NATIONAL OLD-AGE PENSION SCHEME IN INDIA: A STUDY IN KARIMNAGAR DISTRICT OF TELANGANA STATE

ISSN:2249-7137 Vol. 5, Issue 6, June 2015 Impact Factor: SJIF 2013=5.099

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Publis hed by: South Asian Academic Research Jour nals

ACADEMICIA:

A n I n t e r n a t i o n a l

M u l t i d i s c i p l i n a r y

R e s e a r c h J o u r n a l

(A Do u b le B l ind Re fe r e e d & Re v ie we d I nte r na t io na l J o ur na l)

NATIONAL OLD-AGE PENSION SCHEME IN INDIA:

A STUDY IN KARIMNAGAR DISTRICT OF TELANGANA STATE

Dr. B. Suresh Lal*

*Associate Professor,

Department of Economics,

Kakatiya University,

Warangal.

ABSTRACT

The paper focuses the welfare scheme for old age people and examine how this

scheme is implemented, criteria for identify and proper distribution of pension to old

age people. Most of the old age pensioners are destitute, poor, poorest of the poor

(pop) and landless. 78.62 percent pensioners are in the age group between 65-75

years. 62.45 percent pensioners do not have any dependents. Majority of old age

pensioners are from backward class community. The researcher tries to get more

relevant responses from various stakeholders from implement authorities to

receiving persons.

KEYWORDS: Poverty, destitute, old age and welfare.

____________________________________________________________________________

1. INTRODUCTION

India is a welfare State. The State is concerned about the well being of its subjects. Ensuring the

minimum subsistence level is the least expected of the Government in a welfare State.

A welfare state is a state in which organized power is deliberately used (through politics and

administration) in an effort to modify the play of market in at least three directions, fist, by

guaranteeing individuals and families a minimum income irrespective of market value of their

work or property; second, by narrowing the extent of insecurity by enabling individuals and

families to meet certain Social Contingencies (for ex, sickness, old age and unemployment)

which lead otherwise to individual and family crises and third, by ensuring that all citizen



277

without destination of status or class are offered the best available in relation to a certain agreed

range of social services.

The theorists of the welfare state consider it as a new kind of state, which is democratic in form,

which, though considering “profit oriented, market economy” as a desirable type of economic

system, seeks to regulate or streamline it to serve social needs, and thereby provide social

welfare to the citizens. It is a state, which according to them, has evolved from “laissez faire”

state by a process of increased interference in the operation of the market economy at various

levels and thereby gradually subjugating and disciplining the power of capital. It is a state in

which political power is increasingly used to free the people from the tyranny of capital assuring

them a certain standard of welfare (Lal B Suresh-2009).

The NSAP (National Social Assistance Program) of the Government of India is a step towards

the fulfillment of the responsibilities of a welfare State.

The scheme was introduced in the year 1995 with the objective of providing Social Assistance

Benefits to poor households in the case of old age, death of the breadwinner and maternity, the

NSAP aims at ensuring minimum national standards, in addition to the benefits that the states are

currently providing or might provide in future.

The intention in providing 100 percent Central assistance is to ensure that social protection to the

beneficiaries everywhere in the country is uniformly available without interruption. Accordingly,

it should be ensured that Central assistance does not displace States’ own expenditure in this

respect and that the States/ UTs may expand their own coverage of social assistance

independently, wherever they wish to do so (Lal B Suresh-2008).

2. LIMITATIONS OF THE STUDY

The study is limited to Old Age Pensioners in 05 Revenue Division in Karimnagar. The study

has been restricted only to five pensioners in two Grampanchayath of each Mandal. The study

results will be based on the data given by the sample pensioners in 57 Mandals in Karimnagr

District of Andhra Pradesh.

3. OBJECTIVES

1. To study the social and economic background of pensioners.

2. To examine the role of the State in alleviate the socio-economic Problems of the old age

destitute.

3. To examine the functioning of the implementing agencies of NOAP scheme at destitute,

Mandal and Grampanchayat level.

