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Ph. D.

Thesis Patna University

Chapter–5
STATE SOCIAL
SECURITY SCHEMES

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Ph. D. Thesis Patna University

CHAPTER–5
STATE SOCIAL SECURITY SCHEMES

Working of these Schemes and Administration


In India, in the past, social security was in a crude form of social
protection, it was available to the needy and the unfortunate in the joint
family set up and the cast system. An additional help from individuals
and institutions was provided to them through the guilds, community
panchayate, orphanages, widow homes and charity centres. The joint
family played vital rote of a shock absorber protecting its members form
hurdless and of various contingences like unemployment, economic
handship, old age, convalescene, invalidism and widowhood. Similarly,
guilds, castes, communities etc. offered safeguards and benefits to its
members. The benefits include medical aid to the old, feeble and invalid,
financial help to the orphans, widows and other needy persons. Donations
and subscriptions were collected for this purpose from the members of
their community. [Sinha P.R.N-2008] The rich and a religious backing
as the giving of aims were regarded as the pious deed (punnya). However,
the drawback of this benefit was that such that help was restricted only
to the members of a particular community and it was never a certainty
that the benefits would freely flow to the neediest and deserving persons.
The need for social security acquires a further emphasis in countries
India where, in view of the transition taking place, traditional values related
with small communities and joint family, and security mechanism in these
social institutions, social structure, social organisation used to wide for
the needy, are giving way to new system. In a predominantly Indian
economy with low per capita - income, considerable disguised
unemployment, wide economic and social inequalities, highly limited
opportunities etc, an individual's capacity and efforts to look after himself
will be inadequate.

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The state has, therefore, initiated action in this field. The


constitution of India envisages, coming into being of a welfare state free
from exploitation, poverty, and injustice. It further clearly lays down.
"The state within the units of its economic capacity and development,
make effective provision security the right to work to educate and to
public assistance in cases of employment, old age, and disablement and
in other cases of under served want". [Madan-2013]
In Bihar state, has therefore initiated scheme in unorganized section.
Central Government provided various scheme for the people. Indira
Gandhi National old age pension scheme etc (But Directorate by social
welfare department of Bihar State). On the other hand, Laxmibai social
security pension scheme, Bihar Disability pension scheme and state social
security pension scheme has been implemented by Bihar Government
which is directed by social welfare department. Thus, the effectiveness
of any piece of legislation largly depends upon the enforcement machinery
and the style of functioning of the machinery concerned. The task of
enforcing machinery is not so simple. [Sachdeva, D.R-2007]
In the present chapter, therefore, an attempt has been made to
examine the arrangement which has been made to enforce the Act and to
create the necessary atmoshphere in which the obligations and
responsibilities under this are understood and accepted by the employers
as also by the people whom the scheme, has been enacted.
The chapter highlights the role and directorate of various controlling
which is called social security department such as minister, secretary,
Director, social security, Joint Director, social security and Assistant
Director (Headquarters) and District Assistant Director.

Administration of social security scheme (ORGANISATIONAL


STRUCTURE) in Bihar
The Administration of the scheme is entrusted to an autonomods, other
body called labour planning and training department which came into

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planning in 1981. Main purpose of establishment of social security


Directorate under labour planning and training Department has ben
providing benefits to poor people of unorganized sector. During 2007-
08, this Department included under social welfare department (which is
under social welfare Departement) and its name was social security and
Disablement Directorate. Thus it is clearly that social security scheme is
administrated by the state government through Social welfare Department
who provides various scheme to all persons, e.g women, disabled, child,
widow and old age pension etc.
Present Administrative Arrangement/Organisational structure
The agencies which exercise direction and control and which are
responsible for the administration and the implementation of social security
schemes includes the following who are directed by this schemes :-
Organisational set up of the social security Department
¯
Minister
¯
Principal Secretary
¯
Director, Social Security
¯
Joint Director, Social Security
¯
Assistant Director (Headquarters)
¯
District Assitant Director
Source : Annual Report of Social welfare department (social security
directorate), Bihar

On the state level, Principal secretary is the head of the Department.


