India to give 5 years of pension benefits to the elderly
The government has agreed to give a five-year period of pension rights to people over 65 who have lived in India for the last three years.
The government also has a target of raising the retirement age to 75 by 2022, which is a target set by the Supreme Court in 2017.
“In a year, the government will be able to introduce the pension benefits of those over 65, with the objective of ensuring a better life for all,” the finance minister, Arun Jaitley, said in a statement.
Jaity had earlier said that he expected the pension scheme to cover the entire lifetime of a person who is aged 65 and above.
In a speech to the National Association of Social Workers on Tuesday, the finance ministry had said the scheme would be able cover all retirement costs and benefits and provide an annual contribution of Rs1,000 crore.
“The government is committed to ensuring that the pension entitlements of people over 85 years old will be sufficient to meet their financial needs,” Jaitry said.
Jammu and Kashmir Chief Minister Omar Abdullah has said that the government is working on a new pension scheme.
“We are still trying to figure out the details, but we will announce a scheme soon,” Abdullah told reporters on Tuesday.
The pension scheme was set up by the state government in 2015, and has covered the life of people in their 80s and 90s.
Earlier this year, an estimated 7,500 people were covered by the scheme.
The current government is also working on another scheme called the ‘Aurora Scheme’, which will be funded by the sale of a small parcel of land to the state and the auction of land in the central and state capitals.
The land would be sold at a higher price than the government’s plan for it.
The Aurora scheme was approved by the Centre in December 2017, and the government has already allocated a record Rs6,000 million for it this year.