A STUDY ON COPING STRATEGY OF MEGA PENSION SCHEME: A PENSION

FOR UNORGANISED SECTORS IN INDIA

Dr.T.THEGALEESAN

Department of Economics

Annamalai University

Deputed to Tamilnadu Collegiate Service

Tamilnadu (South India)

Issues: - A pension provides income for the people when they are no longer earning capacity,

the nuclear family setup, cost of living, and to alleviate the morbidity. As per the Article 41 of

the Indian Constitution which directs the State to provide public assistance to its citizens in the

case of no employment, aging, ailment and physical impairment. In 2019 the Indian

Government launched Mega Pension Scheme to provide pension for unorganised workers.

Since, the “Half of India’s GDP comes from the sweat and toil of 42 crore workers in the

unorganised sector. We must provide them comprehensive social security coverage for their

old age,”

Objectives: - This study attempts to seek the justification for why the scheme has been modified

the name over the decade and trimming up of pension amount, to study whether the scheme

includes the agrarian to receive pension and also to seek whether the coping investment

options/functions of the Government is correct

Methodology: - It is a descriptive study. An inductive description is given for appraisal of this

scheme. For easy understanding simple tables are framed to identify the different features of

the pension schemes. This research comprises assumptive study and few literature reviews and

collection of secondary data from both private and Government side.

Statistical Tools: - An inductive description is given for which, secondary data is used. Some

dedicated online monitoring systems of the central government’s quantitative information also

taken. Simple percentages and tabulations have been framed for both observation and

explanations.

Results: - based on the rate of returns the scheme and it pension amounts have been

restructured over the year under different name. This scheme also applicable to agrarian

besides there is specific scheme available for them. Since, the government nominates the skilled

pension managers to earn the rate of return for the investment in stock market this pension

scheme can’t be break down in its way, which enable the government dreams of guaranteed

pension for the unorganised workers like organised workers

Key words: - Swavalamban Yojana, Atal Pension Yojana, Mega Pension Scheme, Shram Yogi

Maan-dhan Yojana. National Pension Scheme (NPS) Tier-I and II, Contributory Pension

scheme, Pension Managers, National social assurance Programme, Unorganised workers,

Stock-markets, Government securities, Bonds, corporate bonds, Equity market, Asset Under

management, PM-Kisan Samman Nidhi

Journal of Xi'an University of Architecture & Technology

Volume XII, Issue VI, 2020

ISSN No : 1006-7930

Page No: 309

Introduction

This is a prime-Minister Narendra Modi’s mega pension scheme for the unorganised

sector’s workers. The pension provides income for the people when they are no longer earning

capacity, the nuclear family setup, cost of living, and to alleviate the morbidity. As per the

Article 41 of the Indian Constitution which directs the State to provide public assistance to its

citizens in the case of no employment, aging, ailment and physical impairment and in other

cases of undeserved want within the limit of its economic capacity and development. Providing

the pension is one among them to uplift their economic empowerment. Currently, there are

three major components to the Indian pension system in which, the first one is the civil

servants pension, (it is a mandatory pension programs run by the Employees' Provident Fund

Organisation of India, for organised sectors’ workers,) the second one is the contributory

pension scheme under NPS ( which is mandatory and provides pension for organised

labourers) and the third one is voluntary defined contribution pension for unorganised sectors’

workers under National Pension System (NPS) which administered and regulated by

the Pension Fund Regulatory and Development Authority (PFRDA) While the scheme was

initially designed for government employees only, later it has opened up for all citizens of India

in year 2009. The NPS is an attempt by the government to create a pensioned society in India

but with the contribution of the Government. Precisely say, the NPS started by the Government

of India to stop the defined pension’s benefits for all its organised sectors’ employees who

joined government service after 1st January 2004.

