Tuesday, May 29, 2012

DR Gangadharan becomes President of IFA

We have some happy news to share. Dr KR Gangadharan, popularly known as Ganga or KRG, of Heritage Hospitals Hyderabad has NOW become the President of International Federation of Ageing. Even as VP of Asis Pacific Region of IFA earlier, Dr KRG did a lot of good for Indian seniors.  He is credited with starting first geriatric hospital in Hyderabad. He is trainer as a very large number of courses have been conducted for geriatric Nurses, Bedside attendants, etc.  In the coming years we may witness International seminars being hosted in Hyderabad. He is close to MOSJE and has earned the respect of all SEnior Citizen Agencies in India. He is also Adviser to AISCCON. He was a member of revision committee on NPOP. He is a member of National Council on Older Persons, GOI.  I can keep writing about him all day! Suffice it say that he is connected with senior citizens much earlier than any us came into the picture!

Let us congratulate him on his much deserved recognition in Global scenario.

Read a news item from the Hindu below

=====================

Founder of Heritage Medical Centre, a geriatric facility in Hyderabad, Dr. K.R. Gangadharan, was made the Global president for International Federation on Ageing (IFA) at Prague on Sunday, a press release said. The doctor will hold the prestigious post for a period of three years.

As the IFA president, he will be leading various initiatives for the elderly involving about 25 board members from different countries.

The IFA is a non-governmental organisation with a large membership base of NGOs, corporate sector, academia, government, and individuals.

  
K. R. Gangadharan
K. R. Gangadharan

Sunday, May 27, 2012

Sikkim State welfare commission for Senior Citizens etc

Extract from:

http://www.scribd.com/doc/26653690/Extraordinary-Published-by-Authority-Gangtok-Tuesday-13th
This is a large file of 1000+ pages.

There is a portion of the gazette that says a SIKKIM State Welfare
Commission for senior citizens, etc has been formed oct 2009
The same gazette also contains MWPSCA bare act.
====


SIKKIM

GOVERNMENT GAZETTE
EXTRAORDINARY PUBLISHED BY AUTHORITY
GANGTOK THURSDAY 29
TH
OCTOBER, 2009 No: 433
GOVERNMENT OF SIKKIMSOCIAL JUSTICE, EMPOWERMENT AND WELFAREDEPARTMENTGANGTOK
No4/SJE&WD Dated:-23/10/09
NOTIFICATION
The Governor of Sikkim is hereby pleased to constitute a StateWelfare
Commission for Senior Citizens, physically challengedpersons,
destitute women, widows, orphans, or other abandonedpersons in
distress or need, care and medication etc. consisting of the following
members:-1. Chairman2. Member3. Member Secretary- Under Secretary
(Social Welfare Division).2. The terms of reference of the Commission
will be as underhereby:-1.

to examine and to recommend suitable measures to deal with problem
being faced by Senior Citizens or elderlypeople involving medical
care, facilities, fooding andclothing and shelter etc. or such other
requirements asmay be considered necessary and to suggest ways
andmeans to improve their condition,2.

to suggest and to recommend measures to deal withorphans or children
(abandoned, distressed, trafficked,
====

Dr P Vyasamoorthy, 30 Gruhalakshmi Colony Secunderabad 500015 Ph
040-27846631 / 9490804278.

http://www.this-page-intentionally-left-blank.org/

Senior citizens in Meghalaya - MWPSCA OAP etc

Main Points: Meghalaya has not notified MWPSCA; THis state did not ask
for any funds under Integrated Program of MOSJE so they did not get
any; For IGNOAP Meghalaya gives 50 rupees and with GOI Rs 200 total
comes to Rs 250/-
=================================
Challenges for Meghalaya
Monday, 18 April 2011 20:27

