Seven million unorganised sector workers to get pension under Swavalamban Scheme

In the move to benefit around 7-million unorganised sector workers, the cabinet Thursday approved an additional funding support of Rs.2,065-crore to be injected up to 2016-17 in Swavalamban Scheme of the New Pension System (NPS).

The cabinet has also cleared some revisions in this proposal including extending the benefit times and easing in exit norms.

After coming into effect, those subscribers who enrolled between 2010-11 to 2012-13 will now get extended benefit of five years as well as those who want to exit from this scheme may easily exit from it after crossing the age of 50 years or after completing the minimum tenure of 20 years, whichever is later, informed Human Resource Development Minister Kapil Sibal told reporters after a cabinet meeting chaired by Prime Minister Manmohan Singh.

Swavalamban is a contributory pension scheme under which the central government contributes Rs.1,000 per annum in each NPS account opened with deposits of of Rs.1000 to Rs.12,000 per annum.

--With Agencies Input--