icro pension means macro business. UTI Mutual Fund has just launched a micro pension scheme for Bihar's milkmen. The scheme was launched by Nitish Kumar, the chief minister of Bihar in Patna recently. For the record, more than 40,000 people joined the initiative on the day of the launch itself, and UTI is expecting this number to grow to about a lakh in Bihar itself, within the coming year.

Under the tie-up with the Bihar State Co-operative Milk Producers' Federation (COMPFED) the five milk unions affiliated with COMPFED will deduct the amount opted for contribution by their members, from the money payable to them in lieu of the milk received from them. The unions will then remit the same to UTI MF for investment in the UTI Retirement Benefit Pension Fund. A portion of the money is invested in equities as per the Offer Document of the scheme. The entire pension wealth can be disbursed to the investor in one go or be used for buying an annuity, on attaining the age of 58 years. The minimum amount payable for the scheme is Rs 100 per month. ... more