Social security for low-income groups to become
Members of Andhra Pradesh Building and Other
Construction Workers Welfare Board eligible
Government to contribute Rs. 1,000 per annum only if
members pool Rs. 200 per annum
HYDERABAD: The long-felt need for a sound social security
measure to low-income groups would soon become a reality in the State with the
introduction of a pension scheme for people who enrolled themselves as members
of Andhra Pradesh Building and Other Construction Workers Welfare Board (APBOCWWB).
On behalf of the State government, the board would shortly
sign an agreement with the Pension Fund Regulatory and Development Authority of
India to jointly implement a centrally-sponsored pension scheme for people in
the age group of 18 – 60 who have low incomes.
The programme would be launched on August 1 or, in case of
exigencies, definitely on August 15, a senior government official told The
The proposed pension scheme is an offshoot of Union Finance
Minister's budget speech on February 28 which promised Centre's contribution of
Rs. 1,000 per annum to all workers who became members of New Pension Scheme
(NPS-lite). The scheme is an extension of NPS which opened for public from May
As there were not many takers for NPS since it contained
only workers' contribution and no government component at all, the Central
government decided to give teeth to the programme in this year's budget, the
Against this background, the State government intervened to
mobilise a further Rs. 1,000 per annum as incentive to each beneficiary which
would be paid out of the Rs. 400 crore corpus available with the APBOCWWB. The
board will, however, chip in only when its nine lakh members, as of now, pooled
Rs. 200 per annum.
Moreover, the State government contribution will run only
up to 50 years age of members. Its objective was to create a monthly pension of
Rs. 1,000 to every member.
The combined participation of Central and State governments
as also members' annual contribution at the rate of Rs. 200 for at least 15
years is expected to yield the desired pension of Rs. 1,000 per month after the
age of 60 years.
Thus, the board would create permanent pension in addition
to the existing accident, maternity and sickness benefit policies to its