As per 2001 Census, total population of senior citizens was 7.7 crore,
males and females comprising 3.8 crore and 3.9 crore respectively.
Percentage-wise, it was 7.5 percent for total, males and females being
7.1 and 7.8 percents respectively. Because of improved medical
facilities, there is a growing increase in life-expectancy which
implies that people are now living longer. By 2026, the projected
population for senior citizens will be 17.32 crore which comes to 12.4
percent of the total population. People do not merely live longer. But
they also enjoy a secure, dignified and productive life.
The National Policy on Older Persons (NPOP) , 1999 was announced in
January 1999 to express the commitment towards the well-being of the
older persons. The main objectives of the policy are:
(1) to encourage individuals to make provision for their own as well
as their spouse in old age;
(2)    to encourage families to take care of their older family member;
(3)    to enable and support voluntary and non-governmental
organizations to supplement the care provided by the family;
(4)    to provide care and protection to the vulnerable elderly people;
(5)    to provide adequate healthcare facilities to the elderly;
(6)    to promote research and training facilities to train geriatric
care givers and organizers of services for the elderly; and
(7)    to create awareness regarding elderly persons to help them lead
productive and independent lives.
Accordingly, a National Council for Older Persons (NCOP) was
constituted in 1999 under the Chairpersonship of the Minister for
Social Justice and Empowerment to oversee implementation of the
Policy. The NCOP is the highest body to advice the Government in all
matters relating to older citizens. The council was reconstituted in
2005. Regular meetings have been held. As of now, the Council has 50
members comprising Central and State Governments representatives,
representatives of NGOs, Citizens'  groups, retired persons'
associations, and experts in the field of law, social welfare, and
medicine.
An Inter-Ministerial Committee on Older Persons comprising twenty two
Ministries/Department, and headed by the Secreatary, Social Justice
and Empowerment (SJE) is another coordination mechanism in
implementation of the NPOP. Action Plan on ageing issues for
implementation by various Ministries/Departments concerned is
considered from time to time by the Committee.
There are five main issues being addressed to by the Maintenance and
Welfare of Parents and Senior Citizens Act, 2007. These are the
following:
(1)    Maintenance of parents/senior citizens by children/ relatives
made obligatory and justiciable through Tribunals.
(2)    Revocation of transfer of property by senior citizens in case
of negligence by relatives.
(3)    Penal provisions for abandonment of senior citizens.
(4)    Establishment of Old Age Homes for indigent senior citizens.
(5)    Adequate medical facilities and security for senior citizens.
Individual State Governments have to enforce this Act in their
respective states. As on February 3 of last year, the Act had been
notified by 22 States and all Union Territories. The Act is not
applicable to the State of Jammu & Kashmir. Himachal Pradesh has its
own Act for senior citizens. The remaining States which are yet to
notify the Act are Bihar, Meghalaya, Sikkim and Uttar Pradesh .
Prior to all these later developments, as early as 1992, the Centre
has implemented an Integrated Programme for Older Persons(IPOP) to
extend help and attention to senior citizens in all possible aspects
like shelters, food, medical care and entertainment opportunities.
Various agencies, including NGOs, have been involved. Under the
Scheme, financial assistance up to 90 per cent of the project cost is
provided to NGOs. The Scheme has been revised with effect  from April
1, 2008 and financial assistance has also been increased. Those that
are eligible to receive such help are covered under the following main
categories.
(1)    Maintenance of Respite Care Homes and Continuous Care Homes.
(2)    Running of Day Care Centres for Alzheimer's Disease/ Dementia patients.
(3)    Physiotherapy clinics for older persons.
(4)    Helplines and Conselling Centres for  older persons. (5)
Sencitizing programmes for children particularly in schools and
colleges.
(6)    Regional Resource and Training Centres of Caregivers to the
older persons.
(7)    Awareness Generation Programmes for older persons and care givers.
(8)    Formation of senior citizens associations, etc.
The eligibility criteria for beneficiaries of some important
activities/projects supported under the Scheme are:
(1)    Old Age Homes for destitute older persons.
(2)    Mobile Medicare for older persons living in slums, rural and
inaccessible areas where proper health facilities are not available.
(3)    Respite Care Homes and Continuous Care Homes-for older persons
seriously ill requiring continuous nursing care and respite.
Eight States and Union Territories, namely, Goa, Meghalaya, Sikkim,
Andaman& Nicobar Islands Chandigarh, Daman&Dui, Dadra & Nagar  Haveli,
and Lakshadweep did not send any proposals for the year  2009-10.
Hence the Government of India(GOI) did not release any fund at all to
them.
A Non-Plan Scheme of Assistance to Panchayati Raj
Institutions/Voluntary Organizations/ Self-Help Groups for
construction of Old Age Homes/Multi  Service Centres for older persons
was started in 1996-97. Grant-in-aid to the extent of 50 percent of
the construction cost subject to a maximum of Rs.15 lakh was given
under the Scheme and was  disbursed in two installments, first being
70 per cent and second being 30 percent. The organization had to show
matching contribution while applying for second instalment. The Scehme
was not found attractive by implementing agencies and so was
discontinued at the end of the Tenth Plan (2006-07). A new scheme is
under formulation.
Besides these, other Ministries are also extending assistance, in cash
as well as in kind, to senior citizens.
The Ministry of Health and Family Welfare provides the following
facilities for senior citizens of:
·    Separate queues for older persons in government hospitals.
·    Two National Institutes on Ageing at Delhi and Chennai have been set up.
·    Geriatric Departments in 25 medical colleges have been set up.
The Ministry of Rural Development has implemented the National Old-age
Pension Scheme (NOAPS)-for persons above 65 years belonging to a
household below poverty  line, Central  assistance is given towards
pension @ Rs.200/- per month, which is meant to be supplemented by at
least an equal contribution by the States so that each beneficiary
gets at least Rs.400/- per month as pension.
The Ministry of Railway provides the following facililties to senior citizens:
·    Separate tickets counters for senior citizens of age 60 years and
above at various (Passenger Reservation System) PRS centres if the
average demand per shift is more than 120 tickets.
·    30% and 50% concession in rail fare for male and female senior
citizens respectively of 60 years and above respectively.
Some of the facilities for senior citizens provided by the Ministry of
Finance are:
·    Income tax exemption for senior citizen of 65 years and above up
to Rs.2.40 lakh per annum.
·    Deduction of Rs.20,000 under section 80D is allowed to an
individual who pays medical insurance premium for his/her parent  or
parents, who is a senior citizens of 65 years and above.
·    An individual is eligible for a deduction of the amount spent or
Rs.60,000 whichever is less for medical treatment (specified diseases
in Rule 11DD of the income tax Rules) of a dependent senior citizens
of 65 years and above.
A Pension Portal has been set up to enable senior citizens to get
information regarding the status of their application, the amount of
pension, documents required, if any, etc. The Portal also provides for
lodging of grievances. As per recommendation of the Sixth Pay
Commission,  additional pension will be provided .
The National Carrier, Air India, provides concession up to 50% for
male senior citizens of 65 years and above, and female senior citizens
of 63 years and above in air fares.



