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DELIVERY OF SOCIAL SECURITY AND PENSION BENEFITS IN KARNATAKA
By
D Rajasekhar, G Sreedhar, N L Narasimha Reddy R R Biradar and R Manjula
Submitted to Directorate of Social Security and Pensions
Department of Revenue, Government of Karnataka
Centre for Decentralisation and Development Institute for Social and Economic Change
Nagarbhavi PO, Bangalore - 560 072 E-mail: [email protected]
February 17, 2009
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Table of Contents
1) Introduction 3 2) Delivery of Social Security and Pension Benefits in Bellary District 8 3) Delivery of Social Security and Pension Benefits in Chitradurga 39 4) Delivery of Social Security and Pension Benefits in Gulbarga 65 5) Summary and Conclusions 91
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1. INTRODUCTION
Pension Schemes in Karnataka
The Directorate of Social Security and Pensions (SSP), Revenue Department, GoK, has been
implementing nine schemes for the unorganized sector workers in Karnataka. A study by the
World Bank concluded that “social pension schemes in Karnataka appear to be a model for
other safety net programme, with remarkably low leakages of public funds and pro-poor
targeting of benefits” (World Bank, 2006). These schemes relate to pensions for the aged,
widows and disabled, one-time benefit to households and insurance.
Directorate of SSP implements two old age pension schemes. The oldest has been Indira
Gandhi National Old Age Pension. The main purpose of this centrally sponsored scheme is
help old age persons. The GoK has been implementing this scheme in 1964. The scheme has
been, however, modified as National Old Age Pension on August 15, 1995 and implemented
as a part of National Social Assistance Programme. The scheme provided pensions only to
destitute belonging to Below Poverty Line (BPL) households, earning less than Rs. 6,000 per
annum. The scheme has been renamed as Indira Gandhi National Old Age Pension on
November 11, 2007 by relaxing the destitute criteria of the National Old Age Pension. There
were 686,666 person obtaining old age pension in the state in 2007-08.
Sandhya Suraksha Yojane is another old age pension programme in Karnataka
implemented by the state government since 2007. While the benefit amount and age criterion
have been the same as in the case of Indira Gandhi National Old Age Pension, the difference
lies in income eligibility. Sandhya Suraksha Yojane can given to households earning up to
Rs. 20,000 per annum. During 2007-08, the number of beneficiaries was 26,231 in the state.
Destitute Widow Pensions (DWP) have been in Karnataka state since 1984 to assist
destitute widows in the age group of above 18 years. The eligibility criteria are that she
should belong to BPL household, husband is legally dead and income should not exceed Rs.
6,000 per annum. The pension is paid until she remarries or her children starts supporting her
or her income limit crosses Rs.6000 PA or till her death. Currently, Rs. 400 is paid as
pension per month. The total number of widow pensioners was 771,165 in the state in 2007-
08.
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Physically handicapped Pensions (PHP) have been given in the state since November 7, 1977
to the blind, mentally retarded, deaf, handicaps and mentally ill. Persons who have accrued
disability due to leprosy are also eligible. Any child born with disability mentioned under or
disability accrued due to accident with disability above 40% is eligible for pension. The
income limit is Rs. 6,000 per annum. Currently, Rs. 400 is paid as the pension per month.
Recently, it has been decided to pay Rs. 1,000 to those having more than 75 per cent of the
disability. The total number of persons receiving physically handicapped pensions in the
state was 464,731 in 2007-08.
Delivery of Pension schemes
In 2007-08, 19.48 lakh persons in the state received pensions under the above schemes. Over
90 per cent of the pensions have been delivered to the pensioners through the postal
department. This delivery mechanism is as follows. The sanction order is sent to the
respective treasury for payment of pension to the beneficiaries monthly. Treasury prints
money orders. One cheque is sent to the respective post offices along with 100 money orders
in one bundle manually. Post offices disburse the pension as per the address printed on the
money order. The money reaches the beneficiaries at the door step. Thus, an important
positive feature of the current delivery mechanism is to provide pension benefits at the door
step of the pensioner every month on prescribed date. It is to be noted that the pension has to
be delivered by 7th of every month.
The government has been facing the following problems in the delivery of pensions.
• Commission of 5 per cent is being paid to the post office per transaction per
beneficiary. This amounts approximately Rs. 40 crores in a year.
• Huge indirect cost is being incurred by treasury in disbursing pensions such as the
cost of printing, stationery, etc.
• There is shortage of human resources at the treasury, and this contributes to the delay
in disbursement.
• Post offices take their own time to sort the money orders villages and locality wise,
and this contributes to further delay in the disbursal of money orders at the door step.
An added problem is that the postman cannot carry more than Rs. 10,000 per day for
disbursement for security reasons. This causes further delay in the disbursement.
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• Due to shortage of human resources at Tehasildar’s office and treasury, the pension
for those pensioners whose money orders have not been acknowledged consecutively
for three months are not being suspended or cancelled. Reconciliation of
beneficiaries is not being done by Tehasildars.
• Life certificates per year are being given by the Tehasildars and not being asked by
the Treasury for continuation of pensions.
Over time, however, the beneficiaries have also been facing problems in the receipt of
pensions. An important problem is the delay in the disbursal of pensions. At the national
level, the Planning Commission found that 40 per cent of the beneficiaries were not getting
their pension on a regular basis and 18.83 per cent reported that their pension payments had
been delayed by more than 2 months. Second important problem is the unauthorized
payment to the agents delivering the pensions. The Planning Commission reported that this
ranges between Rs. 20 to Rs. 40. Third important problem is significant proportion of the
ineligible beneficiaries among pensioners, and the lack of system to weed out such ineligible
beneficiaries.
Thus, it is widely perceived that the current delivery mechanisms cause delays in the
disbursal of the benefits, appropriation of benefits by the middlemen, delivery to benefits to
ineligible persons, etc. In addition, the Revenue Department is also incurring considerable
expenditure in the form of commission to the postal department.
In order to address the above, the Karnataka government has initiated measures towards
addressing bottlenecks and move towards the timely delivery of pensions. One of the
measures has been to deliver pensions with the help of the existing banking network, as
current mechanism of delivering pensions through the postal network has been causing
delays. It has been, however, recognized that banking network is not as wider as postal
network; and hence it may face limitations in reaching out to the remote and far off villages.
To address this, banks would use business correspondents, who will deliver at door steps.
The government will continue to use postal network wherever needed by introducing change
in mode of delivery – from MO to postal account.
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Against this background, the Revenue Department has requested the Institute for Social and
Economic Change (ISEC), Bangalore, to undertake a baseline survey on the delivery
mechanisms and failure to provide benchmark data for Bellary, Chitradurga and Gulbarga
districts (where the new strategy will be tried out) on a number of variables that reflect the
status of current delivery mechanisms. This information would be useful to gauze the
progress in the delivery mechanisms made under the new system of smart cards.
Objectives
• To carry out baseline survey on current mechanisms to deliver social security and
pension benefits under the four schemes mentioned above;
• To identify the delivery failures in the implementation of social security and pension
programmes; and
• To prepare a report on the delivery mechanisms and failures in the delivery of social
security and pension benefits, and also provide observations on the impact of pension
schemes on beneficiaries.
Methodology
The study has been conducted in three districts of the state, viz., Bellary, Chitradurga and
Gulbarga. Multi-stage cluster sampling method was used to select taluks, villages and
households in each district, as described below:
• At the first stage, two taluks with highest number of beneficiaries were selected for
the study. The taluks selected were Bellary and Hospet in Bellary district,
Chitradurga and Chellakere in Chitradurga district, and Gulbarga and Alland in
Gulbarga district.
• At the second stage, one town and three villages from each taluk were selected based
on the highest number of beneficiaries.
• At the third stage, two wards with highest number of beneficiaries were selected from
the chosen urban locality. Similarly, three villages with 60 or more beneficiaries
(bigger villages) were selected from each taluk. In addition, three more villages,
adjacent to the chosen villages but located away from the main road with 15 to 20
beneficiaries (smaller villages) were selected from each taluk.
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• At the fourth stage, the list of pensioners falling under different schemes was prepared
for each ward/nagar and also for each village. The pensioners were divided into three
strata based on the scheme under which they were sanctioned pension, viz., 1) Old
age pensioners, 2) Destitute widow pensioners and 3) Disability pensioners. We have
selected 30 pensioners from each ward for an in-depth study based on stratified
proportionate sampling method. Similarly, 30 beneficiaries each were selected from
the bigger villages and 10 each from smaller villages for an in-depth study, following
the same procedure.
• In the event of non-availability of the sample pensioners (permanent migration, etc.)
thus chosen, they were duly substituted with the reserve provided in the list.
• The study covered a sample of 180 pensioners spread over 2 wards, 3 bigger villages
and 3 smaller villages from each taluk.
• Thus, 360 pensioners were selected from each district, comprising 120 from the urban
areas and 240 from the rural areas.
• The total sample for the study was 1080 pensioners drawn from the three broad
categories namely OAPs, DWPs and PHPs in the three study districts taken together.
In addition to interviewing the sample pensioners chosen for the study, village and ward level
interviews were held with the key informants in each selected village/ ward to to elicit their
views and to assess the overall performance of the pension delivery system. Besides,
secondary data/ information was collected from the Tehsildar office, Sub-treasury office and
the Taluk post office to understand the progress of the SSP schemes and operation of the
pension delivery system and to ascertain the reasons for delay.
The study results have been presented in five chapters. In Chapters 2 to 4, the findings on the
delivery of social security and pension benefits in Bellary, Chitradurga and Gulbarga have
been, respectively, presented. In the final chapter, conclusions have been provided.
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2. Delivery of Social Security and Pension Benefits in Bellary District INTRODUCTION
This chapter is devoted to the study of delivery of Social Security Pension benefits in Bellary
district. The total sample for the study, comprising 361 pensioners in two taluks of Bellary
and Hospet, represents all the three categories of pensioners, viz., Old Age Pensioners (OAP),
Destitute Widow Pensioners (DWP) and Physically Handicapped or Disabled Pensioners
(PHP). In the first section of this chapter, the progress of pension schemes and the
arrangements to distribute pensions in the district are analysed with the help of the secondary
data available and discussions with officials of the concerned departments. This is followed
by the analysis with regard to the socio-economic profile of the sample households and
pensioners chosen for the study. In the subsequent sections, a detailed analysis of primary
data has been made covering different aspects such as pensions, delivery mechanisms, delay
in the delivery of pensions, unauthorised payments, behaviour of the delivery agent, work
status of pensioners before and after obtaining pension, level of security among pensioners
and the issues relating to ineligible pensioners.
PROGRESS OF THE PENSION SCHEMES IN THE DISTRICT
The progress of the social security pension schemes in terms of growth rate in the number of
beneficiaries in Bellary district from 2006-07 to 2008-09 is shown in Table 2.1. Nearly
20,000 new pensioners were added under different schemes during the last two years. The
growth rate in the number of pensioners has been 29 per cent, highest in the case of OAP,
followed by DWP and PHP. The reasons for such rapid growth are the following: First, there
was a change in the eligibility criteria for OAP. Initially, pensions for the elderly were
restricted to the destitute; but this criterion was relaxed. This resulted in several people
applying for the pensions. Secondly, the increase in the pension amount to Rs. 400 motivated
several people to apply for the scheme. Third, during 2008-09, the state government
introduced a new scheme called Sandhya Suraksha Yojana (SSY) for the benefit of old age
pensioners, and undertook enrolment drives. Under the SSY scheme, only 1411 pensioners
have been given pension so far. By December 2008, there were a total of 88,288 pensioners,
of whom 41 per cent were receiving PHP, 35 per cent OAP and 23 per cent DWP.
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Table 2.1: Growth rate in the number of pensioners in Bellary District
Sl. No.
Scheme Number of Pensioners % of growth
over 2006-07
2006-07 2007-08 2008-09 (up to
Dec ’08) 1. Old Age Pension scheme 22,345
(32.6) 24,169 (33.7)
31,122 (35.3)
39.3
2. Widow Pension scheme 15,662 (22.9)
15,962 (22.2)
19,971 (22.6)
27.5
3. Disability Pension scheme 30,429 (44.5)
31,630 (44.1)
35,783 (40.5)
17.6
4. Sandhya Suraksha Yojana -- -- 1,411 (1.6)
--
Total 68,436 (100)
71,761 (100)
88,288 (100)
29.0
Source: Data provided by the Directorate of Social Security and Pensions, Revenue Department, GoK
Table 2.2 on growth rate in the expenditure on social security and pension benefits (including
administrative expenditure) in Bellary district from 2006-07 to 2008-09 shows that the
expenditure increased by about 10 times from Rs.3.25 crores in 2006-07 to Rs.34.77 crores in
2008-09 (up to December 2008).
Table 2.2: Expenditure (Rs.) on social security and pension benefits in Bellary district
Source: Data provided by the Directorate of Social Security and Pensions, Revenue Department, GoK
The higher growth rate in the expenditure when compared to that of the number of pensioners
could be attributed to an increase in the monthly pension amount from Rs.200 to Rs.400 in
2006-07, and the consequent spurt in the demand for pension from the potential beneficiaries.
Sl. No.
Scheme Expenditure (Rs.) % of growth
over 2006-07
2006-07 2007-08 2008-09 (up to Dec
‘08) 1. Old Age Pension scheme 10285390 56514365 125208500 1117.3
2. Widow Pension scheme 8727189 39309969 79362510 809.4
3. Disability Pension scheme 13540005 75977595 141866000 947.8
4. Sandhya Suraksha Yojana -- -- 1340120 --
Total 32552584 171801929 347777130 968.4
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Thus, there has been a huge demand for social security pensions, especially under the SSY.
For instance, in Hospet taluk alone, 1753 persons were sanctioned pensions in December
2008, of whom a majority (75.4%) fall under the SSY. Nearly 3000 applications for sanction
of pension were reported to be under process. It was informed by the treasury officers in the
study area that there was no dearth of funds for social security pension benefits as they fall
under non-plan expenditure.
Arrangements to Distribute the Pensions The applications for sanction of pensions are submitted to the Tehsildar. The Revenue
Inspector (RI) with the help of the Village Accountant scrutinises the applications, including
the physical verification of the applicants in accordance with the eligibility criteria. Based on
the report of the RI, the Shirastadar sends in the papers to the Tehsildar for sanction. Upon
sanction of pension, the order copy is sent to the applicant and the Sub-treasury Officer
(STO). The STO gets the data entered into the computer, and releases the pension amount.
The existing arrangements to distribute the pension amount consist of two methods, viz., 1)
through post offices and 2) through banks. The STO releases the pension amount through
cheques to the Post Master, Taluk Post Office and to the concerned banks. Most of the
pensions are being distributed through the post offices. The STO sends the cheques for every
100 Money Orders (MOs) to the Taluk Head Post Office. But, in the case of Bellary taluk,
cheques have been sent for every 500 MOs. From the taluk post office, the pension amount is
sent to the sub-post offices for booking of MOs. The process of booking the MOs at the sub-
post offices takes about a week’s time. From the sub-post offices, the MOs will be sent to the
branch post offices. At the branch post office level, the postmaster has to make indents to
sub-post office, obtain the amount, and arrange for the distribution of money to the
pensioners through the postman.
The major difficulties faced by officials from different departments in the district could be
listed out as follows:
Revenue department • Dearth of staff to scrutinize pension applications and for physical verification to adhere to
the eligibility criteria • Overload of work for the RI and village accountant, especially in urban areas • Quantum jump in pension applications in the recent past • Pressure from local politicians to expedite the process of sanctioning pension • No feedback from the STO to the Tehsildar regarding stoppage of pension
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Treasury department • Dependence on Tehsildar’s office for deputing case workers to enter data into the
computer • Large number of MOs to be printed • Frequent repair of printers • Power cut problem Postal department • Delay at the sub-post offices for booking the MOs • Postman cannot carry more than Rs.20000 per day
The usual practice in the study area is to release pension once in two months from the
treasury. The time taken for the release of pension from the treasury to the beneficiary ranges
between 10 and 30 days or more. Thus, on the whole, it takes more than two months for the
distribution of pension through post offices in the district.
A few pensioners have been receiving the pension through their bank accounts. The existing
procedure for distributing pension through banks stipulates that the pensioner has to open a
savings bank account at any bank branch, and make an application in the prescribed form to
the STO. The STO sends the pension amount to the concerned banks, where it is credited to
the account of the pensioner every month. Thus, there is no delay in the distribution of
pensions through banks. However, the number of pensioners receiving the pension through
banks is very less. For instance, in Hospet taluk, it was found that out of 17,724 pensioners,
only 862 (4.9%) were receiving pension through banks.
In the case of unclaimed MOs, the amount has to be sent back to the treasury once in three
months. In Bellary taluk, 510 MOs were returned to the treasury during June to November
2008, while the corresponding figure was 221 in Hospet. At the treasury level, the amount
will be kept under suspension for three months, and thereafter it will be stopped. The banks
are also supposed to send the un-drawn pension amount to the treasury after three months.
But, there is no mechanism to address the unclaimed cases from the treasury to the
Tehsildar’s office.
The discussions with the District Treasury Officer and the Tehsildar, Bellary revealed that, in
Bellary taluk efforts have been initiated to introduce the smart card system for which physical
verification of the pensioners and data updating was under progress. The photographs and the
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fingerprints of the pensioners are being recorded and the pensioners are being issued a
Fingerprint Enrolment Copy as an acknowledgement. This was corroborated by the fact that
in one of the sample villages, the process took place on November 8, 2008. In another sample
village, the smart cards were also distributed and the business correspondent appointed by
Syndicate Bank, Emmiganur branch was seen distributing the pensions. In view of this, the
government instructed the treasury officer to stop the release of the pension amount from
October onwards in Bellary taluk. In other taluks including Hospet, the distribution of
pensions through post offices is being continued.
PROFILE OF SAMPLE HOUSEHOLDS The profile of the sample households is analysed here in terms of religion and caste
background, housing status, access to PDS, and composition of the household members by
gender, age group, educational status, occupational status and dependency ratio, which will
enable us to understand the socio-economic background of those benefiting under the social
security pension benefit schemes.
Nearly 87 per cent of the pensioner households were Hindus, while the others were Muslims
(Table 2.3). The distribution of pensioners by religion is more or less the same across the
three categories of pensioners. The caste composition of the pensioners (Table 2.4) reveals
that the SCs and STs accounted for about 46 per cent of the pensioner households. The
backward castes accounted for about 29% of the pensioners, while Muslim minorities
accounted for 13%. Thus, a vast majority of the pensioners belonged to the depressed castes.
There are certain variations in the caste composition of pensioners across the three categories.
Table 2.3: Distribution of Households in Bellary by Religion and Pension Type (%)
Religion
Type of pension
Total Old age pension
Widow pension
Disability pension
Hindu 86.7 87.8 85.5 86.7 Muslim 13.3 12.2 14.5 13.3 Total 113 131 117 361
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Table 2.4: Distribution of Pensioner Households in Bellary by Caste Category and Type of Pension (%)
Caste Category
Type of pension
Total Old age pension
Widow pension
Disability pension
SC 30.1 17.6 21.4 22.7 ST 23.0 26.0 19.7 23.0 Backward Caste 24.8 29.0 31.6 28.5 Minorities 13.3 12.2 14.5 13.3 Others 8.8 15.3 12.8 12.5 Total 113 131 117 361
House type, Sanitation and possession of ration cards
Regarding housing status of the pensioners (Table 2.5), about 40% were residing in pucca
houses and 23% in semi-pucca houses. While 23% of the pensioners were residing in katcha
houses, 12% did not have their own house and were residing in rented houses. Further, about
77% of the pensioners had no access to sanitation facility. Thus, the housing status of a
majority of the pensioners could be considered as poor. However, the percentage of
households residing in pucca/RCC houses is relatively higher among the PHP (51%) when
compared to the OAP and the DWP (37% and 38% respectively).
Table 2.5: Access of Pensioner Households in Bellary to Housing, Sanitation and PDS (%)
Type of pension Old age pension (N=113)
Widow pension (N=131)
Disability pension (N=117)
Total (N=361)
House status No house 10.6 13.7 11.1 11.9 Katcha 25.7 20.6 22.2 22.7 Semi-Pucca 26.5 27.5 15.4 23.3 Pucca 35.4 35.9 47.9 39.6 RCC house 1.8 2.3 3.4 2.5
Sanitation facility Individual sanitation 21.2 16.8 14.5 17.5 Community latrine 6.2 2.3 7.7 5.3 Open defecation 72.6 80.9 77.8 77.3
Type of ration card BPL Card - AAY 10.6 9.9 12.0 10.8 BPL Card - Akshaya 59.3 72.5 61.5 64.8 APL Card 10.6 8.4 14.5 11.1 No ration card 19.5 9.2 12.0 13.3
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With regard to access to ration cards (Table 2.5), it was found that 65% of the pensioners had
accessed the BPL card– Akshaya and 11% the BPL card – AAY. About 11% of the
pensioners had APL cards, their share being higher in the case of PHP when compared to
DWP and OAP. It is a matter of concern that 13% of the pensioners had no access to PDS,
more so among the OAP when compared to the DWP and the PHP.
