A Study On Coping Strategy of Mega Pension Scheme: A Pension For Unorganised Sectors in India

Journal of Xi'an University of Architecture & Technology ISSN No : 1006-7930
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
Volume XII, Issue VI, 2020 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
Administrating
pension scheme in Sector Types
Authority
India
Employees' Mandatory
civil servants pension Organised Provident Fund
Organisation of India Before 31-12-2003
contribution pension Pension Fund

system Regulatory and Mandatory
Organised
National Pension Development After 1-1-2004
System (NPS) Authority (PFRDA)
contribution pension Voluntary

Pension Fund
system Unorganised Regulatory and After 1-5-2009

National Pension Development

System (NPS) 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

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 Atal Mega Pension

Pension Pension Scheme (Pradhan
Scheme-2010 Scheme- Mantri Shram
2015 Yogi Maan-dhan
Scheme- 2019)

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.

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.

Table.2
Feature of the three unorganised Sectors’ Pension Schemes
Swavalamban Atal Pension Pradhan Mantri

Features Pension Yojana Yojana Shram-Yogi Maandhan
2010 2015 2019
18-40 at least 20
years
Age limit to entry 18-40 18-40
contribution is
must
Rupees 55-200 every
Premium 1000-12000 1000-12000
month
Period of premium
Year wise Monthly- wise Monthly-wise
payment
All citizens in All citizens in
All citizens in
Target audience unorganised unorganised
unorganised sector
sector sector
Subscribers Indian/NRIs Indian Indian
Years of
Up to completion of the
Government 3 Years 5 years
policy
Contribution
(Rupees 1000-
12000)
(Rupees 1000-
50% or flat 1000 100% equal contribution
12000) a
Who joined to per premium
minimum
between June 1, Monthly (premiums to
contribution
Government 2015 and be paid in between 18-60
of ₹1,000 and
contribution December 31, years and each age has
maximum
2015 and specific premium amount
contribution
continues for as per the maturity of the
of ₹12,000 per
only the next 5 policy)
annum by Govt
years i.e., till FY
2019-2020.
Subscriber
Subscriber should
should not be
not be covered
covered under
under any other
any other social
social security
security
schemes like
schemes like All citizens in
Eligibility Employees’
Employees’ unorganised sector who
Provident Fund
Provident Fund earns less than Rupees
and
and 15000/- in a month.
Miscellaneous
Miscellaneous
Provision Act,
Provision Act,
The Coal Mines
The Coal Mines
Provident Fund
Provident Fund
and
and

Miscellaneous Miscellaneous
Provision Act etc Provision Act
etc
If they are If they are
Ineligibility enrolled in any enrolled in any If they are enrolled in
other central other central any other central
government government government scheme
scheme scheme
savings bank
savings account savings bank account/
Bank account account/ Jan-
in any bank Jan- Dhan account
Dhan account
Market Investment Yes Yes Yes
Family Benefit No Yes 50% for spouse
(variable
benefits) Longer
Benefits Fixed sum
the investment in Fixed sum Rupees
Rupees 5000/-
this scheme gets 3000/- per month
per month
the higher
pension amount
Benefits starting
years
60 years 60 years 60 years
Pension Fund
Regulatory and
Development
Pension Fund Regulatory
Authority Pension Fund
and Development
(PFRDA) Regulatory and
Administrator of Authority (PFRDA) and
And the Pension Development
the Fund the funds managed by
fund managed by Authority
the Life Insurance
NPS trust: ICICI, (PFRDA)
Corporation (LIC)
KOTAK,IDFC,
RELIANCE,
SBI,UTI
Penalty for exit the
Yes Yes No
scheme
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

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.

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.

Table.3
Fixation of Pension based on premium of subscribers
Interest on
Accumulated
Premium Interest Amount P.M
Per month earned (pension)
Age Final Annually at
Amount 8%
18 42 171407 13712.56 1142.71
20 50 173045 13843.6 1153.63
25 76 173234 13858.72 1154.89
30 116 172174 13773.92 1147.83 MONTHL
35 181 171798 13743.84 1145.32 Y
40 291 171414 13713.12 1142.76 PENSION
ON RS-
1000
18 84 342814 27425.12 2285.43
20 100 346093 27687.44 2307.29
25 151 344189 27535.12 2294.59
30 231 342864 27429.12 2285.76 MONTHL
35 362 343595 27487.6 2290.63 Y
40 582 342827 27426.16 2285.51 PENSION
ON RS-
2000
18 126 514220 41137.6 3428.13
20 150 539904 43192.32 3599.36
25 226 515143 41211.44 3434.29
30 347 515039 41203.12 3433.59 MONTHL
35 543 515393 41231.44 3435.95 Y
40 873 514240 41139.2 3428.27 PENSION
ON RS-
3000
18 168 685628 54850.24 4570.85
20 198 685263 54821.04 4568.42
25 301 686097 54887.76 4573.98 MONTHLY
30 462 685729 54858.32 4571.53
35 722 685292 54823.36 4568.61 PENSION