Suggestions:

The State should implement the Central Act of 2007 in right earnest as
well as other Schemes being announced by the Government of India. With
regard to Indira Gandhi National Old Age Pension Scheme (IGNOAPs),
Central share is uniform to all the States and Union territories at
the rate of Rs.200 per beneficiary per month. State's share vary from
nil to Rs.800 in the National Capital Territory (NCT) of Delhi.
Meghalaya's share is a mere Rs.50 only. It will, indeed, be
appropriate if this amount be raised at least at par with that of the
Central share.


Dr P Vyasamoorthy, 30 Gruhalakshmi Colony Secunderabad 500015 Ph
040-27846631 / 9490804278.

http://www.this-page-intentionally-left-blank.org/

Monday, May 21, 2012

APSCCON Meeting of Managers of Old Age Homes

APSCCON Meeting of Managers of Old Age Homes -- 21st May 2012

APSCCON called for a meeting of Managers and owners of Old Age Homes
in Twin Cities. Nearly thirty people participated. Prof V
Visweswaraiah explained the problems of residents of old age homes
like: Not having Ration Card; Not having Aarogyasri health facility;
not being even a voter! These problems were taken up with SHRC in AP
and SHRC has recently ordered that state government officials must
visit the old age homes and verify who are eligible for the above
facilities and give on the spot relevant cards or documents. The
purpose of the meeting was to inform Old Age Homes about this SHRC
decision and urge OAHs to follow up with the state govt to do the
needful from their side.It was resolved that APSCCON would follow it
up with the state government departments concerned.

Many owners of Old Age Homes narrated their problems. Sri Nageswara
Rao requested the old age homes to be affiliated with APSCCON by
paying a one time fee of Rs 500. Thereafter APSCCON will take up their
problems with concerned authorities. Almost all Elder Care Homes
agreed to affiliate themselves immediately with APSCCON.

Sri Rajesh mentioned that apart from HelpAge there are many other
funding agencies exclusively interested in OAHs.


Dr P Vyasamoorthy, 30 Gruhalakshmi Colony Secunderabad 500015 Ph
040-27846631 / 9490804278.

Food effect on drugs seems to be real!!

Police begin work to set up senior citizen service bureau Kochi

Police begin work to set up senior citizen service bureau
TNN | May 21, 2012, 04.51AM IST

KOCHI: A posse of police personnel will soon knock at your doors to
check whether there are any aged persons at your home and how they are
treated.

As part of implementing the Rs 10 crore security scheme announced by
the state government for senior citizens, police team will collect
details of the aged persons in the city and prepare a separate
register.

Police stations in the city have been directed to expedite measures to
open an exclusive senior citizen service bureau to cater to the needs
of the aged. Kochi city deputy commissioner of police (DCP) T
Gopalakrishna Pillai said that various measures have been launched to
implement the security scheme.

"Police teams will visit homes across the city and collect details of
aged persons. Officials will interact with the aged persons to know
whether they are properly looked after or if they have any complaint,"
he said. Pillai also said that all details will be recorded in a
register at the police station and a beat officer will be assigned to
visit these persons once a week to enquire about their welfare. The
senior citizen service bureau will have details of close relatives of
senior citizens in the respective areas.

State director general of police (DGP) Jacob Punnoose has issued a
directive to police officers on the procedures to be followed while
implementing the scheme.

If old people are staying alone, police officials should collect the
details of persons like milkman, newspaper vendor and servants who
frequent the house. "The identification details of these persons will
be recorded at the service bureau, which will also coordinate with
various other agencies like health department, revenue department and
social welfare department to ensure safety and security of senior
citizens," Pillai said.

A nodal officer will also be appointed in each district to coordinate
the functioning of the bureau.

"Dedicated 24-hour helplines will be opened at the bureau so that
senior citizens can seek any assistance in case of an emergency," an
officer said.
==============
Dr P Vyasamoorthy, 30 Gruhalakshmi Colony Secunderabad 500015 Ph
040-27846631 / 9490804278.

Food effect on drugs seems to be real!!

Sunday, May 20, 2012

Senior Citizens Panchayat, MP; State Commission on Senior Citizens

---------- Forwarded message ----------
From: anand mehta <abmehta66@yahoo.co.in>
Date: Sun, May 20, 2012 at 12:24 PM
Subject: Senior Citizens Panchayat, MP
To: "rnmital@gmail.com" <rnmital@gmail.com>

Dear Shri Mittal,

On the lines of Human Rights and Women Welfare Commission the Chief
Minister  of Madhya Pradesh Mr.Shivraj Singh Chouhan announced the
government decision to constitute a commission for senior citizens
also 0n 13 April during the senior citizens Panchayat.  It is
pertinent to note that an announcement was made during the Hational
Convention of Senior Citizens held in Bhopal in 2006 by the then
Minister of Social Welfare in the presence of Shri Babulal Gaur. It is
hoped that this time some time bound steps would be taken to form the
commission that is badly needed for the welfare of Senior Citizens. Of
course the CM added one more pet yojna to provide free Teertha Yatra
to them to one designated teerth.