Distribution of household members by Age and Size of the family
The household composition of the pensioners (Table 2.6) indicates that there were more
females (53.4%) than males (46.6%) in the sample households. This is due to the presence of
more females among the DWP and OAP households. The average household size worked out
to 4.7, being higher among the PHP households (5.2) when compared to the OAP (4.6) and
the DWP (4.3).
Table 2.6: Distribution of sample household members in Bellary by sex (%)
Sex
Type of pension Old age pension
Widow pension
Disability pension Total
Male 44.6 40.9 53.5 46.6 Female 55.4 59.1 46.5 53.4 Total 514 562 609 1685 Average HH size 4.6 4.3 5.2 4.7
The age group composition of the sample household members (Table 2.7) indicates that
children (14 years and below) constituted 24% of the household members, while the aged
(above 65 years) accounted for 12%. About 65% of the household members belonged to the
economically productive age group (15-64 years), being higher among the PHP households
(73%) when compared to the OAP (52%) and widows (68%).
Table 2.7: Distribution of sample HH members in Bellary by age (%)
Age group
Type of pension Old age pension Widow pension Disability pension Total
<=5 6.8 5.9 5.6 6.1 6 - 14 17.9 18.9 16.9 17.9 15 – 24 13.2 22.2 27.8 21.5 25 – 34 14.6 14.4 15.6 14.9 35 – 44 12.8 11.9 10.5 11.7 45 – 54 6.2 10.5 12.3 9.9 55 – 64 5.3 8.7 7.1 7.1 >=65 23.2 7.5 4.3 11.1 Total 514 562 609 1685
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Educational Profile
The educational profile of the household members (Table 2.8) indicates that about half of
them were illiterate, such a percentage being higher among the aged when compared to the
widows and the disabled. About 26% of the members had primary education. Only 14% had
high school education, such a percentage being higher among the PHP households when
compared to that of the DWP and OAP. Thus, the educational profile of the members is quite
low.
Table 2.8: Distribution of sample HH members in Bellary by educational level (%)
Educational level
Type of pension Old age pension
Widow pension
Disability pension Total
Illiterate 57.2 49.5 43.0 49.5 Yet to be admitted into school 8.0 5.7 5.1 6.2 Primary (1-7) 22.4 25.8 27.8 25.5 High school (8-10) 9.5 13.3 17.9 13.8 Pre-university 1.9 3.7 4.1 3.3 Technical education 0.8 0.7 0.7 0.7 Degree 0.2 1.2 1.3 0.9 Post graduation 0.0 0.0 0.2 0.1 Total 514 562 609 1685
Occupational Profile
The working status of the household members (Table 2.9) shows that wage labour is the
single largest occupation in which 25% of the members were engaged, mostly in agriculture.
The next important occupation is self-employment (in small manufacturing, hotels, transport
and personal services), which accounted for 11% of the members, followed by agriculture
(7%). There were a few salaried employees, but mostly in the private sector and in low-paid
occupations. While 18% of the members cannot work, 8% were engaged in household work.
Students constituted 20% of the members, while 6% were too young to go to school.
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Table 2.9: Distribution of sample HH members in Bellary by working status (%)
Work status
Type of pension Old age pension
Widow pension
Disability pension Total
Wage labourer in agriculture 18.7 27.4 23.3 23.3 Wage labourer in non-agriculture 2.5 1.2 2.0 1.9 Self-employed in agriculture 6.2 4.8 9.7 7.0 Self-employed in small manufacturing/ hotel/ transport/personal services 8.6 14.1 9.2 10.6 Salaried employee 4.3 1.8 4.3 3.4 Household work 8.0 6.6 9.2 8.0 Unemployed 1.6 1.4 1.1 1.4 Student 18.1 20.8 21.0 20.1 Cannot work 24.1 16.2 15.1 18.2 Too young to go to school 8.0 5.7 5.1 6.2 Total 514 562 609 1685
The ratio of dependents to workers is zero in about 14% households, and up to one in about
43% households. In the case of the remaining 43% households, the dependency ratio is
greater than one and even exceeds three. The percentage of households with more than three
dependents is highest in the case of OAP households, followed by PHP and DWP (Table
2.10).
Table 2.10: Distribution of Pensioner households in Bellary by the dependents ratio (%)
Ratio of dependents to workers
Type of pension Old age pension
Widow pension
Disability pension Total
0* 19.5 16.8 6.0 14.1 0.1 - 1.0 29.2 43.5 56.4 43.2 1.1 - 2.0 20.4 26.0 17.1 21.3 2.1 - 3.0 14.2 7.6 9.4 10.2 >3.0 16.8 6.1 11.1 11.1 Total 113 131 117 361
Thus, the profile of the sample households indicates that the PHP households appeared to be
better placed when compared to that of the DWP and OAP in terms of percentage of
households living in pucca/ RCC houses, possessing APL ration card and containing a higher
proportion of members in the economically productive age group.
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PROFILE OF THE SAMPLE PENSIONERS
The profile of the sample pensioners is examined here in terms of their personal
characteristics such as gender, age, marital status, education and working status.
Gender
Females outnumbered males among the pensioners, accounting for 74% of the total across all
the three categories. Besides DWP, the share of females was very high (80%) among the
OAP. The share of females was, however, less (40%) in the case of PHP (table 2.11). The
higher proportion of females in so far as OAPs are concerned can be attributed to increased
longevity of women as compared to men and targeting on account of their greater
vulnerability.
Table 2.11: Distribution of Pensioners in Bellary by sex (%)
Sex
Type of pension Old age pension
Widow pension
Disability pension Total
Male 20.4 0.0 59.8 25.8 Female 79.6 100.0 40.2 74.2 Total 113 131 117 361
Age Group
The distribution of the pensioners by age (Table 2.12) indicates that among the OAP, over
91% were aged 65 years or more. Most of them in the age group of 55-64 years were closer
to the upper limit. There was only one case of a pensioner whose age was less than 55 years.
Even among the DWP, a majority (54%) were above 55 years in age. A majority of the PHP
(61%) were, however, less than 25 years of age. On the whole, the age appears to be not on
the side of the pensioners, as 39% of them were aged 65 years or more and another 6%
children.
Table 2.12: Distribution of Pensioners in Bellary by age (%)
Age group
Type of pension
Old age pension Widow pension Disability pension Total
6 – 14 0.0 0.0 17.9 5.8 15 – 24 0.0 0.8 42.7 14.1 25 – 34 0.0 6.9 16.2 7.8 35 – 44 0.0 13.0 6.0 6.6 45 – 54 0.9 25.2 6.8 11.6 55 – 64 8.0 30.5 5.1 15.2 >=65 91.2 23.7 5.1 38.8 Total 113 131 117 361
18
Marital Status The marital status of the pensioners (Table 2.13) indicates that a majority of them (55%) were
widowed, such a percentage being very high among both the DWP and OAP (99% and 65%
respectively). Among the PHP, however, more than two-thirds (68%) were unmarried.
Table 2.13: Distribution of Pensioners in Bellary by marital status (%)
Marital status
Type of pension Old age pension
Widow pension
Disability pension Total
Unmarried 2.7 0.0 68.4 23.0 Married 31.9 0.0 28.2 19.1 Widowed 64.6 98.5 2.6 56.8 Divorced 0.9 0.0 0.9 0.6 Separated 0.0 0.8 0.0 0.3 Deserted 0.0 0.8 0.0 0.3 Total 113 131 117 361
Educational Level
The educational level of the pensioners (Table 2.14) indicates that the proportion of illiterates
was very high among the OAP (97%) and DWP (93%). However, 67% of the PHP were
literate, but their educational levels could be termed low, as most of them did not cross high
school level.
Table 2.14: Distribution of Pensioners in Bellary by educational level (%)
Educational level
Type of pension Old age pension
Widow pension
Disability pension Total
Illiterate 97.3 93.1 32.5 74.8 Yet to be admitted into school 0.0 0.0 0.9 0.3 Primary (1-7) 0.9 5.3 40.2 15.2 High school (8-10) 1.8 1.5 18.8 7.2 Pre-university 0.0 0.0 6.0 1.9 Degree 0.0 0.0 0.9 0.3 Post graduation 0.0 0.0 0.9 0.3 Total 113 131 117 361
Working Status The working status of the pensioners (Table 2.15) indicates that among the OAP, over three-
fourths (77%) cannot work. A few of them were, however, engaged as wage labourers in
agriculture or self-employed in non-agricultural pursuits. Among the DWP, while 42%
cannot work, the rest of them were mostly engaged as wage labourers in agriculture or self-
employed in small manufacturing/hotel/transport/personal services. In the case of PHP, those
who cannot work constituted 48%, whereas 23% were students. Even among the PHP, there
19
were quite a few who were engaged in wage labour in agriculture or self-employed in non-
agricultural activities. There were also a few salaried employees among all the three
categories; but it was found that most of them were employed in the private sector, that too in
low-paid occupations such as that of a sweeper, anganwadi worker, watchman, etc. One of
the disabled pensioners, was, however, working as a lecturer in a private college.
Table 2.15: Distribution of Pensioners in Bellary by working status (%)
Work status
Type of pension Old age pension
Widow pension
Disability pension Total
Wage labourer in agriculture 9.7 26.7 8.5 15.5 Wage labourer in non-agriculture 0.0 0.0 0.9 0.3 Self-employed in agriculture 2.7 3.1 2.6 2.8 Self-employed in small manufacturing/ hotel/ transport/personal services 6.2 21.4 10.3 13.0 Salaried employee 1.8 1.5 3.4 2.2 Household work 2.7 5.3 2.6 3.6 Unemployed 0.0 0.0 0.0 0.0 Student 0.0 0.0 23.1 7.5 Cannot work 77.0 42.0 47.9 54.8 Too young to go to school 0.0 0.0 0.9 0.3 Total 113 131 117 361
Thus, most of the pensioners were females, widowed, and belonged to the category of non-
productive age group and non-workers. There were, however, a few workers among the
pensioners, more so among the widowed when compared to other two categories. Most of
them were engaged in the unorganised sector, undertaking wage employment in agriculture
or self-employment in the non-agricultural sector. As such, it appears that most of the
pensioners are in a disadvantageous position in terms of demographic, physical and economic
status.
Pensions An attempt is made here to analyse the data pertaining to pensions in the sample households
such as where the pension was obtained, the number of pensioners in the household, year of
obtaining the pension, whether they had the sanction letter, degree of disability among the
PHP, and working status before obtaining pension. It needs to be mentioned here that even
though there was more than one pensioner in some households, the analysis is confined to the
361 respondents that were chosen as the sample for the study.
20
Place of obtaining Pension It was found that all the sample respondents obtained their pension in the location where they
were residing.
Number of Pensions in the Household
In addition to the sample respondents, there were a few others in the sample households
obtaining social security pension. On the whole, there were 14% households which
comprised persons other than the respondent obtaining pension (Table 2.16).
Table 2.16: Pensioner Households (%) in Bellary receiving more than one pension
Whether anyone else in your HH receives pension?
Type of pension
Total Old age pension Widow pension Disability pension
Yes 15.93 15.27 11.97 14.40 No 84.07 84.73 88.03 85.60 Total 113 131 117 361
The distribution of sample households by type of pension holders (Table 2.17) shows that
31% comprised only DWP, 29% only PHP and 26% only OAP. In the remaining households,
there was a combination of all the three types of pension. There were three households where
three persons obtained pension; all the three types of pension were obtained in one of these
households.
Table 2.17: Distribution of Pensioners in Bellary by type of pension holders in their HHs (%)
Type of pension holders in the
household
Type of pension
Total Old age pension Widow pension Disability pension
Only OAP 84.1 0.0 0.0 26.3 Only DWP 0.0 84.7 0.0 30.7 Only PHP 0.0 0.0 88.0 28.5 OAP & DWP 7.1 3.8 0.0 3.6 OAP & PHP 3.5 0.0 2.6 1.9 DWP & PHP 0.0 6.1 4.3 3.6 OAP & OAP 4.4 0.0 0.0 1.4 DWP & DWP 0.0 5.3 0.0 1.9 PHP & PHP 0.0 0.0 3.4 1.1 OAP, OAP & PHP 0.9 0.0 0.0 0.3 PHP, PHP & DWP 0.0 0.0 0.9 0.3 OAP, DWP & PHP 0.0 0.0 0.9 0.3 Total 113 131 117 361
21
Year of obtaining the Pension The distribution of sample pensioners by the year of obtaining the pension for the first time
(Table 2.18) shows that slightly more than two-thirds of the pensioners among the OAP and
PHP obtained pension after 2000. Even among the DWP, a majority (57%) obtained pension
after 2000. Of the remaining, most of them obtained pension between 1995 and 2000 across
all the three categories. Thus, a vast majority of the pensioners obtained pension during the
last 13 years, even though the schemes were initiated much earlier. It implies that the demand
for pensions has increased in the recent past, mainly due to enhancement of the monthly
pension amount from Rs.100 to Rs.200 and further to Rs.400.
Table 2.18: Distribution of Pensioners in Bellary by year of obtaining the pension (%)
Year of obtaining pension Type of pension
Total Old age pension
Widow pension
Disability pension
Before 1995 2.7 3.1 5.1 3.6 1995 – 2000 25.7 37.4 20.5 28.3 2000 – 2005 28.3 29.0 40.2 32.4 After 2005 40.7 27.5 26.5 31.3 No information 2.7 3.1 7.7 4.4 Total 113 131 117 361
Possession of sanction letter Regarding the possession of sanction letter or pension card, 97% of the pensioners informed
that they possessed it, the percentage being more or less the same across all the three
categories (Table 2.19).
Table 2.19: Distribution of Pensioners in Bellary by possession of sanction letter or pension card (%)
Does the pensioner possess sanction letter or pension card?
Type of pension Total
Old age pension Widow pension Disability pension
Yes 96.5 96.2 97.4 96.7 No 3.5 3.8 2.6 3.3 Total 113 131 117 361
22
Degree of Disability The distribution of PHP by degree of disability (Table 2.20) shows that a majority (57%) had
disability of 40-60%, and 22% had disability of 60-75%. About 10% disabled pensioners had
disability of more than 75%, while the remaining 10% were on the borderline, i.e., a
disability of just 40% which is the eligibility condition for obtaining pension. The degree of
disability was noted down by verifying the doctor’s certificate available with the respondents,
to the extent possible.
Table 2.20: Distribution of Pensioners in Bellary by extent of disability (%)
Extent of disability Disability pension
40% 10.3 40-60% 57.3 60-75% 22.2 >75% 10.3 Total 100 (117)
Working Status before obtaining Pension Regarding the working status of pensioners before obtaining the pension (Table 2.21), a
majority of the pensioners from OAP and PHP categories (59% and 63% respectively)
reported that they did nothing. This could be attributed to the advancement of age among the
OAP and the degree of disability among the PHP. Further, there were quite a few students
(20%) among the PHP at the time of obtaining pension. Thus, 83% of PHP were not engaged
in any economic activity at the time of obtaining pension. Only among the DWP, the
percentage of pensioners who did nothing at the time of obtaining pension is 35%. Thus, a
majority of the DWP were engaged in some economic activity at the time of obtaining
pension. It could be seen that, of those who were engaged in economic activities, most of
them were engaged as wage labourers in agriculture, while a few others were engaged in
wage labour in the non-agricultural sector, cultivation, business and other occupations.
23
Table 2.21: Distribution of Pensioners in Bellary by their working status
before obtaining the pensions (%)
Working status before obtaining the pensions
Type of pension Total Old age
pension Widow pension
Disability pension
Wage labour in agriculture 25.7 40.5 8.5 25.5 Wage labour in non-agriculture 5.3 5.3 1.7 4.2 Cultivator 4.4 3.1 1.7 3.0 Nothing 59.3 35.1 63.2 51.8 Business 0.0 7.6 3.4 3.9 Student 0.0 0.0 19.7 6.4 Others 5.3 8.4 1.7 5.3 Total 113 131 117 361
Delivery Mechanism
An attempt has been made here to examine the delivery mechanism for distribution of
pensions in terms of the place of distribution of pension, who delivers pension, and how the
pensioners managed to receive the pension amount in case of their absence.
Place of Distribution of Pension About 89% of the pensioners across all the three categories reported that they receive pension
at their doorstep through the postman. Only about 2% of the pensioners (belonging to DWP
and PHP categories) reported that they receive the pension through the bank. The remaining
9% of the pensioners reported that they receive pension at the local post office (Table 2.22).
It was observed that those who receive pension at the post office include the pensioners in a
hamlet located at about 3-4 km from the main village housing the post office. In another case,
even though the post office is located in the village, the postman insisted that the pensioners
go to the post office to receive their pension. In the latter case, those who receive pension at
the post office include the relatively poorer and ignorant pensioners who had no voice,
because the postman did give pension to a few people at their doorstep in the same village.
Table 2.22: Distribution of Pensioners in Bellary by the place of receiving the
pension (%)
Where do you usually receive the pension?
Type of pension
Total Old age pension
Widow pension
Disability pension
At the door step 90.3 88.5 88.9 89.2 Local post office 9.7 9.2 8.5 9.1 Local bank 0.0 2.3 2.6 1.7 Total 113 131 117 361
24
Who delivers Pension? Thus, it is clear that it is the postman who delivers the pension in the case of a vast majority
of the pensioners, followed by bank officials in a few cases. It was also noted that in one of
the sample villages called H.Veerapura, the business correspondent appointed by Syndicate
Bank, Emmiganur distributed the pension through the smart card system to some pensioners.
However, the process seems to be incomplete in this village since smart cards were
distributed to 106 out of 142 pensioners as on the date of survey.
Arrangement if the Pensioner is Absent in the Village An enquiry was made with regard to how the pensioners manage to get the pension in the
event of their absence (Table 2.23) when the postman visits their house. It was revealed that
the pensioners in a village, locality or street usually keep on enquiring of the postman as to
when the pension will be distributed. Therefore, they inform the postman through their
relatives to wait for a few days. About 52% of the pensioners reported that they inform the
postman about their absence. About 30% of the pensioners reported that they would go to the
post office to collect their pension in the event of their absence when the postman visited
them. A few others (6%) reported that they authorise their relatives to receive the pension on
their behalf.
Table 2.23: Distribution of Pensioners in Bellary by their responses on how
they manage to receive the pension when they are absent(%)
How do they manage to get pension when they are not
present?
Type of pension
Total Old age pension
Widow pension
Disability pension
Go to post office 42.5 19.8 29.1 29.9 Authorize relatives to receive 0.0 2.3 15.4 5.8 Postman will be informed 46.9 64.1 42.7 51.8 Others 0.9 4.6 3.4 3.0 No information 9.7 9.2 9.4 9.4 Total 113 131 117 361
Delay in the Delivery of Pensions The delay in the delivery of pensions is analysed here in terms of the actual number of days
of delay in respect of the last pension, perceptions of the pensioners on delay, and the
improvement in the timeliness of delivery over time after they started receiving pension.
25
No. of days of Delay It may be mentioned here that, to obtain this information, the actual date of delivery of
pension as mentioned in the MO receipt available with the respondents was verified to the
extent possible. In some places, the date of delivery was clearly indicated, while in some
other places, the postman did not care to mention the date of delivery. In the case of the latter,
the recall method was used to obtain information on the probable date of delivery. In one
village, the postman was very good and scrupulous, in the sense that he not only recorded the
date of delivery on the MO receipt, but also made every pensioner maintain a notebook in
which he took pains to record the date of delivery of pension.
With regard to the number of days of delay in the delivery of last pension (Table 2.24), it
ranged between 91-100 days in the case of 37% of the pensioners, followed by 61-70 days in
the case of 30% across all categories. There is no significant variation across the categories in
this regard. The main reason for the delay in the delivery of pension could be traced to the
pattern of release of pension from the treasury, which varied between Bellary and Hospet
taluks. In the case of Bellary taluk, the last pension delivered was for the month of Sep ’08,
which was released in Nov ’09 and delivered to the pensioners in the month of November and
December. On the other hand, the pension for Nov-Dec ’08 was released in January ’09 and
the delivery of pension was under progress at the time of survey during the second week of
Jan ’09. But, in most cases the last pension pertained to Sep-Oct ’08, which was delivered in
Nov-Dec ’08. Another important reason for the delay could be due to the rule that postman
cannot carry more than Rs.20000 per day. As a result, there were variations in the date of
delivery of pension by the postman by about 30 days or more; variations could be noted even
within the same village.
The delay was of the order of 61-80 days for the delivery of last pension in the case of about
half the pensioners, if we take into account the stipulated norm of delivery of pension in the
first week, i.e., before 7th of every month. In one of the sample villages, there were also
complaints of mischief by the postman to the effect that he would use it for his personal
needs and distribute it to the pensioners at a later date. If they complained, he used to threaten
them that MO would be returned. So, the pensioners bear the injustice meted out to them in
silence.
