Step 2.6 Pension Scheme

What is pension scheme under BoCW?

The pension scheme under BoCW in Karnataka aims to offer financial assistance to registered construction workers in their retirement years. 

Eligible workers who have contributed (contribution not required after the onset of COVID but should be working in the construction sector) to the welfare fund become eligible for a monthly pension when they reach the specified retirement age, of sixty years. 

What are the eligibility criteria for accessing benefits from pension scheme?

1. Age Requirement: The beneficiary must have reached the age of sixty years.
2. Duration of Beneficiary Status: The beneficiary should have been registered as a beneficiary of the Board for at least six years before reaching the age of 60.
3. Subscription Payment: Eligibility is also determined by having paid the subscription fees until the age of sixty. In other words, those who have consistently contributed to the welfare fund until the specified age is eligible for the pension. <This is not applicable now>

What type of documents required for application?

 

1. Application in Form XII
2. Photocopy of ID card attested by gazette officer.
3. Original ID card submitted to the Board.
4. Photocopy of beneficiary’s bank passbook
5. Provide Living Certificate every year.
6. Ration Card.
7. Employer Certificate.
8. Application can be submitted within 6 months after attaining the age of sixty years.
9. In case of Beneficiary death, Nominee should provide death certificate to Board.
10. Before attaining age of 60 years registered construction worker shall be the beneficiary of the board.
11. Continuously for the period of 3 years.
12. Application processing verification [If required] by the Senior/ Labour Inspector.
13. Review approval by the Secretary /Joint Secretary.
    
14. Registering authority should submit the copy of the age proof of beneficiary which was submitted at the time of registration.

These documents serve as supporting evidence to verify and process your application effectively.

Key aspects related to Pension scheme.

Benefits	Amount (Rs.)	Frequency	Applies to	Contribution by worker (Rs.)	Time specified (days)	Time taken (days)	Fee specified (Rs.)	Money spent (Rs.)	Timeline for submission
Pension	3,000	Monthly	Registered construction worker	-					Within 6 months of turning 60.

What is the procedure to apply?

1. Eligibility Verification:

   • To begin the process, the applicant, who is a registered building and other construction worker eligible for a pension, needs to submit their application through the Seva Sindhu software.

2. Submission of Beneficiary Identity Card:

   • Along with the application, the registered worker must surrender their beneficiary Identity Card.

3. Application Processing:

   • The application is processed and verified by a Senior/Labour Inspector to ensure that all the required documents and eligibility criteria are met.

4. Verification Outcome:

   • Based on the verification, the Inspector will determine whether the applicant is eligible for the pension scheme.

5. Pension Sanction:

   • If the application is approved and the worker is found eligible, the Board will send a pension sanction order along with the pension Identity card, which will contain a unique electronically generated pension payment Order No.

6. Rejection and Opportunity for Hearing:

   • In cases where the Board concludes that the applicant is not eligible for the pension, the application will be rejected. However, the applicant will have an opportunity to be heard before the rejection.

7. Reporting the Death of the Pensioner:

   • Legal dependents or heirs are responsible for informing the Board about the death of the pensioner and providing the necessary death certificate to facilitate the closure of the bank account associated with the pension.

8. Monthly Pension Limit:

   • The amount of the pension provided shall not exceed Rs. 3000 per month, in accordance with the Government of Karnataka Notification No. LD 458 LET 2021 dated 08-08-2022. It's important to note that the beneficiary should not be receiving a similar benefit from any other government schemes.

Annual requirements to continue the pension

Living Certificate Submission:

• • The beneficiary is required to submit the Living Certificate (Form XII-A) to the sanctioning authority each year to maintain the continuity of the pension.

Why do construction workers often encounter difficulties in receiving their pensions?

1. Eligibility Conditions: The pension scheme is intended for senior citizens among registered construction workers who are aged 60 or above and have been members of the board for a minimum of 6 years.
2. Document-Related Challenges: To qualify for the pension, it is mandatory to submit an annual "living certificate."
3. On-ground implementation:  The requirement for compulsory biometric fingerprints can sometimes lead to mismatches due to physical toll or changes. Fingerprints are also mandatory for the living certificate.
4. Policy design issue: The scheme mandates that individuals have worked for a period of 3 years before reaching the age of 60 and maintained board membership for at least 6 years to access the benefits. 
   1. The scheme's requirement for individuals to work until the age of 60, despite the fact that many construction workers retire between the ages of 50 to 55, poses a significant challenge.

Examples of CSOs going the extra mile to get work done

1. Currently, the sole form of pension available is the old age pension; however, Fedina is actively working to establish a framework to expand pension coverage to retired construction workers.

Questions and scenarios for discussion

1. What happens when the retiree moves to another state?