UTI Mutual, Union Bank in pension pact

UTI Mutual Fund today entered into an arrangement with Union Bank of India for providing the bank's employees and customers an investment opportunity through a micro-pension initiative under UTI-Retirement Benefit Pension Fund.

Under the micro-pension initiative facilitated by UTI Mutual Fund and Union Bank of India, members will contribute a minimum amount of Rs 500 every month towards 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/cashflow after they reach the age of 58 years.

"The initiative will help inculcating the habit of regular savings among its members which will help them in planning their future and will also enable them to share the benefits of growth of the Indian economy," said U K Sinha, chairman and managing director of UTI AMC.

Initially, around 1,000 members will be joining the scheme. By the end of next year, more than 15,000 members are expected to join the scheme.

"Pension is a social security tool. Every organisation does not provide this facility to its employees. Union Bank of India will be marketing micro pension to provide protection in old age to large section of society," said M V Nair, chairman and managing director of Union Bank of India.