Social Security Current Affairs - 2019
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The Union Cabinet has approved doubling of investment limit from Rs 7.5 lakh to Rs 15 lakh under Pradhan Mantri Vaya Vandana Yojana (PMVVY). It also extended time limits for subscription from ay 2018 to March, 2020.
These decisions were taken as part of Government commitment to financial inclusion and social security. It will boost social security initiatives for senior citizens and enable them upto Rs.10,000 pension per month.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
PMVVY aims to provide social security during old age and protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions. It is implemented through Life Insurance Corporation of India (LIC). The intended beneficiaries of the scheme are elderly persons aged 60 years and above.
The scheme provides an assured pension based on a guaranteed rate of return of 8% per annum for ten years, with an option to opt for pension on monthly, quarterly or half yearly and annual basis. The differential return, i.e. difference between return generated by LIC and assured return of 8% per annum is borne by Government as subsidy on annual basis.
The CCEA chaired by Prime Minister Narendra Modi, has approved proposal of enhancing scope of Pradhan Mantri Rojgar Protsahan Yojana (PMRPY). The Central Government will now contribute Employer’s full admissible contribution for first 3 years from date of registration of new employee for all sectors including existing beneficiaries for their remaining period of 3 years. It will benefit the informal sector workers as the will get social safety net and result in more job creation.
Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)
PMRPY has been in operation since August 2016. Under it, Government is paying 8.33% contribution of Employers to Employees’ Pension Scheme (EPS) in respect of new employees (joined on or after 1st April 2016) having new Universal Account Number (UAN), with salary up to Rs. 15,000/- per month.
The scheme has dual benefit i.e. it incentivize employers for increasing employment base of workers establishments and enables large number of workers to find jobs in such establishments. Its direct benefit is that these workers get access to social security benefits of organized sector. Till now, the scheme has produced quite encouraging results and has added about 31 Lakhs beneficiaries to formal employment involving expenditure of more than Rs. 500 crore.