Govt lowers eligible age of the pensioners from 65 to 60 years

In a move to benefit poor senior citizens, the government on June 09, 2011 lowered the eligible age of the pensioners from 65 to 60 years. It has increased pensions for persons of 80 years and above from Rs 200 to Rs 500 per month. It has also extended the medical facilities to workers in the beedi industry under a government health insurance scheme. The revised norms would be applicable with effect from April 1st this year. The Cabinet, at a meeting chaired by Prime Minister Manmohan Singh, decided to revise norms on the age limit of pensioners under the Indira Gandhi National Old Age Pension Scheme (IGNOAPS), which aims to provide relief to aged citizens reeling under rising inflation.

'It is estimated that lowering of the age limit would benefit about an additional 72.32 lakh persons in the age group of 60-64 years and living below the poverty line. It is estimated that 26.49 lakh persons above the age of 80 years and living below the poverty line, would become eligible to receive enhanced Central assistance at Rs 500 per month. Currently, at around 169 lakh persons above the age of 65 years and living below poverty line are receiving Central assistance under IGNOAPS.

'The additional funds required will be Rs 1,736 crore for providing old age pension at Rs 200 per month per beneficiary in the age group of 60-64 years and Rs 953 crore for providing enhanced pension at Rs 500 per month per beneficiary of age 80 years and above,' the Government stated. Thus, the total additional requirement will be Rs 2,770 crore for implementing the IGNOAPS -- part of the National Social Assistance Programme of the Central government.

As a result of change in the eligibility criteria for receiving old age pension, eligibility criteria for widow pension under Indira Gandhi National Widow Pension Scheme (IGNWPS) and disability pension under Indira Gandhi National Disability Pension Scheme (IGNDPS) will get revised from 40-64 years to 40-59 years and from 18-64 years to 18-59 years respectively.

The government has also extended medical facilities under the Rashtriya Swasthya Bima Yojana (RSBY) (National Health Insurance Scheme), which provides protection to below poverty line (BPL) households from health hazards that involve hospitalization, to workers in the beedi industry and their families. The extension of the scheme, which reaches out to 235 lakh poor across the country, would cost the Union government Rs 311.25 crore. “The annual premium is estimated at Rs 750 per annum of which 75% would be as Central share and the rest will be given by the state Governments, read in a statement.

The beedi industry employs 55 lakh workers across India. The state government will identify and register beedi workers, who do not fall under the BPL category. Under the scheme, the worker and his family of five would benefit with a medical insurance cover of Rs 30,000. Smart cards would be issued for availing benefits under the scheme, adding that all beedi workers would be brought under the net of the RSBY to get cashless benefits in any of the ESI or empanelled hospital throughout the country. The government proposes to cover 10 lakh beedi workers in the current financial year and cover 100% of the total beedi workers by the year 2013-14.