The Indian pension system and the History of the Scheme

Components of

pension scheme in

India

Sector Administrating

Authority Types

civil servants pension Organised

Employees'

Provident Fund

Organisation of India

Mandatory

Before 31-12-2003

contribution pension

system

National Pension

System (NPS)

Organised

Pension Fund

Regulatory and

Development

Authority (PFRDA)

Mandatory

After 1-1-2004

contribution pension

system

Unorganised

Pension Fund

Regulatory and

Voluntary

After 1-5-2009

Journal of Xi'an University of Architecture & Technology

Volume XII, Issue VI, 2020

ISSN No : 1006-7930

Page No: 310

National Pension

System (NPS)

Development

Authority (PFRDA)

Source: computed

Swavalamban Pension Yojana 2010

There is one Yojana which purely named as a Swavalamban Pension Yojana was

launched by the UPA (congress) Government in 2010. In which, the Subscribers could

contribute Rs 1,000 per month which would be matched by Rs 1,000 per month from the

Central Government. The minimum annual contribution by a subscriber was Rs 1,000 and the

maximum annual contribution was Rs 12,000. It is administered by the Pension Fund

Regulation and Development Authority (PFRDA). However enrolment in the scheme was

halted in 2016 and it has been replaced by Atal Pension Yojana (APY) This scheme subscribers

were going to be placed in Atal Pension Yojana (APY). The Government share available for

those persons who below the limit of income tax threshold and those beneficiaries who

shouldn’t be in any other social security scheme.

Atal Pension Yojana (APY) 2015

This was launched in 9th May, 2015 by the Prime Minister Narendra Modi on the name

of former prime minister late. Mr.Atal Bihari Vajpayee, he was the former BJP led- prime

minister of India. This scheme provides pension for all subscribing unorganised workers below

the age of 40 are eligible for pension of up to ₹5,000 per month at the age of 60 years. This

APY is open to all saving bank/post office saving bank account holders in the age group of 18

to 40 years and the payment of premium differ, based on pension amount options. Subscribers

would receive the guaranteed minimum monthly pension of Rs. 1,000 or Rs. 2,000 or Rs. 3,000

or Rs. 4,000 or Rs. 5,000 at the age of 60 years.

Mega Pension Scheme (Pradhan Mantri Shram-Yogi Maan-dhan Yojana) 2019

The Modi Government announced the 'Pradhan Mantri Shram-Yogi Maandhan' in

the interim budget febraury-2019-20 and commenced its’ function on 5-03-2019. This is a

mega pension scheme for the unorganised sector’s workers who earn monthly income up to

Rs. 15,000/- hence, it is widely called ‘Mega pension Scheme’. The Indian Act 2013 Pension

Fund Regulatory and Development Authority (PFRDA) is administering this scheme and

Journal of Xi'an University of Architecture & Technology

Volume XII, Issue VI, 2020

ISSN No : 1006-7930

Page No: 311

covering all the unorganised labours in India. It facilitates every subscriber to get guaranteed

flat Rs.3000/- per month after attaining the age of 60. The entry age of this scheme is 18 years

old and the monthly premiums are to be paid in between 18-60 years and each age has specific

premium amount as per the maturity of the policy. The Beneficiaries are the labours in

unorganised sector working as construction workers, rickshaw pullers, rag pickers, street

vendors, agricultural workers, beedi workers, leather, handloom etc. The Minister Piyuhs

Goyal outlined this pension scheme as “Half of India’s GDP comes from the sweat and toil of

42 crore workers in the unorganised sector. Domestic workers are also significant in number.

We must provide them comprehensive social security coverage for their old age,”

Table.1

The Eligible unorganised workers under PM Shram yogi Maan-dhan Yojana

Home based workers Street vendors Mid-day meal workers

Head loaders Brick kiln workers Cobblers

Rag pickers Domestic workers Washer men

Rickshaw pullers Landless labourers Own account workers

Agricultural workers Construction workers Beedi workers

Handloom workers Leather workers Audio-visual workers

Sources: sarkariyojana.com. October 18, 2019

Swavalamban

Pension

Scheme-2010

Atal

Pension

Scheme-

2015

Mega Pension

Scheme (Pradhan

Mantri Shram

Yogi Maan-dhan

Scheme- 2019)

Journal of Xi'an University of Architecture & Technology

Volume XII, Issue VI, 2020

ISSN No : 1006-7930

Page No: 312

Objectives of the Study

● To study why the scheme has restructured under different name over the years and

trimmed up the Pension amount.

● To study whether the scheme includes agrarian as unorganised workers to receive the

pension while specific specialised beneficial schemes are available to them.

● To study whether the investment option of the Government is correct

Limitations

● This study analyse only the Government point of view and not in the Customers point

of view.

● This study is not dealt with the merits and demerits of the scheme rather it study only

the content to substantiate the objectives

● This study doesn’t study about the organised worker’s pension under NPS but, it studies

only for unorganised workers under NPS

Methodology:-

It is a descriptive study. An inductive description is given for appraisal of this scheme.