40 1164 685654 54852.32 4571.03 ON RS-

4000
18 210 857035 68562.8 5713.57
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 MONTHL
Y
PENSION
ON RS-
5000
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.

Under Tier-1 accounts System

Table.4 Actual Performance of Government securities (Government Bonds) as of
July 19, 2019
Pension 1 Year 3 Year 5 Year Returns Since
Fund Return Return Return 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
19.55% 10.03% 11.44% 9.11%
PF
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

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
12.91% 8.95% 10.23% 9.47%
PF
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%
Table.6 Actual Performance of Equity as of July 19, 2019
Pension Fund 1 Year 3 Year 5 Year Return Returns since

Return Return 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%

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

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 7.60% NA NA 6.88%
PF
SBI PF 10.44% NA NA 8.13%
UTI PF 7.56% NA NA 7.06%
Average 9.89% NA NA 7.67%
Under Tier –II accounts system
Table.8 Actual Performance of Government securities (Government Bonds) as of

July 19, 2019
Pension 1 Year 3 Year 5 Year Returns since

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
17.11% 9.25% 11.02% 9.12%
PF
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%
Table.9
Actual Performance of Corporate Bonds as of July 19, 2019

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%

LIC PF 13.33% 8.42% 9.54% 9.27%

RELIANCE
10.89% 8.35% 9.77% 9.06%
PF
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%
Table.10
Actual Performance of Equity as of July 19, 2019

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
4.23% 8.71% 8.02% 8.98%
PF
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

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

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

A Study On Coping Strategy of Mega Pension Scheme: A Pension For Unorganised Sectors in India

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Journal of Xi'an University of Architecture & Technology ISSN No : 1006-7930

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

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

Volume XII, Issue VI, 2020 Page No: 309

The Indian pension system and the History of the Scheme

contribution pension Pension Fund

contribution pension Voluntary

Volume XII, Issue VI, 2020 Page No: 310

National Pension Development

Swavalamban Pension Yojana 2010

Atal Pension Yojana (APY) 2015

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

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

Volume XII, Issue VI, 2020 Page No: 311

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

Home based workers Street vendors Mid-day meal workers

Sources: sarkariyojana.com. October 18, 2019

Swavalamban Atal Mega Pension

Volume XII, Issue VI, 2020 Page No: 312

Objectives of the Study

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

Volume XII, Issue VI, 2020 Page No: 313

RESULT AND DISCUSSION

Volume XII, Issue VI, 2020 Page No: 314

Feature of the three unorganised Sectors’ Pension Schemes

Swavalamban Atal Pension Pradhan Mantri

Volume XII, Issue VI, 2020 Page No: 315

Volume XII, Issue VI, 2020 Page No: 316

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

Volume XII, Issue VI, 2020 Page No: 317

Volume XII, Issue VI, 2020 Page No: 318

Fixation of Pension based on premium of subscribers

Volume XII, Issue VI, 2020 Page No: 319

40 1164 685654 54852.32 4571.03 ON RS-

Role of Fund managers:-

Volume XII, Issue VI, 2020 Page No: 320

Under Tier-1 accounts System

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

Pension 1 Year 3 Year 5 Year Returns Since

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 3 Year 5 Year Return Returns since

Volume XII, Issue VI, 2020 Page No: 321

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

Pension 1 Year 3 Year 5 Year Returns Since

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

Pension 1 Year 3 Year 5 Year Returns since

Actual Performance of Corporate Bonds as of July 19, 2019

Pension 1 Year 3 Year 5 Year Returns since

Volume XII, Issue VI, 2020 Page No: 322

LIC PF 13.33% 8.42% 9.54% 9.27%

Pension 1 Year 3 Year 5 Year Returns since

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

Volume XII, Issue VI, 2020 Page No: 323

Volume XII, Issue VI, 2020 Page No: 324

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

Volume XII, Issue VI, 2020 Page No: 325

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