4. To make suggestions as needed.



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4. METHODOLOGY

The present study seeks to investigate into the Social and Economic Status of Old Age

Pensioners. For the purpose 570 sample pensioners were selected for survey in 05 Revenue

Division and 57 Mandals in Karimnagar District.

4.1. SOURCE OF DATA

The Study is based on primary data; Primary data for the study were collected by the method of

personal interview and observations coupled with structured scheduled among the selected

sample old age pensioners.

4.3. SAMPLE DESIGN

A multi stage random sample design is adopted for the study. At the first stage all the mandals

were covered and in the next stage two Grampanchayath from each mandal were selected at

random. Finally five pensioners were selected at random from each selected Grampanchayath.

4.4. TOOLS OF ANALYSIS

Data were analyzed keeping in the view of the objectives and scope of the study and the nature

of the data collected, by various statistical tools like frequency counts, percentage and

Correlation.

5. RESULTS AND DISCUSSION

Age is considered to be one of the most important components of an individual’s identity, which

plays a dominant role in determining the work responsibilities and economic activity. Keeping

these points in view, the responses of the sample pensioner’s age groups have been presented in

table-1. The table reveals that a majority of the respondents belong to the age group 65-70 years

i.e., 326 out of the 570 accounting for 57 percent and the age group 71-75 years belongs to 21

percent. Further 88 out of 570 belong to the age group of 76-80 years and age group of 81-85

years belong to just five percent only. The table indicates that out of the total 570 sample

pensioners 414 are female and 156 are male. Their percentage accounting for 73 and 27

respectively.

Caste is said to be a unique social institution which establishes its own kind of working and

living values among its members. Traditionally, because of this very reason, one finds socio-

economic differences between one caste and other caste. Moreover, like other factors, in

backward areas, caste still becomes an important factor in picking up traditional/ modern values

of living, adjustment and old age care practices. It is because of this reason and to find out the

feeling of perception of people about old age person care in different castes (Lal B Suresh-2011).

Information regarding the social status of the sample old age pensioners, majority of them

belongs to backward class i.e., almost 53 percent, next comes the schedule caste and its

percentage is 36. Nearly 5 percent of the sample old age pensioners are schedule tribes. The

percentage of upper caste and minority are relatively very small.



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Modern living style and the concept of working couple pave the way for the break of joint family

system in the society. As a result most of destitute and old age pensioners are facing serious

problems for means of subsistence or financial support from family members and look forward

to assistance from the state (Lal B Suresh-2010).

TABLE-1: DEMOGRAPHIC BACKGROUND OF RESPONDENTS

Category No of Pensioner % tage

1.Age

65-70years

71-75yrs

76-80yrs

81-85yrs

86-90yrs

Above 90yrs

Total

326

122

88

32

01

01

570

57.20

21.42

15.43

5.61

0.17

0.17

100

2.Sex

Male

Female

Total

156

414

570

27.36

72.64

100

3.Social Status

SC

ST

OBC

Minority

OC

Total

208

31

304

06

21

570

36.49

5.44

53.33

1.52

3.68

100



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4.Destitute

Yes

No

Total

332

238

570

58.24

41.76

100

5.Non Destitute Family Members Status

Poorest of Poor

Poor

Landless Labour

Total

153

49

36

238

64.28

20.58

15.14

100

6.Physically Handicapped

Yes

No

Total

56

514

570

9.82

90.18

100

7.Residing in same Village

Yes

No

Total

564

06

570

98.94

1.06

100

Source: Field Study data

The table-1 shows the percentage analysis of the information pertaining to the destitute. 332 out

of 570 are destitute i.e., accounting for 58.24 percent. Remaining 238 out of 570 are non

destitute and their percentage is 41.76. Thus the NOAP scheme is more concerned about the

destitute.

The economic position of a family plays a useful and important role in the proper welfare and

development of its members. A family with less income cannot lead a happy life. As a result, the

members in the family cannot have facilities of better health care and nourishment. Table-1

present’s data relating to economic status of family members of old age non-destitute pensioners.