Under principle secretary, there are special secretary, Joint secretary and

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Deputy secretary in the Department. A part from secretary of principle


that senior rank. Each Directorate has Head of Director, Joint Director
and Deputy Director (but in present time this post is not available)
There is Director and lowyer in rank is Deputy Director and lowyer
to there is joint Director under director. Director Indian Administrative
Cadre will be in senior grade scale on state level to cooperate the Director
there is Joint Director and Assistant Director and case of policy decision
it is Directed by the Department.
The work of Directorate Executive in the District level as there is
one Assistant Director of social security cell who execute the programme
in the district, the guidance of District Magistrate.
District Assistant Director is working for social security and
Disablement under District office.
Thus, social security scheme deptt has been implemented various
scheme e.g Indira Gandhi National old age pension scheme, National
family Benefit scheme, Laxmibai social security pension scheme, Bihar
disability pension scheme state social security pension scheme (for old
persons in the age class of 60-65 years) etc.
The Directors will formulate one or more schemes as may be
considered necessary for the welfare, health, safety and social security
of the class of workers in any employment of unorganized and organized
sector and seek advice of the supervisory Board in formulating. They
same provided the authority while framing schemes under this subsection
ensure that they are not in contravention of any of the provision of the
existing Acts or schemes. If any question arises regarding the applicability
of any scheme to class or classes or workers in any employment of this
sector, the matter shall be referred by the authority to the union
Government whose decision shall be final.
The Department looks after the following schemes such are :
1. Indira Gandhi National old age pension scheme.

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2. Indira Gandhi National Disablement pension scheme.


3. Indira Gandhi National widow pension scheme.
4. Bihar state social security pension scheme.
5. Bihar Disability pension scheme.
6. Laxmibai social security pension scheme, which is diveded in
four categories.
I. Social security Area :-
• Social security pension scheme - under 6 pension
scheme are provided
II. Old age pension :-
• Indira Gandhi National old age pension scheme.
• State social security pension scheme.
III. Widow pension :-
• State Laxmibai (widow) pension scheme.
• Indira Gandhi National widow pension scheme.
IV. Disablement pension :-
• Bihar Disability pension scheme.
• Indira Gandhi National Disablement pension scheme.

Bihar state social security pension scheme


The Bihar state social security pension scheme was initiated by
the state Government to cover those persons of 60-64 years, belonging
to poor families whose yearly income is less than Rs. 5,500/- in case of
urban areas and less than Rs 5,000 in case of rural areas, are given
pensions at the rate of Rs 400 per month (from 1 July, 2014). There is no
age limit in case of bonded labour. [Annual Report, GOB, 2014-15]

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Benefits and Eligibility


Under the scheme a sum of Rs 400/- is provided to eligible people.
The applicant must be between 60 to 64 years, enlisted as living below
poverty line (BPL) and should not be covered under the indira Gandhi
National old age pension scheme. The applicant must have a maximum
annual income of Rs 5,000. If living in a rural area and Rs 5,500 if living
in an urban area.

How to Access
The identification of beneficiaries is done by the village head
(Mukhiya) or the Panchayat secretary. Beneficiaries can be recommended
through the Gram Sabha. The disbursement of pensions is transacted
through the post office savings Bank account of the pensioners.

Implementation Status
The scheme is under implementation since the year 1974.
Till November, 2011 total number of 80,679 persons had benefited
from this scheme.
In the financial year 2012-13, it is proposed to sum of Rs 2000
Lakh.
In the financial year 2014-15 with a sanctioned amount of Rs 1680
Lakh. In this financial year total no of 67,851 beneficiaries were provided
benefit under this scheme.
In the financial year 2015-16, provides benefit to all eligible
candidates. In this financial year, it is proposed to sum of Rs 1600.00
Lakh.

Laxmibai social security widow pension scheme.


or, Laxmibai social security pension scheme
The scheme was introduced in 2007, primarily for the welfare of widows.

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Currently the scheme provides pension to those widows who are


• more than 18 years of age, who belong to the BPL families or
whose annual income from all sources is less than Rs 60,000/-
per annum.
• equal to or above 60 years, who belong to the BPL families or
whose annual income from all sources is less than Rs. 60,000/
- per annum.