The Central Government have already enacted many laws to protect the
life and property of elders. The reverse mortgaging of house to get
monthly pension also is available through many banks, although figures
are not readily available to indicate how far this facility is being
used. The population of senior citizens would be 15% of the total by
2025 and it is high time that concrete steps are taken to safeguard
their interests as also to gainfully employ them for social good. MP
has one of the lowest pension for destitute senior citizens. Apart
from increasing the amount on par with other states, there is an
urgent need to eliminate he difficulties faced by thousands of the
needy to get pension in time and through minimal effort. Almost half
are not even aware of these facilities.

The government of MP has also constituted a Council to oversee the
implementation of the law to protect Senior Citizens and provide for
their maintenance. Shri S K Saraswat, our President (as also of MP
senior Citizens Federation) and Shri K K Bhatt, Secretary of the MP
Federation are  members along with other  reps and  govt officials.
Minister of Social Welfare is the Chairman.

Gp Capt A B Mehta(Retd),
Vice President,
Senior Citizens Forum, Bhopal.

(Please also see our website : bhopalseniors.org)
( You may kindly link it from your website www.aiscon.org)
====================

Saturday, May 19, 2012

RAIL YATRI "SEVAKS" FOR SENIOR CITIZENS SOON .


http://articles.timesofindia.indiatimes.com/2012-05-18/patna/31765086_1_important-stations-railways-yatri

Rail yatri 'sevaks' for elderly people soon

PATNA: In a major policy decision, railways has decided to provide more amenities to senior citizens and elderly people to make their train journey safe and comfortable.

According to a Railway Board official, though railways had earlier announced to implement 'rail yatri sevak' scheme at important stations across the country, the scheme has not been implemented so far at most of the important stations. The railways would now expedite the implementation of this scheme in the larger interest of senior citizens, he said.

Railways is now in consultation with several private agencies to provide 'rail yatri sevak' service as being provided at different airports. These 'sevaks' would help senior citizens and elderly people, particularly sick ones, in boarding trains easily. This service would be a boon for all those who are single and undertaking journey by trains, a Board official said.

Under the proposed plan, railways would allow registered agencies and voluntary social organizations to depute their men at important stations to perform their duty as 'sevak' for elderly people. They would be paid nominal charges for carrying the luggage of those passengers who are sick and helpless in carrying their baggage themselves on the railway platforms, he said.

Under a pilot project, railways has introduced this scheme recently at New Delhi, Chennai, Bangalore and Ahmedabad stations. However, it could not get much patronage as the scheme has not been made popular among the needy passengers. "Railways is keen to coordinate between 'sevaks' and passengers to make the scheme more popular among elderly people at crowded stations across the country," the official said, adding that this service would be available round-the-clock at important stations.

Depending on the response of the 'rail yatri sevak' service, railways has taken a decision to introduce it at important stations including Patna, Gaya, Mughalsarai and others under East Central Railway (ECR). Railways is in constant touch with the service providers to make available trolleys and 'sevaks' at major stations to give relief to elderly people during their journey, he said.

Railways is ready to provide assistance to the 'service providers'. It would soon announce a common telephone number in each zone of railways through which elderly passengers could book trolley in advance and get 'rail yatri sevak' service on platforms without delay, sources said.

According to an ECR official, railways is keen to introduce 'sevak' service first at Patna Junction and Rajendra Nagar Terminal to fulfil the needs of senior citizens. "Railways is in touch with a few agencies to make this scheme a great success in the ECR too," he said.

--
*V.RAGHAVENDRA RAO
20,DESCANSO DRIVE,
UNIT #1321, SAN JOSE,
CA 95134-1843.
518-261-7075
*
*

Thursday, May 10, 2012

Elderly restricted to their homes

Delhi doctors are pushing for bone and joint health to be included in the national health programme for the elderly, after a study found that 10% senior citizens living on 2nd floor and above suffer from poor bone health, restricting them entirely to their homes. The study, which looked at 1,300 senior citizens living on the second floor and above from Delhi-NCR, found that 56% elderly in the age group 60-65 years and only 37% of those over 65 years step out of their houses only 3-4 times a month.

Among senior citizens living on 3rd floor and above, 17% never make it to the ground level. Almost 60% respondents were not able to manage personal cleanliness while 84% are not fit enough to travel alone.

The study, accepted for publication in Indian Orthopaedic Journal, showed that several elderly persons said they were forced to step out, despite poor health, because they were either single or lived in a nuclear family set-up.

"Both the central and state governments should re-plan their health programmes to include bone and joint diseases. The government should start bone screening programmes at the primary and secondary health centres to as to stub the problem at the very outset," said Dr PK Dave, former AIIMS director and head of orthopaedics, Rockland Hospital.

