The Hindu : A model for social security

Online edition of India's National Newspaper
Thursday, Mar 18, 2004

New Delhi

New Delhi

A model for social security

By Our Staff Reporter

NEW DELHI, MARCH 17. Public participation in social security systems can take a wide variety of forms and it is very much possible for even developing countries to have such a system. Linking people's economic contribution to their savings, a lifetime Personal Unemployment and Retirement Account (PURA) has been suggested for every Indian citizen by a non-government organisation, OASIS (Organisation for Awareness of Integrated Social Security).

"Social needs such as health, child-care, education and housing are all linked to economic capabilities as well as to the provision of social security by markets and the State. Thus it is the market and State structures which determine the poverty or well being of the people. Since the economic and social structures are so interrelated, the solution too has to be integrated,'' says Pradeep Ghosh of OASIS, who argues that the proposed model was an integrated approach towards the marriage between appropriate expenditure and savings of people for lifelong social security.

The model has been so designed that it not only keeps the economy volatile but also ensures enough savings for people to help them in times of distress. "Besides linking it to forced savings measures like Provident Fund, the PURA account can also be operated by the individual for additional savings. The innovative part of this account is that it is linked to the regular and desired expenditures of the family. All regular expenditures of the individual would entitle to a forced savings in his/her PURA account in the form of discounts / tax,'' says Mr. Ghosh.

According to the proposed model, every PURA holder will be identified by a Social Security Number / PURA Account Number. Every PURA family account will be given a basic social security package comprising health insurance for the family (with cashless facility), life insurance and disability insurance of the earning member and educational support for children. The premium for the social security package will be paid from the family's PURA account every year. The family may choose a higher package if desired.

The PURA Account will support the family in the form of unemployment allowance and/or Retirement Pension through the Social Security System. The PURA account will be transferable only on death of the individual to PURA Accounts of nominees as per his/her declaration / will. It will be owned and controlled by the individual, giving him/her full access to decide his/her Unemployment Allowance and Retirement Pension.

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