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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: raja@isec.ac.in

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

67

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.