The managing director of Punjab Agro Industries Corporation (PAIC), KS Pannu, held a workshop with bank managers on Saturday to sensitise them about the national pension scheme of the Union finance ministry, with special focus on farmers of Punjab who have no support in their old age.
Pannu told the bank managers that as per the special scheme, an annual minimum contribution of `6,000 was accepted from the beneficiaries who start receiving pension after attaining the age of 60.
"With increase in the longevity in Punjab from 65 to 73 years as per the 2011 census and the level of education and decline in birth rate from 2.2 to 1.3%, there is a need to involve the present generation in the pension schemes so that there is less burden on the system when they grow old," Pannu told the bank managers.
He said PAIC and the Punjab state farmers' commission has signed a memorandum of understanding (MoU) with UCO Bank for pension scheme for farmers and it was the duty of banks to motivate farmers to adopt the scheme.
"I appeal to young farmers to adopt the scheme and secure their old age," said Pannu.
Giving an example, the PAIC managing director added that a monthly contribution of `10,000 for 40 years made the beneficiary eligible for a monthly pension of `54,000 and asked all the designated banks to offer the scheme to farmers. The scheme is open to farmers from the age of 18 to 60 years, after which, the beneficiary starts getting returns.
An act was passed in 2011 and the ministry of finance constituted a Pension Fund Regulatory and Development Authority to manage the contributions made by beneficiaries.