Nearly 64 percent of them are poorest of the poor. Another 20 percent of them are poor. Nearly



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15 percent of the family members of non-destitute pensioners. It is evident that nearly 10 percent

of old age sample pensioners are physically handicapped and the remaining 90 percent sample

pensioners do not have disability.

TABLE-2: IMPLEMENTATION AND DISBURSMENT

Category No of Pensioner % tage

1.Pension Disbursement

Monthly

Quarterly

Half-yearly

Annual

Total

433

134

03

00

570

75.97

23.50

0.53

0.00

100

2. Method of Disbursement

Gram Sabha

Public Meeting

VIP Programmes

Rajiv Palle Bata

Directly

Other

Total

321

156

00

00

93

00

570

56.32

27.36

0.00

0.00

16.32

0.00

100

3.Dependents

Spouse

Disabled Family Members

No

Total

85

129

356

570

14.97

22.64

62.45

100



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4.Type of Pension

Regularly

Vacancy Filled

Total

550

20

570

96.50

3.50

100

5.Displaying Pensioners Name

Yes

No

Total

00

114

114

0.00

100

100

6.Advance Information

Yes

No

Total

570

00

570

100

0.00

100

Source: Field Study data

The table-2 indicates the effective implementation of the scheme as 75.97 percent pensioners

responded that the pension is disbursed on monthly basis before 5th

of every month. 23.5 percent

of the pensioners are getting the pension quarterly.

It can be inferred from the above table that mostly the pensions are being disbursed during

gramasabha. Ensuring the transparency of the functioning of the disbursement authority. While

27.36% of pensioners are receiving through public meeting where as 16.32% pensioners are

receiving directly.

It is observed from the survey that 62.45% pensioners do not have any dependents whereas

22.64% pensioners have disabled family members as dependents while only 14.91 are having

their spouse as their dependents. This indicates that the national old age pensioner (NOAP)

scheme is covering mostly the destitute. As is evident from the table that the major amount of

sanction of pensions is of regular type, which account for 96.5 percent. Only a negligible number

of pensioners awarded are vacancy filled.

The table reveals that almost all pensioners do stay in their native place where they have been

awarded the old age pension. A meager percentage of 1.06 has migrated to places other than the

place of award of pension (Lal B Suresh-2005).



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Figure-1: Shows that two major criteria for the selection of an old age pension award are the age

and destitute. The table above speaks volumes about the perfect selection of a person for

awarding the old age pension as the age criteria is fulfilled in 100 percent of the sample

pensioners. The next most important criteria of destitution are met in selecting 58.25 percent

sample pensioners.

The disbursements of pensions are made in Gramsabha to 100 percent of sample pensioners

thereby establishing complete transparency of the disbursements. The economic status of the

poorest of the poor (pop), poor and landless labour is taken care of in 41.75 percent of the sample

cases. It can be inferred from the above table that the names of pensioners are not at all displayed

on notice board of Gram Panchayat in all the sample villages selected. It is revealed by the above

table that all the pensioners are informed well in advance of the date of the disbursement of the

pension.

5.1. OBSERVATIONS ARE MADE BASED ON THE RESPONSES BY THE MANDAL

PARISATH DEVELOPMENT OFFICER’S (MPDO)

IDENTIFICATION OF PENSIONER: All the criteria of selection (age, destitute, PHC) for

old age pension scheme is followed for identification of pensioner by all MPDO.

FREQUENCY OF RELEASE OF FUNDS: As soon as the MPDO gets the funds from the

authority they are released to Gram Panchayat.

MODE OF RELEASES OF FUNDS: All the MPDO’s are receiving the funds through cheque

from their higher authority and in turn they are releasing the funds to Gram Panchayat through

the cheque.

570

1534936332

570

Criteria for Identification of Sample Pensioners

Age PoP Poor Landless Labor Destitute Gramsabha



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VACANCY POSITION: The death of the pensioner is recorded and is informed to the Pension

Sanctioning Authority by all MPDOs. Moreover the verification of pensions is conducted

regularly and the vacancy position is notified by all the MPDOs.