For easy understanding simple tables are framed to identify the different features of the pension

schemes. This research comprises one assumptive study, few literatures, and recent market

results of stock-markets and collection of secondary data from both private and Government

side.

Statistical Tools: -

An inductive description is given for which, secondary data is used. Some dedicated

online monitoring systems of the central government’s quantitative information also taken.

Simple percentages and tabulations have been framed for both observation and explanations.

Journal of Xi'an University of Architecture & Technology

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Page No: 313

RESULT AND DISCUSSION

In UPA Government regime, the schemes like IGOAPS (Indira Gandhi Old Age

Pension Scheme) and IGNWPS (Indira Gandhi National Widow Pension Scheme) ensured

social security for the aged people. Actually the provision of the pension has one of the key

attractions of government service and ensured social security for all government employees in

post- retirement period whereas; the private sector has no such facility. People who retired from

the private sector have to be solely dependent on their own savings which are saved in their

service. In post retirement period the actual liabilities like children’ education or children’

marriage are to be incurred, and this definitely makes a big hole in their savings at aged and

the employees are left with very little bit for meeting daily expenses, and aged expenditure on

health, etc. To resolve these problems of the unorganised employees, the UPA government

initiated many schemes such as in 1995 the NSAP (National Social Assurance Programme) is

launched with the aim of providing social assistance to destitute "defined as any person who

has little or no regular means of subsistence from his/her own source of income or through

financial support from family members or other sources". The NSAP includes: National Old

Age Pension Scheme (NOAPS), National Family Benefit Scheme (NFBS), National Maternity

Benefit Scheme (NMBS), Indira Gandhi National Disability Pension Scheme (IGNDPS) Indira

Gandhi National Widow Pension Scheme (IGNWPS) and Annapurna Scheme 2000 ( to

provide food security to meet the requirement of those senior citizens who, though eligible,

have remained ineligible for IGNOAPS are able to get 10 kg of rice for every month for a

beneficiaries at a free of cost) These are all the schemes which provide monetary assistance

directly to the beneficiaries whereas, it is not combined with the investment and income

generation schemes by attracting government contribution and supervising of it by both

Pension Managers and the Government. On the other hand, for the sake of pension alone the

Swavalamban, NPS (National Pension Scheme), started later, it is camouflaged as Atal Pension

Yojana (APY), and again Mega pension Scheme (Shram yogi Maan-dhan Yojana) to ensure

pension as supportive income in post-retirement periods of the subscribers. The below tables

explains the similarities of the three schemes with some modifications. It attracted many

comments such as ‘the old wine in new Bottle’. The first scheme was started with the good will

of giving pension for unorganised worker like organised workers. Although these schemes have

the same objectives and features, few of them slightly changed in its way of evolution due to

the mindset of the political parties and augmentation of fund which invested according to the

markets function and fund managers.

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Table.2

Feature of the three unorganised Sectors’ Pension Schemes

Features

Swavalamban

Pension Yojana

2010

Atal Pension

Yojana

2015

Pradhan Mantri

Shram-Yogi Maandhan

2019

Age limit to entry 18-40

18-40 at least 20

years

contribution is

must

18-40

Premium 1000-12000 1000-12000 Rupees 55-200 every

month

Period of premium

payment Year wise Monthly- wise Monthly-wise

Target audience

All citizens in

unorganised

sector

All citizens in

unorganised

sector

All citizens in

unorganised sector

Subscribers Indian/NRIs Indian Indian

Years of

Government

Contribution

3 Years 5 years Up to completion of the

policy

Government

contribution

(Rupees 1000-

12000) a

minimum

contribution

of ₹1,000 and

maximum

contribution

of ₹12,000 per

annum by Govt

(Rupees 1000-

12000)

50% or flat 1000

Who joined

between June 1,

2015 and

December 31,

2015 and

continues for

only the next 5

years i.e., till FY

2019-2020.

100% equal contribution

to per premium

Monthly (premiums to

be paid in between 18-60

years and each age has

specific premium amount

as per the maturity of the

policy)

Eligibility

Subscriber should

not be covered

under any other

social security

schemes like

Employees’

Provident Fund

and

Miscellaneous

Provision Act,

The Coal Mines

Provident Fund

and

Subscriber

should not be

covered under

any other social

security

schemes like

Employees’

Provident Fund

and

Miscellaneous

Provision Act,

The Coal Mines

Provident Fund

and

All citizens in

unorganised sector who

earns less than Rupees

15000/- in a month.

