To promote pension scheme amongst rural masses especially the farmers, Punjab State Farmers’ Commission and Punjab Agro on Wednesday signed a Memorandum of Understanding with UCO Bank.
“National Pension Scheme regulated by the Central Government, through Pension Fund Regulatory and Development Authority (PFRDA), was introduced in 2004 with the object to provide old-age income security to the farmers,” said an official spokesperson of the Punjab Agro.
He said that currently, about 70 lakh persons have enrolled themselves to be the members of this scheme with a total contribution of about `56,000 crores. “However, the scheme has not been able to attract rural masses due to lack of awareness and proper platform for opening the accounts and contributing funds,” he pointed.
After signing of MoU, Punjab Agro managing director KS Pannu said that average life expectancy in the last 10 years has increased by eight years and currently this is about 75 years, which is in contrast with life expectancy of 55 years four decades back.
“Due to low population growth rate and increase in longevity, traditional family support system for older population is to face a severe social and economic strain, the symptoms of which are already visible in society…Thus, there is dire need for old age economic security from regular income through system of pension arising from contribution by a person during his young age in a pension fund regulated by the Government,” he said.
Punjab State Farmers’ Commission chairman Dr GS Kalkat said that there is a need to create awareness amongst rural population to contribute in the pension fund, so that regular income could be obtained when a person grows old.
“Agriculture Department and Punjab Agro shall work closely with UCO Bank to sensitize the people to open their pension accounts and deposit funds on half yearly basis, so that sufficient capital is generated to guarantee old age pension when a person turns 60 years of age,” he aded.
UCO Bank general manager VK Srivastava said that any citizen in the age group of 18-60 years can enroll in NPS by opening an account in block level branches of UCO Bank where he will be given a Unique Permanent Retirement Account Number.
“A person can contribute `6,000 and above annually in the fund which shall be invested by PFRDA resulting in creation of substantial corpus of money to ensure regular monthly income when a person turns 60 years. The pension fund shall be transferred to the nominee after his death,” he added.