26
Table 2.24: Distribution of Pensioners in Bellary by No. of days of delay in the delivery of last pension (%)
No. of days of delay
Type of pension
Total Old age pension
Widow pension
Disability pension
50-60 days 7.1 3.1 7.7 5.8 61-70 days 31.9 32.8 25.6 30.2 71-80 days 24.8 11.5 21.4 18.8 81-90 days 5.3 8.4 1.7 5.3 91-100 days 30.1 40.5 38.5 36.6 Above 100 days 0.9 3.8 5.1 3.3 Total 113 131 117 361
Perceptions of Delay Regarding the perceptions of the pensioners about delay in the delivery of pension during the
last 6 months (Table 2.25), only 3% of the pensioners reported that they received it in the first
week of the month; these include pensioners who receive the pension through banks. About
52% of the pensioners reported that there was a delay of two months in the delivery of
pension. The rest of the pensioners felt that the delay in the delivery of pensions was three
months and above. Thus, a majority of the pensioners felt that the delay in the delivery of
pensions is two months or more.
Table 2.25: Distribution of Pensioners in Bellary by the delay in the delivery
of pension benefits in the last six months (%)
Duration of delay in the delivery of pension
Type of pension
Total Old age pension
Widow pension
Disability pension
No delay-always delivered in the first week of every month 3.5 3.8 2.6 3.3 A month 0.9 0.0 2.6 1.1 Two months 54.0 45.0 56.4 51.5 Three months and above 41.6 51.1 38.5 44.0 Total 113 131 117 361
Timeliness of Pension delivery over Time A majority of the pensioners (55%) felt that the timeliness of pension delivery (table 2.26)
has somewhat improved over time since they first received pension. About 22% of the
pensioners observed that the timeliness in pension delivery has vastly improved over time,
while another 22% noted that it has not improved (remained the same). Thus, the timeliness
of pension delivery has vastly improved or improved somewhat over time, according to a
majority of the pensioners. The pensioners were, however, happy with the increase in the
monthly pension amount from time to time.
27
Table 2.26: Distribution of Pensioners in Bellary by the timeliness of pension delivery since starting to receive pension (%)
Timeliness of pension delivery
Type of pension
Total Old age pension
Widow pension
Disability pension
Vastly Improved 24.8 15.3 28.2 22.4 Somewhat improved 61.9 51.1 53.0 55.1 Not improved 13.3 33.6 18.8 22.4 Total 113 131 117 361
Unauthorised payments An attempt is made here to analyse whether any amount is paid to different actors including
the postman, proportion of the amount paid to the total pension amount, why these payments
were made and whether the payment was made voluntarily or demanded.
Payment to different actors It was enquired whether any payment was made to anybody including the postman or bank
official or any other person for receiving the last pension. About 80% of the pensioners
across all the three categories reported that they paid the postman, such a percentage being
higher in the case of DWP when compared to the other two (Table 2.27) On the other hand,
the percentage of those who did not pay anything to the postman is higher among the OAP
and PHP when compared to the DWP; the main reason for this could be the poor economic
and health status of the pensioner or better awareness of the pensioners.
Table 2.27: Distribution of Pensioners in Bellary by their responses on the payment at the time of receiving the pension (%)
Payment to the following at the time of receiving the
pension
Type of pension
Total Old age pension
Widow pension
Disability pension
Postman 75.2 87.0 76.1 79.8 None 24.8 13.0 23.9 20.2 Total 113 131 117 361
Amount paid to Pension The amount paid to the postman varied between Rs.5 to Rs.50, depending on the last pension
amount, which ranged between Rs.400 and Rs.800. About 47% of the pensioners across all
the three categories reported that they paid Rs.10-20 at the time of receiving the last pension.
About 12% of the pensioners reported that they paid Rs.30-40 (Table 2.28). The norm for
28
payment to the postman is usually 5% of the pension amount, but it ranged between 2% and
6%, and varied from village to village, depending on the awareness level and attitude of the
pensioners as well as the attitude of the postman.
Table 2.28: Distribution of Pensioners in Bellary by the commission amount paid to the person who delivers the pension (%)
Amount (in Rs.) paid to the person who delivers the
pension
Type of pension
Total Old age pension
Widow pension
Disability pension
< 10 17.7 16.0 10.3 14.7 10 – 20 43.4 51.9 44.4 46.8 20 – 30 1.8 3.8 5.1 3.6 30 – 40 9.7 10.7 15.4 11.9 > 40 2.7 4.6 0.9 2.8 Not applicable 24.8 13.0 23.9 20.2 Total 113 131 117 361
Reasons for making unauthorised payments Regarding the reasons for making unauthorised payments to the postman, it was found that it
became customary to pay the postman whenever any MO is delivered on considerations of
the risk involved and the distance travelled in the hot sun. This practice has crept into the
system over a long time and has spread to the delivery of pension amounts too. For instance,
one old lady opined that even though she cannot afford to make payments to the postman, she
still pays him because he comes from a long distance and delivers the pension at her
doorstep. There is also a tendency among some postmen to think that the government is
giving pension to the pensioners ‘free’ and therefore he is entitled to some portion of it.
Similarly, some pensioners also have a tendency to think that they are receiving some ‘free’
money from the government and so they can pay some amount to the person who delivers it.
It is often forgotten that the postman has to deliver the pension as part of his duty and that the
pensioner is entitled to pension from the government as a social security measure. The
widespread illiteracy among the pensioners could be one important reason for this situation,
while the depressed condition of some of the pensioners, more so among the OAP and DWP,
could be another reason.
Was the Payment voluntary or demanded? About 43% of the pensioners across all categories reported that they paid the postman
voluntarily, such a percentage being higher among the OAP when compared to other two
29
categories. It was reported that the pensioners pay some thing to the postman, taking into
account the risk he takes to carry the money and distribute to them over a considerable
distance; in some cases, the postman has to travel more than 4 km to reach the village. On the
other hand, about 37% of the pensioners reported that the money was demanded in the sense
that the postman deducts some portion (mutually agreed) of the pension amount and pays the
balance to the pensioners (Table 2.29).
Table 2.29: Distribution of Pensioners in Bellary by their responses on whether the payment was voluntary or demanded (%)
Was the amount demanded or voluntarily paid?
Type of pension
Total Old age pension
Widow pension
Disability pension
Demanded 27.4 45.8 36.8 37.1 Voluntarily paid 47.8 41.2 39.3 42.7 Not applicable 24.8 13.0 23.9 20.2 Total 113 131 117 361
Behaviour of the Delivery Agent An enquiry was made with regard to the behaviour of the delivery agent, be it the postman or
business correspondent or bank official, at the time of giving the pension. As mentioned
earlier, the postman is the delivery agent for most of the pensioners. A vast majority (91%) of
the pensioners across all the three categories reported that the behaviour of the delivery agent
was polite/ cordial. About 6% reported the behaviour of delivery agent as indifferent, while
only 3% reported it as being arrogant/rough (Table 2.30).
Table 2.30: Distribution of Pensioners in Bellary by the behaviour of the
postman/ bank officials while distributing pension (%)
Behaviour of postman/ bank officials
Type of pension
Total Old age pension
Widow pension
Disability pension
Polite/cordial 94.7 87.8 91.5 91.1 Indifferent 5.3 8.4 5.1 6.4 Arrogant/rough 0.0 3.8 3.4 2.5 Total 113 131 117 361
Work Status before and after obtaining Pension The work status of the pensioners at the time of obtaining pension and at present throws some
light on whether there has been some change in their occupation, and if yes, in what way and
what could be the reasons for such a change. The analysis has been done separately for the
three categories of pensioners.
30
Old Age Pensioners The change in work status of OAP after obtaining pension (Table 2.31) reveals that the
proportion of those who did nothing/ cannot work has increased from 59% to 77%,
justifiably due to advancement of age. But, a few of them who did nothing earlier (9%) have
now taken up wage labour or self-employment in non-agriculture, perhaps out of compulsion
to look after themselves or their dependents.
Table 2.31: Distribution of old age pensioners in Bellary by their current working status and previous occupation (%)
Previous occupation
Current working status
Wage labourer in agriculture
Self-employed in agriculture
Self-employed in small
manufacturing/ hotel/ transport/ personal services
Salaried employe
e
Household work
Cannot work Total
Wage labour in agriculture 31.0 3.4 3.4 0.0 3.4 58.6 25.7 Wage labour in non-agriculture 0.0 0.0 33.3 16.7 0.0 50.0 5.3 Cultivator 0.0 40.0 0.0 0.0 20.0 40.0 4.4 Nothing 3.0 0.0 4.5 0.0 1.5 91.0 59.3 Others 0.0 0.0 16.7 16.7 0.0 66.7 5.3 Total 9.7 2.7 6.2 1.8 2.7 77.0 113 Note: Figures italicised represents column percentages
Widow Pensioners The change in the work status of widow pensioners after obtaining pension (Table 2.32)
indicates that there has been a shift from wage labour in agriculture and non-agriculture to
self-employment in non-agricultural activities. This shift appears to have taken place partly
due to pension because it enables them to undertake some small business activities. Even
though there has been an increase in the proportion of those who did nothing/ cannot work
from 35% to 42%, a few of those who did nothing earlier (17%) have taken up self-
employment in non-agriculture or wage labour in agriculture. This could be due to
compulsions of meeting the consumption or educational needs of children and also to fulfil
the obligation of performing the marriage of daughters. Thus, there is upward mobility in the
work status of widow pensioners to some extent.
31
Table 2.32: Distribution of widow pensioners in Bellary by their current working status and previous occupation (%)
Previous occupation
Current working status
Wage labourer
in agricultu
re
Self-employed
in agricultu
re
Self-employed in small
manufacturing/ hotel/ transport/ personal services
Salaried employe
e
Household work
Cannot work Total
Wage labour in agriculture 56.6 1.9 7.5 0.0 7.5 26.4 40.5 Wage labour in non-agriculture 42.9 0.0 28.6 0.0 0.0 28.6 5.3 Cultivator 0.0 50.0 25.0 0.0 0.0 25.0 3.1 Nothing 4.3 2.2 10.9 0.0 6.5 76.1 35.1 Business 0.0 0.0 100.0 0.0 0.0 0.0 7.6 Others 0.0 0.0 54.5 18.2 0.0 27.3 8.4 Total 26.7 3.1 21.4 1.5 5.3 42.0 131 Note: Figures italicised represents column percentages
Disability Pensioners The change in work status of disability pensioners after obtaining pension (Table 2.33)
reveals that there has been a significant shift towards economic activity. The proportion of
those who did nothing or cannot work declined from 63% to 48%. Some of those who did
nothing earlier are now students, and a few of them have taken up economic activities also.
Similarly, those who were students earlier have now taken up some economic activity in the
non-farm sector and even as employees in the private sector. There has also been a shift from
wage labour to self-employment in the non-farm sector and private employment. The upward
mobility in the occupational status of disability pensioners could be mainly attributed to their
young age. It appears that pension has certainly contributed to the education of disabled
pensioners and enabled them to take up some economic activity.
32
Table 2.33: Distribution of disability pensioners in Bellary by their current working status and previous occupation (%)
Previous occupation
Current working status
Wage labourer in
agriculture
Wage laboure
r in non-
agriculture
Self-employed in agriculture
Self-employed in small
manufacturing/ hotel/ transport/ personal services
Salaried
employee
Household work
Student
Cannot work
Too young
to go to school Total
Wage labour in agriculture 70.0 10.0 0.0 0.0 10.0 0.0 0.0 10.0 0.0 8.5 Wage labour in non-agriculture 0.0 0.0 0.0 50.0 0.0 0.0 0.0 50.0 0.0 1.7
Cultivator 0.0 0.0 100.
0 0.0 0.0 0.0 0.0 0.0 0.0 1.7
Nothing 2.7 0.0 1.4 5.4 0.0 0.0 20.
3 68.9 1.4 63.2 Business 0.0 0.0 0.0 50.0 0.0 0.0 0.0 50.0 0.0 3.4
Student 4.3 0.0 0.0 21.7 8.7 8.7 52.
2 4.3 0.0 19.7 Others 0.0 0.0 0.0 0.0 50.0 50.0 0.0 0.0 0.0 1.7
Total 8.5 0.9 2.6 10.3 3.4 2.6 23.
1 47.9 0.9 117 Note: Figures italicised represents column percentages
Level of Security among Pensioners Regarding the level of security of the pensioners after they started obtaining pension (Table
2.34), a vast majority of the pensioners (85%) opined that they felt more secure now when
compared to before. The main reason for feeling more secure than before appears to be the
increase in the pension amount. Even though there is some delay in the distribution of
pension, they are sure that one day it will come to their rescue. On the other hand, about 8%
reported that they felt the same way as before when they were not receiving any pension; it
was observed that these households were economically better off when compared to the rest
of the pensioners. Only one PHP felt that he is not feeling secure even with the pension
because of the severity of his disability and huge medical expenses.
33
Table 2.34: Distribution of Pensioners in Bellary by their statements on level of security after they started to receive the pension (%)
Level of security
Type of pension
Total Old age pension
Widow pension
Disability pension
More secure 82.3 92.4 77.8 84.5 Same as before 9.7 1.5 12.8 7.8 Not feeling secure 0.0 0.0 0.9 0.3 No information 8.0 6.1 8.5 7.5 Total 113 131 117 361
Issues relating to Ineligible pensioners
An attempt is made here to analyse the issues relating to the ineligible pensioners and the
magnitude and duration of ineligibility. In particular, it is sought to examine whether there
are any ineligible beneficiaries among those receiving the pensions on account of death of a
pensioner, age, remarriage and overstated disability, as well as the number of working
members in the household and the household income (total and per capita).
Death of Pensioner
There were only two death cases in the sample of 363 pensioners. It was learnt that the death
of pensioner was informed to the postman and that the pension was stopped forthwith. This
was crosschecked with the villagers, who confirmed the death of pensioner and the stoppage
of pension. These two cases were therefore deleted for the purpose of further analysis. Thus,
it may be observed that there were no ineligible persons receiving pension on account of
death of a pensioner.
Age of the Pensioner
A close look at the distribution of OAP by age group (Table 2.12) indicates that 9% of the
OAP (i.e., 10 out of 113) were less than 65 years of age and hence not eligible to receive
pension. It was found that 70% of these pensioners were sanctioned pension after 2005. Thus,
most of them were on the borderline. Further, the age mentioned in the election photo identity
(EPI) card was the basis for obtaining the present age of the pensioner, wherever it was
available. The EPI card was found to have been issued much earlier than they obtained
pension. Most of the OAP were illiterate and there is a general tendency to underreport age in
public while photographs are taken for issue of EPI cards. As such, it is quite possible that the
34
age reported and recorded in the EPI card could be erroneous. These facts preclude us from
arriving at a definite conclusion with regard to ineligible pensioners on account of age.
Remarriage of Pensioner
A close look at the marital status of the DWP (Table 2.13) indicates that there were no
ineligible pensioners on account of remarriage. There were, however, two cases where the
pensioner was deserted by her husband or she was separated from her husband. These two
cases could virtually be considered as widows, as the households were headed by a single
woman; the villagers consider them so.
Overstated Disability
A close look at the current working status of PHP by the degree of disability (Table 2.37)
reveals that the proportion of disabled pensioners who are non-workers (cannot work, student
and household work) increases with the degree of disability. About half of the disabled
pensioners with just 40% disability were engaged in economic activities. Similarly, about
30% of disabled persons with 40-60% disability were engaged in economic activities. There
is a possibility that a few of these could become ineligible if subjected to closer scrutiny. But,
the number of such cases is too small to warrant re-examination. More over, as the degree of
disability was noted as per the doctor’s certificate, it would be difficult to conclude that there
are ineligible pensioners on account of overstated disability.
Table 2.37: Distribution of disability pensioners in Bellary by proportion of disability and current working status (%)
% of disability
Current working status
Wage labourer in agriculture
Wage laboure
r in non-
agriculture
Self-employed in agriculture
Self-employed in small
manufacturing/ hotel/ transport/ personal services
Salaried employe
e
Household work Student
Cannot work
Too young
to go to school Total
40% 25.0 0.0 0.0 8.3 16.7 8.3 16.7 25.0 0.0 12 40-60% 7.5 1.5 3.0 16.4 1.5 3.0 25.4 41.8 0.0 67 60-75% 7.7 0.0 3.8 0.0 3.8 0.0 23.1 61.5 0.0 26 >75% 0.0 0.0 0.0 0.0 0.0 0.0 16.7 75.0 8.3 12 Total 8.5 0.9 2.6 10.3 3.4 2.6 23.1 47.9 0.9 117
Number of Workers in the Household The distribution of sample households by number of workers (Table 2.38) indicates that there
is not even a single worker in about 7% households, such a percentage being higher among
the OAP (12%) when compared to the DWP and PHP. There is only one worker in 29%
35
households, while there are two workers in the case of 29%. There are three workers in 19%
households. There are more than three workers in the remaining 15% households, more so
among the PHP when compared to DWP and OAP. While it cannot be denied that the
households with more than three workers are relatively better off in economic terms when
compared to others, it is also possible that there could be certain compulsions for the
existence of a large number of workers and the income is not pooled together and used. The
households with more than three workers are generally large-sized families. Some of them
may be joint families, but not in the strict sense of the term, which implies that control over
household income is vested with the eldest male head. In the poorer households, it is unlikely
that the income of all the individual workers is shared by all members equally. Each
individual may like to spend earnings in his/her own way. Hence, it is difficult to conclude
that there are ineligible pensioners on account of number of workers in the household.
Table 2.38: Distribution of pensioners in Bellary by number of working members (%)
Number of working members
Type of pension
Total Old age pension Widow pension Disability pension
0 11.5 6.9 3.4 7.2 1 37.2 30.5 19.7 29.1 2 28.3 29.8 29.1 29.1 3 10.6 19.1 27.4 19.1 4 7.1 7.6 12.8 9.1 5 2.7 3.8 5.1 3.9 6 2.7 1.5 2.6 2.2 7 0.0 0.8 0.0 0.3
Total 113 131 117 361
Household Income
If the household income is taken into account (Tables 2.39 and 2.40), as per the present
eligibility criteria of Rs.6000 per annum for sanction of widow and disability pension, many
households become ineligible. But, in the present context, fixing a maximum income of
Rs.6000 per annum as eligibility for sanction of pension appears to be unrealistic because of
two important factors, viz., the implementation of NREGP which guarantees a minimum of
100 days of employment per annum and the minimum wage of Rs.74 per day in Karnataka
according to the Minimum Wages Act. Therefore, it is unlikely that the annual income of a
household would be less than Rs.6000 even if there is one worker in the household. It is
36
learnt that the government has been contemplating an upward revision of the income criteria
for sanctioning widow and disability pensions.
Table 2.39: Distribution of pensioners in Bellary by their HH annual income (%)
Total annual income (in Rs.)
Type of pension
Total Old age pension Widow pension Disability pension
<=6000 8.0 6.9 4.3 6.4 6000 - 18000 25.7 16.8 6.8 16.3 18000 - 30000 27.4 25.2 21.4 24.7 30000 - 42000 10.6 24.4 17.1 17.7 42000 - 54000 15.9 13.7 14.5 14.7 54000 - 66000 5.3 6.1 15.4 8.9 >66000 7.1 6.9 20.5 11.4 Total 113 131 117 361
Table 2.40: Distribution of pensioners in Bellary by the monthly per capita income (%)
Monthly per capita income (in Rs.)
Type of pension
Total Old age pension Widow pension Disability pension
<=300 21.2 12.2 8.5 13.9 300 - 600 37.2 35.9 34.2 35.7 600 - 900 28.3 28.2 23.9 26.9 >900 13.3 23.7 33.3 23.5 Total 113 131 117 361
Secondly, there is another fact that needs to be taken into account before taking household
income as the criteria for ineligibility of pensioners. For instance, in the case of DWP, the
pensioner lives in a different family – that of a father, brother or sister or in-laws – mainly for
the sake of security and moral support. Similarly, in the case of OAP, the pensioner
sometimes lives with the family of his/her brother, sister, daughter or cousins and not with
his/her own sons. Even in the case of PHP, a few pensioners reside with the guardians. In all
such cases, the pensioner may not have access to or any say over the household income.
Therefore, it may not be correct to take the income of the household as that of the pensioner.
Another justification for this is that the income earned by individual workers is not shared by
all household members in all matters.
Lastly, household income cannot be viewed in isolation. The indebtedness of the household,
the source and purpose of debt will have a bearing on household income. If the household
37
incurs a debt from a private source for health or consumption purpose or even for investment
on agriculture, there may be no returns or the rate of return is uncertain, which would make it
difficult for the household to repay it. The expenditure pattern, especially on medical
expenses or education or liquor/gambling, should also be taken into account to judge whether
the income puts the household on a sound footing in economic terms.
In view of the above, it would be difficult to come to a definite conclusion on ineligible
pensioners on account of income.
Conclusions
Based on the findings of the study, the following important conclusions could be drawn:
1. The targeting of the social security and pension benefits appears to be in the right
direction, as indicated by the large-scale coverage of weaker sections including
women.
2. The profile of the sample households indicates that the PHP households are relatively
better off in terms of housing status, type of ration card and proportion of
economically productive age group, when compared to DWP and OAP households;
the OAP households appear to the poorest.