Benefits and Eligibility


Under the scheme a sum of Rs. 400/- (from 01 July, 2014) is
provided to eligible people. Widowed women in the age group of more
than 18 years and those above 65 years who are not eligible for availing
the national pension schemes are eligible for benefits under this scheme.
[Annual Report, 2014-15] The eligibility criteria are as follows :
• Wome more than 18 years of age, whose annual income from
all sources is less than rupees 60,000/- per annum.
• Women equal to or above 60 years of age whose income from
all sources is below rupees 60,000/- per annum.
• Women equal to or above 60 years who were previous
beneficiaries of the Laxmi Bai social security pension scheme
and were not included under the National Old Age Pension
Scheme due to not being listed in the BPL list.
• Women who are residents of Bihar or have been residing in the
state for at least last 10 years from the date of application.

How to Access
The scheme was brought under the purview of the Right to public
services act from August 15, 2011. To avail benefits the applicant has to
submit two copies of application in a prescribed format (format-I) along
with photographs, BPL certificate, age certificate and proof of residence
to the Block office. The applicant should obtain receipt for the application

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Ph. D. Thesis Patna University

submitted which will help in availing information regarding the progress


of application. The sub Divisional officer would provide information on
approval within a specified period. After approval, the approval order is
sent to the Post office, where a savings account is opened in the name of
the beneficiary for making the payments. The amount of pension is
deposited in the post office savings account of the beneficiary. In case
of rejection, the applicant is duly informed.
Implementation status
Till November, 2011 total number of 4.62 lakh beneficiaries were
provided benefit under this scheme whereas the target was to cover 5
lakh beneficiaries under the scheme.
In financial year 2014-15 total no. of 6.29 lakh beneficiaries were
provided benefit under this scheme.
In financial year 2015-16, provides benefit to all eligible candidates
where as the target was to cover 6.50 lakh beneficiaries under the scheme.
Bihar Disability pension scheme
The Bihar state social security pension scheme was initiated by
the state Government to cover those older persons who are destitute
and are not covered under the Indiara Gandhi National Old Age pension
scheme (IGNOAPS). The state Government is committed to simplify
the process of availing the benefits of the scheme. In this regard it has
brought in the Bihar state social security pension scheme, 2007.
Amendment 2009 Guidelines.
Benefits and Eligibility
Under the scheme a sum of rupees 400/- (from July, 2014) is
provided to eligible people. [Annual Report, GOB, 2014-15]
• The applicant must be physically disabled and posses a
certificate of disability (40% or more than 40%).

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• There is no minimum or maximum age limit for availing the


benefits of the scheme.
• There is no upper limit of annual income defined for availing
the pension.
• The applicant should be a resident of the state or should have
been residing in the state for at least past 10 years, since the
date of submission of the application.
OR
• The applicant must be physically disabled and posses a
certificate of minimum 40% of disability.
• There is no upper limit of annual income defined for availing
the pension.
• There is no minimum or maximum age limit for availing the
benefits of the scheme.
• The applicant should be a resident of the state or should have
been residing in the state for at least past 10 years, since the
date of submission of the application.

How to Access

The avail the benefits of the scheme the applicant should submit
two copies of duly filled application form. The identification of
beneficiaries is done by the village head (Mukhiya) or the panchayat
secretary. Beneficiaries can recommended through the Gram Sabha. There
is provision of right to public service at each block under which applicant
can directly apply for the pension. Applicant will be updated about the
proceeding. A pilot project is being implemented to do cash delivery of
the pension to the applicant. In this project you need not to have saving
account in a post office. The disbursement of pensions is transacted
through the post office saving Bank account of the pensioners.

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Implementation status
The coverage of 1.65 lakhs eligible disabled persons is the target
in the financial year 2008-09 with a sanctioned amount of Rs. 4070.00
lakhs.
Keeping in view the physical progress it is proposed to cover
1.50 lakh eligible beneficiares in the financial year 2009-10 with a sum of
Rs. 3672.00 lakh personally 1.90 lakh beneficiaries are covered under
this scheme.
In view the physica progress in the financial year 2011-12 with a
sum of Rs. 5360 lakh. 2.85 lakh beneficiaries are covered under this
scheme.
In the financial year 2012-13 with a sanctioned amount of Rs.
9000 lakh.
In the financial year 2014-15 with a sanctioned amount of Rs.
24270.00 lakh. 5.28 lakh beneficiaries are covered under this scheme.
In the financial year 2015-16 its is proposed to cover 6.50 lakh
eligible beneficiaries. With a sum of Rs. 31200.00 lakh (proposed amount).
Present proposed amount be Rs. 12100.00 lakh.
The population of disable (eligible and inelligible) persons of the
state has been estimated at 18.87 lakhs. The figures for disable population
above 40% are not segregated. As per information about 13 lakhs of
disable persons have been issued certificates of disability. The process
of issuance of disability certificates is as yet under progress and it is
persuade that a sizable fraction that too with majority in BPL category is
yet to be issued the disability certificates. Therefore, the population of
the eligible disable persons of BPL category and those not included in
BPL category but with income less than Rs. 30,000/- per annum should
be 2 lakh and upwards. Hence the target coverage in 2015-16 is 6.50
lakh beneficiaries.

