German social security programme holds seminar on study of social pensions

Financial insecurity is a major concern for the elderly in India, as more than two-thirds of them live below the poverty line. The National Social Assistance Programme (NSAP), promotes the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) and Indira Gandhi National Widow Pension Scheme (IGNWPS), along with a pension scheme for the disabled. IGNOAPS and IGNWPS were evaluated under the World Bank study. They are implemented by state governments and provide a fixed monthly pension to the elderly and widows as per stipulated guidelines.

In March 2013, a Task Force constituted to provide proposals on restructuring social pension programmes in India, recommended their expansion by increasing the amount of pension assistance and relaxing eligibility rules. At the Social Security Seminar, Dr. Murgai and her team presented findings from a household survey conducted in Haryana, Uttar Pradesh and slum settlements of Delhi.

The evaluation conducted by the World Bank reveals that social pension schemes work reasonably well. They are valued by the groups they target, who use it to fulfil their basic needs. Targeting is moderately progressive, i.e. the benefits are availed more by poorer segments than the richer ones; it is also seen to improve with expansion of the programme. The study shows relatively low levels of leakage, which don’t increase with size of cash transfer. The evaluation therefore recommends scaling up of pension schemes.

The talk was followed by a question-answer session, with the discussion focusing on the steps required for enrolment, the level of awareness of the schemes and reasons for relatively low levels of leakage. One of the participants also mentioned that contributory pensions could be examined as a more sustainable option to social pensions in terms of funds available over a long time in the national budget.