3. The profile of the pensioners indicates that most of the pensioners are in a
disadvantageous position in terms of demographic, physical and economic status.
4. There has been a spurt in the demand for pensions during the last decade as indicated
by the greater number of sanctions made after 2000 than before, mainly due to
increase in the monthly pension amount and the proactive role of the government.
5. About 14% of households have more than one pensioner. A majority of the pensioners
were non-workers at the time of sanction of pension, more so among the PHP and
OAP when compared to the DWP. A vast majority of the pensioners possessed the
sanction letter of pension.
6. Nearly 90% of the pensioners receive the pension at their doorstep through the
postman. The pensioners manage to get the pension in case they are absent when the
postman visits their house by informing the postman or collecting the pension from
the post office.
7. The delay in the delivery of pension is of the order of 60-80 days from the stipulated
date in most cases, mostly due to the practice of releasing it once in two months from
38
the treasury and the condition that the postman cannot carry more than Rs.20000 per
day. The timeliness in the delivery of pension, however, has improved over time.
8. Nearly 80% of the pensioners make unauthorised payments to the postman, ranging
from 2% to 6% of the pension amount. While about half of them are paid to the
postman voluntarily, the postman demands the money in the sense that he deducts the
amount before paying the pension in the case of the rest. However, the behaviour of
the delivery agent has been cordial in most cases.
9. There has been an upward mobility in the work status of the PHP and DWP after
obtaining pension from wage labour to self-employment in the non-farm sector; this
could be attributed to education facilitated by pension in the case of PHP and leisure
time facilitated by pension in the case of DWP, besides certain compulsions to look
after the education, consumption needs of children and to perform the marriage of
daughters.
10. Pension gives the pensioners a sense of security as indicated by the high level of
security among them in the sense that most of them feel more secure now than before;
one important reason for this is the increase in the monthly pension amount.
11. There are virtually no cases of ineligible pensioners on account of death of pensioner,
remarriage and overstated disability. Apparently there seem to be a few cases of
ineligible pensioners on account of age, but the ineligibility on the ground of age
becomes untenable, as there is no authenticated evidence of the date of birth in the
case of OAP.
12. It is difficult to arrive at definite conclusions with regard to ineligible pensioners.
There could be a few ineligible pensioners if we take into account the households with
more than three workers and the household income as a whole. But, these criteria
cannot be considered in isolation from other factors such as indebtedness, purpose and
source of debt of the household, expenditure pattern of the household and the pattern
of income-sharing arrangement within the household, which require an in-depth
study. It appears that the small proportion of potential ineligible pensioners and the
meagre allocations for social security pension benefits in the state does not warrant
such a study.
39
3. DELIVERY OF SOCIAL SECURITY AND PENSION BENEFITS IN CHITRADURGA DISTRICT
INTRODUCTION
Social security and pension schemes have been implemented in Chitradurga district with a
view to supplement the income of the destitute and poor households, and thereby preventing
them from falling into multiple deprivations. Money transfer through several social security
schemes is not the only source of income for the destitute and poor households. There are
other livelihood earning strategies that they take up with limited capital assets.
In this Chapter, we will examine the delivery of social security and pension benefits. In the
first section of the Chapter, we will examine the progress in the number of pensioners and
expenditure in the district. In sections 2 and 3, we provide the profile of pensioner households
and pensioners, respectively. This is followed by a discussion on the arrangements to
disburse pensions at the village level, delay in the disbursal of benefits, unauthorised
payments, etc. In the penultimate section, issues relating to ineligible pensioners have been
taken up for discussion, while conclusions are provided in the final section.
PROGRESS OF PENSION BENEFITS IN CHITRADURGA
As Chitradurga district is one of the backward districts in the state, exposed to
periodicdroughts, the implementation of social security schemes such as old age pension
(OAP), destitute widow pension (DWP) and physically handicapped person (PHP) is
considered to be an important strategy, in part, to ameliorate the sufferings of the destitute
and poor households. The number of pensioners and the amount of expenditure spent under
different pension schemes has shown progressive trends, reflecting the continued
commitment of the state towards disadvantaged people.
The data provided in Table 3.1 indicate that the proportion of PHP increased from 35.84 per
cent to 38.92 per cent during 2005-06 to 2008-09. While the proportion of OAP showed a
smaller increase, that of DWP declined during the same period. The annual growth rate of
PHP was found to be higher, compared to OAP and DWP during the same period. It follows
that there has been greater growth in the number of disabled persons obtaining pension
40
benefit in the district. The growth of OAP may, in part, be attributed to relaxation of the
eligibility criteria.
Table 3.1: Growth Rate of Number of Pensioners in Chitradurga District Type of Pensions 2005-06 2006-07
2008-09 (December)
Growth rate in 2008-09 over 2005-06 (%)
OAP
7308 (20.83)
7616 (20.43)
11578 (22.13)
58.43
PHP
12577 (35.84)
13669 (36.67)
20365 (38.92)
61.92
DWP
15203 (43.33)
15990 (42.90)
20378 (38.95)
34.04
SSY ---- ---- 3467
All 35088 (100)
37275 (100)
55788 (100)
58.99
Note: Figures in parenthesis are column percentages Source: Revenue Department, Government of Karnataka, Bangalore.
The data on expenditure on the delivery of pensions including administrative expenditure is
provided in Table 3.2. The proportion of expenditure on OAP and PHP to total has increased
significantly during 2005-06 to 2008-09, whereas that on DWP has sharply declined during
the same period. This implies that along with an increase in the number of pensioners, the
resources flowing into the programme were also found to be quite progressively increasing.
The increase in the number of pensioners has been accompanied by an increase in the
expenditure on OAP and PHP in the district. The increase in the amount of expenditure on
different schemes may be attributed to an increase in the amount of pension benefit and the
number of pensioners.
Table 3.2: Growth Rate in the Expenditure on Pension Schemes in Chitradurga Type of
Pensions 2005-06 2006-07 2008-09
(December) Growth rate in 2008-09
over 2005-06 (%) OAP
3600565 (16.51)
17528028 (15.18)
49460800 (22.15)
1273.70
PHP
6807257 (31.22)
28375842 (24.57)
83580970 (37.43)
1127.82
DWP
11398444 (52.27)
69580590 (60.25)
83459800 (37.38)
632.20
SSY ---- ---- 6772000 -- 21806266 115484460 223273570 923.90
Note: Figures in parenthesis are column percentages Source: Revenue Department, Government of Karnataka, Bangalore.
41
PROFILE OF SAMPLE HOUSEHOLDS Religion Table 3.3 shows that most of the sample pensioners are Hindus, accounting for about more
than 89 per cent, followed by Muslims. The share of Hindu households was found to be
relatively more in the case of OAP and PHP households.
Table 3.3: Distribution of Pensioner Households by Religion (per cent)
Religion
Type of pension
Total Old age pension Widow pension Disability pension Hindu 90.14 88.82 90.00 89.50 Muslim 9.86 11.18 10.00 10.50 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
Caste Caste composition of the sample households (Table 3.4) shows that a large proportion of
them belonged to depressed castes such as STs, SCs and backward castes. The proportion of
households belonging to the socio-economically disadvantaged sections of society was found
to be, by and large, more in the case of OAP and DWP as compared to PHP.
Table 3.4: Distribution of Pensioner Households by Caste (per cent)
Caste Type of pension
Total Old age pension Widow pension Disability pension SC 21.13 19.88 23.08 21.27 ST 36.62 31.06 20.00 28.18 Backward Caste 16.90 21.74 24.62 21.82 Minorities 9.86 11.18 9.23 10.22 Others 15.49 16.15 23.08 18.51 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
House Type, Sanitation and Possession of Ration Cards Table 3.5 provides basic details on the sample households. The housing status of most of the
sample households is not congenial; a large proportion of them live in semi-pucca or katcha
42
houses. The proportion of households staying in semi-pucca and katcha households was
found to be higher in the case of OAP and DWP as compared to PHP.
As far as sanitation is concerned, a very small proportion of the sample households have
individual sanitation or access to community latrines. The proportion of households with
individual sanitation and access to community latrines was reported to be far less in the case
of OAP and DWP as compared to that of PHP.
The distribution of households with ration card in Table 3.5 shows that the proportion of
households with BPL cards was more than 89 per cent of the sample households. The
situation across different pension schemes is not similar. The proportion of households with
BPL cards was found to be relatively high in the case of DWP and OAP as compared to PHP.
The above analysis implies that the socio-economic status of the pensioner households is not
better and across different pension beneficiaries, the status is still worse in the case of OAP
and DWP.
Table 3.5: Basic Household details of Pensioners (per cent)
House status Type of pension
Total Old age pension Widow pension Disability pension Housing Status (%)
No house 4.23 1.86 3.08 2.76 Katcha 22.54 16.77 10.00 15.47 Semi-Pucca 47.89 54.04 56.15 53.59 Pucca 19.72 22.98 24.62 22.93 RCC house 5.63 4.35 6.15 5.25 Total 100 (71) 100 (161) 100 (130) 100 (362)
Sanitation Status (%) Individual sanitation 15.49 18.63 20.77 18.78 Community latrine 1.41 0.62 0.77 0.83 Open defecation 83.10 80.75 78.46 80.39 Total 100 (71) 100 (161) 100 (130) 100 (362)
Possession of Ration Card (%) BPL Card - AAY 30.99 38.51 30.77 34.25 BPL Card 53.52 54.66 56.92 55.25 APL Card 4.23 1.86 7.69 4.42 No ration card 11.27 4.97 4.62 6.08 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
43
Size of the household and Age profile The data provided in Table 3.6 show that the proportion of females was found to be higher,
accounting for about 57.55 per cent, indicating a greater possibility of being exposed to risk
in taking socio-economic and political decisions of life. Such uneven sex composition was
reported to be quite high in the case of DWP and OAP households as compared to PHP.
Table 3.6: Average Household Size among Pensioner Households Size of the family
Type of pension Total Old age pension Widow pension Disability pension
Population (No) 268 (57.09) 604 (65.23) 636 (50.47) 1508 Size (No) 3.77 3.75 4.89 4.17
Note: Figures in parenthesis indicate the share of females in the total number of household members. Source: Primary Survey.
The average size of the family of the pensioner households was estimated at 4 persons. It was
found to be relatively high in the case of PHP as compared to that of OAP and DWP. It is
quite evident that co-residence is less in the elderly and widowed households.
The data on distribution of household members by age groups (Table 3.7 and Figure 3.1)
illustrate that the age profile of the members of OAP households, followed by DWP, is not
favourable as compared to that of PHP. This follows that the OAP and DWP households have
a smaller proportion of members in the working age group as compared to PHP. The chances
of being at risk are higher for the elderly and widowed.
Table 3.7: Distribution of sample household members in Chitradurga by age and sex (%)
Age Old age pension Widow pension Disability pension
Male Female Total Male Female Total Male Female Total <=5 6.1 5.9 6 6.7 5.3 5.8 7.9 8.4 8.2 6-14 13.9 9.8 11.6 28.6 15 19.7 17.5 14.6 16 15 - 24 22.6 20.3 21.3 28.6 20.8 23.5 21.9 24 23 25 - 34 15.7 11.1 13.1 13.8 11.7 12.4 14.9 13.1 14 35 - 44 8.7 5.9 7.1 9 12.9 11.6 11.1 11.5 11.3 45 - 54 6.1 5.9 6 5.7 11.2 9.3 9.5 13.7 11.6 55 - 64 4.3 5.9 5.2 4.3 10.4 8.3 7.6 9.7 8.6 >=65 22.6 35.3 29.9 3.3 12.7 9.4 9.5 5 7.2 Total 115 153 268 210 394 604 315 321 636
44
Figure 3.1: Distribution of members of Sample Households by Age Groups (per cent)
0
5
10
15
20
25
30
35
<=5 6-14 15 - 24 25 - 34 35 - 44 45 - 54 55 - 64 >=65
Dis
tribu
tion
of h
ouse
hold
mem
bers
(%)
OAP DWP PHP
Source: Primary Survey. Working Status The data (Table 3.8) on working status indicate that most of the household members are
involved in causal wage employment in agriculture and non-agriculture followed by self-
employment, and at the same time, the proportion of members in the category of “cannot
work” is also found to be high.
Table 3.8: Distribution of Sample Household Members by Working Status (per cent)
Working Status
Type of pension
Total Old age pension
Widow pension
Disability pension
Wage labourer in agriculture 15.67 20.03 15.88 17.51 Wage labourer in non-agriculture 8.58 14.24 10.85 11.80 Self-employed in agriculture 7.46 3.15 3.77 4.18 Self -employed in non-agriculture 4.10 3.97 4.09 4.05 Salaried employee 3.36 2.15 3.30 2.85 Household work 19.40 12.91 16.67 15.65 Unemployed 0.37 0.66 0.79 0.66 Student 15.67 26.32 20.60 22.02 Cannot work 18.66 9.93 16.35 14.19 Too young to go to school 6.72 5.96 7.55 6.76 No information 0.66 0.16 0.33 Total (100) 268 (100) 604 (100) 636 (100) 1508
Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
45
Across different pensioner households, it has been found that the working status is not
congenial. While a larger proportion of members of OAP households do not work, a larger
proportion of members of DWP households are involved in casual wage employment in
agriculture followed by non-agriculture. This follows that their occupational structure,
especially in the case of OAP and DWP households, is not lucrative, regular or of the secure
type. This has implications for the incidence of poverty in such households.
PROFILE OF SAMPLE PENSIONERS Sex and Age of the Pensioners The data provided in Table 3.9 indicate that most of the sample pensioners are females,
accounting for more than two-thirds of the total sample. The share of females in the case of
OAP has been found to be relatively higher as compared to that of PHP. Therefore, most of
the sample pensioners are females.
Table 3.9: Distribution (%) of Pensioners by Sex in Chitradurga
Sex
Type of pension
Total Old age pension Widow pension Disability pension Male 33.80 - 63.85 30.11 Female 66.20 100 36.15 69.89 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
Figure 3.2 shows that the majority of elderly people obtaining pension, as expected, are more
than 65 years. There are less than three per cent below the specified age limit. Though they
might have produced the certificate of age proof, but judging by appearance, the nature of
their work and cross verifying the household demographic profile, one can conclude that less
than three per cent of pensioners are ineligible. The age profile of DWP indicates that most of
the widowed are in the age group of 30-50 years. In respect of PHP, the share of disabled
persons is found to be more in the age group of 20-30 and 30-50 years, and not many elderly
people. This follows that the age profile of persons receiving disability pension benefits is
relatively better as compared to that of DWP.
46
Figure 3.2: Distribution of Sample Pensioners by age groups (per cent)
0
20
40
60
80
100
Age groups
Distr
ibutio
n of p
ensio
ners
(%)
OAP 0 0 0 0 0 2.8 8.5 88.7
DWP 0 0 0 12.4 23.6 21.1 19.3 23.6
PHP 0.8 13.8 22.3 16.9 10.8 13.8 9.2 12.3
<=5 6-14 15 - 24 25 - 34 35 - 44 45 – 54 55 – 64 >=65
Source: Primary Survey. Marital Status The marital status of the sample pensioners in a way depicts the underlying and observable
features of the scheme. The data provided in Table 3.10 indicate that most of the pensioners
are widowed; some of them are staying with their parents or brothers. In the case of OAP, the
proportion of widow pensioners are found to be high followed by married pensioners. As far
as disabled pensioners are concerned, the share of unmarried persons is found to be quite
high.
Table 3.10: Distribution of Pensioners by Marital Status (per cent)
Marital status Type of pension
Total Old age pension Widow pension Disability pension Unmarried 2.8 -- 53.1 19.9 Married 29.6 -- 38.5 19.6 Widowed 64.8 100 7.7 59.7 Separated 2.8 -- 0.8 0.8 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
Educational status Educational status of the members of the pensioner households was found to be low. Most of
them are illiterate, accounting for 64.4 per cent; going by different pension schemes, the
proportion of illiterate was higher in respect of OAP and DWP as against PHP. It has been
observed that most of the pensioners were educated up to the primary level of education.
Educational status of PHP is found be much better as compared to OAP and DWP.
47
Table 3.11: Distribution of Pensioners by Educational Status (per cent)
Educational level Type of pension
Old age pension Widow pension Disability pension Total Illiterate 77.5 76.4 42.3 64.4 Yet to be admitted into school 0.0 0.0 1.5 0.6 Pre-school 0.0 0.0 0.8 0.3 Primary (1-7) 21.1 16.1 25.4 20.4 High school (8-10) 1.4 6.2 18.5 9.7 Pre-university 0.0 0.6 6.9 2.8 Technical education 0.0 0.0 0.0 0.0 Degree 0.0 0.6 3.8 1.7 Post-graduation 0.0 0.0 0.8 0.3
Total 100 (71) 100 (161) 100 (130) 100 (362) Note: Figures in parenthesis are actual numbers. Source: Primary Survey. Working status
The data on working status of the sample pensioners (Table 3.12) show that the most of them
cannot work either due to aging or disability, accounting for about 38 per cent of the total
sample pensioners. Across different schemes, the category of ‘cannot work’ is quite
significant in the case of PHP followed by OAP. Among those who are working, most of
them are casual labourers in agricultural followed by non-agricultural occupations. The
occupational status is found to be relatively better in the case of DWP followed by PHP.
Table 3.12: Distribution of Pensioners by working status (%)
Working Status
Type of pension
Total Old age Pension
Widow pension
Disability pension
Wage labourer in agriculture 22.5 37.3 7.7 23.8 Wage labourer in non-agriculture 5.6 12.4 2.3 7.5 Self-employed in agriculture 4.2 2.5 1.5 2.5 Self –employed in non-agriculture 2.8 5.6 3.8 4.4 Salaried employee 2.8 3.7 3.8 3.6 Household work 12.7 18.0 10.8 14.4 Unemployed 0.0 0.0 3.1 1.1 Student 0.0 0.0 15.4 5.5 Cannot work 49.3 20.5 50.0 36.7 Too young to go to school 0.0 0.0 1.5 0.6 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
48
DELIVERY OF PENSIONS IN THE DISTRICT
Type of pension
The data provided in Table 3.13 presents the composition of pensioners. The share of DWP is
found to be higher accounting for 44.48 per cent followed by PHP (35.91 per cent) and OAP
(19.61 per cent).
Table 3.13: Distribution of Sample Households (%) by Type of Pension Type of pension Frequency Per cent
Old age pension 71 19.61
Widow pension 161 44.48
Disability pension 130 35.91 Total 362 100
Source: Primary Survey. Extent of disability Figure 3.3 provides the data on the distribution of disabled persons by the extent of their
disability recorded from the authorised certificate. The data show that the proportion of
disabled persons with 60-75 per cent of disability is found to be quite high, accounting for
53.85 per cent. The proportion of persons with more than 75 per cent of disability, who may
not be able to work, is reported to be 26.15 per cent. The proportion of persons with less than
40-60 per cent disability, who can involve themselves in some petty business, is estimated at
12.31 per cent.
49
Figure 3.3: Distribution of Disabled Persons by Extent of their Disability (per cent)
12.31
53.85
26.15
7.69
0
10
20
30
40
50
60
40 – 60 % 60 – 75 % >75 % No information
Extent of disability
Dis
abili
ty p
erso
ns (%
)
PHP
Source: Primary Survey. Number of Other pensioners in a household An effort has been made to estimate the proportion of other members receiving pension in a
household. It has been found (Table 3.14) that about 14 per cent of the sample households
have reported that they other members in a household received pensions. It was found to be
relatively high in the case of OAP (23.94 per cent), followed by PHP (16.15 per cent) and
DWP (8.70 per cent). It is the elderly people who depended greatly on the pension benefits
provided by the government.
Table 3.14: Percentage of Pensioner Households receiving more than one pension
Whether any one else in your household receives
pension
Type of pension Total
Old age pension Widow pension
Disability pension
Yes 23.94 8.70 16.15 14.36 No 76.06 91.30 83.85 85.64
Total 100 (71) 100 (161) 100 (130) 100 (362) Note: Figures in parenthesis are actual numbers. Source: Primary Survey. Year of Obtaining the Pension
The data provided in Table 3.15 indicate that the proportion of people obtaining pension
benefits started to increase significantly from 2000 onwards. The increase was reported to be
quite significant in the case of OAP followed by PHP and DWP. This implies that the
government provision of social benefits has not stagnated; instead more and more people
have been brought under the pension benefit cycle.
50
Table 3.15: Distribution of Pensioners by Year of Obtaining the Pension (per cent) Year obtaining Pension
Type of pension Total Old age pension Widow pension Disability pension
Before 1995 8.45 32.30 28.46 26.24 1995 – 2000 2.82 12.42 6.15 8.29 2000 – 2005 14.08 19.88 13.85 16.57 After 2005 70.42 33.54 50.00 46.69 No information 4.23 1.86 1.54 2.21 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
Where did they obtain pensions? An attempt has been made to explore whether the pensioners, especially in the case of the
elderly and widows, have changed their place of residence and the delivery of pension after
some time due to insecurity that they face. If there is a change in the location, how does the
pension scheme get transferred to the present location?
