Pension Reforms in India

In India, absence of a country-wide social security system, ageing population and social change on account of breakdown of traditional family support system are important considerations for introducing pension reform in the unorganized sector. Whereas in the public sector, fiscal stress of the defined benefit pension system, applicable to the employees of the Government sector, was the major driving force for pension reforms. Since 2001-02, a number of measures have been adopted by the Government for underlining need for pension reforms for both Central Government and for unorganized sector for different reasons.