In the absence of a social security scheme, India should urgently introduce a universal pension scheme to ensure economic security for its retired and elderly population. This is the demand of several associations working for the welfare of retirees and pensioners.
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The country has an elderly population of 13.8 crore, as on 2021, of which 7.1 crore are women. The population of those above 60 is expected to reach 22.7 crore by 2036, which would constitute 15% of the country’s population, and 34.7 crore by 2050, which would be 20.8% of the total population.
Breakdown of joint family
“The country has no social security scheme to support elderly persons when they are in great need of economic support to lead a dignified life. The breakdown of the joint family system has only aggravated the struggle of the elderly,’‘ said G.K Gangadhar, General Secretary, Insurance Corporation Pensioners’ Association. The country’s elderly have made immense contributions to the economic progress and national development in their younger, working years, and therefore, it is the responsibility of the government to take care of their old age requirements for finance, he argued.
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“This is mandated through Article 41 under Directive Principles of the Constitution. Unfortunately, the government has been refusing to implement this, and is trying to pass the responsibility of its elderly to their children and relatives by making some unimplementable and unviable laws,’‘ he stated.
Stagnant pension sum
According to Mr. Gangadhar, the government of India runs Indira Gandhi National Old Age Pension Scheme, and pays ₹2,000 per month to citizens above the age of 60 who are Below Poverty Line. “Unfortunately, this sum has not been revised since 2007 despite massive inflation. Although a measly amount, only 2.2 crore elderly people are getting this while the majority are left out of the scheme,’‘ he elaborated.
Pension Parishad, an initiative to ensure universal pension to all workers in India that comprises a number of civil society organisations and trade unions, has been demanding introduction of a non-contributory universal pension scheme. The body also insists that the distinction between BPL and APL (above poverty line) should be removed, as 93% of the country’s workforce is from the informal sector, which has no social security. They also said the pension amount should be at least 50% of the minimum wage. To begin with, each elderly citizen should be paid ₹3,000 per month.
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Pension Parishad has been suggesting that if the government levies a 1% extra tax on 1% of the rich in the country, the required amount could be easily raised.
Seminar in Bengaluru
In this backdrop, All India Insurance Pensioners’ Association (AIIPA), Karnataka Units, Insurance Corporation Employees’ Union (ICEU), Bengaluru Region General Insurance Employees’ Association (BRGIEA), and General Insurance Pensioners’ Association (GIPA) have decided to mobilise public opinion in favour of this demand.
As a precursor, a seminar on ‘Need for a Universal Pension Scheme’ will be organised on January 6 at 10 a.m. at NGO’s Hall, Cubbon Park, in Bengaluru. Economist Prabhat Patnaik will speak at the event.