Provident Funds

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PROVIDENT FUNDS

National Senior Citizen's Fund

There is growing awareness and concern about the case of elderly persons in society. If at all, the problem appears to worsen in future if timely measures are not taken in present.

The problem, geographically, is all pervasive and of large magnitude. This should be a concern of all individuals, corporates, the private sector, as well as the government.

The government should take a lead in galvanising all these efforts. Towards this end, it is proposed to set up a National Senior Citizen's Fund with a view to encouraging, catalysing, and complimenting all private sector efforts for the betterment of life of senior citizens in the country.

The Fund can also be utilised for educating individuals about various security schemes, conducting research into areas concerning senior citizens and building infrastructure relevant to the social security industry.

The present contribution of 1.16% by the Government of India to the Employees Pension Scheme should be channelled into this fund as initial corpus till this contribution is gradually withdrawn.

A part of the withdrawal tax on provident funds may also be transferred to this fund annually.

The fund should be monitored and administered by a Board of Trustees appointed by the Ministry of Social Justice and Empowerment.

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