Universal Pension Scheme: To provide social security in the form of a pension to all the citizens of the country, the government is considering a Universal Pension Scheme.

Universal Pension Scheme: Every person wants to get a pension in old age, but it is available only for government and private employees. However, now the government is working on a scheme which will make the dream of the common man regarding pension come true. The government is considering a Universal Pension Scheme, which will be a voluntary and contributory scheme and its objective will be to provide social security to all citizens.

According to the ET report, the Ministry of Labor and Employment has started discussions on the Umbrella Pension Scheme. Officials have given this information. A senior government official told ET, “This scheme will be voluntary and contributory, not linked to employment and hence everyone can contribute to it and earn a pension.”

What is the government’s planning?

People aware of the matter said that the scheme is being worked on extensively under the Employees’ Provident Fund Organization (EPFO). After the blueprint of this scheme is ready, the ministry will consult stakeholders to finalize the scheme. To make the Universal Pension Scheme program more attractive, some existing central schemes will be included in it, so that the process can be streamlined while increasing coverage to all sections of the society.

The scheme aims to benefit workers in the unorganized sector, traders and self-employed persons and all people in the contributing age group (18 years or above) who want to get pension benefits after 60 years.

Merger of these schemes possible in the scheme

Some of the existing government schemes that can be merged under this umbrella scheme include Pradhan Mantri-Shram Yogi Maandhan Yojana (PM-SYM) and National Pension Scheme for Traders and Self-employed (NPS-Traders). Both are voluntary and entitle subscribers to a monthly pension of Rs 3,000 after the age of 60 on a contribution of Rs 55 to Rs 200 depending on the age at the time of enrolment and an equal contribution from the government.