak, LIC, Reliance, SBI, UTI, Birla Sun Life

Asset Class:

  • Conservative – 25 % exposure
  • Moderate – 50 % exposure
  • Aggressive life cycle: 75 % exposure

As of June 2017 – 10.7 million subscribers – NPS contribution of Rs. 142, 263 crore & total asset of Rs. 184, 948. Govt. employees form 49 % of total subscribers

Tele-Law

  • Launched to connect citizen to legal service provider with technology enabled platform
  • Every Common service Center will have Paralegal volunteer – 1st point of contact for rural citizen

Health – Refer Kurukshetra July 2017

  • Beveridge Committee Report in 1942 – Social security as “freedom from want”
  • Health for All by 2000
  • Worldwide: 30 baht scheme in Thailand, decentralization reform & social health insurance in Indonesia, Unified health system in Brazil
  • Rashtriya Swasth Bima Yojana, 2008: financial protection against health expenditure for BPL, covers Rs. 30, 000 for hospital based inpatient care & annual registration fee of Rs. 30

State Schemes

  • Vajpayee Arogyashri Scheme for BPL & Yeshasvini Cooperative farmers Healthcare Scheme in Karnataka
  • Rajiv Gandhi Arogyasri Scheme in Andhra Pradesh
  • CM Health Insurance Scheme in Tamil Nadu
  • Rajiv Gandhi Jeevandayee Arogya Yojana in Maharashtra
  • Mukhyamantri Amrutam Yojana in Gujarat
  • Sanjeevani Kosh in Chhattisgarh

Nari Shakti

  • Maternity benefit act, 2017 – increase maternity leave to 26 weeks from 12 weeks, assistance of Rs. 6000 to pregnant & lactating mother, cash incentives.
  • Mahila e-haat: marketing platform for women entrepreneurs and meet their needs and aspirations
  • PM Ujjwala Yojana: Free LPG connection to BPL women – 37 % beneficiaries from ST/SC – liberated 2 crore women from smoke
  • Cell phone with panic buttons
  • “Himmat” mobile app for women in distress
  • 186 Sakhi centers for women affected by violence
  • PM Mudra Yojana: 70 % loans availed by women entrepreneurs
  • Nai Roshni – confidence in minority women – 2 lakh women covered in last 3 years

Empower Differently Abled

  • Article 14 (7th Schedule): No person will be denied equality before law
  • Article 41: Secure right to work, education, old age & sickness
  • National scholarship for students with disability – Class 9 onwards
  • Financial assistance to procure computers with editing software for students
  • 3 % reservation to disabled students in educational institutes
  • Comprehensive Education Scheme for Disabled Children – free infrastructure & transport, books, uniforms and stationary
  • Inclusive education for disabled at secondary stage – Aged 14 years or above to complete education from Class 9 to Class 12
  • Rajiv Gandhi fellowship scheme for higher education like M. Phil. and PhD
  • 5 % reservation in Group A, B, C & D posts
  • Age relaxation for 10 years for recruitment
  • Reserve position in department based on work
  • Recruit person with disability to group C & D on regional basis
  • Establish special employment exchange
  • Provide employment in private sector through incentives
  • Ministry of Petroleum & Natural Gas has reserved 7.5 % of all types of dealerships
  • National Handicapped Finance & development Corporation – loan to person with disability for self-employment
  • Scheme for Public sector banks for orphanages, women homes & physically handicapped persons
  • Assistance to disabled persons to purchase or fit of aids
  • Indira Awaas Yojana – free of cost housing to BPL rural poor – 3 % for disabled
  • Scheme for National Award for empowerment of persons with disabilities
  • Trust fund for empowerment of persons with disabilities
  • Employee Compensation Act, 1923 (previously known as Workmen Compensation Act, 1923) – employer to pay compensation for employment related injury leading to death & disability
  • 10th Plan: Component plan for disabled in budget of all ministries
  • Inclusive India Initiative: by National trust for persons with intellectual and developmental disabilities – to bring them in mainstream – Inclusive education, employment & community life