The data on the distribution of pensioners by the place of delivery provided in Table 3.16
indicate that most of the pensioners have reported that they have received pension at the
present location, accounting for about 99 per cent. It has been observed that most of the
destitute widows who stay with their parents or brothers got the pension after they came back
from their in-laws house. Therefore, there is no change in the location of delivery of pension.
In the case of OAP, about 3 per cent of them have reported that they have received the
pension at a different place for the first time and subsequently got it transferred to the present
location.
Table 3.16: Distribution of Pensioners by the Place where Pensioner obtained the Pension for the first time (%)
Place of obtaining pension for the first time
Type of pension
Total Old age pension
Widow pension
Disability pension
At the present location 97.18 99.38 99.23 98.90
At different place 2.82 0.62 0.77 1.10
Total 100 (71) 100 (161) 100 (130) 100 (362) Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
51
Do they possess the sanction letter? The data provided in Table 3.17 show that most of the pensioners have reported that they
have the sanctioning letter, accounting for 92 per cent. The remainder had it but could not
locate or trace the letter at the time of enumeration. The pensioners who got the pension
about 15-20 years ago have not kept the sanctioning letter with them. In this regard, not
much difference across the different schemes is noticed. Even then, in the case of OAP such
cases are found to be more as compared to the other pension schemes.
Table 3.17: Percentage of Pensioners possessing sanction letter or Pension Card in Chitradurga
Does the pensioner possess sanction letter or pension
card?
Type of pension
Total Old age pension
Widow pension
Disability pension
Yes 92.96 90.68 92.31 91.71
No 7.04 9.32 7.69 8.29
Total 100 (71) 100 (161) 100 (130) 100 (362) Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
Working status before obtaining the pensions The data on the distribution of pensioners by their working status before obtaining the
pension (Table 3.18) indicate that the proportion of pensioners doing nothing is found to be
quite high. Among those who were working, most of them were wage labourers in
agricultural and non-agricultural occupations. This proportion was found to be quite
significant in the case of DWP and OAP. It is evident that even before they receive the
pension, the occupational status of the pensioners was of the casual and low paid type.
Table 3.18: Distribution of Pensioners by their working status before obtaining the Pensions (%)
Working status before obtaining Pensions
Type of pension
Total Old age pension
Widow pension
Disability pension
Wage labour in agriculture 35.21 46.58 7.69 30.39
Wage labour in non-agriculture 15.49 24.22 13.08 18.51
Cultivator 8.45 1.24 0.77 2.49
Nothing 26.76 16.15 66.15 36.19
Others 14.08 11.80 12.31 12.43
Total 100 (71) 100 (161) 100 (130) 100 (362) Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
52
DELIVERY MECHANISM Where the pension is delivered An attempt has been made to explore where the pension was delivered, whether this was done
at the doorstep, local post office or at the central place in the village. The data provided in
Table 3.19 indicate that the proportion of pensioners receiving pension at their doorstep is
estimated at 85.64 per cent, followed the local post office, accounting for 12.98 per cent.
Going by different schemes, the proportion of pensioners receiving pension at their doorstep
is found to be more in the case of DWP and PHP as compared to that of OAP. It is evident
that the pension benefit is delivered at the doorstep of the beneficiaries.
Table 3.19: Distribution of Pensioners by the place of receiving the Pension (%)
Where do you usually receive the Pension
Type of pension
Total Old age pension
Widow pension
Disability pension
At the door step 76.06 88.82 86.92 85.64
Local post office 21.13 11.18 10.77 12.98
Local bank 0.77 0.28
At a central place 1.41 0.77 0.55
Other places 1.41 0.77 0.55
Total 100 (71) 100 (161) 100 (130) 100 (362) Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
Who delivers the pension? The present strategy to deliver pension is through the post office. Most of the pensioners
receive their pension from the postman through the money order sent by the treasury.
Arrangement if pensioner is not present in the village An effort has been made to elicit the mechanism to deliver the pension benefit when the
pensioner is not present in the village. In the absence of the pensioner, how the pension is
delivered by the postman reflects the delivery mechanism of the pension benefit. The data
provided in Table 3.20 indicate that the proportion of the pensioners, who would inform the
postman when they are not present in the village to receive the pension, is found to be quite
high, accounting for a little less than two-thirds of the pensioners. If the postman has not
been informed, then they would to post office to receive the pension.
53
Table 3.20: Distribution of Pensioners by their responses on how they manage to receive the pension when they are not present in the village (%)
How do they manage to get pension when they are not
present?
Type of pension Total Old age
pension Widow pension
Disability pension
Go to post office 33.8 30.4 20.0 27.3
Authorize relatives to receive 2.8 2.5 3.8 3.0
Postman will be informed 57.7 61.5 66.2 62.4
Others 5.6 5.6 10.0 7.2
Total 100 (71) 100 (161) 100 (130) 100 (362) Note: Figures in parenthesis are actual numbers. Source: Primary Survey. DELAY IN THE DELIVERY OF PENSION
One of the important problems of pensioners is that there has been considerable delay in the
delivery of the pension benefit. This delay varies across locations (rural and urban). It must
be mentioned that the delay in the delivery of the pension benefit would nullify the basic
objectives of the scheme. The delay may take place at different places with varying degrees.
An effort has been made to estimate the extent of delay in the delivery of pension benefits at
the doorsteps of the pensioners.
Perception on the Delay
Table 3.21 presents the perception of the pensioners on the delay in delivery of pension
benefits. The data show that almost all the pensioners have reported that there has been a
delay in the delivery of the pension benefit with varying degrees, ranging from a few weeks
to more than three months. A great majority of the pensioners have reported that there has
been a delay of two months. It was found to be relatively higher in the case of OAP as
compared to other schemes. From our observations, it has been learnt that many pensioners
have reported that the delay has become problematic for them.
Has there been any improvement in the timeliness?
The data provided in Table 3.22 show that the proportion of pensioners reporting that the
timeliness in the delivery of pensions has vastly improved was found to be very less,
accounting for 10.8 per cent. About 42 per cent of the sample pensioners have reported that
some improvement took place in the timeliness of delivery of the pension.
54
The proportion of pensioners reporting that the timeliness in delivery of pensions has not
improved was found to be quite significant. Though not much difference existed across
different pensions, it was found to be relatively high in the case of OAP and DWP as
compared to PHP. It is evident that a larger proportion of pensioners have reported that there
has been little improvement in the timeliness in delivery of pension benefits.
Table 3.21: Perceptions of Pensioners (%) on the Extent of delay in receiving pension benefits in the last six months
Duration of delay in the delivery of pension
Type of pension Total Old age
pension Widow pension
Disability pension
No delay 0.0 0.0 0.8 0.3 A few weeks 14.1 9.9 13.8 12.2 A month 8.5 18.0 18.5 16.3 Two months 74.6 67.1 66.2 68.2 Three months and above 2.8 5.0 0.8 3.0 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey. Table 3.22: Perceptions of Pensioners (%) on improvement in the timeliness of pension delivery
Timeliness of pension delivery
Type of pension Total Old age
pension Widow pension Disability pension
Vastly Improved 12.7 11.2 9.2 10.8 Somewhat improved 35.2 41.0 46.9 42.0 Not improved 52.1 47.8 43.8 47.2 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey. UNAUTHORISED PAYMENT Payment to the postman The data provided in Table 3.23 show that a great majority of the pensioners have reported
that they have paid the postman, accounting for 65.5 per cent. The share of bank officials was
found to be negligible. It can also be noted that the proportion of pensioners paying money to
the postman was found to be higher in the case of PHP followed by DWP and OAP.
55
Table 3.23: Distribution of Pensioners by their responses on the payment at the time of receiving the pension (per cent)
Payment to the following at the time of receiving the pension
Type of pension Total Old age
pension Widow pension
Disability pension
Postman 63.4 65.8 66.2 65.5 Bank official 4.2 1.2 0.0 1.4 None 32.4 32.9 33.8 33.1 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey. Why were unauthorised payments made?
It has been observed that there is a practice of paying money to the postman. An effort has
been made to elicit whether it was demanded or voluntarily paid. The data provided in Table
3.24 indicate that most of the pensioners have reported that the payment was made to the
postman, as it was demanded. Across different pension schemes, it can be noted that the
proportion of pensioners paying money due to demands by the postman was found to be
higher in the case of OAP and DWP as compared to that of PHP. On the other hand, the
proportion of pensioners who voluntarily paid the postman was reported to be quite lowin the
case of OAP and DWP as compared to that of PHP.
Table 3.24: Distribution of Pensioners by their responses on whether the payment was made voluntarily or not (per cent)
Was the amount demanded or voluntarily paid?
Type of pension Total Old age
pension Widow pension
Disability pension
Demanded 46.5 39.1 30.8 37.6 Voluntarily paid 21.1 28.0 35.4 29.3 Not applicable 32.4 32.9 33.8 33.1 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey. BEHAVIOUR OF DELIVERY AGENT The data provided in Table 3.25 show that about 92 per cent of the pensioners have reported
that the behaviour of the postman is polite/ cordial at the time of delivery of the pension. The
proportion of pensioners reporting the behaviour of the postman as indifferent and
arrogant/rough was quite low. Going by different pension schemes, the data indicate that the
56
proportion of pensioners reporting the behaviour of the postman as polite/cordial was found
to be relatively low in respect of OAP and DWP as compared to that of PHP.
The cases of indifferent or arrogant/rough behaviour were more in the case of OAP and DWP
as against PHP. The behaviour of the postman has something to do with the payment made
to him at the time of delivery of the pension. It is evident that if the payment is not made to
him, the behaviour will be indifferent or arrogant at the time of delivery of the pension.
Table 3.25: Distribution of Pensioners by their statement on the behaviour of the postman and bank officials while delivering pension (%)
Behaviour of postman/ bank officials
Type of pension Total Old age
pension Widow pension
Disability pension
Polite/cordial 90.1 90.1 94.6 91.7 Indifferent 7.0 5.6 4.6 5.5 Arrogant/rough 2.8 4.3 0.8 2.8 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
What Factors influence the behaviour of the postman?
The data on the distribution of pensioners by the range of amounts paid to the postman
(Table 3.26) indicate that most of the pensioners have paid Rs 10 to 20 at the time of delivery
of the pension, accounting for 64 per cent. It was found to quite high in the case of OAP and
DWP as compared to that of PHP. There are some cases where the PHP have even paid more
to the postman. It is obvious that the behaviour of the postman is largely determined by the
amount of money paid to him. It is learnt that for those who pay more money, the
information about the release of the MO would be informed well in advance on a specific
date so as to ensure their presence in the village.
57
Table 3.26: Distribution of Pensioners by the commission amount paid to the person who delivers the pension (per cent)
Amount (in Rs.) paid to the person who delivers the pension
Type of pension Total Old age
pension Widow pension
Disability pension
<= 10 36.6 42.2 42.3 41.2 10 – 20 26.8 23.0 20.8 22.9 20 – 30 1.4 0.0 2.3 1.1 30 – 40 1.4 1.9 0.8 1.4 > 40 1.4 0.0 0.0 0.3 Not applicable 32.4 32.9 33.8 33.1 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
Working status before and after receiving the pension An effort has been made to examine the changes in the working status of the pensioners after
they started receiving the pension benefits. The data provided in Table 3.27 indicate that most
of the pensioners continued to remain wage labourers either in agricultural or non-agricultural
occupations. Among those who were working, there was an occupational shift in favour of
self-employment (agriculture and non-agriculture) and regular salaried/wage employment
(helper, peon, etc). At the same, the category of ‘cannot work’ also increased owing to ageing
of the pensioners.
Table 3.27: Distribution of old age pensioners by their current and previous working status (per cent)
Previous working status
Current working status
Wage labourer in agriculture
Wage labourer in
non-agriculture
Self-employed in agriculture
Self-employed in non-agriculture
Salaried employee
Household work
Unemployed Student
Cannot work
Too young
to go to school Total
Wage labour in agriculture 52.0 4.0 0.0 0.0 0.0 4.0 0.0 0.0 40.0 0.0 35.2 Wage labour in non-agriculture 18.2 9.1 0.0 0.0 18.2 0.0 0.0 0.0 54.5 0.0 15.5 Cultivator 0.0 16.7 50.0 0.0 0.0 33.3 0.0 0.0 0.0 0.0 8.5 Nothing 5.3 0.0 0.0 0.0 0.0 10.5 0.0 0.0 84.2 0.0 26.8 Others 0.0 10.0 0.0 20.0 0.0 40.0 0.0 0.0 30.0 0.0 14.1 Total 22.5 5.6 4.2 2.8 2.8 12.7 0.0 0.0 49.3 0.0 71 Note: Figures italicised represent column per centages Source: Primary Survey
58
Table 3.28 presents data on the distribution of widow pensioners by their working status
before and after receiving pension. The data show that for most of the widow pensioners,
there was no change in the occupational status; they continued to be wage labourers in
agriculture followed by non-agriculture. There is also occupational mobility from wage
labour to self-employment and salaried employment in the private sector (at lower levels).
Table 3.28: Distribution of widow pensioners by their current and previous working status (per cent)
Previous working status
Current working status
Wage labourer in agriculture
Wage labourer in
non-agriculture
Self-employed
in agriculture
Self-employed in non- agriculture
Salaried employee
Household work
Unemployed Student
Cannot work
Too young
to go to school Total
Wage labour in agriculture 65.3 4.0 0.0 2.7 1.3 5.3 0.0 0.0 21.3 0.0 46.6 Wage labour in non-agriculture 20.5 25.6 5.1 2.6 5.1 20.5 0.0 0.0 20.5 0.0 24.2 Cultivator 50.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 50.0 0.0 1.2 Nothing 7.7 7.7 0.0 3.8 7.7 46.2 0.0 0.0 26.9 0.0 16.1 Others 0.0 26.3 10.5 26.3 5.3 26.3 0.0 0.0 5.3 0.0 11.8 Total 37.3 12.4 2.5 5.6 3.7 18.0 0.0 0.0 20.5 0.0 161 Note: Figures in italics represent column percentages Source: Primary Survey
The data presented in Table 3.29 show that although the category of ‘cannot work’
dominates, some proportion of those who were doing nothing and working as wage labour
began to take up some petty business such as a grocery shop, small tea stall, vegetable
vending shop, etc., thereby contributing to the household income. The shift in occupational
structure should only partly be attributed to the provision of pension benefits and that we
should note that other factors may have also been at work.
Table 3.29: Distribution of disability pensioners by their current and previous working status (per cent)
Previous working status
Current working status
Wage labourer in agriculture
Wage labourer in
non-agriculture
Self-employed in agriculture
Self-employed in non-agriculture
Salaried employee
Household work
Unemployed Student
Cannot work
Too young
to go to school Total
Wage labour in agriculture 30.0 0.0 0.0 0.0 10.0 10.0 0.0 0.0 50.0 0.0 7.7 Wage labour in non-agriculture 0.0 5.9 0.0 0.0 0.0 5.9 0.0 5.9 82.4 0.0 13.1 Cultivator 0.0 0.0 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.8 Nothing 5.8 2.3 0.0 2.3 3.5 11.6 3.5 18.6 50.0 2.3 66.2 Others 12.5 0.0 6.3 18.8 6.3 12.5 6.3 18.8 18.8 0.0 12.3 Total 7.7 2.3 1.5 3.8 3.8 10.8 3.1 15.4 50.0 1.5 130 Note: Figures in italics represent column percentages. Source: Primary Survey
59
Security Provided by Pensions The data provided in Table 3.30 indicate that most of the pensioners have reported that they
feel ‘more secure’ with the provision of pension. It is found to be more in the case of PHP
followed by OAP and DWP. The proportion of pensioners reporting that the level of security
following the provision of pension is the ‘same as before’ is estimated to be more than one-
third of the pensioners. In some cases, especially in the case of elderly widowed people, it has
been observed that pension is the major or only source of living.
Table 3.30: Distribution of Pensioners by their statements on level of security after they started to receive the pension (%)
Level of security Type of pension
Total Old age pension
Widow pension
Disability pension
More secure 52.1 56.5 59.2 56.6 Same as before 35.2 36.0 30.8 34.0 Not feeling secure 12.7 7.5 10.0 9.4 Total 100 (71) 100 (161) 100 (130) 100 (362)
Note: Figures in parenthesis are actual numbers. Source: Primary Survey. ISSUES RELATING TO THE INELIGIBLE PENSIONERS
The provision of pension benefits is meant for the destitute and poor households which fulfil
certain eligibility conditions. Different pension schemes have their own eligibility criteria.
The present study has found certain issues relating to ineligibility for obtaining pension
benefits. Issues relating ineligibility on account of age, overstatement of the extent of
disability, and income more than specified limit are discussed below.
One of the important eligibility criteria for OAP is that age should be more than 65 years
(under certain conditions the age limit is relaxed). The person of less than 65 years is not
eligible for obtaining the pension benefit. The data provided in Table 3.31 show that only in
the case of 8 out of 71 beneficiaries was the age less than 65 years. While two of them could
not work, three of them were undertaking either wage work in agriculture or salaried
employment. Two persons were involved in household work. The age in respect to these
persons was verified with EPIC or ration card. The data provided in Table 3.32 show that
five out of 8 pensioners obtained the benefit after 2005.
60
Table 3.31: Distribution of old age pensioners by age and current working status (%)
Age group
Current working status
Wage labourer in agriculture
Wage labourer in non-agricult
ure
Self-employed in agriculture
Self-employed in
non-agriculture
Salaried employee
Household work
Cannot work
Too young
to go to school
Total (Actual)
45 – 54 0.0 0.0 0.0 0.0 50.0 50.0 0.0 0.0 2 (2.8) 55 – 64 33.3 0.0 0.0 0.0 0.0 16.7 50.0 0.0 6 (8.5) >=65 22.2 6.3 4.8 3.2 1.6 11.1 50.8 0.0 63 (88.7) Total 22.5 5.6 4.2 2.8 2.8 12.7 49.3 0.0 71 (100) Note: The figures in parenthesis indicate column percentages. Source: Primary Survey The ineligibility on account of the overstatement of the extent of disability is also an
important issue. The data presented in Table 3.33 illustrate that in the range of more than 75
per cent of disability, a larger proportion of pensioners are working as agricultural labourers.
This raises the issue of eligibility to obtain the pension benefit by stating the accurate extent
of their disability.
Table 3.32: Distribution of old age pensioners by age and starting year of obtaining the old age pension (%)
Age group
Starting year of obtaining the old age pension
Total 1995 & before 1995 - 2000 2000 - 2005 After 2005
No information
45 – 54 50.0 50.0 0.0 0.0 0.0 2 55 – 64 0.0 0.0 16.7 83.3 0.0 6 >=65 9.5 3.2 14.3 68.3 4.8 63 Total 9.9 4.2 14.1 67.6 4.2 71 Source: Primary Survey
It has been learnt from our interactions with some of the pensioners that the extent of
disability is quite possible to overestimate so as to make the person eligible for the benefit.
This becomes a critical issue for identification of the ineligible pensioners. Another important
eligibility criterion for the pension benefit is the income limit. The household with an annual
income of more than Rs 6000 is not eligible. An effort has been made to estimate the gross
annual income of the household from all the sources.
61
Table 3.33: Distribution of disability pensioners by proportion of disability and current working status (%)
% of disability
Current working status
Wage labourer in agriculture
Wage labourer in non-
agriculture
Self-employed
in agriculture
Self-employed in non-agriculture
Salaried employee
Household work
Unemployed Student
Cannot work
Too young to
go to school Total
40 - 60 % 12.5 0.0 6.3 0.0 6.3 18.8 0.0 25.0 31.3 0.0 16
60 - 75 % 4.3 4.3 0.0 2.9 5.7 10.0 2.9 15.7 54.3 0.0 70
>75 % 8.8 0.0 2.9 8.8 0.0 11.8 5.9 11.8 47.1 2.9 34
No information 20.0 0.0 0.0 0.0 0.0 0.0 0.0 10.0 60.0 10.0 10
Total 7.7 2.3 1.5 3.8 3.8 10.8 3.1 15.4 50.0 1.5 130 Source: Primary Survey
The data provided in Table 3.34 indicate that the proportion of households earning gross
annual income more than Rs 6000 is estimated at 89 per cent. Only 11 per cent of the
pensioner households with income less than Rs 6000 are eligible for the pension benefit. The
ineligibility by the income parameter was found to be relatively high in the case of PHP
followed by DWP and OAP.
Table 3.34: Distribution of Pensioners by their Household Annual Income (%) Total annual
income (in Rs.) Type of pension Total Old age pension Widow pension Disability pension
<=6000 14.1 11.2 8.5 10.8 6000 – 18000 22.5 30.4 21.5 25.7 18000 - 30000 23.9 21.1 21.5 21.8 30000 - 42000 19.7 12.4 13.1 14.1 42000 - 54000 9.9 9.9 12.3 10.8 54000 - 66000 1.4 6.8 7.7 6.1 >66000 8.5 8.1 15.4 10.8 Total 100 (71) 100 (161) 100 (130) 100 (362) Note: Figures in parenthesis are actual numbers. Source: Primary Survey. It can also be noted that if the annual household income of Rs 18, 000 is considered as the
state poverty line, even then a great majority of the pensioners becomes ineligible, roughly
accounting for 63.6 per cent.
