Review of LIC role in pension schemes on cards

economictimes.indiatimes.com:

LIC) of India and is tightening the operational framework for around 500 common service centres (CSCs) for tardy enrolments under its voluntary pension schemes for unorganised workers and traders. «The ministry will undertake a detailed review of the role of LIC in managing the two schemes as implementation is the priority for the government,» a government official told ET on condition of anonymity.

Queries emailed to LIC did not elicit any response till press time. The Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme and the National Pension Scheme (NPS) for Traders and Self-Employed, both launched in 2019, are administered by the labour and employment ministry and implemented through LIC and Common Service Centre eGovernance Services India Limited.

People familiar with the deliberations said the premium size under the two schemes (₹55-200 per month) is so miniscule that LIC is not incentivised enough to carry out enrolments, which are largely commission based. While the labour and employment ministry is re-assessing the role of LIC, one of the persons said the pace of enrolments is slow also because CSCs are not making enough efforts to enrol despite getting a commission of ₹30 per enrolment.

In a review meeting with the CSCs, the ministry has suggested fixing a minimum enrolment target which will be monitored on a regular basis, the official said. Looking to widen the penetration of the two pension schemes, the ministry is also pushing states to enhance enrolments.