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Miscellaneous

Provision Act etc

Miscellaneous

Provision Act

etc

Ineligibility

If they are

enrolled in any

other central

government

scheme

If they are

enrolled in any

other central

government

scheme

If they are enrolled in

any other central

government scheme

Bank account savings account

in any bank

savings bank

account/ Jan-

Dhan account

savings bank account/

Jan- Dhan account

Market Investment Yes Yes Yes

Family Benefit No Yes 50% for spouse

Benefits

(variable

benefits) Longer

the investment in

this scheme gets

the higher

pension amount

Fixed sum

Rupees 5000/-

per month

Fixed sum Rupees

3000/- per month

Benefits starting

years

60 years 60 years 60 years

Administrator of

the Fund

Pension Fund

Regulatory and

Development

Authority

(PFRDA)

And the Pension

fund managed by

NPS trust: ICICI,

KOTAK,IDFC,

RELIANCE,

SBI,UTI

Pension Fund

Regulatory and

Development

Authority

(PFRDA)

Pension Fund Regulatory

and Development

Authority (PFRDA) and

the funds managed by

the Life Insurance

Corporation (LIC)

Penalty for exit the

scheme Yes Yes No

Source: Computed

Above the table clearly explains some of the features of the three schemes which have

been changed over the decade. The payable premium amounts have been changed to make

easiness in payment monthly–wise in Mega Pension Scheme from Swavalamban Scheme. It

eliminates NRIs participation in subsequent schemes. The Government’ contribution periods

also extended from 3 years in Swavalamban scheme, to 5 years in APY schemes and again

extended to up to completion of scheme in Mega Pension Scheme. It is modified with some

good features in recent since, the premium paying capacity in such a way which it can’t be as

Journal of Xi'an University of Architecture & Technology

Volume XII, Issue VI, 2020

ISSN No : 1006-7930

Page No: 316

such burden. The ambit of the eligibility also modified in Mega Pension Scheme which has put

the scale of the earning under one limit that those earns less than 15000/-rupees are eligible for

enrolment of it whereas in APY and Swavalamban schemes covered all income groups of the

people which definitely lop-sided distribution of the benefits of the schemes (viz., rich will get

pension benefits and poor will be out of coverage. Likewise, in NRIs the people working

outside of India having much steady economic background also will get the pension benefit)

The Mega Pension scheme is family pension benefit i.e., the spouse would get the benefit after

the subscriber’s demise. In the APY, the government co-contributes 50% of the total

contribution or Rs 1,000 per annum, whichever is lower and that too available to those who

joined between June 1, 2015 and December 31, 2015 and continues for only the next 5 years

i.e., till FY 2019-2020. There is various penalties for those who closing of the pension account

and the subscriber defaults on their contributions whereas in Mega Pension scheme there is no

such details have been provided

The Swavalamban is a pension scheme for unorganised labours to ensure a monthly

income after the 60 years of age completed. This is a defined contribution scheme (depends on

the contribution amount) it means no upper limits of investment amount. These schemes invest

a portion of money in the stock market for returns. An equal portion of the corpus is invested

in same stock markets which enables the return to grow the fund quickly. In this scheme the

risk is very low since, 55% of money is invested in Government securities, 40% in

corporate bonds, and 15% in equity markets. Quoting to PTI by the Chairman Hemant G

Contractor of The Pension Fund Regulatory and Development Authority (PFRDA) totally, 50

lakh are registered under the NPS- Swavalamban Yojana, up to 2014, PFRDA has Rs 69,000

crore of funds under management against it target of 1 lakh crore it doubled the subscription

from 2013 to 2014. He further said, the other schemes are a little bit slow to take off, like

corporate pension scheme and national pension system. This scheme had much constraint that

there is no control over your investments and the absence of guaranteed pension. The types of

account under the NPS can be opened for NPS-Central Govt, NPS State Govt, NPS Corporate

and NPS All Citizens Models. There are two types of sub accounts Tier-I and Tier-II unless

tier-I, the tier-II cannot be opened. The only difference between these two is to get the tax

benefit and exit rule of the scheme. The scheme NPS- Swavalamban is managed by various

fund managers called aggregators, but if all of them start to underperform, then subscribers

have no other option unless exit the scheme which is not only jeopardise for subscriber but also

for the Government thus, it gives much hardships of vexing for both the sides.

