The Andhra Pradesh Self Help Groups (SHG) Women Co-contributory Pension Act, 2009
**THE ANDHRA PRADESH SELF HELP GROUPS (SHG) WOMEN CO-**
**CONTRIBUTORY PENSION ACT, 2009**

**(Act No. 2 of 2009)**

**ARRANGEMENT OF SECTIONS**

SECTIONS

1. Short title, extent and commencement

2. Definitions

3. Framing of Scheme

4. Co-Contributory Pension

5. Pension Account

6. Benefit of Pension

7. Nodal Implementation Agency

8. Funds to the Nodal Agency

9. Accounts and Audit

10. Grievances and Disputes

11. Co-Contributory Pension Advisory Board

12. Power to remove difficulties

13. Power to make rules


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**THE ANDHRA PRADESH SELF HELP GROUPS (SHG) WOMEN CO-**
**CONTRIBUTORY PENSION ACT, 2009**

**(Act No. 2 of 2009)**

[3[rd] March, 2009]

**AN ACT TO PROVIDE FOR THE FRAMING OF CO-CONTRIBUTORY**
**PENSION SCHEME TO PROMOTE OLD AGE INCOME SECURITY**
**AMONG WOMEN MEMBERS OF SELF HELP GROUPS IN URBAN AND**
**RURAL** **AREAS** **AND** **TO** **PROTECT** **THE** **INTERESTS** **OF**
**SUBSCRIBERS AND FOR MATTERS CONNECTED THEREWITH OR**
**INCIDENTAL THERETO.**

Be it enacted by the Legislature of the State of Andhra Pradesh in the
Sixtieth Year of the Republic of India as follows:

**CHAPTER - I**
**PRELIMINARY**

**1. Short title, extent and commencement - (1) This Act may be called the**
Andhra Pradesh Self Help Groups (SHG) Women Co-contributory Pension Act,
2009.
(2) It extends to the whole of the State of Andhra Pradesh.

(3) It shall come into force on such date as the State Government may, by
notification in the Andhra Pradesh Gazette, appoint.

**2. Definitions - In this Act unless the context otherwise requires,-**

(a) "Authority" means an appropriate regulatory authority
established by law including the Insurance Regulatory and
Development Authority and the Pension Fund Regulatory and
Development authority;

(b) "Contribution" means a periodic payment by a subscriber into
the individual pension account as may be prescribed;

(c) "Co-contribution" means a periodic cash transfer by the
Government as may be prescribed;

(d) "Government" means the State Government of Andhra Pradesh;

(e) "guidelines" means guidelines framed by the nodal
implementation agency to implement the provisions of the scheme;

(f) "individual pension account" means an account opened as per
the scheme;

(g) "minimum pension" means a minimum monthly payment to be
notified by the Government from time to time and payable under
the scheme to subscribers on crossing the retirement age, subject
to conditions to be notified;

(h) "Nodal Implementation Agency" means the Society for
Elimination of Rural Poverty and any other such agency that may
be notified by the Government and empowered to implement and
administer the scheme;


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(i) "Notification" means a 'notification' published in the Andhra
Pradesh Gazette and the word notified shall be construed
accordingly;

(j) "Pension" means the periodic payment to a subscriber on
crossing the retirement age;

(k) "Pension fund manager" means the Life Insurance Corporation
of India or any other Public Sector undertaking, regulated by an
authority as may be prescribed by the Government;

(l) "Prescribed" means prescribed by rules made under this Act;

(m) "retirement age" means the age as may be prescribed by the
Government at which the subscriber starts drawing the monthly
pension;

(n) "Scheme" means the Self Help Group Women Co-contributory
Pension Scheme as framed under section 3 of the Act;

(o) "SHG" means a Rural or Urban Self Help Group of Women
formed by the promotional efforts of development agencies of the
Government as notified in the scheme and registered with the
Nodal Implementation Agency;

(p) "Subscriber" means a woman member of an Urban or Rural Self
Help Group who is permitted and chooses to subscribe to the
scheme.

**CHAPTER - II**

**THE SCHEME**

**3. Framing of Scheme - (1) The Government may by notification frame a**
scheme to be called the Andhra Pradesh Self Help Groups (SHG) Woman Cocontributory Pension Scheme.

(2) The Government may by notification add to, amend or vary the
scheme.

**CHAPTER - III**

**SELF HELP GROUPS WOMEN CO-CONTRIBUTORY PENSION SCHEME**

**4. Co-Contributory Pension - (1) A woman who is a member of a Self Help**
Group, and an active member for a minimum period of one year and is aged
between 18 years and below the retirement age is eligible to subscribe to the
scheme;

(2) Every subscriber shall pay contribution to the scheme.

(3) The subscriber shall be entitled to a periodic Co-contribution by the
Government subject to prescribed conditions.

(4) The Pension Fund Manager shall invest the amount on behalf of the
subscriber for payment of monthly pension on retirement.

