Monday, August 8, 2011


nistry of Personnel, P.G. and PensionsDepartment of Pensions and Pensioners WelfareStrategic Plan for 2010-15BackgroundThe issue of efficient delivery of pension services has been the focus of public policy inIndia for many years. This was mainstreamed through the report of the Project Oasis in theyear 2000. This report brought to the forefront the complex issues relating to increasinglongevity, reducing /absence of reducing social safety nets and the need for improvedpension systems focusing on improved service delivery.As per the data of Census 2001, 64%of pensioners are 65 and above .Though the focus of this report was not the existing systemof pension for government servants, many of the issues covered therein are relevant even inthe context of the existing pension scheme of the Government of India.For instance the Oasis report talked about the increasing dependency ratio. As on 31stMarch 1998, with 5.2 million central government employees and 3.54 million pensioners thedependency ratio was 66%. For the defence segment alone this was much higher at 110%.Similarly a simulation exercise got carried out by the Oasis report, estimated that theexpenditure of the Central Government on account of pension payment would increase fromRs3569 crore in 1995 to Rs 27183 crore in 2015. This “conservative” estimate is alreadyhugely off-mark as expenses have already reached over Rs 50000 crore. .Many pensioners reside with their children and their pension is critical for sustaining theirbasic needs, including nutritional and medical expenses, with dignity. The quantum andregularity directly impacts their mental well-being and therefore their health. Others, whostay alone, have a greater exposure to inclement conditions and are even more dependent onthis steady income to nourish their body and spirit. Given the huge amount and the largenumber of people involved, it is imperative that a people-friendly, efficient and easy toadminister pension system for the retiring and retired civil servants matching the aspirationsof a modern civil society is implemented at the earliestThe Department of Pensions and Pensioners Welfare has initiated efforts to bring hasslefree retirement benefits to the pensioners. The Government of India extends measures toimprove the condition of pensioners from time to time. For instance, the decision on therecommendations of the Sixth Pay Commission to award an additional quantum topensioners aged 80 or above is recognition of the increase in medical and other expenseswith age. Full delivery of the programme on pensions needs to be assured for thebeneficiaries to avail of the enhanced measures.These on-going activities and the new initiatives proposed to be undertaken by theDepartment through efficient implementation, is likely to make improvements in the life of apensioner. The core of this Strategic Plan is based on this premise.security, dignity and respect for Central Government Employees.

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