Journal of Xi'an University of Architecture & Technology

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The Atal Pension Yojana is initiated with the removal and overcome of some these

setbacks as per the data by the Pension Fund Regulatory and Development Authority

(PFRDA), the total subscribers in 2016-17 is 48,83,829 lakhs later 2018-19 it rose to

1,54,18,285 crore. It shows much confidence about the scheme and its returns. Thus, the same

scheme has modified and restructured as Mega Pension Scheme by removing some of the

demerits in former schemes. The main issue in Mega Pension Scheme is, nothing but it reduced

the guaranteed pension and fixed amount to 3000 rupees per month whereas, in Atal pension

Yojana it was 1000, 2000,3000,4000 and 5000 and in swavalamban it was depend upon the

maximum contribution of the subscribers. Here, this study suspects the Mega Pension scheme

and its announcement of trimming up of flat pension to 3000 rupees per month from APY

scheme’ assured pensions. Mega Pension scheme might felt some uncertainty in augmentation

of the returns under APY which it generate from premiums. In regard to pension fund managers

and the splitting of investment options in different asset classes, the both state and central

Government employees under NPS system cannot select investment asset classes as well as

the Pension Fund Managers because, those subscribers are in such form which outlined by the

Government whereas, the subscriber of unorganised sector, can select any Pension Fund

Managers and the subscriber can also select the split investment options among the four asset

classes such as Equity, Corporate Bonds, Government Bonds and Alternate Assets. Therefore,

the returns of the subscriber depend up on the asset allocation options and the pension fund

managers they select. To clarify and corroborate the Mega Pension scheme’ announcement

with trimming up of flat pension 3000 rupees this study considers a assumptive study carried

out by J.Sandeep and Namratha Sharma (2015) on this Atal yojana says that how the premium

amount paid is quarterly compounded at 8% interest rate for such number of years, which

means the interest is calculated every three months and the interest received in the first three

months will also be included to calculate the interest amount for the new quarter. Interest on

the accumulated amount can be assumed as pension what an individual will receive later.

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Table.3

Fixation of Pension based on premium of subscribers

Age

Premium

Per month

Final

Amount

Interest

earned

Annually at

8%

Interest on

Accumulated

Amount P.M

(pension)

18 42 171407 13712.56 1142.71

MONTHL

Y

PENSION

ON RS-

1000

20 50 173045 13843.6 1153.63

25 76 173234 13858.72 1154.89

30 116 172174 13773.92 1147.83

35 181 171798 13743.84 1145.32

40 291 171414 13713.12 1142.76

18 84 342814 27425.12 2285.43

MONTHL

Y

PENSION

ON RS-

2000

20 100 346093 27687.44 2307.29

25 151 344189 27535.12 2294.59

30 231 342864 27429.12 2285.76

35 362 343595 27487.6 2290.63

40 582 342827 27426.16 2285.51

18 126 514220 41137.6 3428.13

MONTHL

Y

PENSION

ON RS-

3000

20 150 539904 43192.32 3599.36

25 226 515143 41211.44 3434.29

30 347 515039 41203.12 3433.59

35 543 515393 41231.44 3435.95

40 873 514240 41139.2 3428.27

18 168 685628 54850.24 4570.85

MONTHLY

PENSION

20 198 685263 54821.04 4568.42

25 301 686097 54887.76 4573.98

30 462 685729 54858.32 4571.53

35 722 685292 54823.36 4568.61

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40 1164 685654 54852.32 4571.03 ON RS-

4000

18 210 857035 68562.8 5713.57

MONTHL

Y

PENSION

ON RS-

5000

20 248 858309 68664.72 5722.06

25 376 857053 68564.24 5713.69

30 577 856419 68513.52 5709.46

35 902 856141 68491.28 5707.61

40 1454 856478 68518.24 5709.85

Sources: An assumptive study carried out by J.Sandeep and Namratha Sharma (2015)

Thus, the table clearly figures out the premium amount of the scheme corresponding to the

assumed 8% growth rate which is projected as returns from the NPS schemes. Assuming the

return through the policy period is going to be at the rate of 8% per annum. Thus the 8% interest

on the final amount per annum is divided monthly which comes to an amount which is almost

equal to the pension which the subscriber is going to receive after the age of 60. In this wake

the 8% growth rate is significant in the study. The following table reveals the fixation of

premium to corresponding slabs/options of pension under assumptive growth rate of 8%.