The data provided in Table 3.35 show that the proportion of pensioners earning monthly per
capita income in the range of Rs 300-600 was found to be quite significant, accounting for 39
per cent.
62
Table 3.35: Distribution of pensioners by the monthly per capita income (%) Monthly per capita
income (in Rs.)
Type of pension Total Old age pension Widow pension Disability pension
<=300 12.7 11.2 18.5 14.1
300 – 600 36.6 41.6 36.9 39.0
600 – 900 28.2 22.4 23.1 23.8
>900 22.5 24.8 21.5 23.2
Total 100 (71) 100 (161) 100 (130) 100 (362) Note: Figures in parenthesis are actual numbers. Source: Primary Survey.
CONCLUSIONS The foregoing analysis reveals that the proportion of PHP increased at a faster rate, while the
proportion of OAP showed a smaller increase during 2005-06 to 2008-09. The proportion of
DWP declined during the same period. The annual growth rate of PHP was found to be
higher when compared to OAP and DWP during the same period. This follows that there has
been a greater growth in the number of disabled persons obtaining pension benefits in the
district. There has also been a rapid increase in expenditure during the same period. This
shows the continued commitment on the part of the state to provide social security benefits to
the destitute and poor in the district.
Based on the primary data collected from 362 sample pensioner households in the district, it
has been found that most of the pensioners are Hindus followed by Muslims, covering the
main religion of the district. A great majority of the pensioners are from the socio-
economically disadvantaged sections of the society such as STs, SCs and OBCs. It was found
to be relatively higher in the case of OAP and DWP, as compared to that of PHP. Most of the
members of the pensioner households are females. The average size of the household was
found to be higher in the case of PHP as compared to DWP and OAP, implying that co-
residence with elderly people and widows was observed to be less. The age profile of the
members of the pensioner households is not favourable, especially in the case of OAP and
DWP; most of them are not in the working age groups. The housing status of the pensioner
household in not congenial in the case of OAP and DWP as compared PHP. A great majority
of the pensioner households do not have access to sanitation, mainly depending on open
defecation, especially in the case of OAP and DWP. Most of the pensioner households have
63
BPL cards. It is evident that the socio-economic status of the pensioners, especially in the
case of OAP and DWP was found to be very poor.
The distribution of the members of pensioner households by their working status show that
most of the members are wage labourers in agricultural followed by non-agricultural
occupations. Across different pension schemes, the occupational structure was found to be
better in the case of PHP as compared to that of OAP and DWP.
The data on the profile of the sample pensioners show that most of the pensioners are
females. Educational status of the pensioners was not better; most of them were illiterates,
especially in the case of OAP and DWP. A great majority of the pensioners do not work due
to their age or disability. Among those who are working, most of them are causal workers.
The working age profile of the DWP is better than that of the PHP. There seems to the
occupational diversification in favour of non-agricultural work after receiving the pension.
Disabled persons seem to have taken up some petty business such as a small grocery shop,
tea stall, vegetable vending shop, etc., after receiving the pension.
A great majority of the disabled persons tend to fall in the range of 60-75 % of disability. The
proportion of pensioners began to rise rapidly from 2000 onwards. Most of the pensioners
possess their sanctioning letter. In most cases, the pension was delivered at the doorstep of
the pensioner household. The average expenditure incurred to obtain the pension benefit was
estimated at Rs 265. Going by different pension schemes, it was found to be higher in the
case of PHP, as compared to that of OAP and DWP.
It has been found that a great majority of the pensioners have reported that there is a delay of
more than two months in the delivery of pension. The proportion of pensioners reporting no
improvement in the timeliness of pension delivery was found to be quite significant. It has
been reported that most of the pensioners usually pay some money (Rs 10) to the postman,
while receiving the pension. The payment made to the postman was found to be higher in the
case of PHP as compared to that of OAP and DWP. Most of the pensioners have reported that
the payment made to the postman was demanded; it is more so in the case of OAP and DWP.
The behaviour of the postman was reported to be polite/cordial by most of the pensioners,
while delivering the pension.
64
The working status of the pensioners has changed after started receiving the pension.
Although, the category of cannot work has been important, there has been occupational
mobility in favour of the non-agricultural sector. This can be partly attributed to the provision
of pension. It is quite possible that the pensioners, after accumulating pension, may start to
undertake some petty business to earn their bread and butter, as most of them do not have any
other livelihood options. A great majority of the pensioners have felt that the provision of the
pension has made them feel more secure.
The study has identified certain issues relating to ineligibility for obtaining the pension
benefit. Ineligibility on account of age, overstatement of the extent of disability, and income
more than the specified limit are some of the issues, which make many pensioners ineligible
for obtaining the pension benefit.
65
4. Delivery of Social Security and Pension Benefits in Gulbarga District INTRODUCTION
In this Chapter, we will discuss the delivery of pensions in Gulbarga, one of the three districts
selected for this study. This chapter is based on the survey carried out in January 2009 (from
December 31, 2008 to January 10, 2009) in Gulbarga district. As part of the study, 353
pensioners were surveyed in two taluks of Gulbarga district i.e., Gulbarga and Aland. The
sample for the study was selected using the cluster sampling method. An attempt was made
to give proportionate representation to all the three categories of pensioners, i.e., Old Age
Pensioners (OAP), Destitute Widow Pensioners (DWP) and Physically Handicapped or
Disability Pensioners (PHP). Thus, the sample comprised 181 OAP (51%), 110 widow
(31%), and 62 PHP (18%) pensioners.
In the first section of the chapter, we will provide the progress of the pension schemes. This
will be followed by a discussion on the delivery mechanism adopted in the district. After
discussing the profile of pensioner households and pensioners in Sections 3 and 4, we will
take up the delivery of pensions in the remaining sections.
PROGRESS OF THE PENSION SCHEMES
Table 4.1 shows the growth rate of OAP, PHP and DWP pensions between 2005 and 2008.
The data show that there has been a slight increase in the number pensions given across the
pension schemes from 2005-06 to 2006-07. However, there has been a dip in the number of
pensions given in 2008, which is higher for OAP (23 %) followed by PHP (8 %) and DWP
(0.59 %). The decline in the number of pensions given in 2008 was largely due to the
cancellation of pensions around September 2007 to curb bogus cases – a measure initiated by
the Deputy Commissioner. The pension schemes were revived after re-enquiry in January
2008. In the re-enquiry, only those who attended the enquiry camp or applied were covered.
As a result, the number of pensioners has come down. The process is still on to identify
deserving cases. The officials said that they have received a number of applications in recent
months due to Janaspandana. For instance, more than 1100 applications were received in
Gulbaraga taluk itself, of which 681 applications were cleared. Thus, there is a possibility of
an increase in the number of pensions in the district in the months to come.
66
Table 4.1: Growth rate of number of pensioners in Gulbarga district
Scheme Number of beneficiaries
2005-06 2006-07 2008-09(Dec-08) % of growth over 2005-06 OAP 92095 94273 70419 - 23.53
PHP 36955 37198 33898 - 8.27 DWP 49539 52738 49243 - 0.59 SSY -- -- 8225 100
Despite a decline in the number of pensions in the district, there has been a sharp rise (411%)
in the expenditure (including that on administration) incurred on the pension schemes. This is
primarily due to an increase in the pension amount in 2008. However, the increase in the
pension amount from Rs. 400 to Rs. 1000 in the case of PHP pensioners with more than 75 %
disability has not come into force – as applicants are not aware of the procedural requirement
i.e., resubmitting the disability certificate along with the enhancement letter. Once this
increase comes into force, the expenditure may rise in the case of PHP. There is also a
chance for a sharp rise in the district level expenditure on these pensions on account of the
sanctioning of SSY pensions. On the whole, the expenditure on these schemes is likely to
increase further by the end of the current financial year, as there is a possibility of new
sanctions under different schemes. The discussion with treasury revealed that there is no
problem with the budget as the funds will come from non-plan expenditure. If non-plan
funds are exhausted, supplementary grants will be allotted – such a situation has not arisen so
far.
Table 4.2: Growth rate in expenditure (Rs.) on Pensions in Gulbarga
Scheme Expenditure
2005-06 2006-07 2008-09(Dec-08) % of growth over 2005-06 OAP 49516755 169258067 257327480 419.68PHP 27154271 89865048 127966440 371.26
DWP 29972760 116649920 160326660 434.91SSY -- -- 6684100
Total 106643786 375773035 545620580 411.63
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DELIVERY MECHANISM AT THE DISTRICT LEVEL
As part of the study, discussions were held with the concerned officials with a view to gain
insights on the process involved in delivering various pensions and also to understand their
perception of these schemes. In this regard detailed discussions were held with Postal
department officials, Treasury officials and officials from the Tahsildar’s office.
The pensions are distributed either through post offices or banks. More than 95 % of the
pensions in the district were distributed through post offices. Once the sanction order is
issued, it is the responsibility of the Treasury to send pension every month1. The sub-treasury
officer sends the pension amount in the form of a cheque for every 100 Money Orders (MOs)
to the Taluk Head Post Office. From the taluk post office, the amount is sent to the sub-post
offices for booking of MOs. It was learnt that the process of booking the MOs at the sub-post
offices takes about a week’s time. From the sub-post offices, the MOs will be sent to the post
offices. At the post office level, the postmaster has to make indents to the sub-post office,
obtain the amount, and arrange for the distribution of money to the pensioners through the
postman. It was informed that the postman could carry a maximum of Rs.10,000 per day for
this purpose. It appears that this rule has been relaxed now, and the post man can carry up to
Rs.20,000 per day.
In cases of unclaimed MOs, the amount has to be sent back to the treasury. At the treasury
level, the amount will be kept under suspension for three months, and thereafter will be
stopped. The banks are also supposed to send the un-drawn pension amount to the treasury
after three months.However, there is no mechanism to address the unclaimed cases from the
Treasury to the Tehsildar’s office.
A few pensioners were receiving the pension through their bank accounts. The existing
procedure for distributing pension through banks stipulates that the pensioner has to open a
savings bank account at any bank branch, fill-up the prescribed application form, and hand it
over to the sub-treasury officer. In such cases, the pension amount is sent to the concerned
bank branches, where it is credited to the account of the pensioner every month. However, the
number of pensioners receiving the pension through banks is very small. 1 The photographs and the fingerprints of the pensioners are being recorded and the pensioners are being issued a Fingerprint Enrolment Copy as an acknowledgement.
68
Table 4.3: Problems/ difficulties encountered by the Departments
Revenue Department
§ Pension stopped in September 2007 – Revived in January 2008 after re-enquiry
§ Inward section receives applications from 6 circles – Used to receive 150-200 applications per month – With Janaspandana in November 2009 alone received 1130 applications – 680 cleared
§ Received applications sent to RI/VA- Submit back to Tahasildar after enquiry
§ Each VA will cover 500 pensioners- needs to enquire, monitor sanctioned cases, keep records and report from time to time. The workload is much higher in urban localities.
§ The increased pension amount PHP – Not implemented as there was no application from pensioners for enhancement2.
§ Tahasildar issues sanction order – copy to Treasury § After sanctioning –expected to monitor through RI/VA – once in a year
Treasury office
§ Treasury releases pensions after receiving order form (and now xerox of bank pass book and thumb impression)
§ 3 head accountants – pension is one of her/his responsibilities § Each Head accountant needs to look into 300 books (each 100
applications)- 50 % workload now § Preparation of list, verification and entering into books § Previously used to release once in four months – due to shortage to MO,
manual preparation of list, etc. Now delivers every month or once in two months.
§ Computerization has really helped in streamlining the process § Computer personnel do data entry (addition & deletion) – Head
accountants need to verify, cross check books and process for release after obtaining approval from DTO; in the case of sub-treasury officer she/he needs to get approval from DTO
§ Printer for 7 departments- MO printing takes at least 2 days § Preparation of list after taking stock of cancelled/suspended
and new sanctions Post office
§ 7-15 days taken for taking amount into account and processing by forwarding section
§ Request from village post office and release of money will take one week § Delay in cash transfer as rural post office can draw only up to Rs. 20,000
(increased) § Delivery at local post office in about 3-5 days § Started delivering by taking police escort – permission takes 2-3 days § Non-delivered pensions are kept for 15 days and returned - received
amount will be returned to treasury – takes more than 3 months – information is supposed to be furnished once in 3 months. In reality, even after demands, treasury receives once in a month
§ Postal network inspector attends to complaints § Pensions are delivered like any other MO- No special process § Information on returned MO to treasury – once in six months
2 It was learnt that the certificate from a civil surgeon is required for sanction of pension where the disability ranged between 40% and 74%. In case the disability was 75% and above, a certificate from the district medical board is insisted upon for sanction of pension.
69
PROFILE OF SAMPLE HOUSEHOLDS
The profile of sample households is analysed here in terms of religion and caste categories,
household details, sex-wise distribution of household members, age group, marital status,
education level, occupational profile and dependency ratio, which will enable us to
understand the socio- economic background of those banded under the social security pension
status.
Social profile: The distribution of pensioners in Gulbarga by religion (Table 4.4) indicates
that a vast majority were Hindus (79%), while the rest were Muslims 1.5%) and Christians.
It may be noted that just about 1% of pensioners were Christians. This trend was seen across
the pension types. However, the proportion of Muslims was higher in the case of PHP when
compared with other categories. This is probably due to the high incidence of polio because
of neglect of polio vaccination.
Table 4.4: Distribution of Pensioner Households in Gulbarga by Religion and Pension Type (%)
Religion
Type of pension
Total OAP DWP PHP Hindu 81.2 84.5 64.5 79.3
Muslim 18.2 14.5 32.3 19.5 Christians 0.6 0.9 3.2 1.2
Total 181 110 62 353
The distribution of pensioners by caste category (Table 4.5) reveals that the SCs accounted
for one-fourth of pensioners (24.9%). There is almost an equal number, (one-fifth for each
category), of OCs, minorities and BCs in the sample. ST households comprise 14 % of the
sample. It may be noted that 79 % of the sample members belong to weaker sections of the
society in terms of social status.
Further analysis shows that SC households are the predominant group in the case of old age
and widow pensions, while it is the minorities for disability pension. In the OAP category,
ST households constitute the second largest group followed by BCs and minorities – with
70
both groups having equal representation in the sample. In the case of widow and disability
pensions, OCs constitute the second largest group.
Table 4.5: Distribution of Pensioner Households in Gulbarga by Caste and Type of Pension (%)
Caste Category Type of pension
Total OAP DWP PHP SC 24.9 28.2 19.4 24.9 ST 21.0 6.4 4.8 13.6 BC 18.8 23.6 14.5 19.5 Minorities 18.8 15.5 35.5 20.7 Others 16.6 26.4 25.8 21.2 Total 181 110 62 353
Housing and sanitation: As regards the housing status of the sample households (Table 4.6),
nearly 46% of the pensioners were residing in Katcha houses and 33% in semi-pucca houses.
The worst-case scenario was observed in the case of 9 % of the sample pensioners, who were
without their own house – and lived in squatter settlements or a rented place. The percentage
of pensioners without their own house was slightly higher in DWP and PHP. On the other
hand, 13 % of the pensioners who were residing in Pucca and RCC houses represent the best-
case scenario. It is evident that the pensioners residing in pucca and RCC house are higher for
OAP, followed by DWP. Thus, it may be concluded that a majority of PHP pensioners have
poor housing status.
Table 4.6: Access of Pensioners to Housing, Sanitation and PDS (%) in Gulbarga
Type of pension OAP
(N=181) DWP
(N=110) PHP
(N=62) Total
(N=353) House status
No house 5.0 12.7 12.9 8.8 Katcha 48.1 42.7 43.5 45.6 Semi-Pucca 32.0 31.8 35.5 32.6 Pucca 11.0 10.0 8.1 10.2 RCC house 3.9 2.7 0.0 2.8
Sanitation facility Individual sanitation 13.8 10.9 16.1 13.3 Community latrine 1.7 7.3 1.6 3.4 Open defecation 84.5 81.8 82.3 83.3
Type of ration card BPL Card - AAY 21.5 30.0 30.6 25.8 BPL Card - Akshaya 62.4 53.6 56.5 58.6 APL Card 7.7 9.1 6.5 7.9 No ration card 8.3 7.3 6.5 7.6
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Availability of sanitation facilities indicates to some extent the economic condition of a
household. Sanitation facilities are important for all the three categories due to their physical
and disadvantaged conditions. The data show that less than 18 % of the sample pensioners
were having sanitation facility – individual latrine for 13.3 % pensioners and community
latrines for 3.4 % of pensioners. In terms of individual latrines, PHP and OAP pensioners
were slightly better positioned than DWP. However, DWP pensioners are better positioned
with regard to community latrines.
Access to Public Distribution System: With regard to access to PDS, it was found that about
59 % of the pensioners had accessed BPL-Akshaya cards. In addition, about 26% of the
pensioners also got BPL-AAY cards. The data further show that 8% of the pensioners possess
APL cards. It is a matter of concern that 7.6% of the pensioners had no access to PDS, which
is higher in the case of OAP followed by DWP.
Gender and age group composition: The household composition of the pensioners (Table
4.7) indicates that there are more females (53.4 %) when compared to male members (46.6
%). Of the three categories of pensions, the female population is higher in DWP. Therefore,
the sex ratio of pensioners’ households is higher when compared to the district population as
whole. This is due to the presence of more female household pensioners among the widow
and old age household pensioners. The average household size worked out to 4.3, being
higher among the disability pension households (5.6) followed by OAP and DWP.
Table 4.7: Distribution of sample Household members in Gulbarga by sex (%)
Sex
Type of pension
OAP DWP PHP Total
Male 48.9 39.4 49.4 46.6 Female 51.1 60.6 50.6 53.4 Total 800 396 344 1540 Household size 4.42 3.6 5.6 4.3
The age group composition of the sample household members (Table 4.8) indicates that
children (14 years and below) constituted 22.6 % of the household members. The aged
(above 65 years) accounted for 16 %, with higher percentage for OAP households (22.5%)
and lower for PHP (7%). On the whole, about 61 % of the household members belonged to
the economically productive age group, with a slightly lower percentage for OAP households
(59%) when compared with DWP and PHP. Further analysis revealed the following:
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§ 25 % of the household members were above 55 years of age. In the case of
households getting old age pension, 34 % are above 55 years. This suggests the
possibility of dependents and earnings members in a majority of these households.
§ The households receiving disability pension have more people in the age group of 15-
35 years (60%).
Table 4.8: Distribution of sample HH members in Gulbarga by age (%)
Age Group Type of pension
OAP DWP PHP Total <=5 6.5 4.5 8.4 6.4 6-14 11.9 19.9 22.1 16.2 15-24 18.3 24.2 22.4 20.7 25-34 14.8 12.1 15.4 14.2 35-44 9.5 12.9 11.9 10.9 45-54 5.5 7.8 9.6 7.0 55-64 11.1 7.6 32 8.4 >65 22.5 10.9 7.0 16.0 Total 800 393 344 1540
Marital Status: The marital status of the sample households indicates (Table 4.9) that 14 %
of the members are widows (12.6) or single women (1.4%) –separated or divorced. Thus,
there are 231 single women in these households, of these only 110 members were receiving
widow pension. Some of these may be receiving old age pension. So, there is a need to
cover the members who have been left out.
Table 4.9: Distribution of sample Household members in Gulbarga by marital status (%)
Marital status Type of pension
OAP DWP PHP Total Unmarried 37.1 46.7 52.9 43.1 Married 53.8 21.5 42.4 42.9 Widowed 8.1 28.5 4.7 12.6 Divorced 0.5 1.8 0.0 0.7 Separated 0.4 0.3 0.0 0.3 Deserted 0.1 1.3 0.0 0.4 Total 800 396 344 1540
Educational Profile: The educational profile of the household members (Table 4.10) shows
that more than half of them (51.9 %) were illiterate. The illiterate members are higher in OAP
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households, followed by DWP and PHP. The data also show that 41 % of the members were
educated; of them 21 % studied up to the primary level, 13 % high school, 4 % pre-university
and 3 % Degree or technical education. The literacy levels are higher in the case of DWP
(47%), followed by PHP (44%) and OAP (37%). On the whole literacy levels among
pensioners’ families are low.
Table 4.10: Distribution of sample household members by educational level (%) in Gulbarga
Educational level
Type of pension OAP DWP PHP Total
Illiterate 56.1 48.2 46.2 51.9 Yet to be admitted into school 6.9 4.8 10.2 7.1 Primary (1-7) 17.5 25.5 25.6 21.4 High school (8-10) 11.6 15.2 12.2 12.7 Pre-university 5.1 3.3 3.8 4.4 Technical education 0.9 1.0 0.3 0.8 Degree 1.8 1.3 1.7 1.6 Post graduation 0.1 0.8 0.0 0.3 Total 800 396 344 1540
Occupational Profile: The occupational status of the pensioners (Table 4.11) indicates that
nearly one-third of the household members were involved as wage labourers in agriculture.
