1. S.Sivanandan, Team leader DHAN Foundation

2.  It is a defined member contribution product  Vesting age – 55 onwards  Premium payment directly to LIC through existing SHG system  The premium ranges from minimum of Rs.100 and multiples of 100 (Max Rs.500)  The contributions will earn interest every year and the floating interest rate to be applied for each financial year  At the vesting age, members would choose the type of pension benefit- either life pension or Life pension with Return of Corpus (ROC)  Pension will be directly credited by LIC only through ECS/NEFT to the bank account of the members, the details of which are to be provided by DHAN.

3.  Next level graduation product for the members of Kalanjiams (SHG)  Social security product for the old aged  Self dependent even at the older age  Could earn respect among the family members  Conversion of accumulated savings in to a worthy product is possible

4.  Staff orientation and workshop at periodic intervals with the support of People mutuals  Product introduction at the cluster GBMs and federation board meetings  Interaction with group members on the need and importance of micro pension through appropriate IEC materials thereby building their confidence  Generating applications from the members who wish to join micro pension  Member and policy administration  Proposal to LIC with the list of members enrolled

5. Members who wish to join in the micro pension scheme needs to complete the LIC application form along with id proof and 2 photo’s. The cluster associate sends the completed member application form to LIC and a copy to people Mutuals. After completion of the application, the federation associate creates the member micro pension passbook. The cluster associate gives the member micro pensions passbook to the member in the group meeting The members would make their contributions (payments) in the SHG meeting along with Savings, loan principal, interest on loan and any other payments The cluster associate records the transaction and gives the receipt to the member.

6. The groups’ transaction details (receipt and vouchers) will be submitted by one of the group member (on monthly rotation basis) to the federation office. The CDAA will verify the receipts and vouchers and give the R/V specific to micro pension to the mutual staff The mutual staff will prepare the receipt for micro pension paid group The field associates will verify the payment to the mutuals and their MIS data The final data will be entered in the excel sheet by the mutual staff The FC will verify the total amount received from the groups and the amount to be paid to LIC and prepares the cheque The cheque will get approved in the Federation board for making payment to LIC LIC will send the official receipt to the federation on receipt of the payment along with the list

7.  Micro pension is not an immediate returns oriented product unlike regular savings  Lack of visioning on the pension product in their early productive ages (18-40)  Older age people badly need the product but their accumulation is low and hence lesser pension at the vesting period  Tendency to withdraw the pension amount for life cycle needs (eg., education, marriage, health expenditures etc.,)