"Even if health policies and programmes focus on educating people about bone related problems, there will be a huge reduction in disability among senior citizens," said Shishir Rastogi, professor at the department of orthopaedics, AIIMS, and advisor, Arthritis Foundation of India.

"The national programme for elderly citizens is very sketchy on the bone and joint health needs of the elderly. This is when 85% of the respondents reported suffering from different kinds of problems related to bones and joints," said Dr Sushil Sharma, senior orthopaedic surgeon and chairman, Arthritis Foundation of India.


--
V.RAGHAVENDRA RAO,
20, DESCANSO, APRT 1321,
SAN  JOSE,
CALIFORNIA - 95134. USA.
518-261-7075

HOW THE RIGHT TO PENSION WILL AFFECT YOU.


How the right to pension will affect you

More than 3000 working poor are right now agitating at Jantar Mantar, New Delhi, under the banner of Pension Parishad as the curtains are up on the 'right to pension' campaign. Spearheaded by Aruna Roy, the Mazdoor Kisan Shakti Sangathan leader and member of the National Advisory Council (NAC), the campaign seeks universalisation of a minimum pension of Rs 2000 per person per month for all elderly citizens of India (above 55 years of age) irrespective of their economic status. If implemented, the right to pension can significantly alter the social security paradigm in the country.

Speaking at a press conference earlier in the week before the Pension Parishad began on May 7, Roy said, "There has been a lot of debate about poverty and about the disenfranchised. Earlier, poor people did not live beyond 60 years of age. But today longevity has increased but health conditions have deteriorated. These people suffer from similar diseases as the upper and middle class but they lack support. Today, even rural families are nuclear. They don't have the strength to draw water from the well nor do they have the financial stability which would allow them to hire a help. It is the duty of the state to provide pension to people who are no longer able to work. There are progressive international precedents in lower and middle income countries with respect to pension."

Other prominent members of the movement include co-convenor Baba Adhav, the veteran leader of unorganised workers in Maharashtra, economist Prabhat Patnaik, Ravi Srivastava, the former member of the National Commission on Enterprises in the Unorganised Sector, Annie Raja, secretary of the National Federation of Indian Women, and Subhash Lomte of the Maharashtra Labour Union.

How the right to pension will affect you

The movement thinks the government has an obligation to the 88 million elderly people (as of 2009, the number is expected to cross 300 million by 2050), 93 per cent of whom have been/are/would be part of the unorganised labour force.

As of now, under the Indira Gandhi Old Age Pension scheme, those above 60 get Rs 200 per month and those above 80 get Rs 500 per month as pension.

The movement believes that this amount is too low and the scheme covers only below poverty line citizens. Only 1.8 crore of the elderly population benefit from this scheme at present.

If implemented, it is expected to cost the country almost Rs 2,00,000 crore or 2 per cent of its current nominal GDP. But team members contend that it is a modest amount considering the country's 8 per cent year-on-year growth and considering the fact that a civilisation is judged by the way it treats its elderly people.

In an interview to Firstpost, also run by Network 18, she said, "If you don't invest money, you can't run the economic paradigm the way you are presently, that everything has to be paid for including health and education. There is no social security. If you want do bring down everything to marketability, you cannot run the system. It is about people who have worked their entire lives constructing roads, working on various projects for the citizens of the country. They have shaped up the roads, highways, schools and hospitals in country we see today. They should not be living in misery. Let me give you an example. The government says that the root of numerous health issues in rural India is that people go to quacks and not qualified doctors. Now suppose people go to doctors, then do they have the money to afford even the basic schemes in hospitals? If a bone gets fractured, they don't have the money to get it plastered."




































































































--
*V.RAGHAVENDRA RAO
20,DESCANSO DRIVE,
UNIT #1321, SAN JOSE,
CA 95134-1843.
518-261-7075
*
*

Wednesday, May 9, 2012

SON GRABS HOUSE - 86 - YEAR- OLD SENIOR CITIZEN SEEKS ACTION


Son grabs house, man seeks action 


COIMBATORE: An octogenarian from Jothipuram petitioned Coimbatore Collector M Karunakaran on Monday seeking action against his son who expropriated his house and abandoned him.
In his petition, 86-year-old N Jegannathan from Vijaya Nagar in Jothipuram said "I am a father of five and a retired mill worker. I am an asthma patient and also have hearing problem. When my wife died in 1995, one of my sons Parthasarathy changed the ownership of a lorry belonging to us into his wife's name. He expropriated my house and prevented me from entering the house. He had also assaulted me." 
Seeing my condition, my daughter took me to her house. 
"Then my son prepared fake documents stating that I have taken a loan from him, came to my daughter's house and threatened me of dire consequences," he said in his petition adding, "I have been fighting against my son for the past 10 years. In my old age, I am not able to fight against him anymore." 

http://ibnlive.in.com/news/son-grabs-house-man-seeks-action/255743-60-118.html 

V.RAGHAVENDRA RAO,
20, DESCANSO, APRT 1321,
SAN  JOSE,
CALIFORNIA - 95134. USA.
518-261-7075

WHERE TO INVEST



May 5, 2012:  

Are you retiring from work any time soon? While you can look forward to a surfeit of money from provident fund, superannuation and gratuity, it is important that you give a thought to where you will invest it.