Farmer Welfare

  • Bringing Green Revolution to Eastern India
  • Integrated Scheme for Oilseeds, Pulses, Oilpalm and Maize
  • National Food Security Mission
  • Rashtriya Krishi Vikas Yojana
  • Warehousing Development and Regulatory Authority
  • Crop Investment Scheme – area approach to yield insurance
  • PM Fasal Bima Yojana – lowest premium with highest coverage
  • Paramparagat Krishi Vikas Yojana – promote organic farming
  • Soil health Card – improve soil productivity
  • Agriculture Produce Marketing Committee act amended
  • National Food Security Act, 2013 – focus on distributing cereals
  • MDG Goal 1: India to reduce malnourished children from 53.5 % in 1990 to half in 2015

Attain SDG Goals

  • Goal 1: No poverty
  • Goal 2: Zero hunger
  • Goal 3: Good health and wellbeing
  • Goal 4: Quality education
  • Goal 5: Gender equality
  • Goal 6: Clean water and sanitation
  • Goal 12: Sustainable consumption & production
  • Goal 13: Climate action
  • Healthy food habit – fruit, vegetables, grains & proteins
  • Governance & accountability
  • Revamp targeting mechanism
  • Update food component of poverty line – Healthy Eating Index for India
  • Urbanization & lifestyle leads to obesity issues
  • IARI established in Gogamukh, Assam
  • Hill Area development Program for Northeast – Manipur, Tripura & Assam

Global Scenario

  • Article 22 of UNHR: Everyone as a member of society is entitled to realization, through national effort & international cooperation in accordance to state
  • It works since the time of emperors and kings
  • Germany was the leader under Bismarck – compensation program, sickness & social insurance program
  • UK – Workmen Compensation Act in 1897 followed by National Insurance Act, 1911 – 1st unified social security after WW II – many initiative by Beveridge for health
  • USA: b/w 1900 & 1920 – from pension to social security, Under Roosevelt – Social Security Act of 1935 – which led to Unified National Social Insurance System in 1943
  • France: 1946 under Pierre Laroque designed social security system
  • ILO declaration of 1944 – effective national and international action & in 1952 adopted social security convention – as of 2014, only 27 % population has access to social security
  • Finland: Most advanced and comprehensive social security system in world
  • China: schemes are customized to provinces
  • Cuba: Universalized & burden lies on government
  • Japan: mandatory participation of everyone
  • Challenge: Implementation of social security scheme, lack of institutional capacity

What India Can Work On?

  • Develop roadmap for universalization – inclusion of target beneficiaries
  • Establish autonomous national social security organization
  • Develop social security investment plan with innovative financing mechanism
  • Focus on solidarity and public awareness
  • Consider Universal health Coverage as part of social security
  • Leadership of state government
  • Legislative & legal reforms

Benefits to Be Covered as Per ILO Convention, 1952

  • Old age benefits
  • Survivor benefits
  • Sickness leave
  • Employment injuries
  • Disability benefits
  • Unemployment benefits
  • Family benefits
  • Medicare
  • Maternity Benefit
  • Social Assistance for those who cannot reach guaranteed social minimum

Healthy Learning

  • Mid-day Meals Program: Covers 10 crore children across 11.5 lakh schools & employs 25 lakh women
  • Scholarships: Merit-cum-Means, for girl child, ST/SC/OBC, National Scholarship Portal
  • SANKALP: market relevant training to 3.5 crore youth
  • SWAYAM: free online virtual learning platform – anytime, anywhere
  • ISHAN Uday: Promote higher education in North East for 10, 000 students, Scholarship of Rs. 5400/month for general student & Rs. 7800/month for professional courses
  • Establish 10 new AIIMS
  • Biometrics – UID for mid-day meals program