Role of Fund managers:-

The fund managers are responsible for investments of funds and managing the trading

activities in stock-markets. Presently, the fund managers are working in fund management in

mutual funds, pension funds, trust funds, and hedge funds. The fund manager may comprise

one person or two people or a team of more people. The fund managers are payable based on

the percentage of average Assets under Management (AUM) in which they perform. The

investors shall be very keen in monitoring the fund managers before they perform in investment

activities. The fund managers play an important role in the investment. They provide investors

with peace of mind, knowing their money is in the hands of an expert. The trained managers

handle the subscribers fund to beat its competitors. The following tables are clearly shown the

growth rates of the money invested in the four NPS asset classes such as Equity, Corporate

Bonds, Government Bonds and Alternate Assets and giving the details of different Pension

Managers and their fund growth performance under tier-I and Tier-II account systems for the

past 9 years since inception of the NPS scheme.

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Under Tier-1 accounts System

Table.4 Actual Performance of Government securities (Government Bonds) as of

July 19, 2019

Pension

Fund

1 Year

Return

3 Year

Return

5 Year

Return

Returns Since

Inception

BIRLA PF 20.14% NA NA 10.60%

HDFC PF 20.19% 10.08% 11.40% 10.94%

ICICI PF 20.11% 10.20% 11.53% 9.48%

KOTAK PF 20.41% 10.12% 11.48% 9.38%

LIC PF 23.11% 12.07% 12.54% 12.43%

RELIANCE

PF 19.55% 10.03% 11.44% 9.11%

SBI PF 19.80% 10.16% 11.59% 10.24%

UTI PF 18.98% 9.38% 10.94% 9.06%

Average 20.28% 10.29% 11.56% 10.15%

Sources: paisabazaar.com 05-05-2020 05:01:30 am

Table.5 Actual Performance of Corporate Bonds as of July19, 2019

Pension

Fund

1 Year

Return

3 Year

Return

5 Year

Return

Returns Since

Inception

BIRLA PF 14.21% NA NA 10.45%

HDFC PF 13.85% 9.16% 10.43% 10.60%

ICICI PF 14.27% 9.44% 10.80% 10.74%

KOTAK PF 12.97% 8.97% 10.34% 10.54%

LIC PF 14.01% 8.76% 10.23% 10.48%

RELIANCE

PF 12.91% 8.95% 10.23% 9.47%

SBI PF 13.58% 9.06% 10.30% 10.67%

UTI PF 12.98% 8.70% 10.05% 9.54%

Average 13.59% 9.00% 10.34% 10.31%

Sources: paisabazaar.com 05-05-2020 05:01:30 am

Table.6 Actual Performance of Equity as of July 19, 2019

Pension Fund 1 Year

Return

3 Year

Return

5 Year Return Returns since

Inception

BIRLA PF 1.19% NA NA 8.39%

HDFC PF 3.67% 11.10% 9.48% 13.92%

ICICI PF 3.31% 9.54% 8.72% 11.12%

KOTAK PF 5.53% 9.66% 8.84% 10.21%

LIC PF 3.77% 8.29% 7.79% 11.12%

RELIANCE PF 4.90% 8.82% 8.08% 10.16%

SBI PF 3.93% 9.83% 8.97% 9.46%

UTI PF 2.51% 9.45% 9.30% 11.02%

Average 3.6% 9.5% 8.74% 10.67%

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Table.7 Actual Performance of Alternative Assets as July 19, 2019