FILLING UP OF THE VACANCIES: The vacancies are being filled up on monthly basis. The

pensioners are being paid on monthly basis and the pensioners are being identified for filling up

vacancies in the Gramasabha by all MPDO’s. After identifying the beneficiary against the

vacancies, the sanction orders are issued immediately by the concerned authority and such

beneficiary names are displayed on the notice board of Gram Panchayat. Generally, no migration

of pensioner is reported.

UN-DISBURSED BALANCES AND ACQUITTANCES: The names of the pensioners who

have taken the pension during Gramsabha have been announced and un-disbursed balances are

remitted in the MPDO’s office by the village secretary every month. The acquittances are being

prepared and handed over to the MPDO’s office.

DISCREPANCIES: No Discrepancies are noticed in disbursements of pensions, in

accountability and transparency in managing the funds either at district rural development

agency (DRDA) level or at MPDO level.

UTILIZATION OF FUNDS & UTILIZATION CERTIFICATES: The utilization of funds is

furnished in time following the DRDA prescribed format. The NOAP account is maintained in

the savings account, however the MPDO’s are not asked to cash any interest on that because of

immediate withdrawal. The NOAP funds are not being used for other than NOAP purposes. And

no diversion of NOAP funds on temporary basis to other schemes is being affected.

AUDITING: Varied responses are found regarding the frequency of audit and about the agency

conducting the audit. Majority of the MPDO’s do not have clear idea regarding the audit of the

NOAP accounts. Very often than not the record are being taken to the DRDA office for

verification.

EVALUATION: No internal/ external evaluation was conducted in the past.

5.2. OBSERVATIONS ARE MADE BASED ON THE RESPONSES/ DEMANDS BY THE

PENSIONERS

Most of the pensioners are suggested that amount of pension should be enhanced.

The pensioners suggested that the selection process should be streamlined to benefit the

most needy old age people.

The official at Gram Panchayat level was of the opinion that more number of old age and

destitute people should be covered and the release of funds should be regularized. The

officials at mandal, and district level, expressed the same opinion.

The pensioners expressed dissatisfaction over the amount of pension.



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They are happy and thank the government for enhancing the pension amount from

Rs.75/- to Rs.100/- per person per month. However the Rs 100/- also, they feel, are not

sufficient to meet their barest minimum needs.

All pensioners are receiving the pension regularly after the release of funds.

The pension is being paid directly to the pensioner.

Most of the pensioners expressed their grievance about the collection of Rs 5/- per person

per month from the pension amount by the Sunkari as his share for informing them about

the pension disbursement.

6. FINDING AND RECOMMONDATION

1. Majority of the respondents are in the 65-70 years age group followed by 71-75 years age

group. This indicates that all the village panchayat’s are following the criteria of above

65years age for award of the pension.

2. Of the observed sample 72 percent respondents are female and the rest are male

pensioners.

3. 53.3percent respondents belong to BC category followed by SC which account to 36.49

percent

4. Among the sample pensioners 90 percent of respondents do not have any disability.

5. Majority of the pensioners are receiving the pensions every month by due date.

6. Gram Sabha is the prime method adopted by many villages (321) for disbursement of

pensions followed by public meeting and direct way.

7. Majority (62.45 percent) of pensioners do not have any dependents. They are living alone

without any supporting family members.

8. Out of 570 sample pensioners 550 are regular pensioners.

9. Regarding residential status of sample pensioners almost all the sample pensioners are

residing in the same village. This indicates that there are no migrations of pensioners.

10. Age is the first and foremost criterion for identification of pensioners, which is, followed

everywhere. Economic status is another criterion adopted for identification of pensioner.

It is observed that for identification of pensioners all the villages are following these

criteria.

11. Names of pensioners are not displayed in any Gram Panchyat notice board.



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12. All the pensioners in the village are having information about the date of disbursement of

pension.

