Congress hails Jharkhand's pension scheme: Understanding the JMM-led govt's social security model

The Hemant Soren government has set aside Rs 100 crore as a revolving fund to ensure timely payments to pensioners, particularly in cases where the Centre's disbursal is delayed.

The Congress, on Tuesday, hailed the pension scheme established by the Jharkhand government, in collaboration with the JMM, as a “ground-breaking moment” for India’s social security architecture. The scheme currently supports over 28 lakh individuals, significantly outpacing the number of beneficiaries under the Union government's contributions.

Key Features of the Jharkhand Pension Scheme

The Jharkhand pension scheme is distinguished by its full universal coverage, enabling all individuals meeting the eligibility criteria to access benefits. Among its notable features, the scheme lowers the qualifying age for old-age pensions from 60 years to 50 years for marginalised groups, including Dalits, Adivasis, and women. This move aims to expand social security access to those who are often at higher risk of poverty in old age.

Financial support 

With an estimated population of 4 crore, Jharkhand stands out as a leading state in terms of pension coverage, providing financial support to more than 40 lakh individuals - over 10 percent of its population. Under the scheme, the Jharkhand government disburses a monthly pension of Rs 1,000 to eligible beneficiaries across five categories:

>> Old age pension
>> Vulnerable Tribal Group Pension
>> Destitute Women Pension
>> HIV-AIDS Patient Pension
>> Disability Pension

Boosting existing support

A significant aspect of the Jharkhand pension scheme is the increase in the pension amount provided by the Central government under the National Social Assistance Programme (NSAP) to Rs 1,000. The Centre currently supports 12.43 lakh beneficiaries in the state across three categories: Old Age Pension, Widow Pension, and Disability Pension, with amounts ranging from Rs 200 to Rs 500. The Jharkhand government supplements these amounts, covering the additional costs to ensure that all eligible individuals receive Rs 1,000.

For instance, the Centre provides Rs 200 to approximately 8.86 lakh beneficiaries aged 60-79 years and Rs 500 to around 73,803 individuals aged 80 years and above. To enhance the pension amounts, the Jharkhand government allocates about Rs 850.91 crore and Rs 44.28 crore annually for these two groups.

Moreover, the government also provides a Rs 300 monthly pension under the Widows and Disability Pension schemes, benefiting 2.88 lakh individuals. The Jharkhand government contributes an additional Rs 240.40 crore to raise their pension to Rs 1,000.

In the last four years, the Soren government has successfully added 27.57 lakh new beneficiaries to the pension scheme, ensuring that each receives Rs 1,000 per month. The government has also set aside Rs 100 crore as a revolving fund to ensure timely payments to pensioners, particularly in cases where the Centre's disbursal is delayed.

Headwinds

Despite these advancements, the implementation of the pension scheme has encountered challenges. The Jharkhand government initiated the “Sarkar Aapke Dwar” program, aimed at delivering government schemes directly to citizens. Gaps in coverage persist, however, primarily due to mismatches in Aadhaar data, resulting in the exclusion of numerous beneficiaries.

Thousands of individuals have been reportedly left out of the pension scheme because discrepancies in their data, such as age, could not be rectified, preventing the opening of bank accounts necessary for pension disbursement. Additionally, many widows have faced obstacles in accessing pensions due to the complicated requirements for obtaining death certificates of their spouses.

As Jharkhand gears up for its Assembly elections scheduled for November 13 and 20, with vote counting set for November 23, the pension scheme is poised to play a pivotal role in shaping the electoral landscape. The Congress' promotion of this scheme underscores its importance as a key element of their campaign strategy, positioning it as a significant achievement of the JMM-Congress coalition government in the state.