翰威特 - 印度养老金改革.pdfVIP

India Life Hewitt Pension Reforms in India 4th Global Conference of Actuaries th 15 February 2002 India Life Hewitt Agenda • Background Current Framework • Basic Issues • Reform Initiatives • Reform Initiatives in the private sector India Life Hewitt 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 India Life Hewitt 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 India Life Hewitt 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 India Life Hewitt Old age Security Plans • Voluntary