The NOAP is one of the most important vehicles of the NSAP of the GOI. Through this scheme

the government has made a sincere and concentrated effort to help the poorest of the poor and

the destitute for which the much needed financial help no matter how much small it is goes a

long way in combating the adversities of life.

The present study conduct on 570 pensions in the 57 mandals of the district reveals that the

implementation of the scheme is in conformity with its objectives and the implementing

authorities at district, mandal and panchayat level are also making sincere efforts to see that the

benefit reaches to the deserving.

Throughout the survey the investigation team observed that sample pensioners are expressing

their satisfaction over the way the scheme is implemented. They reveal that the benefits are

percolating to them intact (Rs 75/- per person/ month). However they are of the opinion the

regularity of the disbursement needs to be improved.

The identification of pensioner’s procedure is by and large as per the set norms. However efforts

may be put to see that the most needy people are awarded the pension The investigation teams

throughout their survey have come across some old age destitute people who have not been

awarded the pension and they were eagerly waiting for their turn to be identified as old age

pensioner on the other hand stray cases have been noted by investigation teams that an

economically well of person whose children hold good employment have also been awarded the

old age pension. Care may be taken to see that incidence of such cases is avoided.

The delay in the disbursements of the pensions is a way is due to the procedural intricacies. The

clearance of the check at the Gram Panchayat level is most of the cases is getting delayed

because of the technical procedures of the bank. It may be received to simplify the procedure and

speed up the clearance so that the delay in disbursement may be avoided.

The names of the awardees of the old age pension in most of the sample villages are not being

displayed on the notice board of Gram Panchayat. Efforts can be taken to see that the names of

pensioners are properly displayed on the notice board to ensure proper dissemination of

information to pensioners.

The present practice of preparing aquittances at DRDA level is appreciable as it provides the

mechanics of check and balance system on the officials responsible for disbursement of the

pensions.

The benefits of NOAP scheme have been effectively delivered by the implementing authorities

ensuring that only people above 65 years of age are covered but it may be appreciated that all

the destitute people above 65 years should get the benefit. There are number of people in each

grampanchyat who are above 65 years but have not been awarded the pension. It is suggested

that the budgetary provisions may be increased to see that everyone above 65 years of age is

covered under NOAP scheme.



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In Summary it is concluded based on the survey results that the NOAP scheme is being

effectively implemented by the authorities at district (DRDA), mandal (MPDO) at Village (G.P)

level. The identification of the persons for award of the pensions is very much in conformity

with set norms and the amount of pension distributed per person per month is also reaches intact

to the pensioner. However there is a scope for improvement in the areas of regular release of

funds for disbursements, dissemination of information of award of pension to pensioners and

more coverage of the number of persons above 65 years under the scheme.

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Lal B. Suresh, (2011): Economic Analysis of Healthcare Services: A Study in Tribal Areas of

Andhra Pradesh – India, International Journal of Health Management and Information (IJHMI)

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Lal B. Suresh, (2009): Human Development in India, Vol-I Cross-National Perspective and

Profiles & Vol-II Gender and Subaltern Dimensions, Serials Publications, New Delhi.

Lal B. Suresh, T. Satyanarayana, P. Narasimha Rao, (2008): Rural Development in the Era of

Globalization, Serial Publisher, New Delhi.

T.Yadagiri Rao, Lal B.Suresh, (2010): Rural Artisans- Indigenous Technology: An Empirical

Study on Village Potters in Warangal, Indian Journal of Development Research and Social

Action: An International Journal, Volume 5. Number 1• January-December.

Lal B.Suresh, Mrs. A. Padma, (2005): Empowerment of Tribal Women in Andhra Pradesh.

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Lal B. Suresh, M. Rathan Jyothi, (2003): Consumption Pattern of Tribal Households: A Study of

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M. Ravinder, Ch. Sammaiah, Lal B. Suresh, (1994): Economic Conditions of Rural Artisans- An

Observation, Telugu Academy Journal, December.

NATIONAL OLD-AGE PENSION SCHEME IN INDIA: A STUDY IN KARIMNAGAR DISTRICT OF TELANGANA STATE

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