Kerala welfare pension: Doorstep delivery to end? Proposed bank-based system faces opposition

Thiruvananthapuram: Kerala’s plan to stop delivering welfare pensions to beneficiaries’ homes has run into opposition from both the Opposition and senior citizens, while uncertainty remains over when the new system will actually take effect.

Under a new Finance Department order, welfare pensions will be credited to bank accounts for all beneficiaries except those who are completely bedridden. However, questions over who qualifies as a bedridden beneficiary and whether all pensioners have Aadhaar-linked bank accounts have left the government without a fixed date for implementing the new system.

For now, pension distribution will continue under the existing system. The government is expected to finalise the new procedures after Onam.

Over 51 lakh beneficiaries

A total of 51,10,908 beneficiaries currently receive welfare pensions in Kerala. Of these, 27,95,912 beneficiaries receive their pensions through banks, while 23,14,996 beneficiaries have their pensions delivered to their homes through primary cooperative banks.

The doorstep delivery system was introduced in August 2016.

The new move has triggered opposition, particularly because of the questions surrounding beneficiaries who may face difficulties accessing bank-based payments.

How the doorstep system works

The LDF government had established the Social Security Pension Company to ensure that pensions were paid without interruption. The company raises loans to distribute pensions every month and repays them based on the funds allocated by the government.

A consortium of primary cooperative banks is among the major lenders to the pension company. The government currently owes the consortium Rs 7,623.82 crore.

Employees of cooperative banks, including those involved in collecting deposits, visit beneficiaries’ homes to hand over the pension. They receive an incentive of Rs 25 for each pension payment delivered.

With the government now planning to move most beneficiaries to bank-based payments, the key questions are how bedridden beneficiaries will be identified and whether every eligible pensioner has an Aadhaar-linked bank account.

Until those issues are resolved, the existing doorstep pension system will continue.