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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