UTI AMC to cover one million workers under Micro Pension by 2007

Bhubaneswar, Jul 04 (UNI) Nearly one million workers in unorganised sector in India will be covered under the UTI Mutual Fund's micro pension initiative by 2007, UTI Asset Management Company Chairman cum Managing Director U K Sinha said here today.

Launching the micro pension scheme for the Paradip port and Dock workers here, Mr Sinha said out of 42.5 crores workers in the country, nearly 30 crores, constituting 87.2 per cent were excluded from any coverage of formal pension and provided fund scheme.

He further said one in every six people over the age group of 60 in the world lives in India and a majority of nearly 8 crores elders today did not receive the pension, either from the government or from their employers.

Stating that this would lead to a major problem in the country as population would double by 2030, Mr Sinha said the UTI AMC had come out with a micro pension initiative to provide the members an investment opportunity under the UTI retirement benefit pensio fund.

Mr.Sinha claimed that the scheme got the fillip when SEWA, an Ahmedabad based Women Self Helf Group enrolled nearly 35,000 women in two months. He claimed that the return under the scheme would be much higher compared to other scheme as UTI AMC has decided to invest 60 to 70 per cent of fund in government security fund and 30 per cent in equity.

The UTI AMC Chairman said UTI would not make any profit from the scheme.

He said under the Micro pension initiative facilitated by the UTI Mutual fund and Paradip Port Dock Workers Union, each members would contribute Rs.200 per month towards the UTI retirement benefit pension fund up to the age of 55 years so as to enable them to receive pension in the form of periodical income after they reach 58 years.

Mr Sinha said initially 200 workers would be joining the scheme but later 6000 workers would be covered under the scheme which would enable them to share the benefits of the capital market.

Orissa Minister of state for Labour and Employment Jayanarayan Mishra graced the occasion.

UNI DP KK DB1958