If you have no pension or other source of monthly income, you will need to first build a regular income-generating portfolio with your retirement money.

Here are some options. You can use up to 70-80 per cent of your retirement funds to build this portfolio.

REGULAR RETURNS

If you have reached the age of 60, then the Post Office Senior Citizen's Income Scheme, remains your best bet, both in terms of safety and fixed returns. The added tax benefit also helps reduce your cash outflows.

With an interest rate of 9.3 per cent, this option will help you beat inflation, given the tax benefits. You can invest up to Rs 15 lakh in the scheme and withdraw interest every quarter.

Tax-free bonds that will be issued by Government companies this year is another option.

Make the best use of them if the rates are 8 per cent or above.

Remember, while you will not get any Section 80C tax benefits, your interest income is tax free. That matters a lot, especially if you are in the higher tax bracket.

The post office monthly income scheme can also form part of the fixed-return portfolio.

But with an interest rate of 8.5 per cent now, it is suitable only if you are in the 10 per cent tax bracket, or your overall income is less than the taxable limit. A good 40-50 per cent of your income portfolio can be safely parked in the above avenues.

The next chunk of say 30 per cent of your income-generating portfolio can be invested in bank fixed deposits that offer attractive rates. Stick to deposits with a 3-5 year maturity. They offer higher rates than longer tenure deposits. You can roll them over again.

Ensure that you restrict your exposure to small co-operative banks to Rs 1 lakh; that's the maximum amount backed by insurance.

Bank deposits also provide some liquidity. In case of emergency, you can always withdraw the deposit prematurely for a small penalty.

If you have a large corpus and the Senior Citizen scheme's limit is too less for you, then increase your investment in bank deposits.

HIGHER RISK

Fixed deposits, debentures and bonds floated by companies fall in the higher risk category. This option is not for the faint-hearted as there is a risk of irregular interest payment.

You may even lose the principal if the company goes bust.

To mitigate this risk, you can stick to top-rated companies.

That means you need to look for ratings of AAA or AA+, given by credit ratingagencies. Avoid the unrated ones.

You can also reduce the tenure of bearing this risk by locking in for a period of not over three years at a time.

But with bonds, you may have to enter for a longer period.

Here again, you still have an option (in most cases) of redemption mid-tenure. If such an option is available, go for it.

Restrict your investments in this avenue to 10-15 per cent of your income portfolio.

And remember with bonds or debentures, it is risky to exit before maturity, unless you are aware of bond price movements.

LIQUIDITY AND RETURNS

The more savvy ones can also consider parking up to 10 per cent of the income portfolio in mutual funds.

While these are not strictly income-generating investments, debt-oriented funds such as HDFC MIP Long Term or Canara Robeco MIP do declare dividends that can perk your portfolio returns. Note that these funds do not promise dividends.

Unlike interest income from deposits, the dividends here are tax-free in your hand. These funds will also provide liquidity.

You can, in your later years, also systematically withdraw the sum (called systematic withdrawal plan), thus providing you with some monthly income. Put down at least 5 per cent of your retirement proceeds in liquid funds.

If that's a hassle put them in a savings account of a bank that pays reasonable interest. Interest on savings account up to Rs 10,000 is now tax free.

BUILD WEALTH

The above options can account for 80 per cent of your retirement funds. The remaining fund can be used to build wealth.

The NSC is a good option, especially if you want to save tax. Large-cap equity funds, balanced funds and fixed maturity plans of mutual funds can also form part of this.

If you are a pensioner, you can go for the above options, with some modification. Keep your income-generating portfolio to a maximum of 60 per cent. Invest 20-25 per cent in equity and balanced funds through SIP and the rest in debt funds and fixed maturity plans.

vidya@thehindu.co.in

--
V.RAGHAVENDRA RAO,
20, DESCANSO, APRT 1321,
SAN  JOSE,
CALIFORNIA - 95134. USA.

UNIVERSAL OLD-AGE PENSION PLAN



For a universal old-age pension plan

PRABHAT PATNAIK





With the elderly likely to constitute a quarter of India's population by 2050, there is need for a publicly-funded, universal scheme that will overcome destitution among the aged

India's social security system is woefully inadequate, when compared even to those in third world economies with no higher per capita incomes. Some States in India have fairly comprehensive social security schemes — notably Kerala, also West Bengal and Tamil Nadu — but the scale of the benefits is modest. However, the Union government has been quite lackadaisical in providing social security despite its enormous fiscal powers. Even the Unorganised Sector Workers' Social Security Act, which came into force in 2009, is merely an enabling legislation; it does not seek to put on the statute books any specific comprehensive scheme of social security.

This stinginess is particularly evident in old-age pension schemes. Some State governments have responded to the need to provide old-age pensions, but are hamstrung by their meagre resources. The Union government's Indira Gandhi Old Age National Pension Scheme (IGOANPS) covers only the Below Poverty Line (BPL) population and persons above 65 years of age; the pension amount it provides is an abysmal Rs.200 per month. Even so, an estimated 1.65 crore people access this scheme, an indication of the desperate need for succour.