Helping Marginalized

  • Khoya Paya Portal
  • Child care institutions & open shelters for destitute children
  • Constitutional status to new OBC commission
  • Land titles to tribals and forest dwellers – 52 lakh titles distributed
  • Venture Capital Fund for SC in 2014 - 15
  • Focus on tribal education with 13, 340 new seats in ST hostels
  • Eklavya Model residential Schools: High quality education to tribal students
  • NEET – common entrance exam
  • Nai Manzil: Mobilize school dropouts from minority community to join formal education
  • USTTAD: Upgrade skill & training to preserve traditional ancestral arts

Unorganized Sector

  • India has 84 % worker in informal sector & 90 % in informal employment
  • Informal Sector

Table Contain Shows the Self-Employed (%) in informal sector

Table Contain Shows the Self-Employed (%) in informal sector

Region

Self-Employed (%) in informal sector

Casual Workers

Regular Workers

Rural

97%

78%

42%

Urban

98%

81%

40%

  • 472.9 million of total workforce
  • 3 social protection are mission: employment, work & social security are missing
  • 2008: Unorganized Workers Social Security Act
  • Universal program for basic development
  • Social and human development schemes for security to vulnerable citizens
  • Hike minimum wage by 42 % in agricultural & non-agricultural areas
  • Bonus eligibility cap increased from Rs. 10, 000 to 21, 000/month
  • Unique account number to all members of EPFO
  • Establish code on social security and welfare.

Includes laws related to social security and 15 labor laws. Proposes 3 tier social security administration

  • National Security Council headed by PM
  • Central Board of Social Security at Union Level
  • State Board of Social Security at State Level

Have unique Aadhar based registration & portable social security account (Vishwakkarma Karmik Suraksha Khata)

Reforms under MGNREGS

  • 58 % rural population involved in agriculture
  • Resolve agricultural distress – drought proofing, flood control, micro irrigation, water conservation
  • 50 days of extra work in 8 drought affected states for FY 2017 - 18
  • Convergence work in eastern and central zones
  • Bharat Nirman/Swachh Bharat – to dug wells, ponds, individual land works etc.
  • PM Krishi Sinchayee Yojana & Integrated Watershed management Program
  • Mihir Shah Committee, 2013: Include new works in MGNREGA for better agricultural productivity
  • Project-LIFE: to develop skills among workers for 41 trades, option to develop skill of entrepreneurship & extend skill upgradation
  • Direct Benefit Transfer (DBT): enable direct transfer of entitlement like scholarship, pension, wage etc.
  • States must adopt e-FMS (Fund management System)
  • Monitor work – realize actual outcomes as against expected ones & workwise category analysis of outcomes
  • 30 lakh hectare of rainfed area will have water conservation works, irrigation in 9 lakh hectares & afforestation in 6 lakh hectares
  • 100 days of employment % wages paid by e-FMS increased from 37 % in 2013 - 14 to 96 % in 2016 - 17

Corporate Social Responsibility (CSR)

Protect interest of communities

Issued in subsection 1 of section 135 of Companies Act, 2013, provisions include:

  • Net worth of Rs. 500 crore or more
  • Turnover of Rs. 1000 crore or more
  • Net Profit of Rs. 5 crore or more

Around 8, 000 companies come under this Spend atleast 2 % of profit in last 3 years on CSR Aims to empower the marginalized Sabka saath, Sabka Vikas 360 degree approach with contribution from multiple stakeholders Budget of Rs. 10, 000 to 12, 000 crore per annum Skilling & livelihood opportunities for differently abled – Divyang.

As of 2011 census, 2.21 % disabled Self-help Group & Micro Enterprise

  • Elderly Population
  • Slum Development

NPS Lite/Swavalamban Scheme – encourage people from under-privileged group in unorganized sector to voluntarily save for retirement. Co-contributory pension scheme with minimum Rs. 1000 to maximum Rs. 12000 per annum.

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Yojana July 2017 Summary: Social Security (In Hindi)

Dr. Manishika Jain presents the summary of Yojana July 2017. The highlights include - social security projects.

- Published/Last Modified on: November 22, 2017

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