While the UPA government’s attempts at convincing its Left allies on the need for pension reforms continue to fall on deaf ears, the UTI Mutual Fund has been making some serious progress on the daunting task of providing a pension scheme for India’s unorganised sector workers that form over 90 per cent of the workforce and are largely financially illiterate.

Tweaking its existing Retirement Benefit Plan to allow monthly contributions as low as Rs 50, UTI had kicked off its ‘micro-pension’ initiative in April 2006 by signing up self-employed women like vegetable vendors and maids who are part of the Shri Mahila Sewa Sahakari Bank in Ahmedabad.

In less than a year, the scheme has found over 75,000 takers — workers associated with Paradip Port and Dock Labour Union, members of self help groups associated with Bank of India and Corporation Bank, Bihar’s milk producers (Bihar State Co-operative Milk Producers Federation Ltd), Union Bank of India employees.

That number is about to rise exponentially in the coming days. Speaking to The Indian Express , UTI Mutual Fund chairman U K Sinha said that Bihar Chief Minister Nitish Kumar is so happy with the scheme’s success with the state’s milk producers’ co-operative that he now wants UTI to extend the scheme for the state’s two lakh-odd para teachers.

That’s not all. The Department of Posts wants its Gramin Dak Sewaks to be included under the scheme. Pilot projects are set to begin in 5 districts across the country with IFFCO co-operative societies. Preliminary studies are on with the government of Madhya Pradesh to bring in employees of autonomous institutions like Shikshakarmis, Panchayatkarmis, Anganwadi workers.

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