Pension plan for non-resident Keralites

Kochi: Kerala will launch an insurance-linked pension scheme for non-resident Keralites in April 2002, at the start of the new financial year. The 1.6-million-strong non-resident Keralite (NRK) community has for long been demanding such a scheme. To begin with, the scheme will be run with the help of the Life Insurance Corporation (LIC), a state-run insurance giant, says Non-Resident Keralite Affairs Department (NORKA) secretary Jiji Thompson. "We have also commenced talks with two private insurance companies. Since, as of today, rules do not permit a private insurance company to run a pension plan, we will take it up with them at a later date," he says. "Keralites living abroad or in other Indian states can join the scheme by making a minimum stipulated contribution." "For example, if a 40-year-old NRK pays an annual contribution of Rs 5,000, from age 55 he will get a monthly pension of Rs 2,000 for life. In case of the death of the policy-holder, the selected sum assured plus money in the investment account will be paid out," says Thompson. NRK Minister M M Hassan said: "We have worked on all aspects, so there shouldnt be any snag to begin the scheme in April." Incidentally, the previous E K Nayanar-led LDF government was set to announce a pension scheme for NRKs in March last year and reports indicated that it had set aside Rs 5.5 million to meet the initial expenses. But for some unknown reason the scheme was not launched. The state government, meanwhile, is apparently considering a pure insurance scheme for the 900,000 returned expatriates. "The exact date and the details of this are being worked out," says Thompson.