Budget Announcements Related to Pension Reforms

Budget Speech 2011-2012

Para 34 (iii)

The financial sector reforms initiated during the early 1990s have born good results for the Indian economy. The UPA Government is committed to take this process further. Accordingly, I propose to move the following legislations in the financial sector:

….(iii) The revised Pension Fund Regulatory and Development Authority Bill, first introduced in 2005;

Para 106

I had announced a co-contributory pension scheme 'Swavalamban' in the Budget 2010-11. This scheme has been welcomed by the workers in unorganised sector. Over 4 lakh applications have already been received. On the basis of the feedback received, I am relaxing the exit norms whereby a subscriber under Swavalamban will be allowed exit at the age of 50 years instead of 60 years, or a minimum tenure of 20 years, whichever is later. I also propose to extend the benefit of Government contribution from three to five years for all subscribers of Swavalamban who enroll during 2010-11 and 2011-12. An estimated 20 lakh beneficiaries will join the scheme by March 2012.