SOCIAL SECURITY IN INDIA (GENERAL STUDIES)

Total Questions: 50

31. Which among the following schemes is not run under EPFO?

(a) The Employees' Provident Funds Scheme
(b) The Employees' Deposit Linked Insurance Scheme
(c) The Employees’ gratuity scheme
(d) The Employees' Pension Scheme

Correct Answer: (c) The Employees’ gratuity scheme

Solution:

It has 3 different schemes
• The Employees' Provident Funds Scheme, 1952 (EPF).
• The Employees' Deposit Linked Insurance Scheme, 1976 (EDLI).
• The Employees' Pension Scheme, 1995 (EPS).

32. When did the Pension Fund Regulatory and Development Authority come into existence

(a) 1955
(b) 1972
(c) 2003
(d) 2015

Solution:

The Government of India established Pension Fund Regulatory and Development Authority (PFRDA) on 10th October, 2003. Its purpose is to develop and regulate pension sector in the country.

33. When was the National Pension Scheme launched in the country?

(a) 2002
(b) 2004
(c) 2014
(d) 2015

Correct Answer: (b) 2004

Solution:

The National Pension System (NPS), launched on 1st January 2004, provides retirement income to all citizens. It hopes to encourage citizens to develop the habit of saving for retirement.

34. What is the coverage population of the National Pension Scheme?

(a) New government recruits
(b) New government recruits except armed forces
(c) All citizens of the country
(d) All employees except those in the unorganized sector

Correct Answer: (c) All citizens of the country

Solution:

Initially, NPS was introduced for the new government recruits (except armed forces). Since 1st May 2009, NPS has been provided for all citizens of the country including the unorganised sector workers.

35. What is Tier-I account under National Pension Scheme?

(a) You cannot withdraw under Tier-I account until you are 60 years of age
(b) You cannot withdraw under Tier-I account until 60 except under emergency conditions
(c) You cannot withdraw under Tier-I account until you have been a member for 10 years
(d) You cannot withdraw more than 25% from this account before the age of 60.

Correct Answer: (b) You cannot withdraw under Tier-I account until 60 except under emergency conditions

Solution:

This is a type of account in which you cannot withdraw the money until you reach 60 years of age. Partial withdrawal is allowed in certain scenarios like critical illness, buying a house or wedding.
All central government employees must contribute 10 percent of their basic salary to this account as well as DP and DA. The minimum amount that needs to be contributed in INR 6,000 a year. If you invest in this account, then you can get a tax benefit of up to INR 2 lakh per annum.

36. Which of the following is not true about Tier-II account under NPS

(a) It is like savings account
(b) You need to ensure that the account has INR 2000 at the end of the year
(c) You need to open the account with Rs.5000 minimum
(d) There are no tax benefits in it

Correct Answer: (c) You need to open the account with Rs.5000 minimum

Solution:

This is more like a savings account as there are no restrictions on when and how much money you can withdraw. You need INR 1000 to open this account and need to ensure that it has INR 2000 at the end of the year.
There are no tax benefits you can avail by opening this account. It can be said to be a better version of mutual funds’ investments as the costs are 0.25 percent as compared to 1.5-2 percent.

37. When did the Public Provident Fund come into existence?

(a) 1962
(b) 1968
(c) 1972
(d) 1978

Correct Answer: (b) 1968

Solution:

Public Provident Fund (PPF) - The Public Provident Fund is a savings-cum-tax-saving instrument in India. The National Savings Institute of the Ministry of Finance introduced PPF in 1968.

38. What is the rate of interest under PPF at present?

(a) The rate varies
(b) 9.2%
(c) 8%
(d) 8.1%

Correct Answer: (d) 8.1%

Solution:The government of India decides the rate of interest for PPF account. The current interest rate effective from 1st April 2016 is 8.1% Per Annum (compounded annually).

39. ESI applies on which type of establishments?

(a) Govt. establishment
(b) Both government and private establishment
(c) Any establishment with 10 or more employees
(d) Any establishment with at least 50 employees

Correct Answer: (c) Any establishment with 10 or more employees

Solution:

The Employees’ State Insurance (ESI) Act creates a fund to provide medical care to employees and their families, as well as cash benefits during sickness and maternity, and monthly payments in case of death or disablement for those working in factories and establishments with 10 or more employees.