Budget Announcements Related to Pension Reforms

Budget Speech 2010-2011

Para No. 90

To encourage the people from the un-organised sector to voluntarily save for their retirement and to lower the cost of operations of the New Pension Scheme (NPS) for such subscribers, Government will contribute Rs. 1000 per year to each NPS account opened in the year 2010-11. This initiative, “Swavalamban” will be available for persons who join NPS, with a minimum contribution of Rs. 1000 and a maximum contribution of Rs. 12000 per annum during the financial year 2010-11. The scheme will be available for another three years. Accordingly, I am making an allocation of Rs. 100 crore for the year 2010-11. It will benefit about 10 lakh NPS subscribers of the un-organised sector. The scheme will be managed by the interim Pension Fund Regulatory and Development Authority.

Para No. 91

I also appeal to the State Governments to contribute a similar amount to the scheme and participate in providing social security to the vulnerable sections of the society.