Four negatives in schemes

Even if we add up all the existing pension schemes, they touch only the fringe of the problem. First, they are an assortment of specific schemes rather than an expression of a right to pension. Second, they do not provide universal coverage. Leaving aside the pension schemes of the organised sector, the others, as they are, target specific groups of unorganised sector workers; even when not tied to specific occupational categories, such as the IGOANPS, they cover only the BPL population, whose size is arbitrarily fixed by the Planning Commission at a ludicrously low level. Third, a large number of them insist on some contribution from the beneficiaries. And fourth, the amount of pension they provide, as we have already seen, is pathetically small.

This is a serious problem, and likely to become even more so in the years to come, because the increase in longevity and the fall in the birth rate will raise the percentage of the "old." By 2050, nearly a fifth of the world's population will be above 60. In India and China, the proportion is likely to be around 24 per cent. All over the world, progressive forces are demanding the institutionalisation of a publicly-funded, universal, non-means-related, non-contributory pension scheme for the aged, to be accessed by them as a matter of right. This demand has also begun to be raised in India, as a dharna at Jantar Mantar (May 7-11) demonstrated.

So pervasive, however, is the impact of the bourgeois media in India that even many otherwise well meaning persons may not appreciate the rationale of this demand. Why, they may ask, should a pension scheme be publicly-funded when those who draw the pension were earlier employed by private employers? Why should it be universal instead of being means-related? And why should it be non-contributory? Why should people who did not pay towards a pension scheme nonetheless enjoy a right to draw a pension?

The starting point of the answer to such questions is the basic social philosophical position that underlies the argument both for the welfare state and for socialism, namely, material deprivation is the result not of individual failing on the part of the deprived but of the social arrangement within which they live. This position is not a matter of faith; it is analytically sustainable.

To overcome destitution, including that which afflicts the old, we have to change the social arrangement which produces it. The first step in this direction is the use of the State's fiscal powers. Since the essence of democracy is that everyone must have adequate means of sustenance, access to it must be a right which is guaranteed by the State, on whom falls the responsibility of adjusting the social arrangements for this purpose.

Contribution by beneficiaries towards a State-maintained pension scheme is just one way that the State can raise resources for such a scheme. But to make that a condition for pension payment, apart from being iniquitous, undermines the right to pension that must be a part of democracy. Therefore, the demand for a non-contributory scheme is derivable from the rights-based approach, as indeed is the demand for universality. Of course the "old" are not the only deprived section in our population; poverty, deprivation and hunger are rampant in our country, but that is an argument for extending the right to adequate means of livelihood to all, not for denying it to the "old."

Adequate means

But what, it may be asked, constitutes adequate means of livelihood? Here one can follow two different approaches. The first, used in much international discussion, is to define "adequate" in the sense of avoidance of poverty, which in India is defined officially as access to 2,100 calories per person per day in urban areas and 2,400 calories (later reduced to 2,200 calories) per person per day in rural areas. The daily per capita expenditure level at which this was achieved in 2009-10 was Rs.36 in rural (for 2,200 calories) and Rs.65 in urban areas, whose weighted average (if we are to avoid different amounts of pension payments), is Rs.46. At current prices this would be equivalent to around Rs.60; in which case the monthly pension amount on this criterion should come to Rs.1,800.

The other approach, the one adopted by the Pension Parishad, which organised the Jantar Mantar dharna, sees pensioners as "workers" and hence entitled to a proportion of the wage income as pension. Based on this, the Parishad has demanded half the monthly minimum wage rate, or (in view of the differing minimum wage rates across States) a flat amount of Rs.2,000 at the current price, whichever is higher. This approach has merit. But no matter what precise figure is adopted (and the two are pretty close to one another), the point to note is that both approaches conclude that the monthly pension payment should be far higher than the current measly sum of Rs.200.

The Pension Parishad puts the pensionable age at 55 for men, 50 for women and 45 for specially deprived communities, while international discussions fix it at a blanket 60 for third world countries. The Parishad estimates that about 10 crore people belong to these age groups. With some exclusions, e.g. those who pay income tax, or those belonging to the organised sector whose pensions already exceed the stipulated amount, or if the age is increased to say 60, that would still be around eight crore people to provide for. At the rate of Rs.2,000 per person per month, the total would come to Rs.192,000 crore which, in round figures, is two per cent of the GDP.

Questions will be immediately raised on how such resources can be found. But the required resources can be put in perspective as follows: the growth rate of the economy, as the Union government never tires of repeating, has been around eight per cent, or, in per capita terms just over six per cent. The resources required will be only one third of the increase in per capita income, i.e. a third of one year's increase in the per capita income collected from the "average" Indian will be adequate to finance a universal pension scheme. The average Indian of course does not see his or her income rising at six per cent per annum in real terms, but this should make it even easier to garner the required resources from the well-to-do who corner the increases in income. In subsequent years, since the "real" pension per head will remain unchanged and the total amount will increase only at a rate slightly higher than the rate of population growth (owing to the increase in longevity), the percentage of GDP required for the scheme will keep going down, i.e. lesser and lesser proportions of the additions to annual income will have to be taken from the "average" Indian to finance the pension scheme. This surely is affordable, especially when the Centre has given away Rs.500,000 crore per annum, i.e. more than double the amount needed for a pension scheme, in the form of corporate and other tax reliefs in recent budgets.

