Rural postmasters to get pension, govt to spend Rs 70 crore

To provide financial security to the village post masters after retirement, the department of post has launched service discharge benefit scheme which will benefit over 270,000 Gramin Dak Sevakas.

The government of India will deposit Rs 200 per month for Gramin Dak Sevaks involving an annual expenditure of about Rs 70 crore (Rs 700 million) to provide for the financial security for them and their spouses after retirement from the service at the age of 65, Minister of State for IT & Telecom Sachin Pilot told reporters in New Delhi.

The cost of management shall be borne by the government and the scheme has been designed to benefit the GDS working mainly in rural, remote and far-flung areas across the country.

This scheme will be operationalised utilising the platform of the New Pension Scheme.

The contributions deposited on a monthly basis by the government on behalf of each GDS will constantly grow through investments in different schemes/securities

by the Pension Fund Managers appointed by Pension Fund Regulatory Development Authority.

"The GDSs are backbone of the Postal Department and are responsible for running the rural network of post offices," Pilot added while launching the scheme.

The existing GDSs have the option to join the new scheme or continue under the Severance Amount Scheme as per their choice.

The new scheme is, however, mandatory for the GDS engaged on or after January 1, 2011, department of posts secretary Radhika Doraiswamy said.