While 6.7 % of the household members were involved in non-agricultural wage labour, 6.2 %
of them were self-employed in the service sector. A small proportion of members were
agriculturists (2.7%) and salaried employees (2.1%). The percentage of the household
member who cannot work is 29.7, which is more for PHP, followed by DWP and OAP.
Table 4.11: Distribution of sample Household members by working status (%) in Gulbarga
Work status
Type of pension
OAP DWP PHP Total
Wage labourer in agriculture 32.5 28.0 22.7 29.2 Wage labourer in non-agriculture 6.0 7.6 7.3 6.7 Self-employed in agriculture 3.5 2.3 1.2 2.7 Self-employed in manufacturing/ hotel/ transport/personal services 5.6 7.6 5.8 6.2 Salaried employee 1.6 2.3 2.9 2.1 Cannot work 15.3 8.6 14.0 13.2 Household work 9.5 11.1 11.3 10.3 Others (unemployed, student, children, etc) 26.1 32.5 34.9 29.7 Total 800 396 344 1540
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PROFILE OF THE SAMPLE PENSIONERS In a sample of 353 pensioners, the group receiving old age pensions accounts for the
largest – slightly more than half, distantly followed by those who are receiving
destitute widow pension, forming about one-third. One out of every six pensioners
covered in the sample received disability pension.
Table 4.12: Distribution of pensioners according to type of pension
Particulars Number Percentage
OAP 181 51.28
DWP 111 31.44
PHP 61 17.28
Total 353 100 The analysis in this regard reveals that females constitute three-fourths of the sample,
and across the type of pensions, this trend is by and large reflected in the OAP group.
But in the disability pension group, males outnumber their female counterparts by about
20 per cent (the actual figures are 59 and 41 respectively). Further, all pensioners
falling in the category of DWP are females only (benefits under this category are
extended to destitute women only).
Table 4.13: Distribution of pensioners according to sex and type of pension
Sex
Type of pension
Old age pensionWidow pension Disability pensionTotal
Male 28.2 0 59.0 25.2
Female 71.8 100 41.0 74.8
Total 181 111 61 353
At the aggregate level, pensioners aged above 60 years constitute 46 per cent of the
sample, distantly followed by those in the age group of 50 to 60 years (22 per cent).
But this trend is not uniformly reflected across the three groups of pensioners covered
in the study. In so far as the age group of OAP pensioners is concerned, about one
third of them belong to the age group of 50-60 years while the rest ( of this group)
are above 60 years. (This calls for further verification as the infiltration ratio of
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ineligible persons - less than 60 years - is of a larger magnitude). As regards the DWP
category, about one third of the pensioners each belong to the age groups of 30-50, 50-
60 and above 60 years. But in the case of PHP, as expected, children up to 14 years
constitute a majority (about one-third), followed by about one-fifth in the age group of
30-50 years. It can further be seen from the table that one out of every 10
pensioners covered in the category is above 60 years of age.
Table 4.14: Distribution of Pensioners in Gulbarga by age (%)
Age group
Type of pension
Old age pension Widow pension Disability pension Total
<=5 0.0 0.0 9.8 1.7 6 – 14 0.0 0.0 24.6 4.2 14 – 20 0.0 0.0 18.0 4.2 20 – 30 0.0 7.6 13.1 8.5 30 – 50 0.0 32.8 21.3 13.6 50 – 60 33.7 29.8 3.3 22.1 >60 66.3 29.8 9.8 45.6 Total 181 111 61 353
In the overall sample, married and widowed pensioners covered are in the same magnitude
(about 45 per cent each). Further, while the unmarried account for 7 per cent, the
sample is composed of divorced, separated and deserted also, but their numbers are very
small. Across the three groups of pensioners, ‘married’ is the majority group with 68
per cent in the OAP group, while widowed is a large majority (91 per cent) in the
DWP group. In the PHP group, besides married pensioners accounting for 52 per cent,
the unmarried also are sizeable (about 38 per cent). In this group the widowed are
also present, but their incidence is not more than 10 per cent.
Table 4.15: Marital status of pensioners (%)
Marital status
Type of pension
Old age pension Widow pension Disability pension Total
Unmarried 0 0.0 37.7 7.1 Married 68 0.9 52.5 43.6 Widowed 29.3 91.0 9.8 45.3 Divorced 1.1 6.3 0.0 2.5 Separated 1.1 0.0 0.0 0.6 Deserted 0.6 1.8 0.0 0.8 Total 181 111 61 353
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The analysis reveals that the literacy level is abysmally low (about 10 per cent) in the
overall sample, and this trend more or less is reflected across the OAP and DWP
groups. In the disability group, though illiterates are a majority, their number is
confined to only about three-fifths.
Table 4.16: Educational level of Pensioners (%)
Educational level
Type of pension
Old age pension Widow pension Disability pension Total
Illiterate 96.7 94.6 60.7 89.8Yet to be admitted into school 0.0 0.0 1.6 0.3Primary (1-7) 3.3 3.6 13.1 5.1High school (8-10) 0.0 0.9 14.8 2.8Pre-university 0.0 0.9 4.9 1.1Technical education 0.0 0.0 1.6 0.3Degree 0.0 0.0 3.3 0.6Post graduation 0.0 0.0 0.0 0.0Total 181 111 61 353
It is evident from the table that about one-tenth of the households covered for the study
did not have any earning members and among the rest, the number varies from one to
10 earning members. For the study group as a whole, each household has 2.04 earning
members. But considerable variation in this figure is seen across the three groups. While the
PHP group emerges as the one with the largest number of earning members of 2.25,
DWP falls at the other extreme with a corresponding figure of 1.70 earning members.
The OAP group registers an average figure of 2.18 earning members per household.
77
Table 4.17: Distribution of pensioners in Gulbarga by number of working members (%)
Number of working members
Type of pension Total Old age
pension Widow pension
Disability pension
0 12.2 (22) 8.1 (9) 3.3 (2) 9.3 (33)1 24.9 (45) 44.1 (49) 29.5 (18) 31.7 (112)2 30.4 (55) 27.0 (30) 27.9 (17) 28.9 (102)3 14.4 (26) 13.5 (15) 23.0 (14) 15.6 (55)4 11.0 (20) 4.5 (5) 13.1 (8) 9.3 (33)5 3.9 (7) 2.7 (3) 1.6 (1) 3.1 (11)6 1.7 (3) 0.0 (0) 1.6 (1) 1.1 (4)9 1.1 (2) 0.0 (0) 0.0 (0) 0.6 (2)10 0.6 (1) 0.0 (0) 0.0 (0) 0.3 (1)Total 181 111 61 353No. of members 394 (2.18) 189 (1.70) 137 (2.25) 720 (2.04)
Table 4.18 shows the per capita income among pensioners. It is evident that the per capita
income is less than Rs.300 per month for 43.3 % of the pensioners. The per capita income
for another 33 % of pensioners is in the range of Rs.300-600. The rest of the pensioners have
per capita income of more than Rs.600 – with 9 % getting more than Rs.900 per month.
Given the current income criteria, only 76.7 % of the members are eligible members.
Table 4.18: Distribution of pensioners in Gulbarga by the monthly per capita income (%)
Monthly per capita income (in Rs.)
Type of pension Total Old age pension Widow pension Disability pension
<=300 43.1 33.3 62.3 43.3 300 - 600 33.7 38.7 23.0 33.4 600 - 900 13.3 14.4 11.5 13.3 >900 9.9 13.5 3.3 9.9 Total 181 111 61 353
Even going by annual per capita income of the pensioners (Table 4.19), about 29 % of them
are ineligible members.
78
Table 4.19: Distribution of pensioners in Gulbarga by the annual per capita income (%)
Annual per capita income (in Rs.)
Type of pension Total
Old age pension Widow pension Disability pension <=1200 7.7 3.6 9.8 6.8 1200 - 3600 35.4 29.7 52.5 36.5 3600 - 6000 28.7 29.7 23.0 28.0 6000 - 8400 9.4 13.5 4.9 9.9 8400 - 10800 8.8 9.9 6.6 8.8 10800 - 13200 2.8 5.4 0.0 3.1 >13200 7.2 8.1 3.3 6.8 Total 181 111 61 353
PENSIONS
As discussed above (Table 4.12), the sample for the study comprised 181 old age pensioners,
111 DWP and 61 PHP pensioners. Even though there was more than one pensioner in some
households, the information was collected with reference to the sample member only.
Year of obtaining the pension: The distribution of sample pensioners by the year of
obtaining pension (Table 4.20) shows that 27 % of the pensioners got sanction between 2001
and 2005. About 23% of the pensioners obtained pension between 1996 and 2000 and 19%
after 2005. It may be noted that 17 % of the sample members got pension before 1995.
Table 4.20: Distribution of pensioners by year of obtaining the pension (%)
Year
Type of pension
Total % Old age pension
% Widow pension
% Disability pension
%
Up to 1995 34 18.5 17 15.5 10 16.1 61 17.1 1996-2000 41 22.3 25 22.7 17 27.4 83 23.3 2001-2005 47 25.5 34 30.9 15 24.2 96 27.0 After 2005 38 20.7 21 19.1 9 14.5 68 19.1 No information 24 13.0 13 11.8 11 17.7 48 13.5 Total 184 100.0 110 100.0 62 100.0 356 100.0 Number of pensioners in a household: In addition to the sample respondents, there were a
few others from sample households obtaining social security pensions. On the whole, there
were 25% households, which comprised persons other than the respondent obtaining pension
79
(Table 4.21). The percentage of households that reported receiving more than one pension is
higher in the case of OAP households (35%), followed by PHP (23%) and DWP (10%).
Table 4.21: Percentage of Pensioner Households receiving more than one pension
Whether anyone else in your HH receives pension?
Type of pension
Total OAP DWP PHP
Yes 34.81 10.00 22.58 24.93 No 65.19 90.00 77.42 75.07 Total 181 110 62 353
Degree of disability: Among the disability pensioners, it was found that a majority (31 %)
had a disability of 40-60%. The pensioners also reported 75 % disability (23%) and 60-75 %
(12%) disability. This information was obtained by verifying the doctor’s certificate
available with the respondents to the extent possible. Therefore, the respondents who did not
show us certificates were grouped under no information (29.5%).
Table 4.22: Distribution of Pensioners by extent of disability (%) Extent of disability Percentage 40 % 3.3 40-60% 31.1 60-75% 11.5 >75% 23.0 No information 29.5 Total 61
Where did they obtain pension? Almost all the sample members (99.7%) reported to have
been receiving the pension from the beginning at the present location - all the OAP and
DWP, pensioners and a majority of PHP. Only 1.6 % of disability pensioners reported that in
the past they used to receive pension at a different location, implying that these members
have resubmitted and got approval after they moved to a new location. The discussion in the
field revealed that some members continue to receive pension at the old location with the
help of neighbours, even after moving out of the place.
80
Table 4.23: Where Pensioner obtained the pension for the first time (%)
Place of obtained pension for the first time
Type of pension
Old age pension
Widow pension
Disability pension
Total
At the present location 100.00 100.00 98.4 99.7
At different Place 0.0 0.0 1.6 0.3 Total 181 110 62 353 Do they have sanction letter? As regards the possession of the sanction letter, a majority of
the sample members (93%) had the sanction letter with them. About 7 % do not have the
sanction letter with them, as they have kept it with others for safety (as the document is
considered valuable) or have kept it with middlemen due to their dependency on them. Some
even reported having kept the documents with the post office.
Table 4.24: Percentage of Pensioners possessing Sanction Letter
Response Type of pension
Total Old age pension Widow pension Disability pension
Yes 93.9 93.6 90.3 93.2No 6.1 6.4 9.7 6.8Total 181 110 62 353
DELIVERY MECHANISM
Where the pension is delivered: As per the design, the postman is expected to deliver the
pensions at the doorstep. The data indicate that about 80 % of the pensioners were receiving
pension at their doorstep. It may be important to note that 18 % of the pensioners were
required to go to the post office to receive the pension - which is a common practice in small
hamlets. The pensioners also reported going and waiting regularly at the post office, even in
urban locations. A small proportion of the sample pensioners were collecting pension at a
central place. Table 4.25: Distribution of Pensioners by the place of receiving the pension (%)
Where do you usually receive the pension?
Type of pension Total Old age
pension Widow pension
Disability pension
At the door step 77.9 77.3 91.9 80.2 Local post office 19.3 21.8 8.1 18.1 Local bank 0.0 0.9 0.0 0.3 At a Central Place 2.8 0.0 0.0 1.4 Total 181 110 62 353
81
Arrangement if pensioner is not present in the village: The postman generally leaves a
message with neighbours, if the pensioner is not available at the time of his visit. In such
cases, the pensioners will have to go and collect the pension from the post office within 15
days. It also emerged from the field discussions that in exceptional cases (e.g., handicapped
persons and the aged) the amount may be delivered to family members, relatives and
neighbours on authorisation. Very few instances of delivering the pension to middlemen
came to light – if a pensioner is not living in a village.
Delay in the delivery of pensions: As regards the delay in the distribution of pension, the
pensioners used to receive pensions once in four months in the past. It was felt by the
pensioners that the situation has improved considerably in the last six months, as the pensions
have been delivered at least once in two months from June 2008 onwards. The information
provided by the treasury office in Gulbarga also supports this view.
Table 4.26: When pensions were released by Gulbarga treasury?
June 2008
July 2008
August 2008 September 2008
October 2008 November 2008
December 2008
August 30, 2008 September 1, 2008
October 1, 2008
November 1, 2008
December 31, 2008
It is encouraging to note that the pension has been released every month, for at least three
months, during the last six months. Consequently, the pensioners started receiving pension
almost regularly - though they received the previous month’s pension every time. Therefore,
more than 28 % of the pensioners were of the view that they received the pension amount in
the first week of the month. Nearly half of the pensioners reported that the delay in delivering
pensions of was two months. Of the remaining pensioners, more than 14 % of them reported
a delay of three months and above, a month’s delay by 10 %.
Table 4.27: Perceptions of Pensioners on Delay in receiving pension benefit in the last six months (%)
Duration of delay in the delivery of pension
Type of pension
Total Old age pension
Widow pension
Disability pension
No delay – always delivered In the first week of every month 31.5 22.7 29.0 28.3 A month 7.2 11.8 16.1 10.2 Two months 47.0 50.0 41.9 47.0 Three months and above 14.4 15.5 12.3 14.4 Total 181 110 62 353
82
As part of the study, information was sought on the extent of delay that has occurred in
disbursement of pension by obtaining the actual date of receipt of recent pension (latest being
October 2008 – supposed to be received by November 2008) as mentioned in the MO receipt
– by verifying wherever such receipts were available with the respondents. In fact one of the
pensioners has been maintaining a record of pension received from the beginning by taking
the signature of the postman. In some places, the postman did not care to mention the date of
distribution of pension. In such cases, the recall method was used to collect information in
this regard.
Though the pensions are to be distributed on a specific date/day in a month, the ground
reality is different owing to many reasons. The data show that the delay ranges anywhere
between a few days to 70 days - as the last pension received was for the month of September
2008.
Table 4.28: Extent of delay in disbursement of pension
Delay in days Number of hhs Per cent Up to 15 63 18.1 16-30 134 38.4 31-45 75 21.5 46-60 74 21.2 Above 61 3 0.9 Total 349 100.0 Average :30.1, min- 4, max- 70
As per the information provided by the pensioners, the delay ranged from 4 days to 70
days, with an average of about 30 days. As will be seen from the table on this
parameter, in about 43 per cent of the cases studied, the delay is more than one
month. In the entire sample, there are 3 cases, where the delay is more than two
months. This being the scenario at the ground level, urgent action is required to set
things right .
83
18.1
38.4
21.5 21.2
0.90
10
20
30
40
Up to 15 16-30 31-45 46-60 Above 61
delay in days
Extent of delay
UNAUTHORISED PAYMENTS Payment to the Postman: In response to a question posed whether any payment is made to
anybody at the time of receiving the last pension, about 68% of the pensioners informed that
they made payment to the postman whenever the pension was received. The amount paid to
postman varied between Rs.5 to Rs.50. About 46 % of the pensioners reported that they paid
Rs.10-20 at the time of receiving pension. In some places, people informed that the norm is
usually 5% of the amount; it is slightly more in some places and less in some other places.
Table 4.29: Responses on the payment to the postman (%)
Payment to the following at the time of receiving the pensionType of pension
TotalOAP DWP PHP
Postman 69.6 66.4 66.1 68.0 Bank Official 0.6 0.0 1.6 0.6 Middlemen 1.1 6.4 0.0 2.5 None 28.7 27.3 32.3 28.9 Total 181 110 62 353
Demanded or voluntarily paid: Regarding the reasons for making payment to the postman,
about 38 % informed that it was demanded by the postman. Some of them reported that it is
customary for the postman to deduct some amount. On the other hand, 24 % of the
pensioners informed that they voluntarily paid the amount to the postman, taking into account
the risk he takes, even though as part of his duty, to carry the amount and distribute it to them
at a considerable distance; in some cases, the postman has to travel more than 4 km to reach
the village. It appears that the postman does not ask the pensioners who are very poor and in
difficult conditions to pay.
84
Table 4.30: Perceptions of Pensioners on why payment was made (%) Was the amount
demanded or voluntarily paid?
Type of pension Total Old age
pension Widow pension
Disability pension
Demanded 42.5 36.4 27.4 38.0 Voluntarily paid 22.1 25.5 29.0 24.4 Not applicable 28.7 27.3 32.3 28.9 No Information 6.6 10.9 11.3 8.8 Total 181 110 62 353
Behaviour of the Postman or Bank Officials: As regards the behaviour of the postman or
bank officials at the time of distributing the pension, a vast majority (79%) of the pensioners
reported that the behaviour of the person was polite/ cordial. About 7% reported the
behaviour as indifferent, while only 5% reported it as arrogant/rough.
Table 4.31: Perceptions of Pensioners (%) on the Behaviour of the postman
Behaviour of postman/ bank officials
Type of pension Total Old age
pension Widow pension
Disability pension
Polite/cordial 80.1 74.5 83.9 79.0 Indifferent 6.1 6.4 3.2 5.7 Arrogant/rough 3.9 6.4 4.8 4.8 No Information 9.9 12.7 8.1 10.5 Total 181 110 62 353
The postman, generally, pays the pension after taking his cut. So, he has to be polite. One
woman reported that she could not mange medical costs of her PHP child, as she has to pay
the postman. She negotiated and brought down the amount from Rs.40 to Rs.30.
In some cases the postman does not insist upon payment, if he considers the pensioner to be
really poor and in a pathetic condition.
The pensioners would like to pay as measure of building relations, as the postman gives
advice and provides information. This will also help in the timely delivery of pension. If we
pay he gives the money on the exact date and informs us on time. Patiently he will explain
and obtain the signature.
85
Some postmen feel that what have been obtaining is fee for rendering this service. They scold
the pensioners, never respond properly and act indifferently. Level of security among pensioners: The table gives the perceptions of the pensioners on
the level of security they have felt ever since they started obtaining pension. A majority of the
pensioners (59 %) opined that they felt more secure now. Even though there has been some
delay in the distribution of pension, the pensioners felt that their dependency on others for
day to day needs has come down. On the other hand, about 36 % informed that they felt the
same as before receiving any pension, mostly those households who are economically better
off when compared to the rest of the pensioners. In fact, 5 % of the members continue to feel
insecure – mostly the PHP households as they need to incur more cost on health care and
hence are under psychological pressure.
Table 4.32: Perceptions of Pensioners (%) on the level of security after they started to receive the pension
Level of security Type of pension
Total Old age pension Widow pension Disability pension
More secure 53.0 75.7 47.5 59.2
Same as before 43.6 18.9 42.6 35.7
Not feeling secure 3.3 5.4 9.8 5.1
No information 0.0 0.0 0.0 0.0
Total 181 111 61 353 Work status before and after receiving the pension: As will be seen from the table, wage
labour in agriculture forms the predominant group with nearly three-fifth representation in the
sample, followed by those engaged as wage labourers in non-agriculture (21 per cent). The
analysis further reveals that one out of every six pensioners covered did not report any
occupation as they are either children or destitute or physically handicapped. Incidence of this
group is highest in the PHP group (36 per cent). Excepting for this variation, nearly three-
fourths of the sample covered in the OAP and DWP groups report to have participated
earlier as wage labour in agriculture and non-agriculture.
86
Table 4.33: Distribution of Pensioners by their Previous Occupation (%)
Working status before obtaining the pensions
Type of pension Total Old age
pension Widow pension
Disability pension
Wage labour in agriculture 60.2 62.7 41.9 57.8 Wage labour in non-agriculture 22.1 21.8 17.7 21.2
Cultivator 1.7 1.8 0.0 1.4
Nothing 12.2 10.9 35.5 15.9
Others 3.9 2.7 4.8 3.7
Total 181 110 62 353 But there exists a slight variation in the distributional pattern of occupation of the pensioners.