Pension

Fund

1 Year

Return

3 Year

Return

5 Year

Return

Returns Since

Inception

BIRLA PF 7.53% NA NA 7.18%

HDFC PF 11.84% NA NA 8.70%

ICICI PF 11.59% NA NA 8.00%

KOTAK PF 12.12% NA NA 7.46%

LIC PF 10.46% NA NA 7.99%

RELIANCE

PF

7.60% NA NA 6.88%

SBI PF 10.44% NA NA 8.13%

UTI PF 7.56% NA NA 7.06%

Average 9.89% NA NA 7.67%

Sources: paisabazaar.com 05-05-2020 05:01:30 am

Under Tier –II accounts system

Table.8 Actual Performance of Government securities (Government Bonds) as of

July 19, 2019

Pension

Fund

1 Year

Return

3 Year

Return

5 Year

Return

Returns since

Inception

BIRLA PF 19.98% – – –

HDFC PF 19.87% 9.95% 11.25% 11.29%

ICICI PF 19.83% 10.09% 11.47% 9.61%

KOTAK PF 18.81% 9.66% 11.20% 9.12%

LIC PF 24.42% 12.39% 12.60% 12.82%

RELIANCE

PF 17.11% 9.25% 11.02% 9.12%

SBI PF 19.16% 9.91% 11.41% 10.30%

UTI PF 19.50% 9.67% 11.16% 9.96%

Average 19.83% 10.13% 11.44% 10.31%

Sources: paisabazaar.com 05-05-2020 05:01:30 am

Table.9

Actual Performance of Corporate Bonds as of July 19, 2019

Pension

Fund

1 Year

Return

3 Year

Return

5 Year

Return

Returns since

Inception

BIRLA PF 13.64% NA NA 8.87%

HDFC PF 13.27% 9.12% 9.48% 9.45%

ICICI PF 13.66% 9.18% 10.61% 10.55%

KOTAK PF 13.27% 9.04% 10.13% 9.50%

Journal of Xi'an University of Architecture & Technology

Volume XII, Issue VI, 2020

ISSN No : 1006-7930

Page No: 322

LIC PF 13.33% 8.42% 9.54% 9.27%

RELIANCE

PF 10.89% 8.35% 9.77% 9.06%

SBI PF 13.05% 8.86% 10.18% 10.28%

UTI PF 12.97% 8.68% 9.99% 9.62%

Average 13.01% 8.80% 9.95% 9.57%

Sources: paisabazaar.com 05-05-2020 05:01:30 am

Table.10

Actual Performance of Equity as of July 19, 2019

Pension

Fund

1 Year

Return

3 Year

Return

5 Year

Return

Returns since

Inception

BIRLA PF 0.79% NA NA 8.03%

HDFC PF 3.57% 11.17% 9.54% 11.18%

ICICI PF 3.40% 9.62% 8.76% 9.12%

KOTAK PF 5.87% 9.73% 8.86% 9.49%

LIC PF 4.61% 8.21% 7.18% 7.91%

RELIANCE

PF 4.23% 8.71% 8.02% 8.98%

SBI PF 3.91% 9.82% 8.99% 9.13%

UTI PF 3.18% 9.90% 9.57% 9.40%

Average 3.69% 9.59% 8.70% 9.15%

Sources: paisabazaar.com 05-05-2020 05:01:30

Above the tables clearly explains the eight types of fund managers and their

performance in growth of the returns on investments under both tiers accounts. When compare

the assumptive study results in 2015 with this actual returns rate in 2019, the Pension Managers

have achieved good growth rate and all the returns are above 8%. The government security

bonds earns much better than all other asset classes of investment. Some other equities are

earned a sluggish growth and rest of all other are almost above 8%. All the Pension Managers

are acting good in overall in all classes of assets and earned growth satisfactorily. The average

value denoted in fourth column of the table ‘returns since the inception’ of the scheme is

important while we analysing the returns of the growth rate since it figures-out of overall

growth in the scheme. The all asset classes in under Tier-I and II are very progressive and the

role of different Pension Managers are also earned growth rate of return above 8%. Hence, the

pension amount fixed in APY in different slabs for respective premiums are correct. This is

supported by the statement hailed by the present PFRDA Chairman Mr.Supratim

Journal of Xi'an University of Architecture & Technology

Volume XII, Issue VI, 2020

ISSN No : 1006-7930

Page No: 323

Bandyopadhyay (the Hindu, Business Line)2020 that in the last years, the Atal Pension scheme

yielded compounded growth Annual growth (CGAR) rate is 9 per cent.

Conclusion:-

Based on the above consideration this research concludes and corroborate the first

objectives that the restructured schemes from Swavalamba scheme to APY and again to Mega

Pension Scheme and the trimming up of the pension funds from open choice to 1000, 2000,

3000, 4000 & 5000 in Atal Pension scheme, again trimmed to guaranteed flat 3000 rupees in

Mega Pension Schemes are purely based on the rate of return which earned in different form

of asset classes by the Pension Mangers. According to the Chairman of PFRDA Mr.Supratim