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TABLE 5.1
SOCIAL SECURITY DIRECTORATE, BIHAR
ABSTRACT FINANCIAL STATEMENT OF PLAN SCHEME (Rs. In Lakh)
Financial years Financial years Financial years Financial years
SI.
Name of Schemes 2007-08 2008-09 2009-10 2010-11
No.
Expenditure Expenditure Expenditure Expenditure
1 2 3 4 5 6
Indira Gandhi National
1 21394.32 25907.40 50606.00 58885.52
old age pension scheme
Ph. D. Thesis

Indira Gandhi National NA NA 4491.00 5407.61


2

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widow pension scheme
Indira Gandhi National
3 NA NA 480.00 166.20
Disability pension scheme
National family Benefit
4 2350.85 1982.00 2590.00 2780.93

Faculty of Social Scieces


scheme
State Social security
Patna University

5 2444.11 1817.8 2401.60 2355.94


pension scheme
Laxmibai social security
6 4887.77 4392.11 6592.02 9549.85
pension scheme
Bihar Disability pension
7 1018.03 1467.27 2007.00 4400.84
scheme
Source :- Annual Report of Social Security Directorate, Bihar.

190
TABLE 5.2
SOCIAL SECURITY DIRECTORATE, BIHAR
ABSTRACT FINANCIAL STATEMENT OF PLAN SCHEME

SI. Financial years 2013-14 Financial years 2014-15 Financial years 2015-16 Financial years 2016-17
Name of Schemes Actual Actual
No. Actual Expenditure No. of No. of Plan Allocation
Expenditure Expenditure
(In crores) Beneficiaries Beneficiaries (In lakh)
(In lakh) (In lakh)
1 2 3 4 5 6
Indira Gandhi National 46.04 46.76
1 957.59
old age pension scheme (Lakh) (Lakhs)
Ph. D. Thesis

Indira Gandhi National 5.68 226237.24 6.02 233371.00 200550.00


2 158.00

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widow pension scheme (Lakh) (Lakh) (Lakhs) (Lakh) (Lakh)
Indira Gandhi National
3 9.26 50,641 54,110
Disability pension scheme
National family Benefit 5575.00 126351.00
4 58.77 27,875 NA
scheme (Lakh) (Lakh)

Faculty of Social Scieces


State Social security 1680.00 3493.00 1100.00
5 8.50 67,857 67,851
Patna University

pension scheme (Lakh) (Lakh) (Lakh)


Laxmibai social security 6.29 28125.00 6.64 35848.00 10500.00
6 137.69
pension scheme (Lakh) (Lakh) (Lakh) (Lakh) (Lakh)
Bihar Disability pension 5.78 24270.00 6.34 320500.00 1000.00
7 106.03
scheme (Lakh) (Lakh) (Lakh) (Lakh) (Lakh)

Source :- Annual Report of Social Security Directorate, Bihar.

191
Ph. D. Thesis Patna University

It will be seen from the table 5.1 and table 5.2 that tables showing
total no. of beneficiaries and total amount (Expenditure and proposed
amount) during the period 2007 to 2011 and 2013 to 2017. Following
schemes has been implemented by state government e.g.-

• Indira Gandhi National old age pension scheme.

• Indira Gandhi National widow pension scheme

• Indira Gandhi National Disability pension scheme

• National family Benefit scheme

• State social security pension scheme

• Laxmibai social security pension scheme

• Bihar Disability pension scheme.

