翰威特+-+印度养老金改革 Pension Reforms in India.pptVIP

Pension Reforms in India 4th Global Conference of Actuaries Agenda Background Current Framework Basic Issues Reform Initiatives Reform Initiatives in the private sector Background Strong Joint family concept With the Patriarch as the pivot provided Old Age Security Was adequate in a agrarian rural society Industrialization and urbanization undermined the traditional concept Even if prevalent effectiveness as an old age security tool is doubtful Old age Security Plans Civil Service Schemes Government at Centre and the state assured pension to their employees Pension is non-contributory, indexed, Defined Benefit totally unfunded and paid on PAYG Provident Fund contributed by employees Most of the Quasi Government institutions have adopted the similar schemes Old age Security Plans Mandated Industry Schemes Provident Fund Scheme mandated by a central legislation across the country Provides for contributory Provident Fund Pension towards which a part of the Provident Fund Contributions are diverted Gratuity Scheme again mandated by a central legislation Lumpsum payment based on last drawn wages at the termination of employment after a five years of continuous service Old age Security Plans Voluntary Industry Schemes Superannuation Plans introduced by employers voluntarily Predominantly introduced by Corporates and DB Either administered by the Trustees or by LIC Other Old age security schemes introduced by the Governments Governments at the state as well as at the centre have introduced a few schemes Coverage Estimated working population is about 350 million 15% of which is salaried employees ( of which Government 23% Non-Government 49%) 53% are self employed 31% are Casual contract workers Only the salaried employees are covered by any kind of pension plans 28% of such salaried employees are also not covered. Effectively this means hardly 10% of the working population is covered. As a percentage of population it is a miniscule 3% Basic Issues Pensi