At the aggregate level, occupational diversification is discernible from wage (previous
occupation) to non-wage occupations. Interestingly, slightly over one third are not fit for
engaging in any gainful activity as they are children or on account of their handicap.
Participation as wage labour still continues to be predominant among OAP and DWP
groups, but in the case of PHP, the incidence of ‘out of labour force’ (OLF) has swollen
from 36 to 50 per cent.
Table 4.34: Distribution of Pensioners (%) by their current occupation
Current Working status
Type of pension Old age pension
Widow pension
Disability pension Total
Wage labourer in agriculture 38.7 47.7 19.7 38.2Wage labourer in non-agriculture 7.2 12.6 9.8 9.3Self-employed in agriculture 2.2 1.8 0.0 1.7Self-employed in small manufacturing/ hotel/ transport/personal services 1.7 4.5 3.3 2.8Salaried employee 0.6 0.0 4.9 1.1Household work 5.5 10.8 3.3 6.8Unemployed 1.1 0.0 0.0 0.6Student 0.0 0.0 8.2 1.4Cannot work 43.1 22.5 49.2 37.7Too young to go to school 0.0 0.0 1.6 0.3Total 181 111 61 353
87
Ineligible pensioners: It is important to examine whether there are any ineligible
beneficiaries among those receiving pensions in terms of age, marital status, extent of
disability, and annual income as per the eligibility norms.
§ In the case of the old age pensioners, a close look at the distribution by age group and
the year of obtaining pension indicates that 34 % were less than 65 years of age.
§ There are 7.9 % of the pensioners with APL card, implying that they may not fulfil
the eligibility criteria.
§ Though four of the sample members reported to be salaried employees, three are
working in private companies. However, one member reported to be working as a
typist in a government office. One needs to be cautious, as this person may be
engaged in part time employment.
§ 90 % of the households covered for the study have earning members, the number
varies from one to 10 earning members. Even going by per capita income, given
the eligibility criteria at least 23 % of the pensioners are ineligible members.
SUMMARY AND CONCLUSIONS
In Gulbarga district, there has been a dip in the number of pensions given in 2008, which is
higher for OAP (23 %) followed by PHP (8 %) and DWP (0.59 %). This was largely due to
the cancellation of pensions around September 2007 to curb bogus cases. Despite a decline
in the number of pensions in the district, there has been a sharp rise (411%) in the
expenditure incurred on pension schemes as pension amount was increased.
The major constraint faced by the post offices was delay due to the different processes
involved (e.g., indenting, arranging money for distribution etc.). Each post office is entitled
to Rs.10,000 per day. The amount has been enhanced to Rs.20,000 per day.
In the case of unclaimed MOs, the amount has to be sent back to the Treasury. Generally, the
post office is supposed to furnish information once in three months to the Treasury. It
appears that the entire process of returning the un-delivered amount takes about three months.
Despite pressure from Treasury, the post office is submitting information only once in six
months.
88
The role of the Tahsildar ends with the issue sanction orders to the Treasury. After
sanctioning, she/he is expected to monitor the same through the RI/VA once in a year. Each
will have to cover 500 pensioners, as she/he needs to enquire, monitor sanctioned cases, keep records
and report from time to time. The workload is much higher in urban localities.
Though there was an increase in PHP pension, it could not be implemented, as there was no
application from the pensioners for enhancement 3 . There is no awareness among pensioners
regarding this process.
For three head accountants, pension is one of their responsibilities. Each Head Accountant needs to
look into 300 books (each containing 100 applications)- 50 % workload now. Previously MOs used to
be released once in four months. However, due to shortage to MOs, manual preparation of lists, etc.,
now MOs are delivered every month or once in two months. Computerization has really helped in
streamlining the process. One printer is used for 7 departments. So it is difficult to get two days for
printing of MOs.
In a sample of 353 pensioners, the group receiving old age pensions accounts for the
largest. One out of every six pensioners covered in the sample are those who receive
disability pension. The distribution of pensioners by caste category reveals that 79 % of the
sample members belong to weaker sections of the society in terms of social status. Further
analysis shows that SC households were predominant group in the case of old age and widow
pension, while it is minorities for disability pension. There are 8% of the pensioners with
APL card, who are not eligible to get pension schemes.
The analysis in this regard reveals that females constitute three-fourths in the sample and
across the type of pensions, this trend is by large reflected in But in the disability
pension group, males out-number their female counterparts by about 20 per cent.
At the aggregate level, pensioners above 60 years constitute 46 per cent, distantly
followed by those in the age group of 50 to 60 years (22 per cent). In so far as the
age group of OAP pensioners is concerned, about one third of them belong to the age
group of 50-60 years while the rest ( of this group) are above 60 years. This calls for
3 It was learnt that a certificate from a civil surgeon is required for sanction of pension where the disability ranges between 40% and 74%. In case the disability is 75% and above, a certificate from the district medical board is insisted upon for sanction of pension.
89
further verification as the infiltration ratio of ineligible persons - les than 60 years- is
of larger magnitude.
The literacy level is abysmally low (about 10 per cent) in the overall sample and this
trend more or less gets reflected across the groups of OAP and DWP. In the disability
group, though illiterates are a majority, their number is confined to only about three-
fifths.
It is evident from the table that about one-tenth of the households covered for the study
did not have any earning members and among the rest, the number varies from one to
10 earning members.
There are 23 % of pensioners who have per capita income more than Rs.600. Given the
current income criteria, only 76.7 % of the members are eligible members. Even going by
annual per capita income of the pensioners (table 4.19), about 29 % of them are non-eligible
members. There were 25 % households where more than one member is getting pension.
Only 1.6 % of disability pensioners reported that in the past they used receive pension in
different location. The discussion in the field revealed that some members continue to
receive pension in old location with the help of neighbours even after moving out of the
place.
About 80 % of the pensioners were receiving pension at their doorstep. The pensioners were
also reporting that they were going and waiting regularly at post office, even in urban
locations. The postman generally leaves a message with neighbours, if the pensioner is not
available at the time of his visit. In such case, the pensioners will have to go and collect the
pension from the post office within 15 days. It also emerged from the field that in
exceptional cases (e.g., handicapped persons and old aged) the amount may be delivered to
family members, relatives and neighbours on authorisation. Very few instances of delivering
the pension to middlemen came to light – if a pensioner is not living in a village.
It was felt by the pensioners that the situation has considerably improved in the last six
months, as the pensions were delivered at least once in two month from June 2008 on words.
As per the information provided by the pensioners, the delay ranged from 4 days to 70
90
days with an average of about 30 days. As will be seen from the table on this
parameter, in about 43 per cent of the cases studied, the delay is more than one
month. This being the scenario at the ground level, an urgent action is required to set
right the things.
To a question whether any payment is made to anybody at the time of receiving the last
pension, about 68% of the pensioners informed that they made payment to the postman
whenever the pension is received. The amount paid to postman varied between Rs.5 to
Rs.50. In 38 % of the cases it was demanded by the postman. While a majority of pensioners
reported that the behaviour of the person was polite/ cordial. Other reported the behaviour as
indifferent or arrogant/rough.
A majority of the pensioners (59 %) opined that they felt more secure now. In fact, 5 % of the
members were continue to feel insecure – mostly by the PHP households as they need to
incur more cost on health care and under psychological pressure..
Though four of the sample members reported to be salaried employees, three are working in
private companies. However, one member reported to be working as typist in government
office. One needs to be cautious, as this person may be engaged in part time employment.
For 90 % of the households covered for the study have any earning members, the number
varies from one to 10 earning members. Even going by per capita income, given the
eligibility criteria at least 23 % of the pensioners are ineligible members.
91
5. SUMMARY AND CONCLUSIONS
INTRODUCTION
Over 90 per cent of about 19 lakh pensions given to the elderly, widows and physically
challenged in Karnataka are being disbursed through money orders from the Postal
Department. This delivery mechanism, though costs Rs. 40 crores to the exchequer, ensured
that the pensions are delivered at the door step of the pensioners and reduced the hardship to
the pensioners on account of virtually no travel involved to receive the pensions.
The present delivery mechanism has been perceived to be inefficient due high transaction
costs to the Revenue Department on account of Rs. 40 crores of commission paid to the
Postal Department, stationery, etc., to print money orders. In addition, there have been delays
on the part of treasury office and postal department on account of a number of factors. The
shortage of human resources has resulted in inability to find and weed out ineligible
beneficiaries. The beneficiaries have also been experiencing problems in the form of delays
in receiving the pension amounts and unauthorised payments to delivery agents and
middlemen.
In order to address the above, the Karnataka government has initiated measures towards the
timely delivery of pensions and removing inefficiencies that have crept into the system. It
has decided to undertake a pilot project to disburse the pensions with the help of the existing
banking network. Since the banking network is not as wide as postal network and hence
there may be limitations in reaching out to the remote and far off villages, banks would use
business correspondents, who will deliver at door steps. Against this background, the
Revenue Department has requested the Institute for Social and Economic Change (ISEC),
Bangalore, to undertake a baseline survey on the delivery mechanisms and failure to provide
benchmark data for Bellary, Chitradurga and Gulbarga districts (where the new strategy will
be tried out) on a number of variables that reflect the status of current delivery mechanisms in
relation to old age pensions, widow pensions and disability pensions. This information
would be useful to gauze the progress in the delivery mechanisms made under the new
system of smart cards.
92
OBJECTIVES AND METHODOLOGY
The objectives of the study are to (1) to carry out baseline survey on current mechanisms to
deliver social security and pension benefits; (2) to identify the delivery failures in the
implementation of social security and pension programmes; and (3) to prepare a report on the
delivery mechanisms and failures in the delivery of social security and pension benefits, and
also provide observations on the impact of pension schemes on beneficiaries.
The study has been conducted in three districts in Karnataka, viz., Bellary, Chitradurga and
Gulbarga. Multi-stage cluster sampling method was used to select taluks, villages and
households in each district. The total sample size was 1,076 pensioners (361 in Bellary, 362
in Chitradurga and 353 in Gulbarga) representing old age pensioners, widow pensioners and
physically handicapped pensioners. A structured questionnaire was canvassed among these
pensioners during the middle of December 2008 to the middle of January 2009.
Village and ward level interviews were also held with the key informants to elicit their views
and to assess the overall performance of the pension delivery system. Besides, secondary
data/ information was collected from the Tehsildar office, Sub-treasury office and the Taluk
post office to understand the progress of the schemes and operation of the pension delivery
system.
KEY FINDINGS
The results of the study have been presented in Chapters 2 to 4 of this report. Each of these
chapters provided detailed findings on the delivery of social security and pension benefits in
Bellary, Chitradurga and Gulbarga districts. In the ensuing paragraphs, we will summarise
the overall finding for the districts.
Growth in pension schemes
The growth in the pension schemes across the districts shows that there was a rapid growth in
the number of pensioners and expenditure on the provision of pension benefits in all the
districts expect Gulbarga. The reasons for such growth are the following. First, there was a
change in the eligibility criteria for OAP. Initially, pensions for the elderly were restricted to
the destitute; but this criterion was relaxed. This resulted in several people applying for the
pensions. Secondly, the increase in the pension amount to Rs. 400 motivated several people
to apply for the scheme. This also resulted in a sharp increase in the expenditure. Third,
93
during 2008-09, the state government introduced a new scheme called Sandhya Suraksha
Yojana (SSY) for the benefit of old age pensioners, and undertook enrolment drives. The
decline in the growth of pensioners in Gulbarga was on account of decision by the local
administration to discontinue the pensions to find and weed out ineligible pensioners through
an enquiry. In the enquiry, only those who attended the enquiry camp or applied were
covered. As a result, the number of pensions has come down.
On the whole, there has been a spurt in the demand for pensions during the last decade as
indicated by the faster growth in the number of pensioners mainly due to increase in the
monthly pension amount, relaxation in the eligibility criteria and the proactive role of the
government.
Recently, there has been an increase in the pension amount to Rs. 1,000 in the case of those
having more than 75 per cent of disability. In none of the districts, has this come into effect
as there were no applications from the pensioners for enhancement of pension amount. This
has been attributed to the lack of awareness among pensioners on the correct procedure.
Delivery mechanism at the district level
The applications for sanction of pensions are submitted to the Tehsildar. The Revenue
Inspector (RI) with the help of the Village Accountant scrutinises the applications, including
the physical verification of the applicants in accordance with the eligibility criteria. Based on
the report of the RI, the Shirastadar sends in the papers to the Tehsildar for sanction. Upon
sanction of pension, the order copy is sent to the applicant and the Sub-treasury Officer
(STO). The STO gets the data entered into the computer, and releases the pension amount.
The existing arrangements to distribute the pension amount consist of two methods, viz., 1)
through post offices and 2) through banks. The STO releases the pension amount through
cheques to the Post Master, Taluk Post Office and to the concerned banks. Most of the
pensions are being distributed through the post offices. The STO sends the cheques for every
100 Money Orders (MOs) to the Taluk Head Post Office. But, in the case of Bellary taluk,
cheques have been sent for every 500 MOs. From the taluk post office, the pension amount is
sent to the sub-post offices for booking of MOs. The process of booking the MOs at the sub-
post offices takes about a week’s time. From the sub-post offices, the MOs will be sent to the
branch post offices. At the branch post office level, the postmaster has to make indents to
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sub-post office, obtain the amount, and arrange for the distribution of money to the
pensioners through the postman.
Delay at the district level
The discussions with the officials of the Revenue Department, Treasury and Postal
Department have revealed that the time taken for the release of pension from the treasury to
the beneficiary ranges between 30 days to two months. This has been on account of shortage
of human resources in the treasury office, limited infrastructure (for instance, one printer is
shared by several departments in Gulbarga and consequently, the printing of money orders is
delayed), power cuts, etc. Computerisation of addresses has reduced the time taken to print
money orders. Even then, the delays have been noticed. Procedural problems such as a
postman can carry only Rs. 10,000 in a day due to security reasons have also contributed to
the delay. As a result, in Gulbarga, this has been relaxed, and now, the postman can carry Rs.
20,000 in a day.
Because of the above problems, the treasury offices across the districts have started to adopt
the practice of releasing pension amounts once in two months. Thus, technically speaking,
the practice is no longer monthly pensions; it is by and large bimonthly pensions now.
Profile of Pensioner Households
The profile of the sample households has been analysed in terms of religion and caste
background, housing status, access to PDS, and composition of the household members by
gender, age group, educational status and occupational status. Such an analysis has been
done to understand the socio-economic background of households benefiting under the social
security pension benefit schemes. The profile of the sample households indicates that the
households obtaining physically handicapped pensions appeared to be better placed when
compared to those obtaining widow pensions and old age pensions in terms of percentage of
households living in pucca/ RCC houses, possessing APL ration card and containing a higher
proportion of members in the economically productive age group.
Profile of Pensioners
The profile of the sample pensioners is examined here in terms of their personal
characteristics such as gender, age, marital status, education and working status. Most of the
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pensioners were females, widowed, and belonged to the category of non-productive age
group and non-workers. There were, however, a few workers among the pensioners, more so
among the widowed when compared to other two categories. Most of them were engaged in
the unorganised sector, undertaking wage employment in agriculture or self-employment in
the non-agricultural sector. As such, it appears that most of the pensioners are in a
disadvantageous position in terms of demographic, physical and economic status. The
targeting of the social security and pension benefits appears to be in the right direction, as
indicated by the large-scale coverage of weaker sections including women.
Year of Pension Sanction
Most of the pensions were sanctioned after the year 2000 across the districts. Between 14
and 25 per cent of the pensioners have reported that more than one person from their
household has been receiving pension. A majority of the pensioners were non-workers at the
time of sanction of pension, more so among the PHP and OAP when compared to the DWP.
A vast majority of the pensioners possessed the sanction letter of pension, thus implying the
less prevalence of fraudulent practices in the sanction of pensions.
Delivery Arrangement
Between 80 and 90 per cent of the pensioners across the districts receive the pension at their
doorstep through the postman. The proportion of pensioners not receiving the pension at the
door step was higher in Gulbarga as they reported to be going and waiting at the post office
even in urban locations. The pensioners manage to get the pension in case they are absent
when the postman visits their house by informing the postman or collecting the pension from
the post office. Very few cases of pensions being delivered to the middle men came to the
light.
Delays in the receipt of pension amounts
The delay in the delivery of pension is of the order of 60-80 days from the stipulated date in
most cases, mostly due to the practice of releasing it once in two months from the treasury
and the condition that the postman cannot carry more than Rs.20000 per day. Although the
timeliness in the delivery of pension has been reported to have improved over time, there is
urgent need to improve the timeliness in the delivery of pensions. It must be noted that
though pensioners have confidence that the pensions will be delivered, the delay has been
forcing them to borrow and render them more vulnerable.
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Unauthorised payments
About 80 per cent of the pensioners make unauthorised payments to the postman, ranging
from 2% to 6% of the pension amount. While about half of them are paid to the postman
voluntarily, the postman demands the money in the sense that he deducts the amount before
paying the pension in the case of the rest. However, the behaviour of the delivery agent has
been stated to be cordial in most cases.
Beneficial impact of pensions
There has been an upward mobility in the work status of disabled and widows after they
started to obtain pension from wage labour to self-employment in the non-farm sector; this
could be attributed to education facilitated by pension in the case of PHP and leisure time
facilitated by pension in the case of DWP, besides certain compulsions to look after the
education, consumption needs of children and to perform the marriage of daughters.
Pension gives the pensioners a sense of security as indicated by the high level of security
among them in the sense that most of them feel more secure now than before; one important
reason for this is the increase in the monthly pension amount.
Ineligible beneficiaries
There are virtually no cases of ineligible pensioners on account of death of pensioner,
remarriage and overstated disability. Apparently there seem to be a few cases of ineligible
pensioners on account of age, but the ineligibility on the ground of age becomes untenable, as
there is no authenticated evidence of the date of birth in the case of OAP.
If the household income is taken into account, as per the present eligibility criteria of Rs.6000
per annum for sanction of widow and disability pension, many households become ineligible.
But, in the present context, fixing a maximum income of Rs.6000 per annum as eligibility for
sanction of pension appears to be unrealistic because of two important factors, viz., the
implementation of NREGP which guarantees a minimum of 100 days of employment per
annum and the minimum wage of Rs.74 per day in Karnataka according to the Minimum
Wages Act. Therefore, it is unlikely that the annual income of a household would be less than
Rs.6000 even if there is one worker in the household. It is learnt that the government has
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been contemplating an upward revision of the income criteria for sanctioning widow and
disability pensions.
Secondly, other factors need to be taken into account before taking household income as the
criteria for ineligibility of pensioners. For instance, in the case of DWP, the pensioner lives in
a different family – that of a father, brother or sister or in-laws – mainly for the sake of
security and moral support. Similarly, in the case of OAP, the pensioner sometimes lives with
the family of his/her brother, sister, daughter or cousins and not with his/her own sons. Even
in the case of PHP, a few pensioners reside with the guardians. In all such cases, the
pensioner may not have access to or any say over the household income. Therefore, it may
not be correct to take the income of the household as that of the pensioner. Another
justification for this is that the income earned by individual workers is not shared by all
household members in all matters.
Lastly, household income cannot be viewed in isolation. The indebtedness of the household,
the source and purpose of debt will have a bearing on household income. If the household
incurs a debt from a private source for health or consumption purpose or even for investment
on agriculture, there may be no returns or the rate of return is uncertain, which would make it
difficult for the household to repay it. The expenditure pattern, especially on medical
expenses or education or liquor/gambling, should also be taken into account to judge whether
the income puts the household on a sound footing in economic terms.
In view of the above, it would be difficult to come to a definite conclusion on ineligible
pensioners on account of income. There could be a few ineligible pensioners if we take into
account the households with more than three workers and the household income as a whole.
But, these criteria cannot be considered in isolation from other factors such as indebtedness,
purpose and source of debt of the household, expenditure pattern of the household and the
pattern of income-sharing arrangement within the household, which require an in-depth
study. It appears that the small proportion of potential ineligible pensioners and the meagre
allocations for social security pension benefits in the state does not warrant such a study.
The above conclusions have certain policy implications. Firstly, it is necessary to focus
attention on the process of delivery of pensions through post offices. The decision of the state
government to make it a condition that the all the pensioners should open a SB account in
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banks or post offices is a welcome feature. Once this is done, the payments can be made
through cheques from the treasury to banks or post offices and money can be directly credited
to the accounts of the pensioners. Further, the delay in the delivery of pensions could be
avoided and the unauthorised payments being made to the postman at present can be stopped.
Secondly, the process of release of the pension amount from the STO needs to be expedited.
Thirdly, computerisation of data at the sub-treasury office needs to be expedited so as to
avoid initial delay in the delivery of pensions to the new pensioners. Fourthly, the
introduction of the smart card system needs to be given urgent attention as the pensioners in
Bellary taluk have not received pension for the last three months. Lastly, the policy regarding
the income criteria for the sanction of pension needs to be revised upwards without any delay
so that the deserving potential beneficiaries could be brought under the purview of pension.