While Indira Gandhi National old Age pension scheme, Indira


Gandhi National widow pension scheme, Indira Gandhi National Disability
pension scheme and National family benefit scheme has implemented by
Central Government but, it is also working in Bihar state.

Thus, it can be concluded from above facts all schemes are working
under social security Department which is control of social welfare
department of Bihar state. Thus, under Indira Gandhi National old age
pension scheme total expenditure amount is Rs. 21394.32 Lakh during
the financial year 2007-08, During financial years 2008-09 total expenditure
amount is Rs. 25907.40 Lakh.

Total expenditure amount is Rs. 50606.00 Lakh during the financial


year 2009-10.

A sum of Rs. 58885.52 Lakh has been expanded for the financial
year 2010-11.

A sum of Rs. 957.59 crore has been expanded for the financial
year 2013-14.

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Total expenditure amount is Rs. 226237.24 Lakh on the combined


coverage of I.G.N.O.A.P scheme, I.G.N.W.P. scheme and I.G.N.D.P.
scheme during financial year 2014-15.

Again total expenditure amount is Rs. 233371.00 Lakh on the


combined coverage of I.G.N.O.A.P scheme, I.G.N.W.P scheme and
I.G.N.D.P scheme during financial year 2015-16.

A sum of Rs. 200550.00 Lakh has been sanctioned for financial


year 2016-17.

* Under, Indira Gandhi National widow pension scheme


(I(GNWPS), total expenditure amount is Rs. 4491.00 Lakh during the
financial year 2009-10.

A sum of Rs. 5407.61 Lakh has been expended for the financial
year 2010.-11.

A sum of Rs. 158.00 crore has been expended for the financial
year 2013-14.

Under, National family Benefit scheme (NFBS) total expenditure


amount is Rs. 2350.85 Lakh for the financial year 2007-08.

A sum of Rs. 1982.00 Lakh has been expended for the financial
year 2008-09.

Total expenditure amount is Rs. 2590.00 Lakh during the financial


year 2009-10.

Total expenditure amount is Rs. 2780.93 Lakh under NFBS during


the financial year 2010-11.

Total expenditure amounts are Rs. 58.77 crore, Rs. 5575.00 Lakh,
Rs 126351.00 Lakh under NFBS during the financial years 2013-14,
2014-15, 2015-16 respectively.

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* State social security pension scheme envisages providing monthly


pension of Rs. 400 to the helpless and destitute old people 60-64 years
with a annual income of upto Rs. 5000/- (in rural area) and Rs. 5500/- (in
urban areas). The beneficiaries in age class above 65 years belonging to
BPL category are transferred to IGNOAPS. Therefore now this scheme
effectively covers the old person of age class 60-65 years and economically
deprived as stipulated here above.

The selection of beneficiaries is with the association of Panchayati


Raj institution. The disbursement of pensions is transacted through the
post office saving Bank Account of the pensioners or distributed through
the camp of Block level.

The scheme is under implementation form financial year 2007-08


form plan head prior to this, the scheme was under implementation in
Non-plan head in conjunction with other categories of pension coverage
that included widows, handicapped and above other labourers.

A sum of Rs. 2444.11 Lakhs has been approved for the financial
year 2007-08 against the physical target of 1,10,000 pensioners.

A sum of Rs. 1817.8 Lakh has been expended for the financial
year 2008-09.

A sum of Rs. 2401.60 lakhs has been expended for the financial
year 2009-10.

A sum of Rs. 2355.94 lakhs has been expended for the financial
year 2010-11.

A sum of Rs. 8.50 crores has been expended during the financial
year 2013-14.

A sum of Rs. 1680.00 lakhs has been expended during the financial
year 2014-15 among the 67,850 number of beneficiaries.

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A sum of Rs. 3493.00 lakhs has been expended during the financial
year 2015-16.

A sum of Rs. 1100.00 lakhs has been sanctioned for financial year
2016.17.

* Under Laxmibai social security pension scheme the widows in


age 18 years and above of BPL families or those with annual income
upto Rs. 60,000/- are to be provided a pension of Rs. 400 (from 1 July,
2014) per month. The beneficiaries are selected with the association of
Panchayati Raj Institutions. The disbursement of pension is translated
throught the post office, saving Bank Accounts of the pensioners or
distributed through the camp at Block level.