**5. Pension Account - (1) Every subscriber shall have an individual pension**
account.


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(2) The member shall furnish such documents as may be prescribed by
the Nodal Implementation Agency, as proof for eligibility for enrollment in the
scheme.

(3) A subscriber shall not exit from the scheme, except as may be
specified in the rules governing the scheme.

(4) The subscriber's individual pension account shall be closed in case
she does not fulfil the prescribed conditions of the scheme, and the available
contributions of the subscriber and earnings from such contributions in the
account shall be transferred to the subscriber.

(5) On the death of the subscriber the available contributions and
accrued earnings on such contributions shall be paid as a lumsum to the
nominee of the subscriber.

**6. Benefit of Pension - A subscriber who attains the retirement age and**
fulfilled the prescribed conditions shall be entitled to receive a monthly
pension. Other than the minimum monthly pension prescribed by the
Government, there is neither any implicit nor explicit assurance of returns on
investment of subscriber contributions or the Government Co-contributions.

**CHAPTER - IV**

**DUTIES, POWERS AND FUNCTIONS OF THE NODAL IMPLEMENTATION**
**AGENCY**

**7. Nodal Implementation Agency - (1) Subject to the provisions of this Act**
and any other law for the time being in force, the Nodal Implementation Agency
shall administer, promote and ensure orderly function and growth of the
pension scheme to which this Act applies and to frame guidelines for
implementing the scheme.

(2) Without prejudice to the provisions contained in sub-section (1), the
powers and functions of the Nodal Implementation Agency shall include,
(a) protecting the interests of subscribers;

(b) laying down norms for collection and accounting of
contributions and their transfer to pension funds;

(c) standardising dissemination of information about the scheme
and performance of pension funds and returns on investment
there from;

(d) appointment of Life Insurance Corporation of India or any other
Public sector undertaking regulated by the authority, as the
pension fund manager;

(e) enter into a Memorandum of Understanding (MOU) with the
pension fund managers for fund management, management of
individual pension accounts;

(f) appointing the implementation support agency/ agencies, banks
and any other such person or entity responsible for enrolling
subscribers, collecting and recording contributions and
information from subscribers, transmitting information and fund
to pension fund manager, and discharging such other duties and


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functions, as may be assigned to it by the Government from time to
time.

**8. Funds to the Nodal Agency - (1) The Government may make to the Nodal**
Implementation Agency grants of such sums of money as it may think fit for
being utilized for the purposes of implementation of the provisions of this Act.

(2) The Fund shall be utilized for meeting,
(a) the salaries, allowances and other remuneration of the
members and officers and other employees of the Nodal
Implementation Agency;

(b) other expenses of the Nodal Implementation Agency in
connection with the discharge of its function, implementation of
the scheme, delivery of services and benefits of subscribers and for
the purposes of this Act.

**CHAPTER - V**

**MISCELLANEOUS**

**9. Accounts and Audit - The Government shall appoint auditors on periodical**
basis for verifying the records of Self Help Groups, Nodal Implementation
Agency and all other concerned agencies for ensuring proper conduct and
maintenance of the scheme.

**10. Grievances and Disputes - The Government shall constitute a Grievance**
and Dispute resolution mechanism for settling various issues between the
beneficiaries, Nodal Implementation Agency, pension fund managers, other
support agencies and others concerned with the scheme.

**11. Co-Contributory Pension Advisory Board - The Government shall**
constitute a Co-contributory Pension Advisory Board not exceeding 20
members of which 10 members shall be from among officials and experts
drawn from the fields of rural and urban poverty alleviation, Finance,
Insurance, Legal, etc., and 10 members from among Self Half Group members
from district level Self Group Federations to exercise power and to advise on
matters as may be prescribed.

**12. Power to remove difficulties - (1) If any difficulty arises in giving effect to**
the provisions of this Act, the Government may by order published in the
Official Gazette make provisions not inconsistent with the provisions of the Act
as appear to them to be necessary and expedient for removing the difficulty:

Provided that no such order shall be made after the expiry of a period of
three years from the date of commencement of this the Act.

(2) Every order made under this section shall, as soon as may be after it
is made, be laid before the Legislature of the State of Andhra Pradesh.

**13. Power to make rules - (1) The Government may by notification in the**
official Gazette, make rules to carryout the provisions of this Act.

(2) Every rule made under this Act shall immediately after it is made, be
laid before each House of the State Legislature if it is in session and if it is not
in session, in the session immediately following for a total period of fourteen
days which may be comprised in one session or in two successive sessions, and


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if, before the expiration of the session in which it is so laid or the session
immediately following, both Houses agree in making any modification in the
rule or in the annulment of the rule, the rule shall with effect from the date of
notification of such modification or annulment in the Andhra Pradesh Gazette,
is notified, have effect only in such modified form or shall stand annulled, as
the case may be, so however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that rule.


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