GoM set up for pension in unorganised sector

The government has set up a Group of Ministers (GoM) to evolve a comprehensive pension system for the estimated 7 crore workers in the unorganised sector.

The group will be headed by Finance Minister P Chidambaram and will include Social Justice and Empowerment Minister Meira Kumar, Planning Commission Deputy Chairman Montek Singh Ahluwalia, Labour Minister Oscar Fernandes and Urban Employment and Poverty Alleviation Minister Kumari Selja.

Prime Minister Manmohan Singh today called for a comprehensive pension system for the unorganised sector, which constitutes 90 per cent of the country's workforce.

A Cabinet note has already been moved by the social justice ministry for a life insurance package for below poverty line workers in the unorganised sector.

It is not known by when the policy, which is also expected to cover above poverty line workers, will come into effect.

Official sources said the scheme's inclusion in the forthcoming Union Budget would depend on the timeline of the GoM's recommendation. However, if nothing else, a notional announcement of the scheme is certain.