Enhancing the Sustainability of Indian Pension Disbursal-System by Employing Digital Technology

Abstract

India is a welfare state progressing well economically. If this progress is to continue without social upheavals, a sustainable social security system is mandatory. Pensions, and pension reforms, are an essential part of any social security system. This paper argues that it is imperative to reform the existing provident and pension fund entities. We also need better systems for administration and delivery of old age assistance. The major areas which the reforms should address are – improvement in administrative systems ; a well-designed social security system; and better regulation mechanism. One area where reforms can be easily implemented is the Civil Service Pensions. This has been taken up by the present Govt in a big way. The lessons learnt in implementation of the reforms here will be useful while expanding the scope of reforms to affect the whole target population. The author, as Nodal Officer, is responsible for implementation of these reforms in his department. As a part of e-governance, employee (and their spouse/dependent) records are being digitized. Digital data base of AADHAAR and of Income Tax Department is being used extensively. This process, including the lessons being learnt, has been discussed in detail in this paper.