For raising these resources, however, fresh taxes will have to be levied. The National Commission for Enterprises in the Unorganised Sector (NCEUS) had suggested a set of cesses to finance a far more modest social security scheme, costing only 0.5 per cent of the GDP. In international discussions the emphasis has been on a combination of Tobin Tax (at one per cent) and profit tax (two per cent of profits) for financing such a global scheme (which is supposed to cost $250 billion, at $1 a day for all those above 65 years in advanced countries and above 60 years in third world countries). Similar tax proposals can be worked out for India as well. The crucial need is to put democratic pressure on the State for launching such a scheme.

(Prabhat Patnaik is a UGC Emeritus Fellow at the Centre for Economic Studies and Planning, Jawaharlal Nehru University, New Delhi. Emailprabhatptnk@yahoo.co.in)

--
V.RAGHAVENDRA RAO,
20, DESCANSO, APRT 1321,
SAN  JOSE,
CALIFORNIA - 95134. USA.
518-261-7075

Monday, May 7, 2012

http://www.seniorcitizenjournal.com/senior-finances-articles/family-finances-include-supporting-aging-parents/ 

FAMILY FINANCES INCLUDE SUPPORTING AGING PARENTS

May 7th, 2012 | By Sharon Shaw Elrod MSW EdD | Category: Senior Finances

Senior Financial Planning

Senior citizen financial planning today needs to include planning for supporting aging parents who run out of resources. And that planning needs to have begun about three decades ago, so this is a post you might want to consider forwarding on to your adult children.

Here are the facts:  People are living longer. That means the majority of senior citizens will likely find themselves needing daily care of one kind or another (in-home assistance, retirement home, assisted living, nursing home) as they age.  Many of them have made no plans for such care, and will find their financial resources running out before their life ends.  In addition, our adult children who are busy with their careers, their lives, their families, are not planning for their aging care needs nor ours.  We all seem to be just sticking our heads in the sand and ignoring reality.

Long-term Care is an Unavoidable Reality

Long-term care of one sort or another is a reality for many families in the world today.  It is very common.  The MetLife Mature Market Institute says almost 10 million adult children are caring for aging parents in this country.  And the cost of care outside the home continues to rise. Here are some more facts from the 2011 MetLife Survey:

  • The national average daily rate for a private room in a nursing home rose 4.4% from $229 in 2010 to $239 in 2011.
  • The national average monthly base rate in an assisted living community rose 5.6% from $3,293 in 2010 to $3,477 in 2011.
  • The national average daily rate for adult day services rose 4.5% from $67 in 2010 to $70 in 2011.
  • The national average hourly rates for home health aides ($21) and homemakers ($19) were unchanged from 2010

So the questions are these:  Are you prepared for your long-term care needs?  Do you have a plan for your care, including how it will be paid for?  Have you discussed this issue with your adult children?

Creating a realistic plan and ensuring its financial viability is absolutely essential for senior citizens today.  Come back to this column next week, and you will find a discussion of plan options.

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*V.RAGHAVENDRA RAO
20,DESCANSO DRIVE,
UNIT #1321, SAN JOSE,
CA 95134-1843.
518-261-7075
*
*

Friday, May 4, 2012

Elderly people to stage dharna

Elderly people to stage dharna


About 5000 elderly people will stage a dharna at Jantar Mantar here from May 7 to May 11 demanding universal old-age pension for all those above 55 years.

They are mobilised by social rights activists under the banner of Pension Parishad.

Co-conveners of the parishad Aruna Roy and Baba Adhav, who launched the movement in Pune on February 1, said the changed socio-economic scenario and the rise in longevity had added to the disadvantage of the elderly people in the unorganised sector.

While on the one hand their lifespan had increased, elderly people no longer enjoyed the protection of their wards and other relatives and were now required to fend for themselves. Their physical condition did not even allow them to collect water from wells or hand pumps, let alone earn a proper living.

Social activists Subhash Lomte, Annie Raja, Ravi Srivastava and Prabhat Patnaik said it was time the state provided some relief in the form of monthly pension of Rs. 2000 to such people.

The demand is for a non-contributory pension to those above the age of 55 while the eligibility for women should be 50 years without any distinction on the lines of BPL and APL. For other vulnerable groups, the age of eligibility should be pegged at 45 years.

According to the parishad, those above 60 years accounted for 8.2 per cent of the population —10 crore people — and in their estimation, the state would have to bear about Rs. 3.6 lakh crore a year after excluding 10 per cent of the elderly individuals. They hoped the Centre would bear 75 per cent of the outgo — that is Rs. 2.7 lakh crore.

They proposed a cess on the industrial sector to raise the needed funds and provide relief to the government.

The Centre pays Rs. 200 as pension to those above 60 years and Rs. 500 to those above 80 years, covering only 1.87 crore BPL families.

--
V.RAGHAVENDRA RAO,
20, DESCANSO, APRT 1321,
SAN  JOSE,
CALIFORNIA - 95134. USA.
518-261-7075