For the financial year 2007-08 a sum of Rs. 4887.77 lakhs has
been expended.

A sum of Rs. 4392.11 lakhs has been expanded during the financial
year 2008-09.

A sum of Rs. 6592.01 lakhs has been expanded during the financial
year 2009-10.

A sum of Rs. 9549.85 lakhs has been expended during the financial
year 2010-11.

For the financial year 2013-14 a sum of Rs. 137.69 crores has
been expended.

For the financial years 2014-15 a sum of Rs. 28125.00 lakhs has
been expended among 6.29 lakhs number of beneficiaries.

A sum of Rs. 35848.00 lakhs has been expanded during the


financial year 2015-16 among 6.64 lakhs number of pensioners.

For the current financial year 2016-17 a sum of Rs. 10500.00


lakhs has been allocated.

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Ph. D. Thesis Patna University

Statistical date or specifically customized survey in the state for


the total numbers of eligible beneficiaries under this scheme are not
available. Considering the estimated and recorded death rate in BPL
families in the working age class of 18-64 being respectively 74000 and
27000 (majority of whom are male deaths) per annum and considering
that 50% of the deaths are males and lion share of these being of married
males in upper age strata, the number of widows in BPL category being
added in each year should not be less than 20,000. Further, this scheme,
also provision for such beneficiaries not enlisted in BPL survey but with
annual income of 30,000. Therefore, the commulative population of all
the eligible widows could be crudely estimated.

* Bihar Disability pension scheme provides for pension of Rs. 400


(from July 2014) per month in the disabled people (40% or more) for all
age and income group of disable. The beneficiaries are selected with the
association of Panchayati Raj Institution. The disbursement of pension
is done through post office, bank account of pensioners or distributed
through camp at block level. This scheme has been launched under state
plan in 2007-08.

A sum of Rs. 1018.03 lakhs has been expanded for the financial
year 2007-08.

A sum of Rs. 1467.27 lakhs has been expanded during the financial
year 2008-09.

A sum of Rs. 2007.00 lakhs has been expanded during financial


year 2009-10.

A sum of Rs. 4400.84 lakhs has been expanded during financila


year 2010-11.

A sum of Rs. 106.03 crores has been expanded during financial


year 2013-14.

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A sum of Rs. 24270.00 lakhs has been expanded during financial


year 2014-15.

A sum of Rs. 320500.00 lakhs has been expended during the


financial year 2015-16.

For the current financial year 2016-17 a sum of Rs. 1000.00 lakhs
has been allocated.

The population of disable (eligible and ineligible) persons of the


the state has been estimated at 18.87 lakhs. The figures for disable
population above 40% are not segregated. As per informal information
about 13 lakhs of disable persons have been issued certificates of
eligibility. The process of issuance of disability certificates is as yet
under progress and it is persuade that a sizable fraction that too with
majority in BPL category is yet to be issued the disability certificates.
Therefore, the population of the eligible disable persons of BPL category
but with income less than Rs. 30,000/- per anum should be 2 lakhs and
upwards. Hence the allocated amount Rs. 1000.00 lakhs in current financial
year 2016-17.

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CHAPTER–5
REFERENCES :-
V Sinha, P.R.N, "Labour & social welfare" Bharti Bhawan, Patna –
2008, p - 389-391.
V Madan, G.R, "Social work" Vivek Publication, Delhi - 2013 P-
211-212.
V ILO, "World of Labour" – 2011, P-411
V Mathur, R., "Recent trantus in Indian economy" Sublime
publication, Jaipur - 2013. P-23
V Misha & Puri, "Indian Economy" Himalya publishing house - 2007
V Sachdeva, D.R, "Social administration in India" Kitab Mahal,
Patna, (2007)
V Suman, "Principle of Economics", Students friends, Patna - (2000),
P-201-206.
V Kurukshetra - septermber - 2016, p- 41-43.
V Census – 2011, Government of India.
V Budget – 2016-17 Government of India.
V Annual Reports, Department of Rural development of India [From
2010 to 2015]
V Annual Reports, Department of social welfare, Government of
Bihar [From 2010 to 2016]
V Annual Reports of Social Security, Directorate, Bihar [From 2008-
09 to 2015-2016
V Internet

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