Workers can resume pension plan after paying for default period

NEW DELHI: The government's pension scheme for unorganised sector workers has provided for regularising payments for default period to resume the plan in a bid to ensure that subscribers, belonging to under-privileged sections, are not denied the retirement benefit.

The notification issued by the labour ministry last week, however, mandates that subscribers will have to pay interest on the outstanding amount, with the details not clearly spelt out.

The scheme provides exit options for those subscribing to it, with subscribers exiting within 10 years eligible to receive their share of contribution into their bank accounts, with interest. After 10 years, apart from his contribution, the actual accumulated interest earned by the pension fund or the interest at the savings bank interest, whichever is higher, will be paid.

In case of a subscriber's death, the spouse can continue with the scheme by paying the contribution or exit by receiving the share of contribution paid by the subscriber along with accumulated interest, as actually earned by the pension fund or at the savings bank interest rate, whichever is higher.