Bandyopadhyay the market rate of return in 2019 is 9%. In some asset classes the average

growth rate of return is somehow below 9% and to overcome the deficit of this rate of return

the pension amount is trimmed by the Government in 2019 in Mega Pension Scheme. This is

evidentially proved from the rate of return tables that the equity market and other asset form

classes show sluggish growth rate than other classes specifically for the past one year the

growth rate was drastically lower in both Tier account systems and hence, the restructured. The

second objectives whether agrarian included in this scheme also justifies from the

announcement of the central minister. As per the statement of the Minister Piyuhs Goyal the

beneficiaries of unorganised workers are listed out including agriculture workers and landless

labours which is ascertained from table.1 the eligibility of unorganised workers under Pardhan

Mantri Shram Yogi Maan-dhan Scheme. Thus, this study confirms that all indian agrarian are

eligible to register the pension scheme while specific beneficial schemes are available to them

such as PM-kisan samman nidhi, PM-Garib kalyan Yojan, PM-Kisan Pension Schemes.

Finally, based on the rate of return which earned in different form of asset classes by the

Pension Mangers in specific investment option of the Government is correct and it confirms

the third objectives. The question of the stock market’s investment by the government through

the Pension mangers gets the crystal clear answer from all the classes of assets form on which

the Pension Manager are actively investing and earning good rate of returns. Further, it is

believed that since, these investment is in interest of the government it can’t get as such failure

and enable the guaranteed pension for the unorganised workers like organised worker through

which the dreams of the government comes to reality. Even though this scheme has economic

prosperity and government support there shall be no change of the scheme's name and the

pension amount which will enable attitude and counts of the subscriber toward the scheme.

There shall be answered for the question that the minimum year contribution of the subscription

Journal of Xi'an University of Architecture & Technology

Volume XII, Issue VI, 2020

ISSN No : 1006-7930

Page No: 324

to get the pension and if the workers unable employ themselves continuously in the field how

the subscription compensated.

References:-

Business-standard.com, Press Trust of India, ‘PFRDA upbeat on Swavalamban Yojana’

November 25, 2014

Economictimes.indiatimes.com ‘Swavalamban Scheme: Things to know about the National

Pension System’, Jun 02, 2014

Saloni Chopra, Jessica Pudussery. "Social Security Pensions in India: An

Assessment" Economic & Political Weekly.18 April 2015.

Sandeep J. and Namarutha Sharma . ‘Study on Atal Pension Yojana’, International Journal in

Management and Social Science, Vol.03 Issue-07, July, 2015

Sudindra V.R. ‘Feasibility Analysis of Atal Pension Yojana’, International Journal of

Advanced Research 2016, Volume 4, Issue 3, 1652-1655

WebSite

http://pib.nic.in/newsite/PrintRelease.aspx?relid=116208

https://economictimes.indiatimes.com/wealth/personal-finance-news/mega-pension-scheme-

announced-in-budget-2019/articleshow/67787451.cms?from=mdr

https://economictimes.indiatimes.com/wealth/personal-finance-news/swavalamban-

subscribers-can-switch-to-apy-pfrda/articleshow/51619196.cms

https://en.wikipedia.org/wiki/National_Social_Assistance_Scheme

https://financialservices.gov.in/banking-divisions/Important-Schemes

https://npscra.nsdl.co.in/nsdl/scheme-details/APY_Scheme_Details.pdf

https://pib.gov.in/newsite/mbErel.aspx?relid=99892

https://pib.gov.in/newsite/PrintRelease.aspx?relid=187928

https://sarkardaily.com/mega-pension-scheme/

https://thewire.in/labour/budget-2019-does-the-new-mega-pension-scheme-fill-the-holes-in-

the-existing-system

https://thewire.in/labour/budget-2019-does-the-new-mega-pension-scheme-fill-the-holes-in-

the-existing-system

https://www.investopedia.com/terms/f/fundmanager.asp

https://www.moneycontrol.com/news/india/pm-modi-launches-mega-pmsym-pension-scheme-

3609161.html

https://www.moneydial.com/blogs/11-points-what-are-the-disadvantages-of-atal-pension-

yojana/

https://www.paisabazaar.com/saving-schemes/nps-returns/

https://sarkariyojana.com/pradhan-mantri-shram-yogi-maandhan-yojana/

https://www.thehindubusinessline.com/markets/stock-markets/atal-pension-yojana-turns-5-e-

apy-to-become-reality-this-year-says-pfrda-chief/article31559264.ece

Journal of Xi'an University of Architecture & Technology

Volume XII, Issue VI, 2020

ISSN No : 1006-7930

Page No: 325